Old Mutual Limited
Incorporated in the Republic of South Africa
Registration number: 2017/235138/06
JSE Alpha code: OMLI
("Old Mutual" or "OM" or "the Company" or "the Group")


14 March 2023

Short-form announcement: Reviewed preliminary annual results and final dividend declaration for the year
ended 31 December 2022


A message from the Chief Executive Officer


Overview
The Group delivered a solid set of financial results in 2022 despite the difficult macro-economic environment
and market volatility. The pressure on our operating earnings caused by the COVID-19 pandemic has lifted as
the ongoing impact of the pandemic becomes muted.
Our good sales performance was achieved on the back of successful execution of our strategy as we continued
to enhance our customer and adviser experience. We are also building our transactional capabilities in South
Africa as a key component of becoming our customers’ first choice to sustain, grow and protect their prosperity.
We implemented our Broad-Based Black Economic Empowerment deal, Bula Tsela in November 2022. This
transaction aims to increase our B-BBEE ownership to above 30% and has enabled us to deliver on our
transformation commitments. The Bula Tsela deal was shortlisted for the 2022 Exxaro DealMakers BEE Deal
of the Year Award.


Operating environment
While 2021 experienced significant post COVID-19 growth, 2022 was characterised by the after effects of the
rebound, including supply chain constraints, resurgence of COVID-19 in China and the ongoing impact of
Russia’s war in Ukraine. These factors weighed on global economic activity in 2022. Inflation continued to
accelerate as economies experienced a rapid rise in food and energy prices. This resulted in significant interest
rate increases as central banks attempted to combat the rise in inflation across most developed and emerging
economies.
The South African economy grew by 2% in 2022, lower than the 4.9% achieved in 2021. Severe load shedding
and flooding in KwaZulu-Natal, which damaged infrastructure and manufacturing facilities, further hampered
economic growth.
Inflation averaged 6.9% in 2022, up from 4.5% in the prior year, supported by increased fuel and food prices.
The South African Reserve Bank raised the policy rate by a cumulative 325 basis points during 2022 to combat
rising inflation. This, together with a relative slow recovery in employment post COVID-19 and the lingering
impacts of the 2021 civil unrest, negatively impacted real income growth.
This downward pressure on disposable income growth, combined with depressed confidence made it difficult
for customers to maintain or increase their contributions to protection, savings and investment products. Our
corporate customers’ growth and liquidity levels were also negatively impacted.
The South African equities markets declined relative to the prior year on the back of global market volatility.

The operating environment across our Africa regions was similarly challenging with policymakers also having
to grapple with exchange rate volatility and shrinking economic resources. In Kenya, Malawi and Ghana, the
fiscal pressures resulting from increased debt repayments forced governments into International Monetary Fund
budget support programmes. Furthermore, in Malawi, acute dollar scarcity led to fuel shortages and challenges
in meeting dollar-denominated obligations. These economic conditions led to reduced customer spending due
to lower disposal income and poverty levels, which have limited the affordability of insurance and savings
products. Socio-political risk continued to heighten in several countries, exacerbated in Zimbabwe and Nigeria
by upcoming elections.
All selected equity indices across our Africa regions (except for Malawi) have decreased relative to the prior
year on the back of global market volatility.



Key performance overview

Sales maintained momentum throughout the year in our retail segments. We made progress in regaining market
share in Mass and Foundation Cluster and Personal Finance during the year, as evidenced by external market
surveys.

