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RMB Holdings - AUDITED RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 30 JUNE 2003
RMB HOLDINGS LIMITED ("RMBH")
Registration number: 1987/005115/06
Share code: RMH ISIN: ZAE000024501
"These are excellent results reflecting our diversified and resilient earnings
base . . . such resilience has, notwithstanding the turbulence of the last five
years, allowed us to grow core earnings at a compound growth rate of 23% pa over
the five years. We would like to believe that this is the true measure of your
company"s worth." GT Ferreira - Chairman
Post AC133 Pre AC133
Core headline earnings per share +28% +23%
Dividend per share +24% +24%
The RMBH Group at a glance
RMBH is the holding company of some of South Africa"s leading financial services
companies. Its interests include:
* FirstRand Limited (the "FirstRand group") (effective interest: 32,7%)
The FirstRand group is a uniquely structured financial services group with
critical mass in both banking and insurance. For regulatory oversight purposes,
its operations are housed in two wholly-owned subsidiary groups under FirstRand
Bank Holdings Limited and Momentum Group Limited.
In order to provide customers with a comprehensive range of products and
services the group"s business units are clustered according to specific target
market segments. These are:
* The Retail Cluster - targeting individual customers (principally under the
FNB/First National Bank, WesBank and eBucks.com brand names);
* The Corporate Cluster - directed at large corporate and commercial enterprises
(under the FNB Corporate, Rand Merchant Bank, RMB Asset Management, Futuregrowth
and Momentum Employee Benefits brand names);
* The Wealth Cluster - targeting individuals in the middle and upper income
markets (principally under the Momentum Life, Momentum Wealth and RMB brand
names); and
* The Health Cluster - serving the health insurance market (via the Discovery
group).
* RMB Structured Insurance Limited ("RMBSI") (effective interest: 100%)
RMBSI holds both short-term and life assurance licences. It creates individual
financial risk solutions to South Africa"s top companies by using sophisticated
risk techniques and innovative financial structures.
* OUTsurance Limited ("OUTsurance") (effective interest: 61,2%)
OUTsurance is a direct personal lines short-term insurer. Pioneers of the
OUTbonus concept, it has grown rapidly by applying a scientific approach to risk
selection, product design and claims management.
* Glenrand M.I.B Limited ("Glenrand M.I.B") (effective interest: 17,2%)
Glenrand M.I.B is a leading financial services group focused on providing risk
advisory services and solutions, employee benefits, investment advisory
services, selected financial products and full health-care maintenance
organisation services and products.
* Global Resorts (SA) (Pty) Limited ("Global Resorts") (effective interest:
48,0%)
Global Resorts is a leading player in the gaming industry in South Africa. It
designs, develops and operates multi-faceted casino, hotel and entertainment
facilities and has an interest in three casinos, the principal of which is
Caesars Gauteng.
RMB HOLDINGS LIMITED ("RMBH")
Registration number: 1987/005115/06
Share code: RMH ISIN: ZAE000024501
Directors: GT Ferreira (Chairman), P Cooper (COO), LL Dippenaar, JW Dreyer, DM
Falck, PM Goss,
PK Harris, KC Shubane
Secretary and registered office:
AH Arnott B Com CA(SA)
17th Floor, 1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton,
2196
Postal address:
PO Box 786273, Sandton, 2146
Telephone +27 11 282 8000
Fax +27 11 282 8008
Web address: www.rmbh.co.za
Sponsor (In terms of JSE listings requirements):
Rand Merchant Bank (A division of FirstRand Bank Limited)
Corporate Finance
1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Auditors:
PricewaterhouseCoopers Inc.,
2 Eglin Road, Sunninghill, 2157
Transfer secretaries:
Computershare Limited
70 Marshall Street, Johannesburg, 2001
Postal address:
PO Box 61051, Marshalltown, 2107
Telephone +27 11 370 7700
Fax +27 11 688 7721
OVERVIEW OF RESULTS
The financial year ended 30 June 2003 was characterised by:
* high interest rates in South Africa;
* a strengthening rand exchange rate; and
* poor local and global investment markets.
While this resulted in a challenging business environment, substantially all of
the group - and in particular FNB Retail, Discovery and OUTsurance - performed
above expectation, enabling RMBH to report exceptional core headline earnings
growth.
