Slide 1: Interim Results Presentation for the Period Ended 31 August 2021
INTERIM RESULTS PRESENTATION FOR THE PERIOD ENDED 31 AUGUST 2021 11 OCTOBER 2021
Slide 2: Group Snapshot, 31 August 2021
GROUP SNAPSHOT, 31 AUGUST 2021 R62.7 billion Assets Under Management R8.9 billion Assets under Administration Feb 2021: R57.4 billion Feb 2021: R7.3 billion Interim Dividend Declared 6.5 cps 14 To be paid 15 November ‘21 years’ 353 staff R321.5m Turnover (2020: R271.2m) Listed on JSE Owner managed c
Slide 3: The Vunani Story
THE VUNANI STORY An independent black-owned and managed financial services and investment group founded over 17 years ago The Group comprises of financial services majority owned and controlled operating businesses Private equity investments were unbundled into a separate vehicle in About Vuna
Slide 4: Executive Directors
EXECUTIVE DIRECTORS Founding members have worked together for more than 23 years ETHAN DUBE (61) BUTANA KHOZA (54) Deputy Executive Chairman – Vunani Limited Group Chief Executive Officer – Vunani Limited MSc (Statistics), Executive MBA (Sweden) BCom, PG Dip (Accounting), CA(SA) Ethan is one of the
Slide 5: Heads of Subsidiary Businesses
HEADS OF SUBSIDIARY BUSINESSES SNOWY MASAKALE THABO MOIPOLAI Chief Executive Officer - Vunani Fund Managers Chief Executive Officer - Vunani Fund Managers (SA) BSc (Hons) MBA (Botswana) BA MA cc Snowy joined Vunani Fund Manager in September 2019 and was appointed CEO with cc Thabo joined Vunani STAN
Slide 6: Group Structure - Segments
GROUP STRUCTURE - SEGMENTS Beneficiary Fund Investment Insurance administration management banking Mission: To be Africa’s foremost boutique financial services group. 6
Slide 7: Group Entity Structure
GROUP ENTITY STRUCTURE VUNANI LIMITED | Vunani Limited Vunani Capital T 1 Beneficiary Corporate Broking Administration Advisory Services | | Faitheads Faitheads Vunani | i | | Vunani FM Vunani FM pices Vunani Vunani Vunani Capital Oracle Beneficiary Financial Corporate Oracle Life {South Africa) (Bo
Slide 8: Geographic Footprint
GEOGRAPHIC FOOTPRINT Current Eswatini South Africa Botswana Intermediate Target The fund management segments are in South Africa and Botswana on a smaller scale, The institutional securities broking, beneficiary administration and advisory services segments are in South Africa. The insurance s
Slide 9: Group Results Overview
VUNANI LIMITED GROUP RESULTS OVERVIEW
Slide 10: Economic Context & Overview
ECONOMIC CONTEXT & OVERVIEW The 2022 financial year started off in the •The year started off with level 1 lockdown and subsequently moved to Level 4 as the impact of the third wave necessitated harder restrictions. The restrictions have subsequently been eased to Level 1 in shadow of the COVID-19 pa
Slide 11: Financial Markets Overview
FINANCIAL MARKETS OVERVIEW Global Markets • Seven out of eight global indexes posted gains through October 4, 2021. India’s BSE Senex the best performer at 24.18% YTD return, with Hong Kong’s Hang Seng at the other end of the spectrum at -11.73% • Whilst markets have trended higher, the move has not
Slide 12: Performance Overview
VUNANI LIMITED PERFORMANCE OVERVIEW
Slide 13: Overview for the Six Months
OVERVIEW FOR THE SIX MONTHS • All operating divisions contributed positively to cash generation, (EBITDA and Adjusted EBITDA, which further consider fair value adjustments). Results to August 2021 - R millions Growth in AUM & AUA - R Billions 350 000 70 000 300 000 60 000 250 000 50 000 200 000 40 0
Slide 14: Performance Snapshot
PERFORMANCE SNAPSHOT REVENUE (R million) Comments on Performance Revenue Comparison - R million • Group results improved by 10% in comparison to the 140 000 120 000 prior period, Oracle which was impacted by significant 100 000 provisions for actuarial liabilities from COVID-19 80 000 impacted in th
Slide 15: Segmental Performance
SEGMENTAL PERFORMANCE FUND MANAGEMENT I ASSET ADMINISTRATION I INVESTMENT BANKING I INSURANCE
Slide 16: Segment – Fund Management
SEGMENT – FUND MANAGEMENT AUM Growth - R Billion 70 000 Rm Current Prior Year Py VAR Budget Bud VAR 60 000 62 777 50 000 50 951 40 000 Revenue 80.9 66.3 22% 79.9 1.3% 30 000 27 345 20 000 20 855 14 085 15 892 10 000 EBITDA 33.7 15.2 121% 23.2 45% - 2016 2017 2018 2019 2020 2021 VFM SA VFM Botswana T
Slide 17: Segment – Beneficiary Admin
SEGMENT – BENEFICIARY ADMIN Total Assets Under Administration: R8.9bn Rm Current Prior year PY VAR Budget Budget VAR Revenue 80.1 69.9 15% 76.7 4% EBITDA 23.8 20.1 19% 26.1 -9% PAT 11.3 10.3 10% 10.5 64% Fairheads Beneficiary Services Fairheads Financial Services • The most mature business on the Vu
Slide 18: Segment – Advisory Services
SEGMENT – ADVISORY SERVICES Prior Budget Vunani Corporate Finance Rm Current year PY VAR Budget VAR Revenue 14.9 5.3 181% 14.0 7% • The fees earned and expenses incurred for managing VCP EBITDA 4.7 2.1 125% 6.9 -31% [Vunani Capital Partners Limited] included in this segment PAT 0.5 6.9 -93% 4.9 -91%