Life APE sales increased by 10% mainly due to strong risk and credit life sales in Mass and Foundation Cluster
coupled with higher corporate and retail sales in Namibia. Our China business also delivered strong savings
sales from the broker channels. This was partially offset by lower pre-retirement and annuity sales in Old Mutual
Corporate.
The value of new business grew by 16% due to strong sales growth in Mass and Foundation Cluster as well as
a change in mix towards higher margin business in Mass and Foundation Cluster and Old Mutual Corporate.
This was partially offset by the reduction in Personal Finance value of new business arising from challenges
faced with sales volumes and business mix. We have, however, seen an improvement in the second half of the
year due to management actions implemented to improve the business mix to higher margin risk business. The
value of new business margin of 2.2% remains within our medium-term target range of 2% to 3%.
Gross flows declined by 9% due to the prior year including large transactions in Old Mutual Investments and
Old Mutual Corporate which did not repeat in the current year. Lower annuity sales and a decrease in demand
for offshore investments in Personal Finance and Wealth Management also contributed to the decline in gross
flows. This was partially offset by strong flows in Old Mutual Africa Regions and growth in the sales of savings
products in China.
The Group reported negative net client cash flow for the year. This was primarily due to the decline in gross
flows combined with large disinvestments and terminations in Wealth Management and Old Mutual Investments
respectively. We are confident that the overall health of our pipeline will support improvements in net client cash
flow. Our funds under management of R1.2 trillion declined by 4% due to weaker market performance in South
Africa and globally.
Results from operations increased to R8.7 billion, primarily driven by improved profits on the back of strong
sales and core operational performance across the Group. Our life profits benefited from a refinement in hedging
methodology, enabling a material release of excess discretionary margins as well as lower mortality in the
current year as the effects of COVID-19 eased. All remaining COVID-19 provisions were released but the impact
was mostly offset by the strengthening of our mortality basis to allow for endemic COVID-19 claims, and
worsened persistency as the challenging economic conditions continue to impact our retail customers.
The Group return on net asset value improved to 11.1% due to strong growth in earnings and a lower average
adjusted IFRS equity base, resulting from the unbundling of 12.2% of the Group’s stake in Nedbank in 2021,
thus delivering on our promise to simplify the Group’s capital structure and provide a substantial return of capital
to our shareholders. We remain committed to returning capital to our shareholders, with R59.3 billion returned
through special distributions since 2018.
The Group solvency ratio remains robust at 190%, within our target range of 170% - 200%. Old Mutual Life
Assurance Company (South Africa) Limited (OMLACSA) solvency ratio was at 214%, above the target range
of 175% to 210%.
Our dividend policy targets an ordinary dividend cover range of 1.5x to 2x adjusted headline earnings. The Old
Mutual Limited Board declared a final dividend of 51 cents per share, taking the full dividend for the year to 76
cents. Adjusting for the impact of Nedbank in 2021, dividend growth was up 13% from the prior year.
We have further earmarked between R1 billion and R1.5 billion for return to shareholders as a share buyback
and we have initiated approval processes with the Board and Prudential Authority.

We have largely delivered on our medium-term targets which were set for 2023. Our results from operations
target for 2023 was to deliver the 2019 results plus 5% to 10%. We have met this target on a comparable basis
to 2019, excluding the cost of our transactional capability and NEXT176. This was achieved on the back of
decisive and focused management actions through this recovery phase resulting in our sales and gross flows
recovering to pre COVID-19 levels. We have also exceeded our cost efficiencies target and remain within the
ranges set for value of new business margin and Group solvency. Return on net asset value continues to recover
and is approaching our cost of equity. Old Mutual Insure’s net underwriting margin is below our target range
owing to the severe catastrophe events experienced during 2022.
We continue to evaluate the impact of IFRS 17 and refine the new financial reporting processes, systems and
controls that will underpin our IFRS 17 results. Whilst IFRS 17 will not change the underlying fundamentals of
our insurance business, our cash generation or our capital strength, it will significantly change how we report
on our insurance business. We remain on track to report under IFRS 17 for the first time for the half-year ended
30 June 2023 and restated comparative information for 2022 will be provided.


Outlook for 2023
Economic activity continues to be hampered by significant interest rate increases as central banks attempt to
combat rising inflation caused by Russia’s war in Ukraine. Severe COVID-19 lockdowns in China dampened
growth in 2022, with the recent reopening paving the way for a faster than expected recovery. The International
Monetary Fund World Economic Outlook for January 2023 forecasts global economic growth of 2.9% for 2023.
Load shedding in South Africa continues to affect economic activity. Failure to address load shedding will have
an impact on crop failure, higher food prices and shortages of certain food products, which will further dampen
economic growth. In January 2023, the South Africa Reserve Bank increased the repo rate by 25 basis points
to control inflation levels. The International Monetary Fund’s World Economic Outlook for January 2023 has
forecast growth in Sub-Saharan Africa at 3.8% for 2023.
The macro-economic environment in our markets is expected to remain challenging, which will continue to
exacerbate financial pressure on our customers. We remain focused on driving sales volumes and profitable
sales mix to improve market share growth in our segments. Despite the challenging headwinds, we are through
our recovery phase and have largely delivered on our medium- term targets one year ahead of schedule. Our
next set of results will be prepared on an IFRS 17 basis and we will communicate the revised medium-term
targets in due course.
I would like to thank all my colleagues for their contributions in achieving this pleasing set of results. Our focus
over 2023 is to continue putting our customers first and remaining a certain friend in uncertain times for our
customers, employees and the communities in which we operate.
Iain Williamson
Chief Executive Officer of Old Mutual Limited