For a proper appreciation of the annual results presented in this report, two
matters need to be highlighted separately:
* The impact of exceptional currency fluctuations on the underlying core
earnings; and
* The reporting consequences arising from the implementation of the fair value
provisions of "AC133 - Financial Instruments: Recognition and Measurement".
Currency fluctuations
In previous reports to shareholders, the extreme directional volatility of the
rand exchange rate over the last two years was highlighted. It has the potential
to cloud the underlying core operational performance achieved by the group.
Given such volatility, FirstRand isolates the abnormal impact of unrealised
foreign currency gains or losses from its core operating performance and
discloses the amounts and impact thereof on its headline earnings separately in
the following manner:
* Unrealised gains and losses relating to independent businesses are reflected
directly in reserves on its balance sheet; while
* Those relating to integrated businesses are reflected in FirstRand"s income
statement.
RMBH concurs that by highlighting unrealised currency gains and losses in this
manner, a clearer view of the underlying operational and business trends
emerges. We have thus applied such analysis consistently to RMBH"s results, with
the following trend arising:
2003 2002 %
year ended 30 June cents cents change
Pre AC133
RMBH headline earnings 138,9 142,0 (2)
Attributable portion of 16,7 (15,2)
exceptional translation
loss/(gain)
RMBH core headline earnings per 155,6 126,8 23
share
2003 2002 %
year ended 30 June cents cents change
Post AC133
RMBH headline earnings 147,9 142,0 4
Attributable portion of 14,7 (15,2)
exceptional translation
loss/(gain)
RMBH core headline earnings per 162,6 126,8 28
share
Cumulatively, over the two-year period to 30 June 2003, the extreme directional
volatility of the rand exchange rate caused the net foreign translation movement
to be immaterial, thereby underscoring the appropriateness of the accounting
disclosure followed by measuring growth in terms of core headline earnings.
AC133: Financial Instruments - Recognition and Measurement
The results for the year ended 30 June 2003 have been prepared in accordance
with the requirements of "AC133 - Financial Instruments: Recognition and
Measurement", a new standard of South African Generally Accepted Accounting
Practice ("GAAP"). AC133 introduces the concept of "fair value" accounting for
financial instruments, which forms the core of many of our businesses. While the
standard conforms to the international GAAP standard (IAS39), certain of the
concepts employed are still the subject of considerable debate and are likely to
evolve further over time.
FirstRand is the first major South African financial institution to report a
full year"s results in compliance with the new standard. It has found that the
standard has a material impact on its financial results and has highlighted such
impact separately. The impact of the new standard on RMBH itself, its
subsidiaries and associates, other than FirstRand, has not been significant.
RMBH accounts for its investment in FirstRand on the equity method. Consequently
in its case, the income statement impact arising from the application of AC133
is largely confined to:
* RMBH"s share of after-tax income that it reports from associates; and
* corresponding adjustments arising in the balance sheet carrying value of
RMBH"s investment in associated companies and reserves.
AC133 is a prospective accounting standard in that it does not provide for the
restatement of prior period comparatives. Instead, it sets out comprehensive
transitional provisions, which affect the opening equity balances at the
beginning of the reporting period. We believe that the impact of the
introduction of AC133 is thus best illustrated by way of a supplementary income
statement for the year ended 30 June 2003, reflecting the position without
consideration of AC133. The summarised annual financial statements accompanying
this report include such "Pre AC133" income statement.
The impact of AC133 on RMBH"s core headline earnings per share may be
highlighted as follows:
2003 2002 %
year ended 30 June cents cents change
RMBH core headline earnings per 126,8 28
share incorporating AC133162,6
Attributable portion of FirstRand (7,0) -
AC133 adjustment
RMBH core headline earnings per 155,6 126,8 23
share Pre AC133
In our view:
* Core headline earnings - incorporating the effect of AC133 - should be seen
as the basis against which future performance will be measured. Such results are
likely to be significantly more volatile than the historical trends; while
* the Pre AC133 core headline earnings are a more appropriate basis against
which to evaluate RMBH"s current period performance in a historical context.
Consequently, we have used the Pre AC133 results as a basis for historical
comparison throughout the remainder of this report.
We believe these to be an excellent set of results that reflects both the
benefits of a diverse and resilient earnings base and the benefits of sustained
focus on our core businesses.
