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Unaudited interim results and cash dividend announcement for the six months ended 30 September 2018
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)
UNAUDITED INTERIM RESULTS AND CASH DIVIDEND ANNOUNCEMENT
for the six months ended 30 September 2018
EXECUTIVE OVERVIEW
Alexander Forbes is dedicated to delivering outstanding employee benefits solutions, administrative
services and investment management solutions for institutional clients and to securing the financial
well-being of individual members. We do this by offering a broad range of retirement, consulting,
asset management, insurance and wealth management solutions.
The operating environment has been difficult over the reporting period, with the domestic economy
having entered a technical recession. Underlying economic activity remains weak due to low business
and consumer confidence combined with sustained levels of high formal unemployment. Broad-based job
shedding in all sectors has resulted in fewer members added for retirement benefits in formal employment.
In an increasingly competitive and low growth environment, Alexander Forbes continues to be a trusted
advisor to our customers by leveraging our core strengths in employee benefits, administrative services
and investment management solutions. These core strengths are complemented with innovative product
offerings, member education, enhanced member interaction tools and improved customer service levels.
Under the leadership of Dawie de Villiers, Alexander Forbes' newly appointed group chief executive,
the group is reviewing its market positioning and business model to unlock the inherent value potential
within the group. The review will focus on strengthening our competitive position in the employee
benefits, savings and retirement markets and position the business appropriately for profitable growth
together with commensurate returns on capital invested.
HIGHLIGHTS
- Operating income increased by 6% to R1 908 million with resilient performance across key business
areas, largely attributable to:
- Consulting and retirements up 7%
- Investments up 16%
- Emerging markets up 10%.
- The group concluded a review of the strategic roadmap and related projects within the IT programme
which resulted in:
- the termination of the contract with the primary implementation partner
- R287 million impairment of capitalised software development assets
- R52 million one-off operating expenses relating to the termination of the contract.
- Profit from operations before non-trading and capital items is down 3% to R442 million:
- excluding the one-off operating expense of R52 million, the profit from operations of the group
would be 9% higher than the comparable prior-year period.
- Profit from continuing operations for the period was down 115%, reflecting a loss of R45 million.
- The business continues to generate strong cash flows, reporting a 5% year-on-year increase in cash
generated from operations to R492 million.
- An interim dividend of 18 cents per share has been declared reflecting the group's optimism with
regards to the sustainability of cash flows.
OVERVIEW OF FINANCIAL RESULTS
FINANCIAL HIGHLIGHTS
Unaudited
2018/2017 Six months ended 30 September
In millions of South African rands (Rm) % change 2018 2017 2016
Operating income (1) (from continuing operations) 6 1 908 1 799 1 748
Profit from operations (before non-trading and capital items) (3) 442 455 435
Trading margin (210 bps) 23.2% 25.3% 24.9%
Operating leverage (2) (360 bps) (3.0%) 0.6% 0.1%
(Loss)/profit from continuing operations (115) (45) 309 306
Headline earnings per share (3) (cents) (23) 16.7 21.7 27.0
Normalised headline earnings per share (cents) (24) 19.2 25.1 30.8
Interim dividend (cents) - 18 18 17
Cash generated (from continuing operations) 5 492 470 490
Closing AuA and AuM (in billions of South African rands) 2 371 363 342
(1) Operating income represents revenue net of direct expenses.
(2) Operating leverage is defined as the difference in growth of operating income against growth of
operating expenses.
(3) The weighted average number of shares in issue (net of treasury shares) decreased to 1 245 million
(2017: 1 279 million) due to the share buy-back programme implemented over the last 12 months.
FINANCIAL REVIEW
Operating income
The 6% year-on-year increase in operating income from continuing operations to R1 908 million reflects
the resilience of Alexander Forbes in the current economic climate. A number of business initiatives
are showing results including:
- 8% increase in operating income in healthcare consulting due to an increase in the regulated cap
commission income and new business wins;
- Improved product mix as well as closer collaboration with Mercer in our Investments business
resulting in a 16% growth in operating income;
- 4% growth in gross written premiums and improvements in the loss ratio in the short-term insurance
segment resulting in an 8% increase in operating income; and
- 10% growth in the Emerging markets business led by the Retirements segment in Botswana.
Despite a 16% increase in annualised premium income in the Group risk segment, the operating income
was impacted by higher reserves related to the increase in disability claims experience.
Operating expenses
The increase in operating expenses of 9% is largely attributable to the costs incurred for the
termination of the IT contract with the primary implementation partner. The corresponding operating
expense of R52 million is due to the ramping down of resources assigned to the project as well as
the settlement agreed for the termination of the contract. Excluding this expense, the group's
operating expenses would have been contained to 5% on the comparable period in the prior year.
The cost-to-income ratio for the period of 76.8% has deteriorated from 74.7% in the comparable
prior-year period. Excluding the costs associated with the termination of the IT contract the cost-
to-income ratio would have decreased to 74.1%.
Profit from operations (before non-trading and capital items)
Profit from operations before non-trading and capital items has decreased by 3% to R442 million
compared to the first six months of last year. Excluding the above-mentioned R52 million operating
expenses corresponding to the termination of the IT contract, profit from operations would be
R494 million, representing an increase of 9% over the comparable prior-year period.
Non-trading and capital items
Non-trading and capital items increased substantially to R385 million (2017: R73 million), as a
result of the impairment of capitalised software development assets of R287 million. The impairment
of the software development assets follows the group's review of the IT programme and includes the
impairment of all development associated with the primary implementation partner. The non-trading
and capital items also include the ongoing accounting for amortisation of intangible
assets amounting to R34 million (2017: R46 million) as well as the results of the insurance
cell-captive facility which are consolidated into the group's results. The accounting for the
amortisation and impairment has no impact on the cash flows of the group during the period.
Investment income
Investment income, which is earned from the regulatory capital and surplus cash position of the group,
declined by R43 million, down 30% to R100 million from the comparable prior-year period due to lower
surplus cash, largely as a result of the distribution of this cash to shareholders. In addition,
investment income of R13 million (2017: R14 million) related to individual policyholder investments
is recorded in the group's income statement due to the fund level taxes and for which an equal tax
liability is raised. This policyholder income (and related tax liability) is excluded from our
normalised earnings when assessing the group's own investment income.
Finance costs
The finance costs of R36 million (2017: R48 million) are largely due to costs associated with the
group's revolving credit facility. The facility is linked to the JIBAR interest rate and the
borrowings against this facility remain unchanged from the year-end at R719 million. The decline in
finance costs is due to the decrease in the hedge cost associated with the IT systems development.
Reported profit arising from accounting for policyholder investments in treasury shares
The reported profit of R20 million (2017: loss of R11 million) arising from the accounting for
policyholder investments as treasury shares for the period is separately disclosed on the face of
the income statement. 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 the group'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 14. This accounting treatment has the effect that
fair value movements in respect of linked investment policy assets and liabilities that would
normally be off-set (and economically should be off-set) 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 the group's consolidated income statement, whereas no actual economic
profit or loss will ever be realised by the group.
Profit before taxation
After non-trading and capital items, finance charges and the effect of the policyholder investments
explained above, the group's profit before taxation from continuing operations of R141 million is
70% lower than the comparable prior-year period. The effective tax rate excluding the policyholder
tax is 135% largely due to the non-deductible impairment of capitalised software development assets.
This resulted in a loss from continuing operations of R45 million (2017: profit of R309 million).
Headline earnings
Excluding the impairment of software development assets, the group reported headline earnings of
R208 million, representing a 25% decline on the comparable prior-year period. The weighted average
number of shares decreased 3% to 1 245 million (2017: 1 279 million) as a result of the share
buy-back programme which was approved by shareholders and implemented over the last 12 months.
Headline earnings per share decreased by 23% to 16.7 cents per share (2017: 21.7 cents per share).
Cash flow and capital resources
The group's cash flows continue to be predictably strong with cash generated from operations of
R492 million up 5% against the comparable period last year. The group maintains a surplus cash balance
of R1.2 billion after the annual dividend of R307 million paid to shareholders during the period.
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. As at 30 September 2018
the consolidated regulatory capital requirement of the group was R1.6 billion which is in line with
the balance at 31 March 2018. Using the measures and interpretations under the Solvency Assessment
and Management (SAM) standard, the group has a surplus of R1.1 billion (before the proposed interim
dividend distribution).
INTERIM DIVIDEND
Taking into account the group's current and projected regulatory position, the available cash in the
group as well as the highly cash-generative nature of the group, a dividend declaration has been considered.
