Coronation Fund Managers Limited · JSE:CML

Coronation Fund Managers — H1 2008 Earnings Presentation

30 slides from Coronation Fund Managers's earnings presentation, May 13, 2008

  1. Slide 1: Interim Results Reviewed March 2008

    March 2008 Interim Results Reviewed 13 May 2008

  2. Slide 2: Agenda

    Agenda Financial highlights Overview of company Financial results Business review • Retail • Institutional • CFM International – UK & Ireland • NAM – Namibia Other

  3. Slide 3: Market movements

    Market movements March 2008 3 Months 6 Months 12 Months Economic Group % % % All Share 2.9 -0.1 11.1 All Share 2.17 -1.24 8.51 (Capital Return) All Share 0.74 1.10 2.63 (Dividend Return) Resource 20 17.6 8.7 31.8 Small Cap -10.2 -9.6 2.5 Industrials -8.0 -6.9 -0.5 Financials -12.8 -13.5 -16.3

  4. Slide 4: Financial highlights

    CORONATION & FUND MANAGERS Financial highlights

  5. Slide 5: Financial highlights

    Financial highlights ™ AUM R136 bn 11% ™ Headline earnings cps 26.6 -23% ™ Headline earnings (diluted) cps 24.0 -23% ™ Dividend cps 16.0 -20%

  6. Slide 6: Financial highlights (2)

    Financial highlights (2) ™ Revenue (from fund management) Rm 421 0% ™ Profit (from fund management) Rm 156 -17% ™ PAT Rm 88 -31% ™ Cashflow (operating activities) Rm 199 -17%

  7. Slide 7: Company overview

    CORONATION & FUND MANAGERS Company overview

  8. Slide 8: Company structure

    Company structure at 31 March 2008 Coronation Fund Managers Ltd 49% 90% Professional Provident Society 10% Coronation Investment The Imvula Trust Investments (Pty) Ltd Management (Pty) Ltd 54.95 51% 100% 100% 100% 100% 100% Namibia Asset Coronation Fund Coronation Coronation Life Coronation Asset Co

  9. Slide 9: Reconciliation of AUM

    Reconciliation of AUM 6 Months Opening market value 133.73 bn Net flows 2.71 bn Charges -0.38 bn Currency effect 2.77 bn Capital appreciation -3.13 bn Closing market value 135.69 bn

  10. Slide 10: Assets under management

    Assets under management 2003 – March 2008 160,000 140,000 133,730 133,410 135,690 120,000 101,440 100,000 81,930 80,000 63,759 60,000 53,697 40,000 20,000 0 2003 2004 2005 2006 2007 2007 2008 Sept Sept Sept Sept Sept Dec Mar

  11. Slide 11: Financial results

    CORONATION & FUND MANAGERS Financial results

  12. Slide 12: Earnings

    Earnings Change % Mar-2008 Mar-2007 Attributable earnings 88,181 127,009 EPS (24) 27.4 36.0 Headline earnings 85,619 122,561 HEPS (23) 26.6 34.7 Diluted HEPS (23) 24.0 31.1 Weighted average shares in issue 321,597 353,182

  13. Slide 13: Earnings

    Earnings Adjustment for STC Change % Mar-2008 Mar-2007 Profit from fund management (17) 155,987 187,372 Taxation (65,719) (60,202) Add back STC 15,074 - Adjusted PAT (17) 105,342 127,170 Minority interest (2,087) (161) Attributable earnings (19) 103,255 127,009 Weighted average shares in issue 9 321

  14. Slide 14: Earnings

    Earnings Other Change Mar-2008 Mar-2007 % EBITDA (16) 165,023 196,039 EBITDA (adjustment for CIT transactions) (17) 175,183 209,872 Market capitalisation (27) 2,021,059 2,758,220 Share price @ 31 March (19) 6.25 7.76 Price earnings per share 5 11.7 11.2 Price earnings – share price/annualised HEPS E