Based on the underlying operational trend reflected by the core headline
earnings, RMBH has declared a final dividend of 37,2 cents per share,
representing an 23% increase over the previous year.
Fifth anniversary since the creation of FirstRand
It is now five years since RMBH created FirstRand in 1998. During this period
the merged FirstRand group has undergone fundamental change as our business
philosophy was inculcated throughout the group. The success of our approach is
now manifest and FirstRand has become a group recognised for the excellence of
its people and its distinctly branded products and services.
Our diversified earnings base has seen our core headline earnings per share grow
at a compound growth rate of 23% per annum, to more than double from 68,2 cents
per share in 1999 to 155,6 cents per share in 2003.
Sources of income
RMBH has a well-diversified earnings base, drawn from the full spectrum of
Southern African financial services:
Graph
Retail Banking 23%
Corporate Banking 10%
Investment Banking 14%
Instalment Sales 9%
Other African Banking Activities 5%
Other Banking 7%
Life Assurance and Asset Management 19%
Short-term Insurance 9%
Gaming 4%
REVIEW OF OPERATIONS
FIRSTRAND GROUP
Summary of FirstRand financial results
2003 2002 %
year ended 30 June (Pre AC133) Rm Rm change
Headline earnings comprises:
- FirstRand Banking 3 463 3 771 (8)
Core operations 4 068 3 223 26
Currency translation (605) 548 >(100)
(loss)/gain
- Momentum 1 122 1 024 10
- FirstRand Limited (39) (61) 36
Total headline earnings 4 546 4 734 (4)
Currency translation 605 (548) >100
loss/(gain)
Core headline earnings 5 151 4 186 23
Attributable to RMBH* 1 674 1 366 23
* After consolidation eliminations
Operating environment and financial results
The FirstRand group produced excellent results, benefiting from diverse income
sources, strong organic growth, benefits of scale crystallised from prior year
acquisitions, improved interest margin and lower bad debts. To some extent, such
gains were muted by the negative effects of a strengthening rand on
international income and poor equity investment markets.
The convergence of these positive factors is reflected in the excellent 26%
increase in core headline earnings reported by the FirstRand Banking group.
While the negative factors manifested themselves in subdued demand for retail
investment products, Momentum continued to produce solid results with a 10%
growth in core headline earnings. This performance is pleasing when weighed
against that of its peer group.
Cluster performance
Of the FirstRand group"s core headline earnings of R5 151 million (2002: R4 186
million) -
* some 45% was derived from the Retail Cluster;
* 31% from the Corporate Cluster;
* the Wealth Cluster contributed 8%; while
* the Health Cluster contributed 3%; and
* the Capital Centre contributed the balance of 13%.
The Retail Cluster reflected growth of 27% over the prior year. In particular:
* FNB Retail showed profitable advances and deposit growth as investors
continued to switch from equities to more conservative savings products;
* FNB HomeLoans considerably enhanced its earnings by the benefits of scale
resulting from better infrastructure utilisation arising from the acquisition of
the NBS and Saambou mortgage books during the previous year;
* WesBank achieved record new business results with advances exceeding R24
billion for the year; and
* The African subsidiaries continued to perform well.
In the Corporate Cluster, with profit growth of 12%
* RMB produced a record result with its Equities Trading, Special Projects and
Private Equity divisions enjoying an excellent year; and
* FNB Corporate"s focus on profitable business segments and management of non-
performing loans ensured excellent results; but
* FirstRand Asset Management was negatively impacted by loss of funds under
management, a stronger exchange rate, poor performance of equity markets and
closure costs related to certain retail investment products.
Momentum Life, the mainstay of the Wealth Cluster, performed well in a difficult
market. New recurring premium risk and investment products launched during the
year had a positive impact in an otherwise lacklustre market. The newly merged
South African private banking operations achieved good advances growth which,
together with improved control over non-performing loans, resulted in a doubling
of its profits. Ansbacher"s international private banking operations incurred
substantial losses and a decision has been taken to exit the loss-making parts
of the business.
Earnings from the Health Cluster increased by 42% as a result of continued
growth in market share in South Africa. The start-up losses incurred in its
American operations was in line with expectations and should in future be
ameliorated by two distribution partnerships with major assurance distributors.
The American operations are expected to reach break-even early in 2004.