The board of directors have declared an interim gross cash dividend of 18 cents (14.4 cents net of
dividend withholding tax) per ordinary share for the six months ended 30 September 2018, unchanged from
the comparable prior-year period.
The dividend has 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, 8 January 2019
- Shares commence trading 'ex' dividend: Wednesday, 9 January 2019
- Record date: Friday, 11 January 2019
- Payment date: Monday, 14 January 2019
Share certificates may not be dematerialised or rematerialised between Wednesday, 9 January 2019 and
Friday, 11 January 2019, both days inclusive.
DIVISIONAL REVIEW OF OPERATIONS
During the financial year ended 31 March 2018 the group decided to align its financial reporting with
the way it operates and to reflect its operational focus, performance management and support structures
within the business. The group reports its internal segmental reporting as follows:
Institutional:
- Corporate & employee benefits
- Investments
Retail:
- Wealth and investments
- Retail insurance
Emerging markets
Administration only
Corporate
To allow for year-on-year segment report comparison, the 2017 interim information has been adjusted
to reflect these changes retrospectively.
INSTITUTIONAL CLIENTS
Corporate & employee benefits
Corporate & employee benefits provides retirements administration, asset and actuarial consulting,
healthcare consulting and administration, as well as group risk solutions to our institutional clients.
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm Sept 2018 % Sept 2017 Sept 2018 % Sept 2017
Consulting and retirements 585 7 545 81 (11) 91
Group risk 27 (29) 38 (3) <(100) 15
Corporate & employee benefits 612 5 583 78 (26) 106
Corporate & employee benefits delivered a 5% growth in operating income to R612 million. The operating
income of this division was negatively impacted by the South African macroeconomic environment and a
further decline of the formal workforce. Profit from operations before non-trading and capital items
declined 26% to R78 million.
Consulting and retirements
This segment includes consulting and actuarial, healthcare consulting and retirements.
Our consulting teams provide advice to our clients with comprehensive employee benefits solutions
which assist in embedding sustainable long-term relationships and trust. Greater success can be
attributed to closer collaboration with Mercer to deliver a global benefits management proposition
to both Alexander Forbes and Mercer global clients.
The operating income from consulting and actuarial increased 5% when compared to the comparable
prior-year period, largely attributable to the renewed focus on multicarrier consulting and the
full year financial impact of client wins from the previous financial year.
Operating income from the healthcare consulting business increased 8% when compared to the
comparable prior-year period, resulting from an increase in the regulated cap for commission income
for broking services and annualised value of new business wins in the previous financial year.
Strategic partnerships with external parties that were concluded in the previous financial year are
making a positive contribution, particularly in our health risk management business where we focus
on managing absenteeism and incapacity in the workplace.
Alexander Forbes Retirement Funds (AFRF), which is reported under our Retirements segment, remains
a market leader in the umbrella funds industry providing relevant and cost-effective solutions to
the South African market. Operating income from Retirements increased by 9% year-on-year, largely
driven by conversions from Administration only clients. This growth has resulted in the increase in
the number of active member records up 1% year-on-year and the growth in the number of umbrella funds
clients (participating employers), up 5% year-on-year.
Closing assets under management (AuM) for the umbrella funds increased by 9% to R79.8 billion at
30 September 2018. This can be attributed to a combination of market performance and asset inflows.
In line with default regulations, we launched our enhanced Alexander Forbes Retirement Income Solutions
(AFRIS) in February 2018 to complement our Retirements service offering, which has retained assets of
R1.4 billion at 30 September 2018.
AF Empower has partnered with an online learning platform - Degreed and secured sole rights for Africa
to deliver innovative learning solutions to our corporate clients, thereby extending our business-to-
business value proposition. The platform aims to foster a continuous learning culture and improved
career development.
The Consulting and retirements costs increased 11% to R504 million (2017: R454 million) during the
period largely attributable to an increase in various client service and marketing initiatives
undertaken in the period. This increase in costs has resulted in a decrease of 11% in profit from
operations before non-trading and capital items for the period to R81 million (2017: R91 million).
Group risk
Group risk grew annualised premium income by 16% to R621 million at 30 September 2018. As previously
reported the business went through a process of enhancing actuarial data associated with the reserving
for claims, providing additional margin for claims incurred but not yet notified and for pending claims.
In addition, a decision to strengthen the balance sheet has resulted in higher reserves impacting the
underwriting results. An industry-wide increase of 22% in disability claims has further impacted our
assumptions, therefore requiring additional reserving. Operating income for the Group risk business
has declined 29% to R27 million as a result of these adjustments.
The operating expenses within this division have increased 30% (R7 million) from the comparable prior-year period.
This increase is as a result of the decision to discontinue providing retail life policies and the
related shared costs being absorbed in Group risk.
Investments
AF Investments is a multi-manager investment provider that manages investments to achieve client-specific
outcomes with a greater degree of certainty. AF Investments manage investments through asset allocation,
strategic allocation and manager selection and further leverages its research, investment skills and
capability through partnerships and strategic alliances with Mercer to provide effective management of
risk within portfolios.
Operating income grew by 16% for the six months to 30 September 2018, supported by strong market
performance, delivery on investment strategies and an improvement in the net blended margin.
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm Sept 2018 % Sept 2017 Sept 2018 % Sept 2017
Investments 388 16 335 217 17 186
The reported total Assets under Administration and Management (AuA and AuM) was R371.1 billion at
30 September 2018. The assets are segregated as follows:
30 September 2018 30 September 2017
Rbn Institutional Retail Total Institutional Retail Total
Assets under Management 255.0 60.1 315.1 248.2 56.7 304.9
Assets under Administration 50.7 5.3 56.0 51.1 7.0 58.1
Total AuA and AuM 305.7 65.4 371.1 299.3 63.7 363.0
AuM grew by 3% year-on-year while total AuA and AuM grew by 2% year-on-year. For the six months ended
30 September 2018 the blended market return was 7.4%, underpinned by positive equity market performance
in the initial months of the financial year. Our flagship portfolio, Performer, grew by 15% year-on-year
to R118.4 billion as at 30 September 2018.
The blended net margin improved to 25.2 bps, a 2.5 bps increase from 30 September 2017 and 1.7 bps
increase from 31 March 2018. Margin enhancement was achieved by offering additional services, lowering
direct product costs and developing new initiatives including alternative asset classes, fund of hedge
funds as well as private market funds. AF Investments has also enhanced the offshore offering in
conjunction with strategic alliance partner Mercer and has brought the smart beta capabilities in-house.
A summary of the cash flows for the six months to 30 September 2018 is shown below.
30 September 2018 30 September 2017
Rbn Institutional Retail Total Institutional Retail Total
Controllable (2.0) - (2.0) 4.6 - 4.6
New business 1.6 -(1) 1.6 5.8 -(1) 5.8
Outflows owing to client losses (3.6) - (3.6) (1.2) - (1.2)
Uncontrollable (2.8) (0.1) (2.9) (4.6) (0.9) (5.5)
Ongoing contributions 20.8 5.0(1) 25.8 12.8 3.2(1) 16.0
Withdrawals for benefit payments (23.6) (5.1) (28.7) (17.4) (4.1) (21.5)
Withdrawal from platform (0.9) - (0.9) - - -
Net cash outflows (5.7) (0.1) (5.8) - (0.9) (0.9)
(1) The ongoing contribution in Retail represents the capture of outflows from Institutional members
in line with our retail strategy. This represents new business flows to the Retail division.
Net cash outflows were experienced over the period of R5.8 billion for Investments. For the Institutional
business, R1.6 billion new business AuM flowed in the period with a further R2.5 billion assets awaiting
transfer pending approval from regulators. Further outflows are anticipated from the platform business
as we continue to de-emphasise this lower-margin business. Uncontrollable cash outflows continue to be
negative, influenced by factors prevalent across the retirement fund industry.
Extensive work has been undertaken in the period to define the sales culture and process of the business.
In addition strong senior staff appointments have been made to lead strategies and strengthen the
business skills. The 15% increase in expenses include the costs associated with the strengthened team.
Profit from operations increased 17% to R217 million for the period under review.
RETAIL CLIENTS
The Retail clients division helps our members optimise their financial well-being along their life
journey through an advice-led strategy of focusing on the needs of individuals. The division's key
focus is to create, grow and protect the assets and wealth of our members and individual clients.
