Slide 1: 2022 Annual Results
2022 ANNUAL RESULTS
Slide 2: Agenda
AGENDA Alessandro Bottega www.presentationists.com Strategic review Financial review Looking ahead Q&A Iain Williamson Casper Troskie Iain Williamson OML Executive Group CEO Group CFO Group CEO Committee 2
Slide 3: Strategic Review
STRATEGIC REVIEW 2022 ANNUAL RESULTS
Slide 4: Financial Highlights at 31 December 2022
FINANCIAL HIGHLIGHTS AT 31 DECEMBER 2022 Sustained momentum through the year Alessandro Bottega www.presentationists.com 10% 12% 30bps 600bps Life APE Gross written Value of new Group Solvency sales premiums business margin Ratio R12.5bn R22.3bn 2.2% 190% (4%) 99% 240bps¹ 13%¹ Funds under Results fr
Slide 5: Our Strategic Framework
OUR STRATEGIC FRAMEWORK Alessandro Bottega www.presentationists.com TO BE OUR CUSTOMERS’ 1ST CHOICE TO SUSTAIN, GROW AND PROTECT THEIR PROSPERITY 1 Growing and protecting the core AMPLIFY 2 Unlocking new growth engines 5
Slide 6: Growing and Protecting the Core
GROWING AND PROTECTING THE CORE Delivered on commitments to investors Alessandro Bottega www.presentationists.com CHANGE THE TRAJECTORY OF THE CUSTOMER EXPERIENCE Net Promoter Score moved from 62% in 2020 to 68% in 2022 Funeral claims paid in 4 hours moved up from 80% in 2020 to 88% in 2022 BUIL
Slide 7: Growing and Protecting the Core
GROWING AND PROTECTING THE CORE Delivered on commitments to investors Alessandro Bottega www.presentationists.com RE-ENERGISE BOTH CUSTOMER AND ADVISER EXPERIENCE IN PERSONAL FINANCE AND WEALTH MANAGEMENT Increased Registered Financial Advisers distribution footprint – grew 60% from 2019 to 2022
Slide 8: Unlocking New Growth Engines
UNLOCKING NEW GROWTH ENGINES Investing in tomorrow's success Alessandro Bottega www.presentationists.com ► Section 13 approval to ► East Africa – Corporate sales Early traction from lead indicators apply for license obtained mix grew to 38% in Uganda ► Completed wills ► Section 16 application for an
Slide 9: Leading Sustainability Initiatives
LEADING SUSTAINABILITY INITIATIVES Driving beneficial impact for all our stakeholders Alessandro Bottega www.presentationists.com RESPONSIBLE INVESTMENTS FINANCIAL INCLUSION DIVERSITY AND INCLUSION R146 billion 61% of our funds under Senior management management invested in the BULA who are Black Gr
Slide 10: Operating Environment
OPERATING ENVIRONMENT 2022 ANNUAL RESULTS
Slide 11: Macro Environment in Our Markets Remains Challenging
MACRO ENVIRONMENT IN OUR MARKETS REMAINS CHALLENGING Customers experiencing tough conditions, worsened by load shedding Alessandro Bottega www.presentationists.com South Africa headline CPI YoY Headline CPI trending up in other markets (%) (%) Inflation peaked but remains elevated Namibia Uganda K
Slide 12: Global Factors Negatively Impacting Market Levels
GLOBAL FACTORS NEGATIVELY IMPACTING MARKET LEVELS Alessandro Bottega www.presentationists.com JSE SWIX All Share 2020 2021 2022 Rebased to 100 Markets closed flat in South Africa but volatile through the year, adding 16% pressure on fee income (1%) (1%) Rising interest rates contributing to equi
Slide 13: Segment Reviews
SEGMENT REVIEWS 2022 ANNUAL RESULTS
Slide 14: Mass and Foundation Cluster
MASS AND FOUNDATION CLUSTER Alessandro Bottega www.presentationists.com Life APE sales Risk Savings Distribution diversification strategy paying off (Rm) 21% Foundation Market channels delivered growth in non-advice risk 4 191 4 216 3 475 sales of 124% 1753 2 634 1 351 1 308 1 083 2 865 Old Mutu