The Capital Centre increased its earnings by 73%. The FirstRand Banking group
benefited from high local interest rates during the first half of the year as
well as from the non-recurrence of exceptional corporate bad debts in the prior
year. During the last month of the financial year, the FirstRand group raised
R1,4 billion of medium-term preference share funding to facilitate the intra-
group restructuring of the Momentum group"s shareholders portfolio in accordance
with the FSB"s regulatory changes regarding capital adequacy requirements and to
fund the Discovery Health group"s rights issue.
DIRECTLY HELD INSURANCE INTERESTS
RMB Structured Insurance
RMBSI reported a 34% increase in headline earnings, which amounted to R43,0
million. (2002: R32,2 million). While the group"s core activities delivered a
satisfactory performance, a major part of the increase in headline earnings
arose primarily as a result of principal positions that the group assumed in the
unwinding of a series of structured transactions.
The considerable effort expended by RMBSI on research and development during the
past 18 months has culminated in a refined and expanded suite of products which
is already contributing positively to revenues.
During the year, key members of the RMBSI executive group were granted options
over six percent of the company"s share capital as part of a share incentive
scheme, bringing its remuneration practices in line with that of the greater
RMBH Group.
OUTsurance
OUTsurance, now in its fifth year of operation, has become an established and
trusted brand in the South African personal lines insurance sector. It continues
to reap the benefits of its direct sales business model.
In the year to 30 June 2002 record sales volumes (with gross premiums up 71% and
exceeding R1,0 billion for the first time), further reductions in management
expense ratios and good client retention contributed to a doubling of the
underwriting result to R61,7 million. Coupled with higher than anticipated
investment income, such result enabled OUTsurance to report a 92% increase in
headline earnings which amounted to R113,1 million.
During March 2003 OUTsurance started to provide cover for small and medium-sized
businesses. Initial indications have been positive and OUTsurance already has
significant demand from business clients without any formal marketing.
RMBH"s attributable share of OUTsurance"s headline earnings for the year
amounted to R69,3 million (2002: R36,1 million).
OTHER FINANCIAL SERVICES INTERESTS
Glenrand M.I.B
Glenrand M.I.B reported an indifferent performance for the year under review
with headline earnings increasing by 7% to R79,1 million (2002: R73,7 million).
Headline earnings per share increased by 1% to 33,2 cents.
Good revenue growth in the group"s Africa Risk Advisory Services business and
strong growth in investment income were dissipated by the benefit consulting,
healthcare and medical services divisions suffering a R0,3 million trading loss
(2002: R37,2 milion profit). Glenrand M.I.B is assessing the future strategic
direction with regard to certain of these business units.
RMBH"s share of headline earnings from Glenrand M.I.B amounted to R13,6 million
(2002: R13,3 million).
GAMING INTERESTS
Global Resorts
Global Resorts reported headline earnings of R143,3 million - a 13% decrease
from 2002 (R164,6 million). RMBH"s share of headline earnings amounted to R68,8
million (2002: R79,0 million).
The restructuring of the economic empowerment structure at Caesars Gauteng
(effective 1 July 2002) renders direct year-on-year comparison of the reported
results inappropriate. In our last annual report we highlighted that the likely
impact of this restructuring would be to reduce headline earnings by a third.
The restructuring thus masks the inherently strong performance of Caesars
Gauteng in particular, which exceeded budget. The other two casino resorts
performed in line with expectation.
Global Resorts continues its trend of exceptional cash flow generation, with
continued repayment of the original risk financing provided. To date it has
repaid more than 75% of the original risk capital advanced by the shareholder
consortium.
Shareholders were advised of the failure of the proposed sale of our interest in
Global Resorts to the Metallon group as a result of the non-fulfilment of
certain conditions precedent. The Global Resorts shareholder consortium is
currently giving consideration to proposals from a number of interested parties
who approached us thereafter.
CORPORATE GOVERNANCE
RMBH and all of the companies in which we invest have embraced the
recommendations of the King II report on Corporate Governance. A comprehensive
review of governance practices has been undertaken in the group. We remain
committed to the highest standard of Corporate Governance and in this regard
strive to provide reports to shareholders that are timely, accurate, consistent
and informative.