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm Sept 2018 % Sept 2017 Sept 2018 % Sept 2017
Wealth and investments 447 5 424 194 4 186
Retail insurance 279 3 271 90 50 60
Retail clients 726 4 695 284 15 246
During the period under review, the Retail clients' division grew operating income by 4% to R726 million
and profit from operations increased by 15% to R284 million. The increase in operating profit was driven
by an increase in new business in the Financial planning consultants (FPC) division and improved
underwriting results in short-term insurance business.
Wealth and investments
Operating income grew by 5% to R447 million for the six months ended 30 September 2018. While continuing
to drive cost-efficiencies, the business has invested in new resources and skills to drive future growth
and innovation. This has led to a 4% increase in profit from operations to R194 million.
Under the current economic conditions, more South Africans are choosing to take their retirement funds
in cash rather than preserving these funds for the future. Consequently, during the period under
review, assets being preserved on exit and retirement decreased to 55% from 57% in the prior year.
In a challenging market where members are pressured to preserve their wealth when changing employers
and tempted to withdraw funds, member education activities are required to ensure that both the short
and long-term needs of members are met. The members accessed through these education activities
increased to 25 000 in the period under review from 18 000, while financial well-being sessions at
our corporate clients increased to 2 160 interventions from 1 404.
The continued presence and success of FPC has resulted in an improvement to the capture rate of
preserved exit and retirement flows to 42% from 41% in the prior year.
In addition to the assets under management and administration reflected in the table above
(in Investments), the division also advises clients whose assets are not administered by
Alexander Forbes. The total assets under advisement increased by 5% to R71.1 billion in the period
under review.
Retail insurance
The retail insurance businesses reported a 3% increase in operating income to R279 million. Profit
from operations improved by 50% to R90 million.
Gross written premium in the Alexander Forbes short-term insurance business increased by 4% to
R823 million for the period, with the business continuing to grow based on competitive product
offerings and improved service levels. New business has increased by 11% in the motor and household
portfolio compared to the comparable prior-year period. The loss ratio for motor and household
business ended on 66.1% for the six months ended 30 September 2018, an improvement on the 67.3%
reported in the comparable prior-year period. It should be noted that the loss ratio is seasonal
with higher claims expected over the fourth quarter; despite this management is on track to meet
the annual targeted loss ratio.
The group has made a strategic decision to discontinue providing AF Life individual insurance policies
as of 1 July 2018. The existing policies will continue to be serviced but no new policies will be
written. The operations of the business have been adjusted to reflect this decision, which resulted
in a decrease in operating expenses. The declining in-force book has resulted in an increase in
reserves which have been included in the results.
As a result of a focus on process improvement, productivity enhancement and the discontinuing of
AF Life individual insurance, the Insurance cluster has shown a 10% decrease in operating expenses
from the comparable prior-year period. Profit from operations increased 50% year-on-year to
R90 million. Further investment into the short-term insurance distribution capability is expected
in the second half of the year.
EMERGING MARKETS (COVERING ALL OPERATIONS IN AFRICA OUTSIDE SOUTH AFRICA)
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm Sept 2018 % Sept 2017 Sept 2018 % Sept 2017
Emerging markets
Namibia 78 3 76 24 20 20
Botswana 44 22 36 12 >100 4
Other EM countries 5 67 3 (2) 67 (6)
AFEM head office - - - (12) 8 (13)
Total 127 10 115 22 >100 5
Emerging Markets operates in Botswana, Namibia, Nigeria, Uganda and Zambia.
Namibia and Botswana collectively contribute over 90% of the operating income, with the remainder
coming from smaller operations in Nigeria, Uganda and Zambia. Emerging markets delivered improved
performance with operating income up by 10% compared with the comparable prior-year period which was
led by the Retirements segment in Botswana. Namibia's performance remained fairly muted, with operating
income up 3% over the comparable prior-year period as a result of the continued economic recession
coupled with increased competitive pressure. Cost savings of 5% mostly on non-client facing activities
over the comparable prior-year period were realised through greater efficiency.
Sustainable growth is an ongoing challenge in the industry. Multinational clients require greater
agility in their partnerships as they navigate their business footprint across Africa. In collaboration
with Mercer, Alexander Forbes has successfully launched Arrive, a global benefits proposition with
promising opportunities across our portfolio.
Administration only
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm Sept 2018 % Sept 2017 Sept 2018 % Sept 2017
Administration only 55 (23) 71 - - -
The Administration only segment is separately reported from the consulting division in Corporate & employee
benefits and reflects the revenue earned from clients where fees are earned based on administration services
only. The client relationship for these clients resides with the Operations and administration department.
The strategic objective in this division is to assess the value proposition for standalone clients.
This is achieved by considering simplicity, standardisation, improved governance, effective communication
and improved financial well-being outcomes for individual members. Approximately 75% of the revenue
decline during the period under review is as a result of the Administration only clients being converted
to the umbrella funds within Retirements.
Costs are allocated from the operations department to all client-facing departments. The cost allocation
incorporates the fees earned from Administration only clients and as such the division does not reflect
any profit from operations.
Corporate
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm Sept 2018 % Sept 2017 Sept 2018 % Sept 2017
Corporate costs - - - (154) 97 (78)
Corporate costs include the office of the group chief executive and group chief financial officer, the group
strategy office as well as costs associated with the listed holding company including non-executive directors'
fees. The Corporate costs also include the consulting costs and project costs associated with the group's
implementation of strategy. The significant increase in Corporate costs are due to the costs associated
with the termination of the IT contract amounting to R52 million. In addition, the group has incurred
consulting costs relating to the review of the legal and capital structure.
PROSPECTS
Alexander Forbes continues to be a trusted brand with market-leading businesses offering a strong value
proposition to our clients. The business is well placed to use this foundation to build trust and continue
to make a difference in the lives of our clients and members.
The second half of the year is expected to bring additional challenges including the impact of client
losses experienced in the period under review and ongoing competitive pressure.
Under the leadership of Dawie de Villiers, Alexander Forbes' newly appointed group chief executive,
the group is in the process of undertaking a strategic review with the aim to ensure its relevance
in South Africa, to assess the opportunities for growth and unlock the value potential across the group.
The strategic review is intended to strengthen our competitive position and allow sustainable performance
in our employee benefits, savings and retirement markets, anchored on our value proposition as providers
of advice-led solutions. The review will be concluded and presented to the board by the end of the
current financial year.
Alexander Forbes is confident about the prospects of growth and development within South Africa and
believes that the group is well placed to capitalise on the changes in the employee benefits environment
in the long term.
CHANGE IN DIRECTORATE
Mr T Dloti was appointed as independent non-executive director effective 1 August 2018. The services
of Mr AA Darfoor as group chief executive were terminated effective 25 September 2018 and Mr DJ de Villiers
replaced Mr AA Darfoor as group chief executive effective 1 November 2018. Ms N Ford-Hoon (Fok) resigned
as the group chief financial officer with effect from 31 December 2018.
CORPORATE GOVERNANCE
The company's application of the principles contained in the King IV Report on Corporate Governance for
South Africa (King IV) is disclosed in the King IV report available on the company's website. No material
changes in application have occurred since the publication of that report as part of the FY2018 annual
reporting suite of documents.
On behalf of the board of directors
N Nyembezi DJ de Villiers
Chairman Group chief executive
11 December 2018
The Alexander Forbes Group Holdings Limited (the group) condensed consolidated interim results,
including the statement of financial position, income statement, statement of other comprehensive
income, statement of changes in equity and statement of cash flows, for the six months ended
30 September 2018 (results) are prepared in accordance with the requirements of the JSE Limited
(JSE) Listings Requirements, 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 condensed financial statements.
The group's results are prepared in accordance with the going concern principle under the historical
cost basis as modified by the fair value accounting of certain assets and liabilities where required
or permitted by IFRS. This report is presented in South African rand, which is the presentation
currency of the group. All amounts are stated in millions of rand (Rm), unless indicated otherwise.
The accounting policies applied in the preparation of these condensed consolidated interim results
are in terms of IFRS and are consistent with the accounting policies applied in the preparation of
the group's previous audited consolidated annual financial statements, except as modified by the
adoption of IFRS 9 Financial Instruments (IFRS 9) and IFRS 15 Revenue from Contracts with Customers
(IFRS 15). The group adopted IFRS 9 and IFRS 15 with effect from 1 April 2018.
The group has, as permitted by both IFRS 9 and IFRS 15, elected not to restate its comparative
financial statements. Consequently, comparability will not be achieved by the fact that the comparative
financial information has been prepared on a different basis. The impact of adopting IFRS 9 has been
applied retrospectively with a cumulative adjustment to the group's opening 1 April 2018 reserves.