Group highlights



Key performance indicators


Rm (unless otherwise stated)                                                     FY 2022      FY 2021       Change
Results from operations                                                             8 743        4 384          99%
Adjusted headline earnings                                                          6 371        5 402          18%
Headline earnings (1)                                                               7 948        7 209          10%
IFRS profit after tax attributable to equity holders of the parent (1)              7 325        6 662          10%
Return on net asset value (%)                                                      11.1%          9.0%      210 bps
Group equity value                                                                 89 398       91 993          (3%)
Discretionary capital (Rbn) (2)                                                        3.5           —            —
Group solvency ratio (%) (1)                                                        190%         184%       600 bps
Dividend cover                                                                       1.73          1.51         15%
Per share measures
                                                                              FY 2022      FY 2021      Change
Adjusted headline earnings per share (3)                                         139.8        118.5         18%
Headline earnings per share (1)                                                  180.1        163.8         10%
Basic earnings per share (1)                                                     166.0        151.3         10%
Total dividend per share                                                            76           76          0%
 Interim                                                                            25           25          0%
 Final                                                                              51           51          0%
Group equity value per share (4)                                               1 819.3      1 952.2         (7%)

(1) These metrics include the results of Zimbabwe. All other key performance indicators exclude Zimbabwe.
(2) Discretionary capital was externally disclosed since September 2022 at R3.5 billion.
(3) Adjusted headline earnings is calculated with reference to adjusted weighted average number of ordinary
  shares. Weighted average number of shares used in the calculation of the adjusted headline earnings per
  share is 4 557 million (FY 2021: 4 558 million).
(4) Group equity value calculated with reference to closing number of ordinary shares. Closing number of shares
  used in the calculation of the group equity per share is 4 914 million (FY 2021: 4 709 million).



Supplementary performance indicators
Rm (unless otherwise stated)                                                  FY 2022      FY 2021      Change
Life and Savings and Asset Management
Gross flows                                                                   178 027      194 757          (9%)
Net client cash flow                                                          (12 425)           92     (>100%)
Funds under management (Rbn)                                                   1 228.9      1 273.6         (4%)
Life and Savings
Life APE sales                                                                  12 501       11 400         10%
Value of new business                                                            1 465        1 266         16%
Value of new business margin (%)                                                 2.2%         1.9%        30 bps
Banking and lending
Loans and advances                                                              19 009       18 907          1%
Net lending margin (%)                                                          13.4%        16.4%     (300 bps)
Property and Casualty
Gross written premiums                                                          22 344       19 982         12%
Net underwriting margin (%)                                                      0.5%         1.6%     (110 bps)


Short-form announcement
This short-form announcement is the responsibility of the Board. It is only a summary of the information
contained in the full announcement available on SENS and the Company’s website on 14 March 2023. This
short-form announcement does not contain full or complete details pertaining to the Group’s results and should
be read in conjunction with the full announcement. The short form announcement has itself not been reviewed,
however, the financial information included herein has been extracted from the reviewed condensed
consolidated financial statements which have been reviewed by the independent joint auditors, Ernst & Young
Inc. and Deloitte & Touche, who expressed an unmodified review conclusion. Any reference to future financial
performance has not been reviewed by or reported on by the Group's auditors. The reviewed condensed
consolidated financial statements and the independent joint auditors review report is available on the Company's
website at www.oldmutual.com/investor-relations/reporting-centre/reports. Any investment decisions by
investors and/or shareholders should therefore be based on consideration of the full announcement accessible
via the JSE link https://senspdf.jse.co.za/documents/2023/jse/isse/OMUE/FY22Result.pdf and published on
our website at www.oldmutual.com/investor-relations/reporting-centre/reports. The full announcement is
available for inspection at the registered offices of the Company and the Sponsor, at no charge, during office
hours from the date of this announcement for a period of 30 days.



Final dividend declaration
The Old Mutual Limited Board declared a final dividend of 51 cents per ordinary share. This results in a full
dividend cover of 1.73 times for the 2022 year which is in line with Old Mutual Limited’s dividend cover target
range of 1.50 times to 2.00 times.
The final dividend will be paid out of distributable reserves to all ordinary shareholders recorded on the record
date. The dividend will be payable to all shareholders, except for Old Mutual Limited shareholders on the London
Stock Exchange (LSE), on 14 April 2023. The dividend payment date for Old Mutual Limited shareholders on
the LSE is 15 May 2023.
Shareholders on the London, Zimbabwean, Malawian and Namibian registers will be paid in the local currency
equivalents of the final dividend.
Old Mutual Limited’s income tax number is 9267358233. The number of ordinary shares in issue in the
company’s share register at the date of declaration is 4 913 880 491.