DIVIDEND PAYMENT
The Board has resolved to declare a final dividend of 37,2 cents per share
(2002: 30,2 cents). Such final dividend, together with the interim dividend of
17,8 cents, brings the total dividend for the year ended 30 June 2003 to 55,0
cents (2002: 44,4 cents). This represents a year-on-year increase of 24% and a
dividend cover ratio (on core headline earnings) of 2,8 times.
OUTLOOK FOR THE GROUP
The FirstRand group is cautiously optimistic about the prospects of an improved
economic outlook in the year ahead.
* A lower interest rate environment will benefit growth and increase the chances
of a favourable movement in the stock market.
* A more favourable economic environment will facilitate FirstRand"s goal of
achieving strong new business growth across all business units.
* Significantly improved results are expected from the group"s local and
international asset management activities after a disappointing year.
* Companies such as Discovery, eBucks and RMB Private Bank, which are all new,
entrepreneurial ventures started in the last ten years, are expected to continue
to grow strongly and provide a meaningful enhancement to the group"s overall
earnings growth rate.
RMBH"s other interests, while overshadowed by the absolute size of FirstRand,
are each unique in their own abilities and also stand poised to extract further
value from their identified niches. Some elements thereof will need some form of
strategic redirection to realise their full potential.
Notwithstanding the highly competitive environment in which our group operates,
we are confident that the group will continue to deliver strong real growth in
earnings per share during the coming year.
For and on behalf of the Board
GT Ferreira P Cooper
Chairman Chief Operating Officer
Sandton
17 September 2003
DIVIDEND DECLARATION
Notice is hereby given that a final dividend of 37,2 cents per share was
declared on 17 September 2003 in respect of the financial year ended 30 June
2003.
Shareholders" attention are drawn to the following important dates:
* Last day to trade in order to participate
in this dividend Friday, 17 October 2003
* Shares commence trading "ex dividend" on Monday, 20 October 2003
* The record date for the
dividend payment will be Friday, 24 October 2003
* Dividend payment date Monday, 27 October 2003
Shareholders may not dematerialise or rematerialise their share certificates
between Monday, 20 October 2003 and Friday, 24 October 2003 (both days
inclusive).
By order of the Board
AH Arnott
Company Secretary
17 September 2003
BASIS OF PREPARATION
These results are a consolidation of the operations of RMBH and its two
subsidiaries, OUTsurance and RMB Structured Insurance. RMBH"s proportionate
interest in its associates, FirstRand, GlenRand M.I.B and Global Resorts have
been equity accounted.
This profit announcement has been prepared in compliance with the Listings
Requirements of the JSE Securities Exchange South Africa. The annual financial
statements to which this profit announcement relates were audited by
PricewaterhouseCoopers Inc. A copy of their unqualified audit opinion is
available for inspection at RMBH"s registered office.
The accounting policies of the RMBH Group comply with the statements of South
African Generally Accepted Accounting Practice. Such policies are in all
material respects consistent with those applied in the preparation of the
unqualified audited financial statements for the year ended 30 June 2002, except
for the application of fair value accounting concepts required by "AC133 -
Financial Instruments: Recognition and Measurement". The impact of adopting
AC133 is highlighted in the accompanying commentary.
Certain prior year comparatives have been restated and/or reclassified to
facilitate a more meaningful comparison.