Any financial information contained in this announcement that may be construed as forecast information
has not been reviewed or reported on by the group's external auditors. Additionally, these interim
results have not been audited or reviewed by the group's external auditors. The group's 2018 annual
financial information has been extracted from the underlying audited consolidated annual financial
statements for the year ended 31 March 2018. The directors of the group take full responsibility
for the preparation of this report.
In terms of the JSE Listings Requirements, the group no longer posts a physical copy of this
announcement to its shareholders. Investors are referred to http://www.alexanderforbes.co.za where a
detailed analysis of the group's financial results for Alexander Forbes Group Holdings Limited,
can be found.
These condensed consolidated financial statements were compiled under the supervision of
Naidene Ford-Hoon (Fok), CA(SA), the group chief financial officer.
The results were made publicly available on 11 December 2018.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 September 2018
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm Notes 2018 2017 2018
Continuing operations
Fee and commission revenue 4 2 088 2 000 4 090
Insurance revenue 5 1 283 1 189 2 505
Interest revenue - effective interest method 4 26 19 47
Total revenue 3 397 3 208 6 642
Direct expenses attributable to fee and commission revenue 4 (528) (533) (1 070)
Insurance claims, commissions and withdrawals 5 (917) (835) (1 774)
Net expenses from reinsurance contracts 5 (44) (41) (151)
Operating income net of direct expenses 1 908 1 799 3 647
Operating expenses (1 466) (1 344) (2 661)
Profit from operations before non-trading and capital items 442 455 986
Non-trading and capital items 6 (385) (73) (476)
Operating profit 57 382 510
Investment income 7 100 143 225
Finance costs 8 (36) (48) (97)
Reported profit/(loss) arising from accounting for
policyholder investments in treasury shares 14 20 (11) (24)
Share of profit of associate (net of tax) - 2 -
Profit before taxation 141 468 614
Income tax expense 9 (186) (159) (308)
Income tax expense relating to group profits (173) (145) (319)
Income tax (expense)/credit relating to policyholder
investment returns (13) (14) 11
(Loss)/profit for the period from continuing operations (45) 309 306
Discontinued operations
(Loss)/profit from discontinued operations (net of tax) 10 (2) 15 21
(Loss)/profit for the period (47) 324 327
Attributable to:
Owners of the company (50) 282 240
Non-controlling interest 3 42 87
(47) 324 327
Basic (loss)/earnings per share (cents) 11 (4.0) 22.0 18.9
Diluted basic (loss)/earnings per share (cents) 11 (4.0) 22.0 18.8
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2018
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm 2018 2017 2018
(Loss)/profit for the period (47) 324 327
Other comprehensive income:
Foreign currency translation differences of foreign operations 45 28 (9)
Cash flow hedge 43 3 (37)
Other comprehensive income that may be reclassified to
profit or loss (1) 88 31 (46)
Remeasurement of post-employment benefit obligation - - 3
Other comprehensive income that will not be reclassified
to profit or loss (1) - - 3
Total comprehensive income for the period 41 355 284
Total comprehensive income attributable to:
Owners of the company 31 313 201
Non-controlling interest 10 42 83
Total comprehensive income for the period 41 355 284
(1) Net of related taxes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September 2018
30 Sept 30 Sept 31 Mar
Rm Notes 2018 2017 2018
ASSETS
Financial assets held under multi-manager investment
contracts 14 307 400 298 859 296 758
Financial assets of insurance and cell-captive facilities 392 313 352
Property and equipment 160 188 174
Purchased and developed computer software 6 134 302 400
Goodwill 3 038 3 355 3 038
Intangible assets 356 421 390
Investment in associates - 11 -
Deferred tax assets 180 151 175
Financial assets 15 119 526 445
Insurance receivables 1 423 1 204 1 339
Trade and other receivables 363 411 299
Cash and cash equivalents 5 884 5 970 5 794
Assets of disposal groups classified as held for sale 10 86 70 82
Total assets 319 535 311 781 309 246
EQUITY AND LIABILITIES
Owners of the company 5 632 6 448 6 010
Non-controlling interest 283 251 287
Total equity 5 915 6 699 6 297
Financial liabilities held under multi-manager investment
contracts 14 307 439 298 944 296 825
Liabilities of insurance and cell-captive facilities 392 313 352
Borrowings 719 725 719
Employee benefits 172 166 162
Deferred tax liabilities 117 178 119
Provisions 6 410 306 304
Finance lease liabilities - 72 51
Operating lease liabilities 202 192 197
Insurance payables 3 523 3 464 3 572
Trade and other payables 630 710 634
Liabilities of disposal groups classified as held for sale 10 16 12 14
Total liabilities 313 620 305 082 302 949
Total equity and liabilities 319 535 311 781 309 246
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2018
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm 2018 2017 2018
Cash flows from operating activities
Cash generated from operations 492 470 1 013
Net interest received 50 87 151
Taxation paid (234) (127) (333)
Dividends paid (307) (600) (829)
Net cash flows (paid to)/received from insurance and
policyholder contracts (115) 390 348
Net cash flows (paid to)/received from policyholder
investment contracts (124) 167 (1 920)
Cash flows from operating activities - discontinued operations (1) 1 16
Net cash (outflow)/inflow from operating activities (239) 388 (1 554)
Cash flows from investing activities
Payments for intangible assets - - (3)
Net cash inflow/(outflow) on financial assets 354 (174) (145)
Payments for capital expenditure incurred on property,
equipment and computer software (56) (173) (321)
Net cash inflow/(outflow) from investing activities 298 (347) (469)
Cash flows from financing activities
Purchase of shares in terms of share buy-back transaction (91) (200) (276)
Payments of lease liabilities (51) - (9)
Purchase of shares in terms of share incentive schemes - - (57)
Payments to non-controlling interests (10) (9) (14)
Net cash outflow from financing activities (152) (209) (356)
Decrease in cash and cash equivalents (93) (168) (2 379)
Cash and cash equivalents at the beginning of the period 13 702 16 087 16 087
Effects of exchange rate changes on cash and cash equivalents 62 40 (6)
Cash and cash equivalents at the end of the period 13 671 15 959 13 702
Analysed as follows:
Cash and cash equivalents of continuing operations 5 884 5 970 5 794
Cash held under multi-manager investment contracts 7 755 9 967 7 887
Cash held under insurance cell-captive contracts 14 13 6
Cash and cash equivalents of disposal groups held for sale 18 9 15
13 671 15 959 13 702
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2018
Accumu- Non-con-
Share Treasury Other lated trolling Total
Rm capital shares reserves profit Total interest equity
At 31 March 2017 6 192 (160) (336) 1 205 6 901 218 7 119
Total comprehensive income - - 31 282 313 42 355
Profit for the period - - - 282 282 42 324
Other comprehensive income - - 31 - 31 - 31
Total transactions with owners - (129) (37) (600) (766) (9) (775)
Shares purchased in terms of the share schemes
and share buy-back programme (1) - (200) - - (200) - (200)
Settlement of share incentive schemes (2) - 39 (39) - - - -
Movement of treasury shares in policyholder assets - 32 - - 32 - 32
Dividends paid - - - (600) (600) (9) (609)
Movement in share-based payment reserve - - 2 - 2 - 2
At 30 September 2017 6 192 (289) (342) 887 6 448 251 6 699
Total comprehensive income - - (72) (40) (112) 41 (71)
Profit for the period - - - (42) (42) 45 3
Other comprehensive income - - (72) 2 (70) (4) (74)
Total transactions with owners - (103) 455 (678) (326) (5) (331)
Shares purchased in terms of the share schemes
and share buy-back programme (3) - 133 - - 133 - 133
Movement of treasury shares in policyholder assets - 30 - - 30 - 30
Dividends paid - - - (229) (229) (5) (234)
Movement in share-based payment reserve - - 6 - 6 - 6
Transfer to retained earnings (4) - - 449 (449) - - -
At 31 March 2018 6 192 (392) 41 169 6 010 287 6 297
(1) The group purchased Alexander Forbes Group Holdings Limited shares to the value of R200 million, at an average price of R6.76 per
share, in a general buy-back approved by shareholders.
(2) During the period R26 million of the conditional share incentive scheme and R13 million of the forfeitable share scheme vested.
Both amounts relate to the 2014 tranche.
(3) The group purchased Alexander Forbes Group Holdings Limited shares to the value of R76 million, at an average price of R7.10 per share,
in a general buy-back approved by shareholders. In addition shares to the value of R57 million were purchased for the shareholder-
approved share incentive schemes.