Slide 19: Segment – Stockbroking
SEGMENT – STOCKBROKING Rm Current Prior year PY VAR Budget Budget VAR Revenue 18.9 22.6 -17% 17.6 7% EBITDA 1.5 4.0 63% 4.8 -69% PAT 0.5 5.8 -25% 1.1 -56% Vunani Securities Vunani Capital Markets • The equities and derivatives team had a tough 6 months. • The capital markets had a tough 6 months wit
Slide 20: Segment – Insurance
SEGMENT – INSURANCE Rm Current Prior year PY VAR Budget Budget VAR Revenue 126.7 107.1 18% 91.7 38% EBITDA 26.9 28.6 -6% 12.4 117% PAT 7.1 5.7 25% 2.2 229% Oracle Life Oracle Insurance • Oracle Life continues to face challenges with COVID related • The short-term business fared much better than the
Slide 21: Financial Performance
VUNANI LIMITED FINANCIAL PERFORMANCE
Slide 22: Key Financial Ratios/Metrics
KEY FINANCIAL RATIOS/METRICS • 19% increase in revenue to R321.5 m. • 10% increase in HEPS to 21.7c. • 13% increase in cash generated from operating activities. • 17% decrease in other financial liabilities to R47.0 m. • 6.5c interim dividend declared. Mission: To be Africa’s foremost boutique finan
Slide 23: Profit After Tax and Revenue
PROFIT AFTER TAX AND REVENUE Profit contribution per segment Revenue Comparison - R million 25000 140 000 120 000 20000 100 000 15000 80 000 10000 60 000 5000 40 000 0 20 000 0 Fund Man Asset admin Advisory Stockbroking Insurance 2021 2020 2021 2020 Mission: To be Africa’s foremost boutique financia
Slide 24: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME SOCI Analysis - Income Bargain purchase Interest received Investment revenue Other income 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 2020 2021 The group recognized a bargain purchase gain on the acquisition of Medscheme The increase in interest r
Slide 25: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME Fair value adjustments & impairments Operating Expenses Other expenses Impairments Reinsurance premium Claims incurred Fair value adjustments Staff costs 0 20 000 40 000 60 000 80 000 100 000 120 000 0 5 000 10 000 15 000 20 000 2020 2021 2020 2021 Operating expen
Slide 26: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME Operating expenses Other expenses Reinsurance premium Claims incurred Staff costs - 50 000 100 000 150 000 200 000 250 000 300 000 2020 2021 Operating expenses increased by 62% compared to Feb ’20 as result of consolidating Oracle Insure and Vunani Fund Managers B
Slide 27: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION SOFP Movements Intangible assets Insurance related investments Other financial liabilities Investment contracts - 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 450 000 500 000 2020 2021 Intangible assets decreased as a result of amortisation. Insu
Slide 28: Statement of Cash Flows
STATEMENT OF CASH FLOWS Reconciliation of cash generated from operations 2021 2020 EBITDA 69 962 57 553 Adjusted for non-cash items Changes in working capital (23 205) (22 189) Fair value adjustments 15 629 14 551 Bargain purchase (954) - Dividends accrued but not received (2 710) - Interest from in
Slide 29: Dividend & Prospects
VUNANI LIMITED DIVIDEND & PROSPECTS
Slide 30: Dividend Declaration
DIVIDEND DECLARATION A strong performance for the first six months of the year despite the tough operating environment. The board declared gross interim dividend of 6.5 cents per share. The dividend will be paid on 15 November 2021 Mission: To be Africa’s foremost boutique financial services gro
Slide 31: Progressive Dividend & Prospects
PROGRESSIVE DIVIDEND & PROSPECTS • The group has as a primary objective, the attractive and sustainable growth in operating profit and the payment of a growing dividend to its shareholders. • This is the second year in which group is paying an interim dividend, having paid a final dividend FY2021 as
Slide 32: Thank You ~ Q&A
VUNANI LIMITED THANK YOU ~ Q&A
Slide 33: Appendices
VUNANI LIMITED APPENDICES
Slide 34: Non-Executive Directors
NON-EXECUTIVE DIRECTORS Mature and diverse skills appropriate for financial services LIONEL JACOBS (77) GORDON NZALO (55) Independent non-executive chairman Independent non-executive director BCom, MBA BCom, BAcc, CA(SA) Lionel served as an executive director of Bidvest Group Gordon was the group In
Slide 35: Vunani Limited Board
VUNANI LIMITED BOARD Mature and diverse skills appropriate for financial services SITHEMBISO N MTHETHWA (51) Non-executive director BCom (Maritime Economics) Sithembiso has over 15 years of experience in the maritime industry, having worked in many ports in South Africa, Europe and the Far East. In
Slide 36: Financial Markets Overview
FINANCIAL MARKETS OVERVIEW Global Markets • Seven out of eight global indexes posted gains through October 4, 2021. • India’s BSE Senex best performer which is at 24.18% YTD return, with Hong Kong’s Hang Seng at the other end of the spectrum at -11.73% • Whilst markets have trended higher, the move