Slide 1: Interim Results
DO GREAT THINGS EVERY DAY
Slide 2: Agenda
Agenda Strategic review Financial review Key take-aways Q&A Iain Williamson Casper Troskie Iain Williamson OML Executive Group CEO Group CFO Group CEO Committee
Slide 3: Strategic Review
STRATEGIC REVIEW INTERIM RESULTS 2024
Slide 4: H1 2024 Financial Highlights
H1 2024 Financial Highlights We delivered strong cash generation, sustained top line growth and enhanced shareholder value Sustained growth Profits & margins Enhanced value 6% 0.4% 7% R6.6 bn 95.5 cents 73.5 Life APE sales RFO per share AHE per share 2.4% 6% 9% Target 2 to 3% 34 cents R13.8 bn Inter
Slide 5: Operating environment
Operating environment Positive investor sentiment in SA has reset the base case though the key growth drivers still lag Equity market performance rebounded in H1 24 ...but growth lagged as headwinds persisted Nairobi All Share Ghana SE Composite Malawi All Share JSE SWIX 2022 2023 2024e 2025f 2026f
Slide 6: Our strategic framework
Our strategic framework RY CONDIT OPE E TO IO NUTH MA RAT E RG IC N V W I V O IN S GR E R G N RESPONSIBLY TO BE OUR CUSTOMERS’ BUILD THE MOST RE TITIVE EFFICIE NGTHS 1ST CHOICE TO SUSTAIN, VALUABLE BUSINESS CAPIT CIE GROW AND PROTECT IN OUR INDUSTRY ST MPE THEIR PROSPERITY AL S N CO EXECUTION AND Y
Slide 7: The hallmarks of an integrated financial services business
The hallmarks of an integrated financial services business & Savings Life Strategic Framework es rvic Bu dg e Growing and protecting the core als t et i g As Dig in g cial welln ing & Lendin > Holistic coverage of customer needs set an n es Fi Managem > Distribution and digital engagement s Adviser
Slide 8: Strategic delivery
Strategic delivery We are making significant progress through disciplined execution and considered capital allocation Delivery priorities Progress Value drivers e etitiv Stren p OM Bank ✓ Successfully completed industry testing m gt Co hs Progress on Section 17 conditions ✓ Integrated into National
Slide 9: Our commitment to sustainability
Our commitment to sustainability Responsible response to operating context by leading in sustainability and stewardship Ratings Awards and accolades MSCI Long-term Insurer of the Year - 2024 AA News24 Best Asset Manager S&P Global ESG ranking of 43 Sustainable Investing in South Africa (OMIG) Above
Slide 10: Mass and Foundation Cluster
Mass and Foundation Cluster Our multi-channel strategy continues to bolster market share and support sustainable margins Life APE sales Value of new business (Rm) and value of new business margin (%) Rm 14% 7.7% 8.9% 8.6% 2 424 6.7% 2 125 -1.3% 0% 1 806 758 1 656 611 613 706 1 366 694 478 647 355 64
Slide 11: Personal Finance & Wealth Management
Personal Finance & Wealth Management Sustained sales growth, mix of business and experience variances impacted short-term profitability Life APE sales Value of new business (Rm) and value of new business margin (%) Rm 1.7% 8% 0.8% 0.8% 0.7% 268 0.3% 2 420 2 251 2 024 2 001 459 390 314 246 (5%) 1 539
Slide 12: Old Mutual Investments
Old Mutual Investments AuM demonstrated resilience while revenue is down off a strong base in the prior period Assets under management Revenue Rbn Rm (9%) 3% 1 770 864 1 541 1 603 839 809 1 395 274 774 152 170 702 593 141 1 371 1 496 1 451 1 254 1 113 ( 520) FY 2020 FY 2021 FY 2022 FY 2023 H1 2024 H
Slide 13: Old Mutual Corporate
Old Mutual Corporate Delivered robust profits across the portfolio whilst strengthening our value proposition Life APE sales1 Value of new business (Rm) and value of new business margin (%) Rm 1.6% 1.0% 1.1% 1 139 0.7% 0.7% (14%) 44 (59%) 938 886 824 41 809 120 16 25 31 102 716 94 548 641 498 507 58
Slide 14: Old Mutual Insure
Old Mutual Insure An exceptional turnaround through better risk selection and disciplined expense management Gross written premiums Claims Ratio Rm % 10% (430bps) 66.2 57.2 57.9 10 504 53.6 9 559 8 186 43.2 7 761 7 199 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 »
Slide 15: Old Mutual Africa Regions
Old Mutual Africa Regions We sustained profit growth despite the disparate currency devaluation impact across the regions Life APE sales (Rm) and value of new business margin (%) Gross written premiums Rm 2.9% 2.3% 2.1% 2.0% 17% -0.9% 5% 3 549 830 3 032 787 2 709 665 2 119 2 190 506 520 H1 2020 H1 2
Slide 16: Financial Review
FINANCIAL REVIEW INTERIM RESULTS 2024
Slide 17: Robust financial performance
