| Wed 11 Aug 2004, 9:22 | | Liberty Group- Unaudited Interim Results For The S |
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Liberty Group- Unaudited Interim Results For The Six Months Ended 30 June 2004
Release Date: 11/08/2004 07:58:08 Code(s): LGL
Liberty Group- Unaudited interim results for the six months ended 30 June 2004
Liberty Group Limited
(`Liberty Life`)
(Registration number 1957/002788/06)
(Alpha code LGL)
(Issuer code LIBU)
(ISIN code ZAE000024543)
(Incorporated in the Republic of South Africa)
These results are available at www.libertylife.co.za.
Features
- New business up 16,6% to R6 341,9 million
- Indexed new business up 10,6% to R1 968,3 million
- Net cash inflows from insurance operations up 37,7% to R2 381,8 million
- Value of new business up 26,2% to R330,2 million
- New business margin increased to 20,9%
- Headline earnings up 29,4% to R460,4 million
- Headline earnings per share up 28,6% to 167,2 cents per share
- Embedded value up 0,4% to R15 887,1 million
- Embedded value per share static at R57,59
- Capital adequacy requirement covered 2,55 times by shareholders` funds
- Interim dividend maintained at 162,0 cents per share
Commentary on results
Liberty Life has made progress over the last six months in those areas of the
business which it singled out for focus. These areas of focus include the
improvement of service levels, cost reduction, capital management, new market
segments and people. Notwithstanding these achievements, volatility in local and
foreign investment markets and a stronger than expected Rand had a negative
impact on investors` demand for investment products offered by the life
insurance industry. Risk product sales were encouraging with recurring premium
sales of Lifestyle Protector, launched in September last year exceeding R180
million for the first six months of 2004. Liberty Life produced strong
operational results for the half year to 30 June 2004.
Total new business premiums increased to R6 341,9 million (up 16,6%) and net
cash inflows from insurance operations increased to R2 381,8 million (up 37,7%).
The new business margin increased to 20,9% and embedded value per share of
R57,59 at 30 June 2004 remained flat compared with 31 December 2003.
Growth in management expenses of the group was contained to 4,1% (excluding the
effect of the Investec Employee Benefits (IEB) business acquired in the fourth
quarter of 2003).
Liberty Life`s headline earnings per share recovered from a low base in respect
of the first six months of 2003 and increased to 167,2 cents (up 28,6%) for the
six months ended 30 June 2004 as a result of favourable operational performance
and better investment returns.
In 2003 the Board decided to maintain the interim dividend at 162,0 cents per
share despite the fact that headline earnings per share were considerably lower.
The improvement in headline earnings per share during the first half of 2004,
coupled with the positive performance of the business, has enabled the Board to
again declare an unchanged interim dividend.
Headline Earnings - up 29,4% from R355,9 million to R460,4 million.
Operating profit from life insurance operations - up 32,6% from R252,7 million
to R335,0 million.
The 32,6% increase in operating profit from life insurance operations largely
reflects the impact of improved investment returns on shareholders` 10% share in
policyholders` capital bonuses on certain classes of business. At 30 June 2003
the weighted average investment return (on the proxy portfolio used to indicate
the level of the 10% participation) was -3,6%,whereas the return at the end of
June 2004 was +0,2%.
Revenue earnings attributable to shareholders` funds - up 12,0% from R148,2
million to R166,0 million Operating income from financial services operations
increased by 27,9% from R72,3 million for the six months ended 30 June 2003 to
R92,5 million for the six months ended 30 June 2004.
STANLIB`s contribution to Liberty Life`s earnings increased by 37,0% from R23,5
illion for the six months ended 30 June 2003 to R32,2 million for the period
nder review. Assets under management and funds under administration (excluding
ommon assets) increased from R177,5 billion at 31 December 2003 to R184,8
billion at 30 June 2004. Headline earnings of Liberty Ermitage increased by
32,3% from R15,8 million in 2003 to R20,9 million in 2004 as a result of
increases in management fees due to higher assets under management compared to
2003. Assets under management (excluding common assets) increased from US$2
791,3 million at 31 December 2003 to US$3 173,3 million at 30 June 2004. Income
from listed investments increased by 2,0% from R24,6 million for the six months
ended 30 June 2003 to R25,1 million for the six months ended 30 June 2004 and
reflects an increase in dividend income from the shareholders` long-term
portfolio established at the end of 2003, offset by a decrease in dividend
income from reduced shareholdings in GoldFields and Edcon.
Income from other investments increased by 10,5% from R129,0 million for the six
months ended 30 June 2003 to R142,6 million for the six months ended 30 June
2004 as a result of increased cash balances.
Total Earnings - up 69,8% from R293,8 million to R499,0 million.
Total earningsfor the Group for the six months ended 30 June 2004 of R499,0
million increased from R293,8 million recorded for the same period in 2003.
Total earnings pershare increased from 107,3 cents for the six months ended 30
June 2003 to 181,3 cents for the six months ended 30 June 2004.
The comparative included a goodwill impairment charge of R62,4 million in
respect of Hightree Financial Services.
