Old Mutual Ltd. · JSE:OMU
Old Mutual — Investor Presentation (November 2017)
23 slides from Old Mutual's investor presentation, Nov 1, 2017
Slide 1: Appendix
APPENDIX INVESTMENT | SAVINGS | INSURANCE | BANKING A1
Slide 2: Business Unit Key Financials
BUSINESS UNIT KEY FINANCIALS INVESTMENT | SAVINGS | INSURANCE | BANKING A2
Slide 3: MFC: Financial KPIs
MFC: FINANCIAL KPIs Rm 2014 2015 2016 CAGR 1H2016 1H2017 ∆ AOP AOP (pre-tax)1 2,629 2,993 3,058 7.9% 1,477 1,376 (6.8%) ▪ MFC has sustained respectable profit growth of c.8% in a challenging environment Gross sales (Rbn) 8.7 9.8 10.8 11.6% 5.2 5.7 10.1% ▪ Growth driven by consistent new business and
Slide 4: Personal Finance: Financial KPIs
PERSONAL FINANCE: FINANCIAL KPIs Rm 2014 2015 2016 CAGR 1H2016 1H2017 ∆ AOP AOP (pre-tax)1 2,854 3,073 3,421 9.5% 1,501 1,395 (7.1%) ▪ Robust pre-tax operating profit growth above nominal GDP growth Gross sales (Rbn) 23.3 25.6 25.0 3.5% 12.8 12.4 (3.0%) NCCF NCCF (Rbn) (0.4) (0.2) (3.1) (1.6) (1.3)
Slide 5: WIC: Financial KPIs
WIC: FINANCIAL KPIs Rm 2014 2015 2016 CAGR 1H2016 1H2017 ∆ AOP ▪ Quality of earnings has improved significantly, as AOP (pre-tax)1 1,639 1,663 1,546 (2.9%) 815 772 (5.3%) a result of reduced dependence on non- As reported1 1,692 1,771 1,592 (3.0%) 839 772 (8.0%) annuity income; supported by a signif
Slide 6: Corporate: Financial KPIs
CORPORATE: FINANCIAL KPIs Rm 2014 2015 2016 CAGR 1H2016 1H2017 ∆ AOP ▪ Growth in 2015 boosted by Future Fit program offering AOP (pre-tax)1 1,310 1,522 1,403 3.5% 666 799 20.0% gains. 2016 impacted by poor Group Risk underwriting experience, 1H2017 improvement Gross sales (Rbn) 36.8 45.2 37.7 1.1% 1
Slide 7: OM Insure: Financial KPIs
OM INSURE: FINANCIAL KPIs Rm 2014 2015 2016 CAGR 1H2016 1H2017 ∆ GWP ▪ Growth in intermediated business muted due to Gross written premium (GWP) 10,774 11,686 12,082 5.9% 6,000 6,098 1.6% remediation action in Commercial Lines ▪ Double-digit growth in Direct ▪ Economic environment impact on CGIC Net
Slide 8: ROA: Financial KPIs
ROA: FINANCIAL KPIs1 Rm 2014 2015 2016 CAGR 1H2016 1H2017 ∆ ▪ 17% operating profit CAGR between FY 2014 and FY2016 driven by strong performance in Namibia and AOP (pre-tax)2 590 775 806 16.9% 183 369 101.6% Zimbabwe: Gross sales (Rbn) 13.7 18.1 19.3 18.7% 10.2 10.4 1.7% ▪ Namibia – better life perfo
Slide 9: LATAM: Financial KPIs
LATAM: FINANCIAL KPIs Rm 2014 2015 2016 CAGR 1H2016 1H2017 ∆ Gross sales Growth in sales driven by AOP (pre-tax)1 511 368 474 (3.7%) 205 218 6.3% ▪ Higher retail sales ▪ Sales via third-party distribution Gross sales (Rbn) 35.6 36.9 49.2 17.6% 17.0 23.1 35.5% ▪ Launch of new pension savings products
Slide 10: Financial Reconciliations
FINANCIAL RECONCILIATIONS INVESTMENT | SAVINGS | INSURANCE | BANKING A10
Slide 11: Business Unit to OMEM Group Reconciliation: Pre-tax AOP
BUSINESS UNIT TO OMEM GROUP RECONCILIATION: PRE-TAX AOP Rm 2014 2015 20162 1H2016 1H2017 Retail Affluent1 3,519 3,893 4,088 1,892 1,765 Personal Finance 2,854 3,073 3,421 1,501 1,395 OM Wealth (SA)3 665 820 667 391 370 Mass & Foundation 2,629 2,993 3,058 1,477 1,376 Corporate 1,310 1,522 1,403 666 7
Slide 12: Business Unit to OMEM Group Reconciliation: FUM (End Manager)
BUSINESS UNIT TO OMEM GROUP RECONCILIATION: FUM (END MANAGER) Rbn 2014 2015 2016 1H2016 1H2017 Retail Affluent1 123.8 142.7 153.6 150.7 194.4 Personal Finance 16.1 17.9 23.2 23.2 23.5 OM Wealth (SA) – internally managed2 56.9 72.5 69.2 75.0 73.1 OM Wealth (SA) – externally managed3 50.8 52.3 61.2 52
Slide 13: Business Unit to OMEM Group Reconciliation: FUM (Start Manager)
BUSINESS UNIT TO OMEM GROUP RECONCILIATION: FUM (START MANAGER) Rbn 2014 2015 2016 1H2016 1H2017 Retail Affluent1 375.1 440.2 445.0 451.8 474.7 Personal Finance 168.6 179.3 184.0 187.9 192.0 OM Wealth (SA)2 206.5 267.8 269.1 271.4 291.4 Eliminations - (6.9) (8.1) (7.5) (8.7) Corporate 218.9 233.1 24
Slide 14: Business Unit to OMEM Group Reconciliation: NCCF
BUSINESS UNIT TO OMEM GROUP RECONCILIATION: NCCF Rbn 2014 2015 2016 1H2016 1H2017 Retail Affluent1 7.1 13.9 3.9 0.7 (0.4) Personal Finance (0.4) (0.2) (3.1) (1.6) (1.3) OM Wealth (SA)2 10.7 17.1 8.2 2.8 1.4 Eliminations (3.2) (3.0) (1.2) (0.5) (0.5) Mass & Foundation 4.7 5.4 5.6 2.6 2.9 Corporate 8.
