Momentum Group Limited · JSE:MTM
Momentum — 26th UBS SA Financial Services Conference (2023)
26 slides from Momentum's conference presentation, 2023
Slide 1: From rocky to resilient
From rocky to resilient Jeanette Marais Group Chief Executive Officer 26th UBS SA Financial Services Conference
Slide 2: Resilience quote by Gever Tulley
“ Resilience comes only from having been given “ the opportunity to work through difficult problems. ~ Gever Tulley
Slide 3: Overview
Overview Touching the bottom Understanding resilience Fixing the problem The results
Slide 4: Touching the bottom
Touching the bottom
Slide 5: Touching the bottom – MMI in 2018
Touching the bottom – MMI in 2018 Declining market share Lack of financial discipline Sales expenses as % of APE VNB as % of sales expenses Retail market share Corporate market share 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 20
Slide 6: Factors contributing to poor results
Factors contributing to poor results Not being at Lack of the frontline Poor capital accountability discipline Touching the bottom Central control & Uncertain Matrix structure decision rights Lingering impact of merger Lost competitive Lack of Ineffective spirit innovation distribution
Slide 7: Fixing the problem
Fixing the problem
Slide 8: The five capitals of organisational resilience
The five capitals of organisational resilience Operational resilience People resilience Reputational resilience Withstand Culture Responsiveness Absorb Behaviours Brand building Recover Creativity Trust Regenerate Personal resilience Dependability Fixing the problem Environmental Financial resilienc
Slide 9: Operational resilience
Operational resilience Federated operating model Empowerment and accountability Fixing the problem
Slide 10: Operational resilience – Corporate portfolio approach
Operational resilience Corporate portfolio approach Sustainable Group performance Strategic relevance Value creation Sustainability Fixing the problem Show leadership, Real earnings growth Diverse, developing for leveraging individual and attain minimum the future, digitally and group strengths Grou
Slide 11: People resilience
Fixing the problem People resilience
Slide 12: Reputational resilience
Reputational resilience . 4 M C E 1 0 1 : M EN T ION T S R2 FOLLOWIN IN SURAN EJE C R G T HE LAW E D I C A L DETAILS N G R ER R U T F O I S N O T E N O UGH M ER GU R U TH I INSU Y PAYO URE ~ CON SUM D N O LIC O S R D I L Y PO DISCL R E A L INSU G, LEG - NON R ON WIDOW’S INSURANCE FIGHT W INSU R Wido
Slide 13: Reputational resilience
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Slide 14: Fixing the problem
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Slide 15: Reputational resilience
Reputational resilience – Fixing the problem
Slide 16: Reputational resilience – Recent PwC report
Reputational resilience – Recent PwC report Fixing the problem
Slide 17: Financial resilience – Strong financial position in 2023
Financial resilience – Strong financial position in 2023 Embedded value (R’million) +19% Concluded R500 million share 45 428 49 035 buyback in last 6 months 41 193 38 524 41 328 Approval for further R500 million Fixing the problem Jun '19 Jun '20 Jun '21 Jun '22 Jun ‘23 Covered business Non-covered:
Slide 18: Environmental Resilience
Environmental Resilience GOVERNANCE RISK MANAGEMENT • Clear board oversight • Well below 2-degree scenario analysis • Climate-focused management forums • Impact assessment across risk types • Growth: Climate skills and businesses • Physical and transitional risk indicators • Climate integrated into
Slide 19: The results
The results
Slide 20: Step change in level of earnings
Step change in level of earnings NHE (R’million) 2 858 2 849 2 230 1 772 1 618 1 456 1 525 The results 1 012 409 ( 5) ( 251) Jun 18 Dec 18 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 Jun 23
Slide 21: Step change in new business sales
Step change in new business sales PVNBP (R’million) 36 995 35 906 35 678 35 605 33 268 29 992 28 790 26 993 26 234 25 808 24 213 The results Jun 18 Dec 18 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 Jun 23
Slide 22: Market share growth (F2020 to F2023)
Market share growth (F2020 to F2023) 30% 26% 25% 25% 20% 18% 15% 15% 14% 14% 12% The results 10% 9% 8% 7% 5% 2,5% 2,4% 0% Momentum Wealth Myriad FundsAtWork Momentum Insure Momentum Metropolitan Life Metropolitan Health “Winning back independent financial adviser support and market share will prove
Slide 23: Expense management and embedded value
Expense management and embedded value Expense management (R’million) Group EV per share (Rand) 11 925 11 770 33,75 10 555 31,39 9 923 29,77 9 405 9 432 9 655 28,56 28,39 27,48 27,39 27,08 26,60 25,43 25,70 The results Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Jun Jun 1818 Jun Jun 1919 Jun Jun 2020
Slide 24: Share price performance
Share price performance Share price Total shareholder return (TSR) 5 years ending June 2023 5 years ending June 2023 (Annualised) 120 110 4% 2% 100 90 80 The results 70 2% 60 50 1% 40 MTM -1% *LBH delisted 22 February 2022 MTM DSY OMU SLM
Slide 25: Share price performance
Share price performance Share price Total shareholder return (TSR) 5 years ending June 2023 5 years ending June 2023 (Annualised) 120 110 4% 2% 100 -1% 90 -17% 80 The results -30% 70 2% 60 -47% 50 1% 40 MTM DSY OMU SLM LBH* -1% *LBH delisted 22 February 2022 MTM DSY OMU SLM
Slide 26: Conclusion
Conclusion 1 Well-developed resilience muscle 2 Being honest with ourselves 3 Empowering teams with strong accountability Conclusion 4 Building our growth engines 5 Looking to the future
Momentum Group — 26th UBS SA Financial Services Conference (2023) on 6ix