(4) During the period the group transferred a redemption reserve amounting to R449 million into accumulated profits. This reserve arose in
prior years on the redemption of preference shares. The transfer has a nil impact on total equity, however, results in a reduction
in accumulated profits.
Accumu-
lated Non-con-
Share Treasury Other (loss)/ trolling Total
Rm capital shares reserves profit Total interest equity
At 31 March 2018 6 192 (392) 41 169 6 010 287 6 297
IFRS 9 transition adjustments (1) - - - (36) (36) (4) (40)
Adjusted balance - 1 April 2018 6 192 (392) 41 133 5 974 283 6 257
Total comprehensive income - - 81 (50) 31 10 41
(Loss)/profit for the period - - - (50) (50) 3 (47)
Other comprehensive income - - 81 - 81 7 88
Total transactions with owners - (79) 13 (307) (373) (10) (383)
Shares purchased in terms of the share schemes
and share buy-back programme (2) - (91) - - (91) - (91)
Settlement of share incentive schemes (3) - 4 (4) - - - -
Movement of treasury shares in policyholder assets - 8 - - 8 - 8
Dividends paid - - - (307) (307) (10) (317)
Movement in share-based payment reserve - - 17 - 17 - 17
At 30 September 2018 6 192 (471) 135 (224) 5 632 283 5 915
(1) Refer to note 2.2.
(2) The group purchased Alexander Forbes Group Holdings Limited shares to the value of R91 million during the period, at an average
price of R5.27 per share, in a general buy-back approved by shareholders. In addition shares to the value of R65 million
(12.5 million shares) were transferred from the treasury shares to the shareholder-approved share incentive schemes.
(3) During the period R4 million relating to the 2015 tranche of the forfeitable share scheme vested.
CONDENSED CONSOLIDATED GROUP SEGMENTAL INCOME AND PROFIT ANALYSIS
For the six months ended 30 September 2018
Operating income Profit from operations
net of direct expenses before non-trading and capital items
Rm 2018 % 2017 2018 % 2017
Corporate & employee benefits 612 5 583 78 (26) 106
Consulting and retirements 585 7 545 81 (11) 91
Group risk 27 (29) 38 (3) <(100) 15
Investments 388 16 335 217 17 186
Institutional clients 1 000 9 918 295 1 292
Wealth and investments 447 5 424 194 4 186
Retail insurance 279 3 271 90 50 60
Retail clients 726 4 695 284 15 246
Emerging markets 127 10 115 22 >100 5
Administration only 55 (23) 71 - - -
Corporate - - - (154) 97 (78)
Total group before items below 1 908 6 1 799 447 (4) 465
Normalised earnings before non-trading items 1 908 6 1 799 447 (4) 465
Accounting for property leases - - - (5) (50) (10)
Total group 1 908 6 1 799 442 (3) 455
Rm 2018 % 2017
Normalised earnings before non-trading items 447 (4) 465
Non-trading and capital items (excluding amortisation of PPA intangible assets
and professional indemnity insurance cell-captive results) (317) (28)
Investment income (excluding policyholder investment income) 87 129
Finance costs (36) (48)
Share of profit of associates (net of tax) - 2
Normalised profit before tax 181 (65) 520
Normalised income tax expense (194) (161)
Normalised (loss)/profit after tax (13) <(100) 359
Loss from discontinued operations (2) -
Normalised (loss)/profit for the period (15) <(100) 359
Attributable to non-controlling interest (3) (39)
Normalised (loss)/profit attributable to shareholders (18) <(100) 320
Normalised (loss)/earnings per share (cents) (1.4) <(100) 24.7
Normalised headline earnings per share (cents) 19.2 (24) 25.1
Normalised weighted average number of shares in issue (million) 1 255 1 296
During the financial year ended 31 March 2018 the group decided to simplify its financial reporting to align with
the way it operates. The segmental analysis above, which is consistent with 31 March 2018, represents a change
from the segmental report presented at 30 September 2017. Owing to this change the prior year's numbers have
been restated to provide the appropriate comparative numbers. Refer to Annexure A for the detailed group segmental
and profit analysis.
SUMMARY NOTES
For the six months ended 30 September 2018
1. BASIS OF PREPARATION
The Alexander Forbes Group Holdings Limited (the group) condensed consolidated interim results,
including the statement of financial position, income statement, statement of other comprehensive
income, statement of changes in equity and statement of cash flows, for the six months ended
30 September 2018 (results) are prepared in accordance with the requirements of the JSE Limited
(JSE) Listings Requirements, 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 condensed financial
statements.
The group's results are prepared in accordance with the going concern principle under the
historical cost basis as modified by the fair value accounting of certain assets and liabilities
where required or permitted by IFRS. This report is presented in South African rand, which is
the presentation currency of the group. All amounts are stated in millions of rand (Rm), unless
indicated otherwise.
The accounting policies applied in the preparation of these condensed consolidated interim
results are in terms of IFRS and are consistent with the accounting policies applied in the
preparation of the group's previous audited consolidated annual financial statements, except
as modified by the adoption of IFRS 9 Financial Instruments (IFRS 9) and IFRS 15 Revenue from
Contracts with Customers. The group adopted IFRS 9 and IFRS 15 with effect from 1 April 2018.
The group has, as permitted by both IFRS 9 and IFRS 15, elected not to restate its comparative
financial statements. Therefore comparability will not be achieved due to the fact that the
comparative financial information has been prepared on a different basis. The impact of adopting
IFRS 9 has been applied retrospectively with an adjustment to the group's opening 1 April 2018
accumulated profits. For more detail refer to notes 2.1 and 2.2.
These interim results have not been audited or independently reviewed by the group's external
auditors. The group's 2018 annual financial information has been extracted from the underlying
audited consolidated annual financial statements for the year ended 31 March 2018. The directors
of the group take full responsibility for the preparation of this report.
These condensed consolidated financial statements were compiled under the supervision of
Naidene Ford-Hoon (Fok), CA(SA), the group chief financial officer.
2. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND PRESENTATION
This note explains the impact of the adoption of IFRS 9 Financial Instruments and IFRS 15
Revenue from Contracts with Customers on the group's financial statements and discloses the new
accounting policies that have been applied from 1 April 2018, where they are different to those
applied in prior periods. The changes in accounting policies are also expected to be reflected
in the group's consolidated financial statements for the year ending 31 March 2019. The effect
of initially applying these standards are mainly attributed to an increase in impairment losses
recognised on financial assets as well as reclassification of payments to customers from direct
expenses to fee and commission revenue.
2.1 IFRS 15 Revenue from Contracts with Customers - fee and commission revenue
IFRS 15 establishes a comprehensive framework for determining whether, how much and when
revenue is recognised. It replaced IAS 18 Revenue, IAS 11 Construction Contracts and
related interpretations. The group has adopted IFRS 15 using the cumulative effect method
(with practical expedients), however with no material financial effect of initially
applying this standard recognised at the date of initial application, 1 April 2018.
Accordingly, the information presented for 2017 has not been restated - i.e. it is
presented, as previously reported, under IAS 18, IAS 11 and related interpretations.
The adoption of IFRS 15 has resulted in fee and commission revenue of R2 088 million and
related direct expenses of R528 million being reported in the current period compared to
fee and commission revenue of R2 097 million and related direct expenses of R537 million
had the previous accounting standard been applied. The impact on operating income net of
direct expenses is nil.
The details of the new significant accounting policies and the nature of the changes to
previous accounting policies in relation to the group's various goods and services are set
out below. Under IFRS 15 revenue is recognised when a customer obtains control of the goods
or services. Determining the timing of the transfer of control - at a point in time or over
time - requires judgement.
Type of product/service Nature, timing of satisfaction of performance obligations, significant payment terms Impact of change in accounting policy
Consulting fees; Consulting fees - comprise fees earned in respect of advisory services. Fees derived IFRS 15 did not have a significant
Administration fees from consulting services are recognised over time as the customer receives benefits impact on the group's interim results.
(Consulting and as services are performed. Prior to the adoption of IFRS 15 revenue from consulting
administration) services was recognised based on the stage of completion as the related services
were rendered. There are no differences between the amounts recognised under IFRS 15
and those that would have been recognised under previous accounting standards.
Consulting contracts do not have significant financing arrangements and no discounts
are provided to clients.
Actuarial consulting fees Actuarial consulting fees - comprise fees earned in respect of actuarial reports and IFRS 15 did not have a significant
(Consulting) other ad hoc reports prepared for our clients. Actuarial consulting arrangements impact on the group's interim results.
bear a fixed fee which is only payable on delivery of an actuarial report. Fees
derived from actuarial consulting services are recognised at a point in time as the
customer receives benefit on delivery of the actuarial report. Prior to the adoption
of IFRS 15 revenue from consulting services was recognised based on the stage of
completion as the related services were rendered.