Slide 15: Business Unit to OMEM Group Reconciliation: VNB
BUSINESS UNIT TO OMEM GROUP RECONCILIATION: VNB Rm 2014 2015 2016 1H2016 1H2017 Retail Affluent1 426 653 450 203 165 Personal Finance 389 500 272 112 87 OM Wealth (SA) 37 153 178 91 78 Mass & Foundation 1,035 1,204 1,055 602 585 Corporate 241 333 501 289 130 South Africa 1,702 2,190 2,006 1,094 880
Slide 16: Business Unit to OMEM Group Reconciliation: Gross Sales
BUSINESS UNIT TO OMEM GROUP RECONCILIATION: GROSS SALES Rbn 2014 2015 2016 1H2016 1H2017 Retail Affluent1 62.7 77.2 74.7 36.2 34.6 Personal Finance 23.3 25.6 25.0 12.8 12.4 OM Wealth (SA)2 42.2 54.6 51.5 23.4 23.0 Eliminations (2.8) (3.0) (1.8) - (0.8) Mass & Foundation 8.7 9.8 10.8 5.2 5.7 Corporat
Slide 17: Wealth & Investments Cluster Accolades
WEALTH & INVESTMENTS CLUSTER ACCOLADES INVESTMENT | SAVINGS | INSURANCE | BANKING A17
Slide 18: Awards
AWARDS As at August 2017 OLD MUTUAL ALBARAKA EQUITY FUND RAGING BULL AWARDS BEST FUND OVER 5 YEARS 2012-2016 EQUITY SOUIH AFRICA 2017 Old Mutual Global Equity Fund BEST SHARI’AH FUND OVER 3 AND 5 YEARS ALTERNATIVE INVESTMENT COMPANY EQUITY SOUTH AFRICA OF THE YEAR SOUTH AFRICA 2016 2016 BEST ACTIVEL
Slide 19: Glossary
GLOSSARY INVESTMENT | SAVINGS | INSURANCE | BANKING A19
Slide 20: Glossary (1/3)
GLOSSARY (1/3) AFP Pension Fund Administrator CRS Common Reporting Standard AGP Absolute Growth Portfolios DC Defined Contribution ALM Asset Liability Management DTI Department of Trade & Industry AM Asset Management ESAP Economic Structural Adjustment Program AOP Adjusted Operating Profit ESG Envir
Slide 21: Glossary (2/3)
GLOSSARY (2/3) HE Headline Earnings NG Nigeria HNW High Net Worth NII Net Interest Income IFA Independent Financial Advisors NIR Non-Interest Revenue IFRS International Financial Reporting Standards OMAI Old Mutual Alternative Investments JSE Johannesburg Stock Exchange OMC Old Mutual Corporate KE K
Slide 22: Glossary (3/3)
GLOSSARY (3/3) RAF Retail Affluent RDR Retail Distribution Review RFR Retirement Fund Reform RMM Retail Mass Market ROA Rest of Africa ROE Return on Equity SADC Southern African Development Community SAM Solvency Assessment and Management SME Small & Medium-sized Enterprises STF Short-term Flux TSFA
Slide 23: Nedbank Group – attractive valuation
Nedbank Group – attractive valuation Price : earnings2,3 (x) Price : book2,3 (x) Dividend yield2,3 (%) 26.8 6.45 7.0 12.6 5.7 11.3 2.75 4.8 4.9 9.1 9.3 8.2 1.78 1.66 2.9 1.29 1.17 1.4 NED BGA FSR SBK CPI EM NED BGA FSR SBK CPI EM NED BGA FSR SBK CPI EM banks banks banks ‘16-19 forecast DHEPS growth1