TIDMOMU
RNS Number : 8440K
Old Mutual Limited
02 September 2019
Old Mutual Limited
Incorporated in the Republic of South Africa
Registration number: 2017/235138/06
ISIN: ZAE000255360
LEI: 213800MON84ZWWPQCN47
JSE Share Code: OMU
MSE Share Code: OMU
NSX Share Code: OMM
ZSE Share Code: OMU
("Old Mutual" or "OM" or "the Company")
Ref 35/19
2 September 2019
REVIEWED INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2019
A MESSAGE FROM OUR CEO
"I am pleased with the set of results our team has delivered in
a very challenging environment. The 10% increase in AHE
demonstrates the resilience of our well diversified business. We
continue to make progress in delivering our IT refresh and we now
have over 122 bots in employment. This has saved us more than 2.8
million minutes of processing time. We remain focused on
streamlining our operations to deliver superior customer
service."
Iain Williamson
Interim Chief Executive Officer
GROUP HIGHLIGHTS (EXCLUDING ZIMBABWE) % change
(Rm unless otherwise stated)
(H1 2019
vs
----------- ----------- ---------------- ----------
H1 2019 H1 2018 H1 2018) FY 2018
----------- ----------- ---------------- ----------
Adjusted Headline Earnings (AHE) 5,211 4,750 10% 9,396
----------- ----------- ---------------- ----------
Adjusted Headline Earnings per share (cents) 109.1 98.9 10% 195.1
----------- ----------- ---------------- ----------
Results from Operations (RFO) 4,512 4,426 2% 9,139
----------- ----------- ---------------- ----------
Dividend per share (cents) 45 45 72
----------- ----------- ---------------- ----------
Return on Net Asset Value (RoNAV) (%) 16.4% 17.0% (60 bps) 16.2%
----------- ----------- ---------------- ----------
FUM (Rbn)(1) 1,080.9 1,057.7 5% 1,026.0
----------- ----------- ---------------- ----------
Life APE sales 5,916 5,693 4% 12,129
----------- ----------- ---------------- ----------
Gross flows 79,801 88,222 (10%) 175,509
----------- ----------- ---------------- ----------
NCCF (Rbn) 1.4 8.6 (84%) 9.0
----------- ----------- ---------------- ----------
Free Surplus Generated from Operations 3,739 3,471 8% 6,585
----------- ----------- ---------------- ----------
% of AHE converted to Free Surplus Generated 72% 73% (100 bps) 70%
----------- ----------- ---------------- ----------
Group Solvency ratio (%)(1) 166% 159% (400 bps) 170%
----------- ----------- ---------------- ----------
(1) The % change has been calculated with reference to FY
2018.
IFRS profit after tax for the 2018 financial period includes the
accounting impacts of the transactions executed to complete the
Managed Separation. These transactions included the distribution of
Quilter plc and the unbundling of Nedbank. IFRS profit after tax
for the comparative period therefore included the consolidated
profits in respect of the Quilter plc and Nedbank businesses, these
were classified as profit from discontinued operations. IFRS
profits for the comparative period also included the profit
recognised on the distribution of Quilter plc on 24 June 2018. IFRS
profit after tax for the current period no longer includes the
impact of these items related to the execution of Managed
Separation, which is the main driver of the decrease.
ACCOUNTING IMPACTS OF MANAGED SEPARATION (Rm unless otherwise
stated)
30 June 2018(1)
Profit from discontinued operations - Quilter plc 1,275
--------------------------
Profit from discontinued operations - Nedbank 4,133
--------------------------
Profit on Quilter plc distribution 4,023
--------------------------
(1) The profit in respect of the distribution of Quilter plc was
restated to correct the allocation of foreign exchange differences
recycled to profit. Further the consolidated profits in respect of
Nedbank and Quilter plc were restated to reverse the amortisation
reported as part of these results as required under IFRS 5
"Non-current assets held for sale and discontinued operations". The
IFRS profits reported for December 2018 corrected for these items,
therefore will not be restated. The condensed consolidated
financial statements for the six months ended 30 June 2019 will
include further detail and disclosure on these restatements.
IFRS HIGHLIGHTS (Rm unless otherwise stated) % change
(H1 2019
vs
---------- --------- -------------- --------
H1 2019 H1 2018 H1 2018) FY 2018
---------- --------- -------------- --------
Profit after tax attributable to equity holders
of the parent(1) 5,817 12,867 (55%) 36,566
---------- --------- -------------- --------
Headline Earnings (HE)(1) 5,854 8,848 (34%) 14,241
---------- --------- -------------- --------
Basic earnings per share (cents)(1) 127.3 277.2 (54%) 788.1
---------- --------- -------------- --------
Headline Earnings per share (HEPS)(1) 128.1 190.6 (33%) 306.9
---------- --------- -------------- --------
(1) These metrics include the results of Zimbabwe.
SHORT FORM ANNOUNCEMENT
This short form announcement is the responsibility of the
directors. It is only a summary of the information contained in the
full announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement
accessible from Monday, 2 September 2019, via the JSE link and also
available on the Company's website at
https://www.oldmutual.com/investor-relations/interim-results-2019.
The short form announcement has itself not been reviewed,
however, the financial information included herein has been
extracted from the reviewed condensed consolidated interim
financial statements which have been reviewed by KPMG Inc. and
Deloitte & Touche, who expressed an unmodified conclusion
thereon.