Insured commission income Insured commission income - is derived from brokerage services and consulting IFRS 15 did not have a significant
(Commission) services. The revenue relating to brokerage services is recognised on placement of a impact on the group's interim results.
client. The consulting services portion is amortised over the term of the contract
which is normally a year. The commission is received upfront and management has
concluded, based on history, that that it is highly probable that there will not
be a significant reversal of revenue. There are no differences between the amounts
recognised under IFRS 15 and those that would have been recognised under previous
accounting standards.
Healthcare commission Healthcare commission income - comprises commissions earned in respect of healthcare IFRS 15 did not have a significant
income (Commission) products. Prior to IFRS 15 the company recognised the income on a monthly basis. The impact on the group's interim results.
brokerage services contracts are renewable on an annual basis.
Under IFRS 15 the company has identified a single performance obligation which
is satisfied over time. The company shall continue to recognise and record the
commission income on a monthly basis. Consequently, there are no differences between
the amounts recognised under IFRS 15 and those that would have been recognised under
previous accounting standards.
Payments made to healthcare clients were classified as direct costs. On the adoption
of IFRS 15 these costs are now deducted from the fees generated from those clients,
thereby reducing the amount of revenue that would have been recognised. The effect
on operating income net of direct expenses is nil.
Transition management fees Transition management fees - comprise fees earned for services provided in relation IFRS 15 did not have a significant
(Asset based) to the transfer of investment assets. Prior to IFRS 15 transition management fees impact on the group's interim results.
were recognised in income on transfer by reference to the net asset value of the
assets transferred.
Under IFRS 15 the company has identified a single performance obligation which is
satisfied at a point in time. The company shall continue to recognise transition
management fees in income on transfer of investment assets by reference to the net
asset value of the assets transferred.
Multi-manager investment Multi-manager investment fees - comprise fees earned for multi-manager investment IFRS 15 did not have a significant
fees (Asset based) and administration. Under IFRS 15 management has identified one performance impact on the group's interim results.
obligation, being ongoing investment management and administration services the
reason being that initial administration fees cannot be associated with services
provided at inception of the contract. Consequently, initial administration fees
will continue to be brought to book upon inception of the investment contract and
recognised on a straight-line basis over the expected period of the contract.
Ongoing investment management and administration services are considered a series
of distinct services that are substantially the same and have the same pattern
of transfer to the client. These are recognised over time and determined on a
daily basis. Consequently, there are no differences between the amounts recognised
under IFRS 15 and those that would have been recognised under previous accounting
standards.
2.2 IFRS 9 Financial Instruments
IFRS 9 sets out requirements for recognising and measuring financial assets, financial liabilities
and some contracts to buy or sell non-financial items. This standard replaces IAS 39 Financial
Instruments: Recognition and Measurement.
The effect of adopting IFRS 9 on the carrying amounts of financial assets at 1 April 2018
relates solely to the new impairment requirements, as described further below.
Loan receivable
The group has a loan receivable currently carried at R29 million. Under the previous accounting
standard (IAS 39) there was no objective evidence that this loan receivable was impaired.
IFRS 9 contains a new impairment model which will result in earlier recognition of losses.
The likely outcomes for the collection of this receivable are variable with a greater likelihood
that the group will suffer credit losses to the full value of the loan receivable. Consequently,
this loan receivable has been provided for in full and against opening accumulated profits.
Long-outstanding trade receivable
One of the subsidiaries has a long-outstanding trade receivable amounting to R11 million.
Under the previous accounting standard (IAS 39) there was no objective evidence that the
counterparty to the trade receivable was unable to pay. IFRS 9 contains a new impairment
model which will result in earlier recognition of losses. In applying the new guidance
management expects a greater likelihood that the group will suffer credit losses to the
full value of the trade receivable. Consequently, this trade receivable has been provided
for in full and against opening accumulated profits.
Six months
30 Sept
Rm 2018
Opening accumulated profits
Recognition of expected credit losses under IFRS 9 (net of related taxes) (36)
Impact at 1 April 2018 (36)
Non-controlling interest
Recognition of expected credit losses under IFRS 9 (net of related taxes) (4)
Impact at 1 April 2018 (4)
Financial assets
As reported 119
IFRS 9 expected credit losses 29
Amounts without adoption of IFRS 9 148
Trade and other receivables
As reported 363
IFRS 9 expected credit losses 11
Amounts without adoption of IFRS 9 374
2.3 Changes in presentation of 'Operating income net of direct expenses'
As part of a financial statement enhancement exercise aimed at assisting the user to better
estimate the amounts, nature and timing of cash flows, management has revised the presentation
of the income statement with a focus on amounts included in the determination of operating
income net of direct expenses. This revision has resulted in the group presenting total
revenue for the first time. Management wants to emphasise that this revised presentation
does not affect the caption 'operating income net of direct expenses'. This change in
presentation has no impact on taxes and non-controlling interest as it is merely a
reclassification between items of 'operating income net of direct expenses'.
The impact of the reclassification is as follows and is reflected in 2.3.1 and 2.3.2 below:
- Insurance revenue comprising gross written premiums and commission earned has been
reclassified from net income from insurance operations.
- The net expenses from reinsurance contracts have been reclassified from net income from
insurance operations and disclosed as a separate direct expense.
- Interest revenue determined using the effective interest method has been separately
presented - reclassified from fee and commission income as well as from net income from
insurance operations.
2.3.1 Restatement of operating income net of direct expenses for 30 September 2017
Reported in As
the current Re- previously
Rm results classification reported
Fee and commission income 2 000 (2) 2 002
Insurance revenue 1 189 1 189 -
Net income from insurance operations - (330) 330
Interest revenue - effective interest method 19 19 -
Total revenue 3 208 * *
Direct expenses attributable to fee and
commission income (533) - (533)
Insurance claims, commissions and withdrawals (835) (835) -
Net expenses from reinsurance contracts (41) (41) -
Operating income net of direct expenses 1 799 - 1 799
* Not shown on the face of the income statement.
2.3.2 Restatement of operating income net of direct expenses for 31 March 2018
Reported in As
the current Re- previously
Rm results classification reported
Fee and commission income 4 090 (4) 4 094
Insurance revenue 2 505 2 505 -
Net income from insurance operations - (623) 623
Interest revenue - effective interest method 47 47 -
Total revenue 6 642 * *
Direct expenses attributable to fee and
commission income (1 070) - (1 070)
Insurance claims, commissions and withdrawals (1 774) (1 774) -
Net expenses from reinsurance contracts (151) (151) -
Operating income net of direct expenses 3 647 - 3 647
3. EXCHANGE RATES
Certain transactions of the group occur in foreign currencies. In the current year the most
significant foreign currency is the Great British pound. These transactions have been translated
using the exchange rates below. Other less material foreign subsidiaries have been translated
to rand in line with IAS 21 The Effects of Changes in Foreign Exchange Rates, using the weighted
average rates for income statement items and the closing rates for items in the statement of
financial position.
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
2018 2017 2018
Weighted average R:GBP rate 18.3 17.0 17.0
Closing R:GBP rate 18.5 18.1 16.6
* Not shown on the face of the income statement.
4. FEE AND COMMISSION REVENUE
The group's operations and main revenue streams are those described in the last annual financial
statements. The group's revenue is derived from contracts with customers, except for insurance
revenue. The nature and effect of initially applying IFRS 15 on the group's interim financial
statements are disclosed in note 2.
