Slide 1: Interim Results
OLDMUTUAL &Q DO GREAT THINGS EVERY DAY sil
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: Shifting Gears, Accelerating Growth
SHIFTING GEARS ACCELERATING GROWTH
Slide 4: Financial Highlights at 30 June 2022
FINANCIAL HIGHLIGHTS AT 30 JUNE 2022 Strong performance from our core businesses Alessandro Bottega www.presentationists.com 15% Within target range 9% 300bps Life APE Value of new Gross written Group Solvency sales business margin premiums Ratio R6.2bn 2.2% R10.9bn 187% (7%) 87% 120bps¹ 25%¹ Funds
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: Shared Value and Sustainable Transformation
SHARED VALUE AND SUSTAINABLE TRANSFORMATION Remain integrated into the business Alessandro Bottega www.presentationists.com RESPONSIBLE INVESTMENTS SOCIO-ECONOMIC TRANSFORMATION CLIMATE CHANGE REPORTING Asset Owners Alliance Net Zero Asset Managers Initiative DIVERSITY AND INCLUSION COMMUNITY PARTNE
Slide 7: Update on Commitments to Investors
UPDATE ON COMMITMENTS TO INVESTORS Accelerating delivery Alessandro Bottega www.presentationists.com Change the trajectory of the customer experience Additional digital claims channels Build an entirely new financial services business Old Mutual Rewards - 1.5 million members with higher average
Slide 8: Operating Environment
OPERATING ENVIRONMENT
Slide 9: Macro Environment in Our Markets Remains Challenging
MACRO ENVIRONMENT IN OUR MARKETS REMAINS CHALLENGING Increased pressure on the consumer Alessandro Bottega www.presentationists.com South Africa headline CPI YoY Headline CPI trending up in other markets (%) (%) Global macro risks at play Namibia Uganda Kenya China 7.4 6.5 7.9 5.7 5.7 5.9 5.9 Infl
Slide 10: Equity Markets Likely to Remain Volatile
EQUITY MARKETS LIKELY TO REMAIN VOLATILE Alessandro Bottega www.presentationists.com JSE SWIX All Share (absolute levels) 2020 2021 2022* COVID-19 outbreaks limit growth Higher JSE average market levels Global inflation and rising interest rates Jan Jun Dec International political volatility
Slide 11: Segmental Reviews
SEGMENTAL REVIEWS
Slide 12: Mass and Foundation Cluster
MASS AND FOUNDATION CLUSTER Growth trajectory remains sustainable Alessandro Bottega www.presentationists.com Risk Sales Savings Life APE sales Sales momentum holding (Rm) +9% 1 917 1 806 1 656 Risk sales above 2019 1 366 821 694 647 641 1 096 1 009 1 112 Embedded the non-advice funeral product
Slide 13: Personal Finance and Wealth Management
PERSONAL FINANCE AND WEALTH MANAGEMENT Improved profitability on reduced mortality claims Alessandro Bottega www.presentationists.com Life APE sales Risk Savings Annuities Delivered R2 billion in Net client cash flows (Rm) (1%) 2 024 2 001 1 771 1 539 314 246 Resilient Life APE sales above 2019 le
Slide 14: Old Mutual Investments
OLD MUTUAL INVESTMENTS Higher average markets driving top line and profitability, despite market volatilityAlessandro Bottega www.presentationists.com Revenue Annuity Non-annuity Annuity revenue 9% higher as markets rise (Rm) +10% 1 299 1 395 1 541 593 Non-annuity revenue up 21% on higher perfor
Slide 15: Old Mutual Corporate
OLD MUTUAL CORPORATE Responsibly improved sales, margins and flows Alessandro Bottega www.presentationists.com Life APE sales Resilient results (Rm) +2% 1 793 1 262 GAP underwriting result driven by good retention and repricing 1 009 1 029 Higher GAP sales quote activity H1 2019 H1 2020 H1 2021
Slide 16: Old Mutual Insure
OLD MUTUAL INSURE Resilient underwriting result in challenging conditions Alessandro Bottega www.presentationists.com Gross written premiums +5% iWYZE delivered double digit premium growth (Rm) 8 186 7 761 KZN floods' net impact of R135 million 7 198 7 199 CGIC excellent underwriting result H1 2
Slide 17: Old Mutual Africa Regions
OLD MUTUAL AFRICA REGIONS Remediation translating into improved sales and profitability Alessandro Bottega www.presentationists.com Life APE sales +28% Strong financial delivery across the portfolio (Rm) 665 506 520 Robust top-line growth 451 Pivot to corporate bearing fruit H1 2019 H1 2020 H1 2
Slide 18: Unlocking New Growth Engines
UNLOCKING NEW GROWTH ENGINES Promising momentum in the portfolio Alessandro Bottega www.presentationists.com Building adjacent East Africa Progressed challenger businesses for growth transactional West Africa capability build R300 million in committed capital China 18