SUMMARISED GROUP INCOME STATEMENT
2003 2002
Audited Audited %
for the year ended 30 June Rm Rm change
Operating profit 192 130 48
Net finance costs (18) (18) -
Profit before tax 174 112 55
Taxation (59) (36) (64)
Operating profit after tax 115 76 51
Share of after-tax results in 1 575 1 560 1
associate companies
Earnings attributable to 1 690 1 636 3
shareholders before goodwill
amortisation
Net goodwill amortised (218) (136) (60)
Earnings attributable to (42) (23) (83)
outside shareholders
Earnings attributable to 1 430 1 477 (3)
ordinary shareholders
Computation of headline
earnings:
Earnings attributable to 1 430 1 477 (3)
ordinary shareholders
Adjustment for:
Net goodwill amortised 217 136 60
Other 13 (4) >100
Adjustment made by associates:
Goodwill amortised 27 19 42
Goodwill impaired 79 69 14
Other (9) (10) 10
Headline earnings attributable 1 757 1 687 4
to ordinary shareholders
Adjustment made by FirstRand
Currency translation 175 (180) >100
loss/(gain)
Core headline earnings 1 932 1 507 28
attributable to ordinary
shareholders
COMPUTATION OF EARNINGS PER SHARE
2003 2002
Audited Audited %
for the year ended 30 June Rm Rm change
Number of shares in issue 1 188 1 188
(millions)
Weighted average number of 1 188 1 188
shares in issue (millions)
Earnings per share (cents) 120,4 124,3 (3)
Headline earnings per share 147,9 142,0 4
(cents)
Core headline earnings per 162,6 126,8 28
share (cents)
Dividend per share (cents)
- Interim 17,8 14,2 25
- Final 37,2 30,2 23
Total 55,0 44,4 24
Dividend cover (relative to 3,0 2,9
core headline earnings)
SOURCES OF CORE HEADLINE EARNINGS
2003 2002
Audited Audited %
for the year ended 30 June Rm Rm change
Core headline earnings from:
- FirstRand 1 765 1 366 29
- Glenrand M.I.B 14 13 8
- OUTsurance 62 36 72
- RMB Structured Insurance 43 32 34
- Global Resorts 69 79 (13)
1 953 1 526 28
- RMBH and other (21) (19) (11)
Core headline earnings 1 932 1 507 28
SUMMARISED GROUP CASH FLOW STATEMENT
2003 2002
Audited Audited
for the year ended 30 June Rm Rm
Cash available from operating 1 259 650
activities
Cash flows for servicing of finance (570) (456)
from shareholders
Cash flows on investment activities (286) (119)
Cash flows from financing activities (7) (104)
Net increase/(decrease) in cash and 396 (29)
cash equivalents
Unrealised foreign currency translation (5) 2
adjustment included in cash and cash
equivalents
Cash and cash equivalents at the 1 063 1 090
beginning of the year
Cash and cash equivalents at the end of 1 454 1 063
the year
Cash available from operating activities includes net premium receipts by short-
term insurance operations. Given the fluctuations inherent in non-recurring
structured insurance transactions, such cash flows are not necessarily directly
comparable between years.
SUMMARISED GROUP BALANCE SHEET
2003 2002
Audited Audited
at 30 June Rm Rm
ASSETS
Cash and cash equivalents 1 454 1 063
Investments 1 509 1 288
Accounts receivable 262 238
3 225 2 589
Investment in associate companies 7 640 6 655
Property and equipment 34 22
Goodwill 3 371 3 584
Total assets 14 270 12 850
LIABILITIES AND SHAREHOLDERS" FUNDS
Funding instruments 291 473
Accounts payable and accruals 704 323
Short-term insurance provisions 1 747 1 401
Liabilities to policyholders 107 101
2 849 2 298
Outside shareholders" interest 147 121
Shareholders" funds
Share capital and premium 5 793 5 793
Reserves 5 481 4 538
Convertible debentures - 100
Total shareholders" funds 11 274 10 431
Total liabilities and shareholders" 14 270 12 850
funds
SUMMARISED STATEMENT OF CHANGES IN EQUITY
Share Share
capital premium
for the year ended 30 Rm Rm
June
Balance at 30 June 2001 12 5 781
(audited)as previously
reported
Income of associated - -
companies retained - now
transferred
Restatements by
associates:
Changes in accounting
policy -
Deferred acquisition - -
costs
Restated balance at 30 12 5 781
June 2001 (audited)
Earnings attributable to - -
ordinary shareholders
Dividend paid - -
Income of associated - -
companies retained
Transfers relating to
subsidiaries:
- Transfer to - -
contingency reserve by
short-term insurance
operations
- Investment reserve - -
relating to short-term
insurance operations
Negative goodwill taken - -
to income
Transfers relating to
associates:
- Movement on foreign - -
currency translation