Disaggregation of revenue
Primary segments
Emerging Administration
Institutional Retail markets only Total
Rm 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Secondary segments
Consulting and retirements 789 747 - - - - - - 789 747
Investments 435 409 - - - - - - 435 409
Wealth and investments - - 693 664 - - - - 693 664
Emerging markets - - - - 111 102 - - 111 102
Administration only - - - - - - 60 78 60 78
Total 1 224 1 156 693 664 111 102 60 78 2 088 2 000
Revenue by type
Consulting 99 101 387 369 20 21 18 24 524 515
Administration 316 293 - - 76 66 42 54 434 413
Commission 145 138 6 5 - - - - 151 143
Asset based 664 624 299 289 15 15 - - 978 928
Other - - 1 1 - - - - 1 1
Total 1 224 1 156 693 664 111 102 60 78 2 088 2 000
Region
South Africa 1 222 1 150 638 624 - - 60 78 1 920 1 852
Namibia - - - - 61 63 - - 61 63
Botswana - - - - 45 36 - - 45 36
Jersey and Channel Islands 2 6 55 40 - - - - 57 46
Other - - - - 5 3 - - 5 3
Total 1 224 1 156 693 664 111 102 60 78 2 088 2 000
Timing of revenue recognition
Products transferred at a
point in time 18 23 - - 8 3 - - 26 26
Services transferred over time 1 206 1 133 693 664 103 99 60 78 2 062 1 974
Total 1 224 1 156 693 664 111 102 60 78 2 088 2 000
Fee and commission revenue 1 224 1 156 693 664 111 102 60 78 2 088 2 000
Plus: Net insurance income
excluding interest income 24 39 274 253 24 21 - - 322 313
Insurance revenue 302 246 893 855 88 88 - - 1 283 1 189
Insurance claims, commissions
and withdrawals (294) (189) (565) (580) (58) (66) - - (917) (835)
Net expenses from reinsurance
contracts 16 (18) (54) (22) (6) (1) - - (44) (41)
Plus: Interest revenue
- effective interest method 16 7 10 12 - - - - 26 19
Interest from insurance operations 14 5 10 12 - - - - 24 17
Other interest 2 2 - - - - - - 2 2
Less: Direct expenses (1) (264) (284) (251) (234) (8) (8) (5) (7) (528) (533)
Operating income net of
direct expenses 1 000 918 726 695 127 115 55 71 1 908 1 799
(1) Direct expenses relate to sub-agent expenses, commissions paid and asset management fees.
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm 2018 2017 2018
5. NET INCOME FROM INSURANCE OPERATIONS
Insurance revenue (1) 1 283 1 189 2 505
Investment revenue from insurance operations (also refer
to note 4) 24 17 43
Less: Insurance claims, commissions and withdrawals (917) (835) (1 774)
Less: Net expenses from reinsurance contracts (44) (41) (151)
Amounts ceded to reinsurers (690) (688) (1 473)
Insurance claims and benefits covered through
reinsurance contracts 646 647 1 322
Net income from insurance operations 346 330 623
6. NON-TRADING AND CAPITAL ITEMS
Non-trading:
Professional indemnity insurance cell-captive result (34) 1 (25)
Amortisation of intangible assets arising from
business combination (34) (46) (80)
Costs relating to strategic consulting engagement (26) (22) (34)
Goodwill written off - - (317)
Impairment/write-off of software (2) (287) (6) (17)
Other (4) - (3)
Total non-trading and capital items (385) (73) (476)
7. INVESTMENT INCOME
Interest income 76 108 210
Investment and dividend income 11 21 31
Foreign exchange losses on intergroup loans - - (5)
Investment income from general operations 87 129 236
Investment returns linked to policyholder tax expense 13 14 (11)
Total investment income 100 143 225
(1) Insurance revenue for short-term insurance includes reinsurance commissions of R185 million
(Sept 2017: R162 million, Mar 2018: R345 million).
(2) Following a thorough review of the strategic roadmap and related projects within the
IT programme by management, the group has decided to terminate the contract with the primary
implementation partner resulting in an onerous provision amounting to R52 million.
In addition, the group assessed the recoverability of software in development and concluded
that no future economic benefit will flow and consequently impaired software amounting to
R287 million.
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm 2018 2017 2018
8. FINANCE COSTS
Finance costs derived from financial liabilities classified
and carried at amortised costs:
Interest on revolving credit facility (29) (30) (60)
Cost of hedging (1) (3) (9) (17)
Other interest costs (4) (9) (20)
Total finance costs (36) (48) (97)
9. INCOME TAX EXPENSE
South African income tax
Current tax (193) (152) (335)
Current period (168) (149) (322)
Prior period (25) (3) (13)
Deferred tax 31 15 39
Current period 28 15 34
Prior period 3 - 5
Foreign income tax
Current tax - current period (7) (6) (16)
Deferred tax - current period - 1 -
Foreign withholding tax (2) (3) (7)
Securities transfer tax (2) - -
Income tax expense relating to group profits (173) (145) (319)
Income tax (expense)/credit on policyholder investment returns (13) (14) 11
Current tax - current period (6) (19) (44)
Deferred tax - current period (7) 5 55
Total income tax expense (186) (159) (308)
(1) These costs represent the movement in forward points on a foreign exchange contract
relating to the IT programme. This forward exchange contract was closed out during the period.
10. DISCONTINUED OPERATIONS
The operations of Alexander Forbes East Africa (East Africa) were classified as a discontinued
operation during the year ended 31 March 2017. The assets and liabilities of this operation
were classified as assets and liabilities of a disposal group classified as held for sale.
Certain delays caused by circumstances beyond the control of the group have resulted in
East Africa still being presented as a discontinued operation. Progress has been made during
the period in concluding the transaction with the sale of the operation imminent.
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm 2018 2017 2018
Assets and liabilities of disposal group classified
as held for sale
Long-term assets 20 5 25
Deferred tax assets 1 1 1
Trade and other receivables 44 53 33
Other current assets 3 2 8
Cash and cash equivalents 18 9 15
Total assets 86 70 82
Deferred tax liabilities - - 2
Provisions 1 - 1
Trade and other payables 15 12 11
Total liabilities 16 12 14
Summary income statement from discontinued operations
Operating income net of direct expenses - 27 81
Operating expenses (3) (20) (66)
Operating (loss)/profit before non-trading and capital items (3) 7 15
Investment income 1 1 -
Non-trading and capital items - 10 8
Operating (loss)/profit (2) 18 23
Share of profit of associate (net of tax) - - 2
(Loss)/profit before taxation (2) 18 25
Income tax expense - (3) (4)
(Loss)/profit from discontinued operations (2) 15 21
11. EARNINGS PER SHARE
11.1 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.
11.2 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 4/2018 issued by the South African
Institute of Chartered Accountants.
11.3 Diluted basic earnings per ordinary share
Diluted basic 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.
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
2018 2017 2018
11.4 Number of shares (million)
Weighted average number of shares 1 341 1 341 1 341
Weighted average shares held by policyholders classified
as treasury shares (9) (16) (14)
Weighted average treasury shares (87) (46) (58)
Weighted average number of shares in issue (net of
treasury shares) 1 245 1 279 1 269
Dilutive shares 15 5 6
Diluted weighted average number of shares 1 260 1 284 1 275
Actual number of shares in issue 1 341 1 341 1 341
Actual treasury shares (110) (79) (95)
Shares in issue net of treasury shares 1 231 1 262 1 246
11.5 Calculation of basic and headline earnings from total
operations (Rm)
(Loss)/profit attributable to owners of the company (50) 282 240
Adjusting items:
- Impairment of goodwill and intangible assets 258 - 332
- Other capital items - (5) (9)
Headline earnings for the period 208 277 563
Earnings per share from total operations
Basic (loss)/earnings per share (cents) (4.0) 22.0 18.9
Headline earnings per share (cents) 16.7 21.7 44.4
Diluted basic (loss)/earnings per share (cents) (4.0) 22.0 18.8
Diluted headline earnings per share (cents) 16.5 21.6 44.2
The group has an approved share scheme for employees 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 conditional on employee retention and 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.
In addition, the group may issue AFH shares to the empowerment shareholder in future in
terms of the circular issued to shareholders on 2 December 2016. The group has assessed
the impact of this potential issue of shares and concluded that no material dilution
exists in this reporting period.
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm 2018 2017 2018
12. CAPITAL EXPENDITURE FOR THE PERIOD 61 192 345
13. OPERATING LEASE COMMITMENTS
Due within one year 179 178 184
Due between one and five years 778 756 755
Due after five years 232 447 354
Total operating lease commitments 1 189 1 381 1 293
Capital expenditure and commitments will be funded from internal cash resources.
14. FINANCIAL ASSETS AND LIABILITIES HELD UNDER MULTI-MANAGER INVESTMENT CONTRACTS
The policyholder assets held by the group's multi-manager investment subsidiary, AF Investments,
in South Africa and Namibia are recognised on the statement of financial position in terms of IFRS.
These assets are directly matched by linked obligations to policyholders.
As a result of the group being listed, 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 adjustments of the
liability continue to be recognised in the income statement. The resultant profit for the
period of R20 million (2017: R11 million loss) has been disclosed separately on the face of
the income statement. This treatment also affects the number of shares in issue, the impact
of which is disclosed in note 11.