Slide 19: Financial Review
FINANCIAL REVIEW
Slide 20: Strong Growth from the Core
STRONG GROWTH FROM THE CORE Alessandro Bottega www.presentationists.com EARNINGS CAPITAL EFFICIENCY VALUE Results from operations Return on net asset value Value of new business (Rbn) (%) (Rm) +87% 120bps¹ (4%) 4.1 740 708 9.0 9.6 2.2 8.4 0.6 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 Adjusted
Slide 21: Pandemic Provisions at 30 June 2022
PANDEMIC PROVISIONS AT 30 JUNE 2022 No additional provisions raised Alessandro Bottega www.presentationists.com Mass and Foundation Personal Old Mutual Africa Rm Cluster Finance Corporate Regions Total Pandemic provisions at 31 December 2021 353 1 761 372 378 2 864 Release of COVID-19 provisions - (
Slide 22: Results from Operations
RESULTS FROM OPERATIONS COVID-19 experience better than expectation Alessandro Bottega www.presentationists.com Rm +87% 4 097 +26% >100% 2 190 1 583 +9% +59% 1 254 1 259 (20%) >100% 727 (>100%) 517 566 457 265 213 212 22 (116) (209) (463) Mass and Personal Finance Old Mutual Old Mutual Old Mutual In
Slide 23: Adjusted Headline Earnings 19% Up
ADJUSTED HEADLINE EARNINGS 19% UP Performance of the core business coming through post Nedbank unbundling Alessandro Bottega www.presentationists.com Rm +19% 87% (64%) (24%) 2 899 (738) (64) (25%) 0 2 691 (389) 2 253 (278) (646) 1 907 Adjusted Distributed Adjusted Results from Shareholder Finance In
Slide 24: Adjusted Headline Earnings to IFRS Profit Reconciliation
ADJUSTED HEADLINE EARNINGS TO IFRS PROFIT RECONCILIATION Zimbabwe main driver of the difference Alessandro Bottega www.presentationists.com Rm H1 2022 H1 2021 % change Adjusted Headline Earnings (excluding Nedbank) 2 691 2 253 19% Distributed stake in Nedbank - 646 (100%) Adjusted Headline Earnings
Slide 25: Disciplined Capital Management
DISCIPLINED CAPITAL MANAGEMENT Alessandro Bottega www.presentationists.com Group Solvency ratio Improvement in Group Solvency ratio mainly driven by (%) +300bps Target range 170% - 200% Higher OMLACSA solvency ratio 177 184 187 Higher average solvency ratios for non-regulated entities due to the
Slide 26: Value of New Business
VALUE OF NEW BUSINESS Robust result with work to be done in Personal Finance Alessandro Bottega www.presentationists.com VNB VNB margin H1 2021 (Rm) (%) H1 2022 (4%) +100bps 740 708 7.7 6.7 +35% 478 (83%) +60bps 355 (10bps) 268 (140bps) 2.9 +53% +40bps 2.3 2.3 2.2 +62% 1.7 94 90 1.1 46 58 59 0.7 0.3
Slide 27: Group Equity Value
GROUP EQUITY VALUE Resilient despite market volatility Alessandro Bottega www.presentationists.com Rbn +1% 2.6 (0.1) 92.7 (1.2) 91.9 (0.5) (2.3) (0.7) 87.4 (2.3) GEV Net increase in Net decrease Net decrease in Other Sub-total Economic FX Dividends GEV FY 2021 Life EV excl. in Asset Property and inc
Slide 28: Group Equity Value
GROUP EQUITY VALUE Share price trading at a significant discount to GEV Alessandro Bottega www.presentationists.com Rbn 91.8 87.4 9.6 Subordinated 2.9 Other debt 18.0 Non-Covered 51.9 Eligible Own Funds 82.2 (excluding subordinated 66.5 Covered debt) Market Capitalisation Group Equity Value Eligible
Slide 29: Performance Against Medium-Term Targets
PERFORMANCE AGAINST MEDIUM-TERM TARGETS Alessandro Bottega www.presentationists.com KPI Target H1 2022 outcome Returns Growth Results from operations Deliver 2019 result plus 5% to 10% by 2023 R4 097 million Return on net asset Between Cost of Equity1 +2% and value Cost of Equity1 +4% 9.6% Cost effi
Slide 30: Looking Ahead
LOOKING AHEAD
Slide 31: Medium-Term Targets
MEDIUM-TERM TARGETS Good progress in H1, FY 2023 targets remain in place Alessandro Bottega www.presentationists.com KPI Target H1 2022 outcome Outlook Returns Growth Results from operations Deliver 2019 result plus 5% to 10% by 2023 R4 097 million Challenging due to worsening economic trends Return
Slide 32: Looking Ahead – Excited by the Prospects Before Us
LOOKING AHEAD – EXCITED BY THE PROSPECTS THAT ARE BEFORE US We will grow and protect the core, as we unlock new growth engines at pace Alessandro Bottega www.presentationists.com We are focused on creating We are delivering on Highly attractive meaningful the commitments to investors financial metri
Slide 33: Conclusion
CONCLUSION
Slide 34: 2022 Interim Results
‘ae "2022 INTERIM RESULTS
Slide 35: 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,