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Summary of audited results for the year ended 30 June 2020 and cash dividend declaration
Remgro Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/006415/06)
ISIN: ZAE000026480
Share code: REM
SUMMARY OF AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2020 AND CASH DIVIDEND
DECLARATION
SALIENT FEATURES
• Total headline earnings per share: down by 61.3% to 560.6 cents
• Headline earnings per share from continuing operations: down by 68.7% to 307.5 cents
• Earnings per share: down by 9.1% to 1 176.4 cents
• Ordinary dividend per share: down by 53.0% to 265 cents
• Intrinsic net asset value per share as at 30 June 2020: R154.47
COVID-19
The Covid-19 pandemic and the resulting lockdown measures have brought desperation and devastation upon millions.
In South Africa, lives and livelihoods have been lost, with household finances decimated and many going hungry in
large parts of our country. This crisis is one of unknown unknowns and managing the crisis is the number one priority
for Remgro and all of our investee companies. Our focus is on the factors within our control, the health and well-being
of our people, ensuring that our investments have the most robust financial positions to support business continuity and
making sure that underlying investee companies that are in a position to offer help to the country are enabled to do so.
RESULTS
For the year to 30 June 2020, total headline earnings decreased by 61.4% from R8 195 million to R3 167 million, while
total headline earnings per share (HEPS) decreased by 61.3% from 1 448.9 cents to 560.6 cents. As a result of the
unbundling of Remgro’s 28.2% interest in RMB Holdings Limited (RMH) (RMH Unbundling), headline earnings is also
presented for continuing operations and discontinued operations. The investment in RMH is treated as a discontinued
operation and, accordingly, discontinued operations include the equity accounted income of RMH. For the year under
review the investment in RMH was equity accounted for the nine months to 31 March 2020 (2019: twelve months to
30 June 2019). Headline earnings and HEPS from continuing operations decreased by 68.7% from R5 551 million to
R1 737 million and from 981.4 cents to 307.5 cents, respectively. Headline earnings and HEPS from discontinued
operations decreased by 45.9% from R2 644 million to R1 430 million and from 467.5 cents to 253.1 cents, respectively.
The decrease in headline earnings from continuing operations is mainly due to the negative impact that the Covid-19
pandemic and the resultant lockdown measures had on the earnings of Rand Merchant Investment Holdings Limited,
FirstRand Limited, Total South Africa Proprietary Limited, Kagiso Tiso Holdings Proprietary Limited, Distell Group
Holdings Limited and RCL Foods Limited, as well as lower interest income, increased losses from Community
Investment Ventures Holdings Proprietary Limited as they expand their fibre network footprint, organically and
acquisitively, and a once-off donation of R500 million to The South African SME Relief Trust (Sukuma donation).
INTRINSIC NET ASSET VALUE
Remgro’s intrinsic net asset value per share decreased by 33.7% from R233.03 at 30 June 2019 to R154.47 at
30 June 2020. The decrease reflects the impact of the RMH Unbundling and the negative impact of the Covid-19
pandemic on market values (listeds) and fair values (unlisteds) of underlying investee companies. The closing share
price at 30 June 2020 was R99.90 (2019: R187.90) representing a discount of 35.3% (2019: 19.4%) to the intrinsic net
asset value.
DECLARATION OF CASH DIVIDEND NO. 40
Notice is hereby given that a final gross dividend of 50 cents (2019: 349 cents) per share has been declared out of
income reserves in respect of both the ordinary shares of no par value and the unlisted B ordinary shares of no par
value, for the year ended 30 June 2020. The final dividend was adjusted downwards to take into account the RMH
Unbundling and the impact of the Covid-19 pandemic.
A dividend withholding tax of 20% or 10 cents per share will be applicable, resulting in a net dividend of 40 cents per
share, unless the shareholder concerned is exempt from paying dividend withholding tax or is entitled to a reduced rate
in terms of an applicable double-tax agreement.
The total gross dividend per share for the year ended 30 June 2020 therefore amounts to 265 cents, compared to
564 cents for the year ended 30 June 2019.