Slide 15: Personal Finance and Wealth Management
PERSONAL FINANCE AND WEALTH MANAGEMENT Alessandro Bottega www.presentationists.com Life APE sales Risk Savings Annuities 0.2% Maintained competitiveness and market share in (Rm) 3 682 4 061 4 068 3 358 tough environment 333 527 588 537 2665 2 781 2 863 2 288 Focus on Registered Financial Advisors
Slide 16: Old Mutual Investments
OLD MUTUAL INVESTMENTS Alessandro Bottega www.presentationists.com Revenue Annuity Non-annuity 12% Diversified investment capability set (Rm) 3 302 2 672 2 957 Diversity of our platform allowed us to grow revenue despite poor 1 766 349 515 503 markets 2 608 2 787 2 169 2 296 Repurposing our shar
Slide 17: Old Mutual Corporate
OLD MUTUAL CORPORATE Alessandro Bottega www.presentationists.com Life APE sales1 (8%) Providing leading propositions through innovation (Rm) 3 636 2 624 2 416 Group Assurance remains a leading group risk proposition 2 212 SuperFund retained its No 1 Umbrella fund position in South Africa Deliv
Slide 18: Old Mutual Insure
OLD MUTUAL INSURE Alessandro Bottega www.presentationists.com Gross written premiums 8% Good topline growth across business lines (Rm) 17 190 15 927 Strong growth gross written premiums 14 699 14 771 CGIC and iWYZE delivered strong underwriting results Net underwriting margin under pressure du
Slide 19: Old Mutual Africa Regions
OLD MUTUAL AFRICA REGIONS Alessandro Bottega www.presentationists.com Life APE sales 13% Focus on turnaround yielding results (Rm) 1 215 Strategic pivot to corporate business paying off as life profits 977 956 1 073 improve in East and West Africa Progressing turnaround of loss-making businesses
Slide 20: Financial Review
FINANCIAL REVIEW 2022 ANNUAL RESULTS
Slide 21: Robust Financial Performance
ROBUST FINANCIAL PERFORMANCE Alessandro Bottega www.presentationists.com EARNINGS CAPITAL EFFICIENCY VALUE Results from operations Return on net asset value Value of new business (Rbn) 99% (%) 240bps¹ (Rm) 16% 8.7 11.1% 1 465 9.0% 1 266 4.4 8.7% 0.3% FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 A
Slide 22: Results from Operations
RESULTS FROM OPERATIONS Strong sales growth and operational performance Alessandro Bottega www.presentationists.com Rm 99% 8 743 (11%) >100% 4 384 >100% 3 217 12% 2 752 (9%) >100% 2 442 1 978 (83%) 1 109 1 240 842 727 543 495 448 (391) (804) (1 471) Mass and Personal Finance Old Mutual Old Mutual Ol
Slide 23: Adjusted Headline Earnings Up 34%
ADJUSTED HEADLINE EARNINGS UP 34% Improvement in the core excluding earnings from Nedbank Alessandro Bottega www.presentationists.com Rm FY 2022 FY 2021 change Results from operations 8 743 4 384 99% Shareholder investment return 1 468 2 726 (46%) Finance costs (662) (543) (22%) Income from associat
Slide 24: Adjusted Headline Earnings to IFRS Profit Reconciliation
ADJUSTED HEADLINE EARNINGS TO IFRS PROFIT RECONCILIATION Zimbabwe impacted by currency devaluation Alessandro Bottega www.presentationists.com Rm FY 2022 FY 2021 change Adjusted headline earnings (excluding distributed stake in Nedbank) 6 371 4 756 34% Distributed stake in Nedbank - 646 Adjusted hea
Slide 25: Enhancing Value for Shareholders