reserves
- Revaluation of - -
investment assets
- Movement in other - -
reserves
Restated balance at 30 12 5 781
June 2002 (audited)
Earnings attributable to - -
ordinary shareholders
Dividend paid - -
Income of associated - -
companies retained
Transfers relating to
subsidiaries:
- Transfer to - -
contingency reserve by
short-term insurance
operations
- Investment reserve - -
relating to short-term
insurance operations
- Writedown of loan to - -
share trust
Transfers relating to
associates:
- Movement on foreign - -
currency translation
reserves
- AC133 adjustments to - -
opening balances
- AC133 adjustments to - -
current year
- Movement in other - -
reserves
Balance at 30 June 2003 12 5 781
(audited)
SUMMARISED STATEMENT OF CHANGES IN EQUITY
Equity Non-distri-
accounted butable Retained Total
reserves reserves earnings equity
for the year ended 30 Rm Rm Rm Rm
June
Balance at 30 June 2001 2 020 425 976 9 214
(audited)as previously
reported
Income of associated (51) - 51 -
companies retained - now
transferred
Restatements by
associates:
Changes in accounting
policy -
Deferred acquisition (37) - - (37)
costs
Restated balance at 30 1 932 425 1 027 9 177
June 2001 (audited)
Earnings attributable to - - 1 477 1 477
ordinary shareholders
Dividend paid - - (456) (456)
Income of associated 1 088 - (1 088) -
companies retained
Transfers relating to
subsidiaries:
- Transfer to - 11 (11) -
contingency reserve by
short-term insurance
operations
- Investment reserve - 1 - 1
relating to short-term
insurance operations
Negative goodwill taken - (77) - (77)
to income
Transfers relating to
associates:
- Movement on foreign 197 - - 197
currency translation
reserves
- Revaluation of 20 - - 20
investment assets
- Movement in other (8) - - (8)
reserves
Restated balance at 30 3 229 360 949 10 331
June 2002 (audited)
Earnings attributable to - - 1 430 1 430
ordinary shareholders
Dividend paid - - (570) (570)
Income of associated 1 003 - (1 003) -
companies retained
Transfers relating to
subsidiaries:
- Transfer to - 24 (24) -
contingency reserve by
short-term insurance
operations
- Investment reserve - (22) - (22)
relating to short-term
insurance operations
- Writedown of loan to - - (3) (3)
share trust
Transfers relating to
associates:
- Movement on foreign (187) - - (187)
currency translation
reserves
- AC133 adjustments to 24 - - 24
opening balances
- AC133 adjustments to 270 - - 270
current year
- Movement in other 1 - - 1
reserves
Balance at 30 June 2003 4 340 362 779 11 274
(audited)
SUPPLEMENTARY SUMMARISED GROUP INCOME STATEMENT - Reflecting the impact of AC133
2003 2003 2002 % change
Post AC133 Pre AC133 Actual pre AC133
Audited Reviewed Audited Over
actual
for the year ended Rm Rm Rm 2002
30 June
Operating profit 115 117 76 54
after tax
Share of after tax 1 575 1 459 1 560 (6)
results in
associate
companies
Earnings 1 690 1 576 1 636 (4)
attributable to
shareholders
before goodwill
amortisation
Net goodwill (218) (218) (136) (60)
amortised
Earnings (42) (42) (23) (83)
attributable to
outside
shareholders
Earnings 1 430 1 316 1 477 (11)
attributable to
ordinary
shareholders
Computation of
headline earnings:
Earnings 1 430 1 316 1 477 (11)
attributable to
ordinary
shareholders
Adjustment for:
Net goodwill 230 235 132 78
amortised/other
Adjustment made by
associates:
Goodwill 106 106 88 20
amortised/impaired
Other (9) (8) (10) 20
Headline earnings 1 757 1 649 1 687 (2)
attributable to
ordinary
shareholders
Adjustment made by
FirstRand
Currency 175 199 (180) >100
translation
loss/(gains)
Core headline 1 932 1 848 1 507 23
earnings
attributable to
ordinary
shareholders
Core headline
earnings from:
FirstRand 1 765 1 674 1 366 23
Glenrand M.I.B 14 14 13 8
OUTsurance 62 69 36 92
RMB Structured 43 43 32 34
Insurance
Global Resorts 69 69 79 (13)
1 953 1 869 1 526 22
RMBH and other (21) (21) (19) (11)
Core headline 1 932 1 848 1 507 23
earnings
Earnings per share 120,4 110,8 124,3 (11)
(cents)
Headline earnings 147,9 138,9 142,0 (2)
per share (cents)
Core headline 162,6 155,6 126,8 23
earnings per share
(cents)
Dividend per share 55,0 55,0 44,4 24
(cents)
Dividend cover 3,0 2,8 2,9
(relative to core
headline earnings)
Date: 17/09/2003 07:30:31 AM Produced by the JSE SENS Department
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