Robust financial performance Enhancing returns whilst investing for the future Earnings Capital efficiency Value Results from operations Return on net asset value Value of new business (Rbn) (3%) (%) (Rbn) (8%) 70bps 4.4 0.9 0.9 4.2 12.6% 11.9% H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 4% incr
Slide 18: Results from operations
Results from operations Up 4% excluding new growth investments Rm (3%) 4 366 4 243 (27%) 1 886 36% 30% (15%) >100% 6% 1 386 1 074 944 (>100%) 727 787 772 643 547 478 509 317 ( 472) ( 989) Mass and Personal Finance and Old Mutual Old Mutual Old Mutual Old Mutual Net result from Old Mutual Foundation
Slide 19: Adjusted headline earnings up 3%
Adjusted headline earnings up 3% Up 12% excluding new growth investments Rm H1 2024 H1 2023 Change Results from operations 4 243 4 366 (3%) Shareholder investment return 1 204 1 055 14% Finance costs (544) (455) (20%) Income from associate 76 38 100% Adjusted headline earnings before tax and non-con
Slide 20: Adjusted headline earnings to IFRS profit reconciliation
Adjusted headline earnings to IFRS profit reconciliation Zimbabwe remains the main adjustment Rm H1 2024 H1 2023 Change Adjusted headline earnings 3 267 3 160 3% Accounting mismatches and hedging impacts 90 (823) >100% Impact of restructuring 4 (8) >100% Operations in hyperinflationary economies 2 4
Slide 21: Contractual service margin
Contractual service margin Allocation remains within expected range Rbn Predictable Not predictable Expected range of future CSM allocation to P&L: 8% - 12% CSM 1 E CSM represents store of future profits – annualised return on CSM of 14.2%2 for 2024 1. Release of contractual service margin includes
Slide 22: Value of New Business
Value of New Business Margin remains within target range Value of new business Value of new business margin (Rm) (%) CAGR H1 2023 (8%) (30bps) H1 2024 10% 937 H1 22 - H1 24 858 8.9 8.6 0% 611 613 (20bps) 20bps (5%) (90bps) 2.6 (59%) 2.3 2.4 (5%) (10bps) 2.1 1.6 131 125 120 75 71 0.8 0.7 0.7 49 Mass
Slide 23: Embedded Value
Embedded Value Continued excellent growth in embedded value Rbn 12.5% Annualised return on embedded value R4.2bn Operating embedded value earnings E E E C E E
Slide 24: Group Equity Value
Group Equity Value Sum of the parts Rbn R89.8bn 6.8 0.5 5.7 8.8 R18.70 GEV per share R12.39 Share price 68.0
Slide 25: Capital management framework
Capital management framework Enhancing value for shareholders Balance sheet strength Considered capital deployment Balance sheet efficiency Appropriately balanced Free surplus RONAV for protection and potential generated Group solvency ratio Ordinary dividends Group Group liquidity Discretionary cap
Slide 26: OML Group shareholder solvency
OML Group shareholder solvency Balance Considered Balance sheet capital sheet Appropriately balanced for protection and potential strength deployment efficiency % 199% 189% 188% 190% 184% 188% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 H1 2024 Adjusted IFRS equity¹ Solvency ratio (%)² Bottom of target
Slide 27: Free surplus generated
Free surplus generated Balance Considered Balance sheet capital sheet Continue to generate a high proportion of cash earnings strength deployment efficiency Rbn 74% 123% Target free surplus generation 4 of 70-80% of AHE (before optimisations) 1.7 Contribution to discretionary 2.3 capital Significant
Slide 28: Discretionary capital
Discretionary capital Balance Considered Balance sheet capital sheet Considered capital deployment strength deployment efficiency Rbn Net contribution per previous slide C O T M
Slide 29: Return on net asset value
Return on net asset value Balance Considered Balance sheet capital sheet Continuing upward trend strength deployment efficiency Return on net asset value & cost of equity % Ongoing balance sheet 12.8% optimisations 12.2% 11.8% 15.5% Continued 13.4% 11.9% 12.6% market share 10.1% 10.8% growth in reta
Slide 30: Medium-term targets
Medium-term targets Strong delivery KPI Target H1 2024 outcome Medium-term outlook Gross flows and gross written Deliver growth of nominal GDP +1% Growth Strong delivery Continue to regain market share premiums over the medium term Value of new business margin Between 2% and 3% 2.4% Within range Net
Slide 31: Conclusion
CONCLUSION INTERIM RESULTS 2024
Slide 32: Key take-aways
Key take-aways 1 Cash generation: strong cash remittances supporting dividend growth and a proposed R1 bn share buy-back 2 Profits and margins: over the short-term, RFO is impacted as we invest through the cycle in our new growth engines 3 Shareholder returns: RoNAV increased by 70 bps to 12.6%. Exc
Slide 33: Q&A
Q&A