ENHANCING VALUE FOR SHAREHOLDERS Returned R60 billion to shareholders since listing Alessandro Bottega www.presentationists.com Cumulative special distributions to shareholders Solvency (Rm) 59.3 59.3 Group coverage ratio of 190% within target 4.9 4.9 The main driver for the improvements is the
Slide 26: Enhancing Value for Shareholders
ENHANCING VALUE FOR SHAREHOLDERS Optimising capital and setting up for growth Alessandro Bottega www.presentationists.com Ordinary dividend and payout ratio Return on net asset value of 11.1% up 240bps1 Improvement in adjusted headline earnings 6 5.7 1 Optimisation of capital structure 5.3 67% 6
Slide 27: Value of New Business
VALUE OF NEW BUSINESS Robust result with work continuing in Personal Finance Alessandro Bottega www.presentationists.com Value of new business Value of new business margin FY 2021 (Rm) (%) FY 2022 16% 140bps 7.6 1 465 1 266 6.2 48% 945 (70bps) 30bps 638 (47%) 2.9 14% 20bps 2.2 2.2 (40bps) (2%) 1.9 2
Slide 28: Group Equity Value
GROUP EQUITY VALUE Share price trading at a discount to group equity value Alessandro Bottega www.presentationists.com Rbn 94.3 89.4 Subordinated 2.0 Other 9.0 debt 22.6 Non-covered 51.4 Eligible own funds 85.3 (excluding subordinated 64.8 Covered debt) Market capitalisation Group equity value Eligi
Slide 29: Performance Against Medium-Term Targets
PERFORMANCE AGAINST MEDIUM-TERM TARGETS Targets largely met Alessandro Bottega www.presentationists.com KPI Target FY 2022 outcome Status Returns Growth Results from operations Deliver 2019 result plus 5% to 10% by 2023 R8.7bn Delivered¹ Return on Between cost of equity² +2% and net asset value 11.1
Slide 30: IFRS 17 Update
IFRS 17 UPDATE On track with our implementation Alessandro Bottega www.presentationists.com Completed work on IFRS17 transition Detailed IAS 8 disclosure provided in our 2022 Annual Finance Statements 2022 IFRS 17 comparative reporting in progress Further updates to be provided at our next Inves
Slide 31: IFRS 17 Update
IFRS 17 UPDATE No change in the underlying economics or strategy Alessandro Bottega www.presentationists.com Accounting change that does not impact the underlying fundamentals of our insurance business NO IMPACT NO IMPACT on cash or capital on our ability to Changes the timing of insurance generatio
Slide 32: IFRS 17 Update
IFRS 17 UPDATE Key impacts Alessandro Bottega www.presentationists.com Transition Contractual service margin (CSM) Release of “stored” Largely deferred CSM profits to CSM Prudent margins CSM Change in timing not value - Reduction in transition equity offset by CSM (stored future profits) & risk adju
Slide 33: Looking Ahead
LOOKING AHEAD 2022 ANNUAL RESULTS
Slide 34: We Have Meaningfully Progressed Executing Our Strategy
WE HAVE MEANINGFULLY PROGRESSED EXECUTING OUR STRATEGY Alessandro Bottega www.presentationists.com Delivered on our commitments to investors Recap Achieved our 2023 medium-term targets in 2022 Determined the IFRS 17 transition impact Growing and protecting the core We are prepared Unlocking ne
Slide 35: Conclusion
CONCLUSION 2022 ANNUAL RESULTS
Slide 36: Annual Results Q&A
ANN LO ANNUAL yer RESULTS "
Slide 37: Disclaimer
DISCLAIMER Alessandro Bottega www.presentationists.com This presentation may contain certain forward-looking statements with respect to certain of Old Mutual Limited’s plans and its current goals and expectations relating to its future financial condition, performance and results and, in particular,