TIDMOMU
RNS Number : 5392C
Old Mutual Limited
23 February 2022
Old Mutual Limited
Incorporated in the Republic of South Africa
Registration number: 2017/235138/06
ISIN: ZAE000255360
LEI: 213800MON84ZWWPQCN47
JSE Share Code: OMU
LSE Share Code: OMU
NSX Share Code: OMM
MSE Share Code: OMU
ZSE Share Code: OMU
("Old Mutual" or "Company" or "Group")
Ref 01/22
23 February 2022
OLD MUTUAL TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER
2021
Shareholders are advised that Old Mutual is currently in the
process of finalising its annual results for the year ended 31
December 2021 ("current period"), which will be released on the
Stock Exchange News Service of the JSE Limited on Tuesday, 15 March
2022. This trading statement provides an indication of a range for
headline earnings per ordinary share (HEPS) and earnings
attributable to equity holders of the Group per ordinary share
(EPS) in terms of paragraph 3.4(b) of the JSE Limited Listings
Requirements compared to the year ended 31 December 2020
("comparative period").
The Group's operational and financial performance in 2021
demonstrated a strong recovery from the impacts of the COVID-19
pandemic. The relaxation of lockdown restrictions in the current
period supported the considerable growth in productivity levels
across the Group despite a challenging operating environment in all
our markets. Our South African retail segments, Mass and Foundation
Cluster, and Personal Finance and Wealth Management continue to
deliver improved productivity and issued sales from the low levels
in 2020, with issued sales in Personal Finance above 2019 levels
due to strong single premium activity. Sales activity in Corporate
remained subdued although annuity quotes improved relative to 2020.
The South African equities market improved with the JSE SWIX up 17%
at the end of the year positively impacting our asset base and
associated fee income.
In South Africa, high infection rates from the second and third
waves of COVID-19 impacted our business and our employees. Personal
Finance and Old Mutual Corporate's mortality experience was
impacted by higher claims than provided for in the period.
In our Rest of Africa markets, there was a gradual return to
normal economic activity, which helped sustain the economic growth
across the countries. Our Namibia operations were impacted more
acutely than the other markets, with an increase in COVID-19 cases
and deaths, resulting in poor mortality experience over the
period.
We have reserved for expected future COVID claims based on
experience including the impacts of the Omicron variant. Should a
new variant emerge that is more transmissible or result in higher
mortality post infection we would have to reassess the provisions
held as new facts emerge.
Shareholders are advised that the Group's key profit measures
are expected to be within the ranges outlined below:
Key Performance Indicators Estimated
(R million unless stated Estimated 31 December 31 December
otherwise) % change 2021 2020
Results from Operations >100% 4,301 - 4,467 1,663
------------- -------------- --------------
Adjusted Headline Earnings >100% 5,390 - 5,639 2,484
------------- -------------- --------------
AHEPS (cents)(1) >100% 118 - 128 54.3
------------- -------------- --------------
(1) AHEPS defined as Adjusted Headline Earnings divided by WANS
adjusted to reflect the Group's B-BBEE shares and shares held in
policyholder and consolidated investment funds.
HEPS and Basic EPS are expected to fall within the ranges
outlined below:
Key Performance Indicators Estimated
(R million unless stated Estimated 31 December 31 December
otherwise) % change 2021 2020
IFRS profit after tax attributable
to equity holders of the
parent >100% 6,519 - 7,029 (5,097)
----------- -------------- --------------
Basic EPS (cents) >100% 148 - 160 (116.3)
----------- -------------- --------------
Headline Earnings 39% to 49% 7,067 - 7,576 5,088
----------- -------------- --------------
HEPS (cents) 38% to 48% 161 - 172 116.1
----------- -------------- --------------
Shareholders are reminded that the impairments in respect of the
carrying value of our investment in Nedbank and the goodwill
related to our investment in Old Mutual Finance were recognised in
the IFRS income statement in the comparative period and were not
repeated. These are however, not recognised in Headline Earnings,
and accordingly not recognised in Adjusted Headline Earnings (AHE),
as this is an explicit adjusting item in accordance with the JSE
Headline Earning Circular 1/2021.
Headline earnings is higher than AHE, as AHE excludes higher
earnings related to Zimbabwe, partially offset by adjustments in
respect of equity and debt instruments held in life funds as well
as the impact of restructuring which were lower than FY 2020.
The financial information in this trading statement is the
responsibility of the Old Mutual Limited Board of Directors and has
not been reviewed or reported on by the Group's external
auditors.
Sandton
Sponsors
JSE Merrill Lynch South Africa (Pty) Limited
t/a BofA Securities
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
Vuyo Mtawa M: +27 68 422 8125
Head: Group Communications E: VMtawa@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 market segments in
14 countries. Old Mutual's primary operations are in South
Africa and the Rest of Africa and it has a niche business in Asia.
With over 176 years of heritage across sub-Saharan Africa, Old
Mutual is a crucial part of the communities they serve and the
broader society on the continent.
For further information on Old Mutual and its underlying
businesses, please visit the corporate website at www.oldmutual.com
.
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END
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