  15. Slide 15: Total net margin

    Total net margin 1.20% 1.00% 0.97% 0.87% 0.80% 0.75% 0.68% 0.69% 0.70% 0.65% 0.58% 0.59% 0.60% 0.53% 0.40% 0.20% 0.00% 2000 2001 2002 2003 2004 2005 2006 H1 2007 2007 H1 2008

  16. Slide 16: Cost comparison

    Cost comparison Change Mar-2008 Mar-2007 % R’000 R’000 Fixed operational costs (24) 104,375 84,447 IFRS 2 22 13,395 17,089 Variable costs 1 151,084 153,201 TOTAL OPERATIONAL COSTS (6) 268,854 254,737 Other costs 12 8,067 9,194 TOTAL COSTS (5) 276,921 263,931

  17. Slide 17: IFRS 2 effect

    IFRS 2 effect Mar-2008 Sept-2008 Sept-2007 R’000 R’000 R’000 December 2003 options 75 150 637 Imvula transaction 3,043 6,086 8,969 CIT transaction 1 (February 2005) 5,079 10,158 15,405 CIT transaction 2 (April 2005) 3,877 7,754 9,556 CIT transaction 3 (September 2005) 1,204 2,408 5,645 Namibia staff

  18. Slide 18: Business overview institutional

    Business overview institutional

  19. Slide 19: Performance

    Performance Alexander Forbes Global Large Manager Watch 5 years ending 31 March 2008 Investec Asset Management 29.40% Allan Gray 29.22% OMIGSA Macro Strategy 27.80% Prudential Global Balanced 27.76% RMBAM 27.16% Coronation 27.10% Median 26.91% Oasis 26.69% Cadiz African Harvest 26.50% Stanlib 26.24%

  20. Slide 20: Performance

    Performance Alexander Forbes SA Large Manager Watch 5 years ending 31 March 2008 Allan Gray 31.71% Investec Asset Management 31.62% Coronation 30.13% Prudential Domestic Balanced 29.75% Stanlib 29.13% OMIGSA Macro Strategy 29.08% Median 28.99% RMBAM 28.63% Oasis 28.35% Metropolitan 27.01% Sanlam 27.

  21. Slide 21: Business overview retail

    CORONATION & FUND MANAGERS Business overview retail

  22. Slide 22: CIS industry

    CIS industry Market share: Long-term single managers only Ranking excl. cash and dividend income funds Mkt Share Mar-08 Sep-07 1↑ Allan Gray 0.34% market share growth 22.4% R74.8bn R72.8bn 2↓ Investec -0.49% market share decline 12.5% R41.8bn R42.9bn 3↓ Old Mutual -0.72% market share decline 9.9% R3

  23. Slide 23: Coronation International Limited

    Coronation International Limited

  24. Slide 24: Overview

    Overview ¾ AUM down from $1.75bn (Sept-07) to $1.65bn (Mar-08) ¾ Market movements main cause of AUM decline ¾ Team anticipates significant demand for revamped international product offering

  25. Slide 25: Namibia Asset Management

    CORONATION & FUND MANAGERS Namibia Asset Management

  26. Slide 26: Performance – segregated funds

    Performance – segregated funds For 3 years ending 31 March 2008 Allan Gray 28.29% Investec 27.59% NAM 25.44% OMAM Nam 25.18% Prudential 24.54% Average 24.53% Metropolitan 23.52% SIM Balanced 23.15% OMAM Profile 22.78% RMB 22.21% Sanlam Classic 20.70% Source: Alexander Forbes Namibian Survey

  27. Slide 27: Performance – Namibian only

    Performance – Namibian only For 3 years ending 31 March 2008 Allan Gray 23.06% NAM 21.09% Average 20.78% SIM 20.72% OMAM 20.60% Investec 18.30% Source: Alexander Forbes Namibian Survey

  28. Slide 28: Other

    CORONATION & FUND MANAGERS

  29. Slide 29: Update on other initiatives

    Update on other initiatives • PPSI is half way to breakeven • Botswana is progressing well • GEM team is fully staffed • Private Equity team recruited

  30. Slide 30: Thank you

    CORONATION ®&® FUND MANAGERS Thank you

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