Copies of the full announcement may also be requested by
contacting Old Mutual Investor Relations via email at
tndlovu6@oldmutual.com and are available for inspection at the
Company's registered office at no charge, weekdays during office
hours.
INTERIM DIVID DECLARATION
The Board of directors has approved and declared a gross interim
dividend of 45 cents per ordinary share.
The interim dividend of 45 cents per share is in line with Old
Mutual Limited's dividend policy, which is set at 40% of Adjusted
Headline Earnings. The interim dividend will be paid out of
distributable reserves and is payable on 14 October 2019 to all
ordinary shareholders recorded on the record date. The dividend of
45 cents per ordinary share will be subject to a local dividend tax
rate of 20% which will result in a net interim dividend, to those
shareholders who are not exempt from paying dividend tax, of 36
cents per ordinary share. International shareholders who are not
exempt or are not subject to a reduced rate in terms of a double
taxation agreement will be subject to dividend withholding tax at a
rate of 20%.
Shareholders on the London, Malawian, Namibian and Zimbabwean
registers will be paid in the local currency equivalents of the
interim dividend. In Malawi, Namibia and Zimbabwe these
distributions will be made through dividend access trust or similar
arrangements established in each country and will not be subject to
South African withholding tax.
Old Mutual Limited's income tax number is 9267358233. The number
of ordinary shares in issue in the company's share register at the
date of declaration is 4,831,264,848.
Declaration date Monday, 02 September 2019
Close of business on Monday,
-------------------------------------
Transfers suspended between registers 09 September 2019
-------------------------------------
Exchange rates announced Tuesday, 10 September
2019
-------------------------------------
Last day to trade cum dividend for shareholders
on the South African
-------------------------------------
Register and Malawi, Namibia and Zimbabwe branch Tuesday, 17 September
registers 2019
-------------------------------------
Ex-dividend date for shareholders on the South
African Register and
-------------------------------------
Malawi, Namibia and Zimbabwe branch registers Wednesday, 18 September
2019
-------------------------------------
Last day to trade cum dividend for shareholders Wednesday, 18 September
on the UK register 2019
-------------------------------------
Ex-dividend date for shareholders on the UK Thursday, 19 September
register 2019
-------------------------------------
Close of business on Friday,
-------------------------------------
Record date (all registers) 20 September 2019
-------------------------------------
Opening of business on
-------------------------------------
Transfers between registers restart Monday, 23 September 2019
-------------------------------------
Interim Dividend payment date Monday, 14 October 2019
-------------------------------------
Share certificates for shareholders on the South African
register may not be dematerialised or rematerialised between
Wednesday, 18 September and Friday, 20 September 2019, both dates
inclusive. Transfers between the registers may not take place
between Tuesday, 10 September and Friday, 20 September 2019, both
dates inclusive. Trading in shares held on the Namibian section of
the principal register through Old Mutual (Namibia) Nominees (Pty)
Limited will not be permitted between Tuesday, 10 September and
Thursday, 19 September 2019, both dates inclusive.
Shareholders that are tax resident in jurisdictions other than
South Africa may qualify for a reduced rate under a double taxation
agreement with South Africa. To apply for this reduced rate, non-SA
taxpayers should complete and submit a declaration form to the
respective registrars. The declaration form can be found at:
https://www.oldmutual.com/investor-relations/dividend-information/dividend-tax-considerations
SHARE REPURCHASE PROGRAMME
Shareholders are advised that Old Mutual intends to commence a
share repurchase programme of the Company's ordinary shares up to a
maximum consideration of R2.4 billion. The repurchase programme of
OML shares on the Johannesburg Stock Exchange will commence on 3
September 2019. The share repurchase programme will be effected in
accordance with the General Authority received by way of a
shareholder resolution passed at the Annual General Meeting, held
on 24 May 2019, allowing the Company to repurchase up to 169 094
269 ordinary shares equivalent to 3.5% of the issued share capital
of the Company.
The Board believes that the share price is trading at a discount
to its intrinsic value and is of the view that a share repurchase
programme will deliver longer term incremental value to
shareholders. The management team remains committed to following a
disciplined trading approach under the share repurchase programme
and will only repurchase shares to the extent that market
conditions are favourable. The purpose of the repurchase programme
is to reduce the share capital of the Company.
Sandton
Sponsors
Johannesburg Stock Exchange Merrill Lynch South Africa (Pty) Limited
Namibia PSG Wealth Management (Namibia) (Proprietary)
Limited
Zimbabwe Imara Capital Zimbabwe plc
Malawi Stockbrokers Malawi Limited
Enquiries
Investor Relations
Sizwe Ndlovu T: +27 (0)11 217 1163
Head of Investor Relations E: tndlovu6@oldmutual.com
Communications
Tabby Tsengiwe T: +27 (11) 217 1953
Head of Communications M: +27 (0)60 547 4947
E: ttsengiwe@oldmutual.com
Notes to Editors
About Old Mutual Limited
Old Mutual is a premium African financial services group that
offers a broad spectrum of financial solutions to retail and
corporate customers across key markets segments in 14 countries.
Old Mutual's primary operations are in South Africa and the rest of
Africa, and it has niche a business in China. With over 170 years
of heritage across sub-Saharan Africa, we are a crucial part of the
communities we serve and broader society on the continent.
For further information on Old Mutual, and its underlying
businesses, please visit the corporate website at
www.oldmutual.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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