Below is a reconciliation of the assets held under multi-manager investment contracts with the
linked liabilities under such contracts:
Six months Six months 12 months
30 Sept 30 Sept 31 Mar
Rm 2018 2017 2018
Total financial assets held under multi-manager investment
contracts (per statement of financial position) 307 400 298 859 296 758
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 65 105 73
Financial effects of accounting for policyholder investments
as treasury shares - prior years (6) (31) (30)
Financial effects of accounting for policyholder investments
as treasury shares - current year (20) 11 24
Total financial liabilities held for policyholders under
multi-manager investment contracts 307 439 298 944 296 825
15. FINANCIAL ASSETS
15.1 Total financial assets
Non-current financial assets 67 89 90
Current financial assets 52 437 355
119 526 445
15.2 Analysis of financial assets
Financial assets classified as available for sale - 12 14
Financial assets designated as fair value through
profit or loss (1) 68 284 264
Financial assets classified at amortised costs 51 77 85
Derivative financial assets (2) - 153 82
119 526 445
(1) The decline in financial assets designated as fair value through profit or loss is due
to the group's investment in unit trusts which are readily convertible to known
amounts of cash and are subject to an insignificant risk of changes in value, thereby
qualifying to be classified as cash and cash equivalents.
(2) The derivative financial asset relating to the IT programme was closed out during the period.
16. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
16.1 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 2018.
There have been no material changes in the risk management or in any risk management
policies since the year-end.
16.2 Liquidity risk
Compared to the 31 March 2018 year-end, there was no material change in the contractual
undiscounted cash outflows for financial liabilities.
16.3 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
30 September 2018
Financial assets measured at fair value
Financial assets held under multi-manager investment contracts 186 050 107 813 5 782 299 645
Financial assets of insurance cell-captive facilities 210 168 - 378
General operations - 1 056 14 1 070
Total financial assets measured at fair value 186 260 109 037 5 796 301 093
Cash held under multi-manager investment contracts - 7 755 - 7 755
Cash held under insurance cell-captive contracts - 14 - 14
- 7 769 - 7 769
Financial liabilities measured at fair value
Financial liabilities held under multi-manager investment contracts - 301 657 5 782 307 439
Financial assets of insurance cell-captive facilities - 392 - 392
Total financial liabilities measured at fair value - 302 049 5 782 307 831
Rm Level 1 Level 2 Level 3 Total
31 March 2018
Financial assets measured at fair value
Financial assets held under multi-manager investment contracts 176 993 107 014 4 864 288 871
Financial assets of insurance cell-captive facilities 178 168 - 346
General operations - 346 14 360
Total financial assets measured at fair value 177 171 107 528 4 878 289 577
Cash held under multi-manager investment contracts - 7 887 - 7 887
Cash held under insurance cell-captive contracts - 6 - 6
- 7 893 - 7 893
Financial liabilities measured at fair value
Financial liabilities held under multi-manager investment contracts - 291 937 4 888 296 825
Financial assets of insurance cell-captive facilities - 352 - 352
Total financial liabilities measured at fair value - 292 289 4 888 297 177
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 period
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 discount 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. All Level 3 instruments are linked.
16.4 Valuation methods and assumptions for valuation techniques
There were no material changes in the valuation methods and assumptions for valuation
techniques since 31 March 2018. 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 2018.
16.5 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
17. 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. 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.
18. EVENTS OCCURRING AFTER REPORTING PERIOD
Subsequent to the reporting period, the group has terminated the contract with the primary
implementation partner resulting in an onerous provision amounting to R52 million.
This termination was treated as an adjusting event.
ANNEXURE A
GROUP SEGMENTAL INCOME AND PROFIT ANALYSIS
For the six months ended 30 September 2018
Institutional Institutional Institutional Retail Retail
Consulting and Group Wealth and Retail
retirements risk Investments investments insurance
Rm 2018 % 2017 2018 % 2017 2018 % 2017 2018 % 2017 2018 % 2017
Operating income net of direct expenses 585 7 545 27 (29) 38 388 16 335 447 5 424 279 3 271
Operating expenses before accounting for
property lease (1) (504) 11 (454) (30) 30 (23) (171) 15 (149) (253) 6 (238) (189) (10) (211)
Normalised operating profit before
non-trading and capital items 81 (11) 91 (3) <(100) 15 217 17 186 194 4 186 90 50 60
Normalised non-trading and capital items - (100) (17) - - - - - - - - - - - -
Normalised operating profit 81 9 74 (3) <(100) 15 217 17 186 194 4 186 90 50 60
Normalised net finance income (4) (43) (7) 4 - 4 43 (9) 47 1 <(100) (4) (5) - (5)
Share of profit of associates - - - - - - - - - - - - - - -
Normalised profit before tax from
continuing operations 77 15 67 1 (95) 19 260 12 233 195 7 182 85 55 55
Taxation (2) (24) 14 (21) - <(100) (6) (81) 13 (72) (60) 7 (56) (26) 53 (17)
Normalised (loss)/profit for the period
from continuing operations 53 15 46 1 (92) 13 179 11 161 135 7 126 59 55 38
(Loss)/profit for the year from
continuing operations 53 15 46 1 (92) 13 179 11 161 135 7 126 59 55 38
Depreciations and amortisation (1) (11) (8) (12) (2) - (2) (9) 10 (10) (14) 8 (13) (15) 15 (13)
(1) Operating expenses before accounting for property lease includes depreciation and amortisation.
(2) Due to the differences between the group's segmental structure and the legal entity structure, the taxation amount has been computed using the group's normalised
effective tax rate. Where the segmental structure and legal entity structure align, the actual tax charge has been disclosed.
(3) The trading margin and cost-to-income is computed using operating expenses inclusive of share scheme costs and accounting for property lease.
Emerging Administration
markets only Corporate Total
Rm 2018 % 2017 2018 % 2017 2018 % 2017 2018 % 2017
Operating income net of direct expenses 127 10 115 55 (23) 71 - - - 1 908 6 1 799
Operating expenses before accounting for property lease (1) (105) (5) (110) (55) (23) (71) (154) 97 (78) (1 461)(3) 10 (1 334)(3)
Normalised operating profit before non-trading and capital items 22 >100 5 - - - (154) 97 (78) 447 (4) 465
Normalised non-trading and capital items (4) - - - - - (313) >100 (11) (317) >100 (28)
Normalised operating profit 18 >100 5 - - - (467) >100 (89) 130 (70) 437
Normalised net finance income - (100) 2 - - - 12 (73) 44 51 (37) 81
Share of profit of associates - (100) 2 - - - - - - - (100) 2
Normalised profit before tax from continuing operations 18 100 9 - - - (455) >100 (45) 181 (65) 520
Taxation (2) (8) >100 (3) - - - 5 (64) 14 (194) 20 (161)
Normalised (loss)/profit for the period from continuing operations 10 67 6 - - - (450) >100 (31) (13) <(100) 359
Adjustments (32) (36) (50) (32) (36) (50)
Amortisation of intangible assets arising from business combination (34) (26) (46) (34) (26) (46)
Professional indemnity insurance cell-captive results (34) <(100) 1 (34) <(100) 1
Accounting for property lease (5) (50) (10) (5) (50) (10)
Reported profit/(loss) arising from accounting for policyholder investment in treasury shares 20 <(100) (11) 20 <(100) (11)
Tax effects on above adjustments 21 31 16 21 31 16
(Loss)/profit for the year from continuing operations 10 67 6 - - - (482) >100 (81) (45) <(100) 309
Depreciations and amortisation (1) (3) - (3) - - - (2) - - (56) 6 (53)
Trading margin (3)(%) 23.2 (210bps) 25.3
Cost-to-income (3)(%) 76.8 210bps 74.7
(1) Operating expenses before accounting for property lease includes depreciation and amortisation.
(2) Due to the differences between the group's segmental structure and the legal entity structure, the taxation amount has been computed using the group's normalised
effective tax rate. Where the segmental structure and legal entity structure align, the actual tax charge has been disclosed.
(3) The trading margin and cost-to-income is computed using operating expenses inclusive of share scheme costs and accounting for property lease.
CORPORATE INFORMATION
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)
Independent directors
N Nyembezi (Chairman), MD Collier, RM Head, M Ramplin, NG Payne, BJ Memela-Khambula, T Dloti
Non-executive directors
DJ Anderson, WS O'Regan, NB Radebe
Executive directors
DJ de Villiers (Group Chief Executive)
N Ford-Hoon (Fok) (Group Chief Financial Officer) (Resigned effective 31 December 2018)
Group general counsel and company secretary
CH Wessels
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: 11 December 2018
Date: 11/12/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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