The issued share capital at the declaration date is 529 217 007 ordinary shares and 39 056 987 B ordinary shares. The
income tax number of the Company is 9500-124-71-5.
Dates of importance:
Last day to trade in order to participate in the dividend Tuesday, 10 November 2020
Shares trade ex dividend Wednesday, 11 November 2020
Record date Friday, 13 November 2020
Payment date Monday, 16 November 2020
Share certificates may not be dematerialised or rematerialised between Wednesday, 11 November 2020, and Friday,
13 November 2020, both days inclusive.
In terms of the Company’s Memorandum of Incorporation, dividends will only be transferred electronically to the bank
accounts of shareholders, while dividend cheques are no longer issued. In the instance where shareholders do not
provide the Transfer Secretaries with their banking details, the dividend will not be forfeited, but will be marked as
“unclaimed” in the share register until the shareholder provides the Transfer Secretaries with the relevant banking details
for payout.
DIRECTORS’ STATEMENT
The directors, who take responsibility for the contents of this short-form announcement, present the audited results of
Remgro for the year ended 30 June 2020. The preparation of the Group’s consolidated results was supervised by the
Chief Financial Officer, Neville Williams CA(SA).
This financial information is a summary only and does not contain full details of the consolidated financial results.
Accordingly, any investment decisions should be based on information contained in the full announcement, published
and available at https://senspdf.jse.co.za/documents/2020/JSE/ISSE/REM/REMJun2020.pdf and on the Company’s
website at www.remgro.com.
The consolidated Annual Financial Statements (AFS) were audited by PricewaterhouseCoopers Inc., who issued an
unmodified audit opinion on the consolidated AFS. The consolidated AFS, which includes the auditor's report (with Key
Audit Matters) issued on the consolidated AFS, are available on the Company’s website at www.remgro.com.
BASIS OF PREPARATION OF FINANCIAL INFORMATION
These results have been prepared in accordance with Section 3.46 of the Listings Requirements of the JSE Limited and
have been applied consistently to both years.
RESULTS WEBCAST AND PRESENTATION
Shareholders and other interested parties are invited to join management in discussing Remgro's year-end results via
webcast at 09:00 am SAST on Tuesday, 29 September 2020 at the following link:
https://themediaframe.net/remgro10036755
The Integrated Annual Report will be mailed to those shareholders who requested to receive a hard copy and will be
available on the website during October 2020.
Signed on behalf of the Board of Directors.
Johann Rupert Jannie Durand
Chairman Chief Executive Officer
Stellenbosch
28 September 2020
DIRECTORATE
Non-executive directors
Johann Rupert (Chairman), J Malherbe (Deputy Chairman),
F Robertson* (Deputy Chairman), S E N De Bruyn*, P K Harris*,
N P Mageza*, P J Moleketi*, M Morobe*, P J Neethling,
G G Nieuwoudt*, K M S Rantloane* (Alternate), A E Rupert
(* Independent)
Executive directors
J J Durand (Chief Executive Officer),
M Lubbe, N J Williams
CORPORATE INFORMATION
Secretary
D I Dreyer
Listing
JSE Limited
Sector: Financials – Financial Services – Investment Banking and Brokerage Services – Diversified Financial Services
Business address and registered office
Millennia Park, 16 Stellentia Avenue, Stellenbosch 7600
(PO Box 456, Stellenbosch 7599)
Transfer Secretaries
Computershare Investor Services Proprietary Limited,
Rosebank Towers, 15 Biermann Avenue, Rosebank 2196
(Private Bag X9000, Saxonwold 2132)
Auditors
PricewaterhouseCoopers Inc.
Stellenbosch
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
ACCESS TO INFORMATION
The financial results:
• can be viewed on www.jse.co.za;
• can be viewed online at www.remgro.com;
• are available for inspection at the Company’s registered office and the offices of the sponsor at no charge, during
normal business hours from 29 September 2020; or
• may be requested in printed format from Ms D I Dreyer, tel: +27 21 888 3373.
FOR MORE INFORMATION
www.remgro.com
Date: 28-09-2020 05:00:00
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