                                                                JSE, MSE, NSX, ZSE                           LSE
Declaration date                                                            Tuesday,                   Tuesday,
                                                                       14 March 2023              14 March 2023
Finalisation announcement and exchange rates announced                  Wednesday,             Wednesday,
                                                                    22 March 2023 by 22 March 2023 by 11.00
                                                                               11.00
Transfers suspended between registers                               Close of business          Close of business
                                                                      on Wednesday,              on Wednesday,
                                                                      22 March 2023              22 March 2023
Last day to trade cum dividend for shareholders on the South                 Tuesday,                         N/A
African Register and Malawi, Namibia and Zimbabwe branch                 11 April 2023
registers
Ex-dividend date for shareholders on the South African                    Wednesday,                          N/A
Register and Malawi,                                                     12 April 2023
Namibia and Zimbabwe branch registers
Last day to trade cum dividend for shareholders on the UK                          N/A               Wednesday,
register                                                                                            12 April 2023
Ex-dividend date for shareholders on the UK register                               N/A                 Thursday,
                                                                                                    13 April 2023
Record date (South African Register and Malawi, Namibia             Close of business                         N/A
and Zimbabwe                                                               on Friday,
branch registers)                                                       14 April 2023
Record date (UK register)                                                          N/A         Close of business
                                                                                                      on Friday,
                                                                                                   14 April 2023
Transfers between registers restart                               Opening of business        Opening of business
                                                                         on Monday,                 on Monday,
                                                                        17 April 2023              17 April 2023
Final dividend payment date                                                  Monday,                    Monday,
                                                                         17 April 2023              15 May 2023
(1) Tuesday, 21 March is Human Rights Day.
Share certificates for shareholders on the South African register may not be dematerialised or rematerialised
between Wednesday, 12 April and Friday, 14 April 2023, both dates inclusive. Transfers between the registers
may not take place between Wednesday, 22 March and Friday, 14 April 2023, both dates inclusive. Trading in
shares held on the Namibian branch register through Old Mutual (Namibia) Nominees (Pty) Limited will not be
permitted between Wednesday, 22 March and Friday, 14 April 2023, both dates inclusive.
For South African shareholders, the dividend will be subject to dividend withholding tax of 20% for all
shareholders who are not exempt from or do not qualify for a reduced rate of withholding tax. International
shareholders who are not exempt or are not subject to a reduced rate in terms of a double taxation agreement
will be subject to dividend withholding tax at a rate of 20%. The net dividend payable to shareholders subject to
withholding tax at a rate of 20% amounts to 40.800 cents per ordinary share. Distributions made through the
dividend access trust or similar arrangements established in a country will not be subject to South African
withholding tax but may be subject to withholding tax in the relevant country. We recommend that you consult
with your tax adviser regarding the in country withholding tax consequences.
Shareholders that are tax residents in jurisdictions other than South Africa may qualify for a reduced rate under
a double taxation agreement with South Africa. To apply for this reduced rate, non-SA taxpayers should
complete and submit a declaration form to the respective registrars. The declaration form can be found at:
https://www.oldmutual.com/investor-relations/dividend-information/



Notes to Editors
A webcast of the presentation of the 2022 Annual Results and Q&A will be broadcast live on 14 March 2023 at
11:00 am South African time on the Company’s website www.oldmutual.com. Analysts and investors who wish
to participate in the call may do so using the following link or telephone numbers below: http://live.eclipse-
streaming.co.za/oldmutual/OMInvestorRelations/

South Africa +27 105 004 108
UK +442 036 088 021
Australia +61 739 111 378
USA +14 123 170 088
International +27 105 004 108
Replay Access Code 43676

Pre-registration to participate in the call is available at the following link: https://om.eventpress.co.za/e/519

The replay will be available until 14 April 2023.


JSE debt sponsor:
Nedbank Corporate and Investment Banking, a division of Nedbank Limited


Enquiries
Investor Relations
Bonga Mriga
M: +27 67 866 6348
Interim: Head of Investor Relations
E: bmriga@oldmutual.com

Communications
Vuyo Mtawa
M: +27 68 422 8125
Head: Group Communications
E: vmtawa@oldmutual.com