New Business
Individual new business premiums and inflows increased by 28,1% from R4 185,7
million for the six months ended 30 June 2003 to R5 360,5 million for the six
months ended 30 June 2004. New single premiums and inflows increased by 34,9%
from R3 036,3 million to R4 096,0 million with approximately 40% (2003: 17%) of
the total flowing into the CPI plus and Excelsior risk profiled asset
portfolios. In 2004 approximately 18% (2003: 36%) of new single premiums were
property-backed sales. New recurring premiums increased by 10,0% from R1 149,4
million to R1 264,5 million with the Lifestyle Protector product, which was
launched in the fourth quarter of 2003, contributing R187,4 million in sales.
New business premiums of R1,3 million were written since the launch in May 2004
of Charter Life`s Namibian operations.
Corporate new business premiums and inflows decreased by 21,6% from R1 251,3
million for the six months ended 30 June 2003 to R981,4 million for the six
months ended 30 June 2004. New single premium business decreased by 25,7% on the
back of slow single premium sales in 2004 exacerbated in comparison by large
single premiums received in the prior period. New recurring premiums decreased
by 2,4% continuing the disappointing trend in new underwritten and corporate
selection funds.
Total bancassurance new business sales increased by 39,7% from R1 207,6 million
for the six months ended 30 June 2003 to R1 687,3 million for the six months
ended 30 June 2004. On an indexed basis, bancassurance new business increased by
58,5%. Complex (high advice) product sales of R1 401,8 million for the first six
months of 2004 increased by 34,1% and represent 83,1% of total bancassurance new
business sales, while embedded (mainly funeral and credit life) product sales of
R285,5 million for the first six months of 2004 increased by 75,7% and represent
16,9% of total bancassurance new business sales.
Market share
The group`s share, including Charter Life, of the total South African recurring
individual new business market according to the Life Offices` Association
statistics for the three months ended 31 March 2004 increased to 28,3% compared
with 25,3% for the year ended 31 December 2003. Similarly, our share of the
single premium individual new business market increased to 29,6% for the three
months ended 31 March 2004 compared with 24,5% for the year ended 31 December
2003.
Value of new business and new business margin - up 26,2% from R261,7 million to
R330,2 million
The value of individual new business increased by 33,6% from R239,6 million in
respect of the six months ended 30 June 2003 to R320,0 million for the six
months ended 30 June 2004 as a result of increased new business volumes
(especially the new Lifestyle Protector product). Liberty Corporate Benefits`
value of new business decreased by 53,8% from R22,1 million for the first half
of 2003 to R10,2 million for the six months ended 30 June 2004 due to cost
pressure resulting from lower volumes of both single and recurring new business
premiums and inflows as indicated in the new business commentary above.
The Group`s overall new business margin increased to 20,9% at 30 June 2004 from
19,9% at 31 December 2003 and 18,4% at 30 June 2003.
Net cash inflows from insurance operations - up 37,7% from R1 730,2 million to
R2 381,8 million.
Individual business net cash inflows of R2 331,3 million for the six months
ended 30 June 2004 more than doubled compared with the net inflows in the first
six months of 2003 of R858,7 million. Individual policy surrenders and
maturities increased by 3,0% to R3 764,9 million while premium income and
investment contract inflows of R7 755,4 million increased by 28,0%.
Corporate business net cash inflows of R50,5 million for the six months ended 30
June 2004 decreased by 94,2% from R871,5 million for the first six months of
2003. Group scheme member withdrawals increased by 35,9% from R538,0 million for
the six months ended 30 June 2003 to R731,3 million for the same period in 2004
and Group investment terminations and withdrawals increased by 174,7% from
R288,0 million in 2003 to R791,0 million in 2004. A further R2 billion in
outflows will be recorded for the second half of 2004 as a result of known
maturities in property portfolios which will free up capacity for future sales.
In spite of these known outflows, we nevertheless anticipate the net cash flows
for the year to remain positive.
Embedded value per share - static at R57,59
Embedded value at 30 June 2004 amounted to R15 887,1 million or R57,59 per share
compared with the embedded value of R15 816,9 million or R57,58 per share at 31
December 2003. Shareholders` funds increased by 1,6% from R8 782,2 million at 31
December 2003 to R8 922,4 million at 30 June 2004, while the value of in-force
business decreased by 3,3% from R6 493,8 million at 31 December 2003 to R6 279,1
million at 30 June 2004 due to changes in assumptions, modelling methodology and
lower than expected investment returns.
The financial services subsidiaries fair value adjustment of R685,6 million
increased by 26,7% compared to 31 December 2003, mainly as a result of better
operational results from STANLIB and Liberty Ermitage increasing the respective
values placed on those businesses. The fair value adjustment includes the
reversal of the carrying value of the present value of in-force business
acquired from IEB of R115,6 million, as the embedded value of this business is
included within the value of in force business.
Capital adequacy
The capital adequacy requirement (CAR) for the Group increased by 2,9% from R3
402,7 million at 31 December 2003 to R3 501,9 million at 30 June 2004. The Group
capital adequacy multiple decreased marginally from 2,58 times at 31 December
2003 to 2,55 times at 30 June 2004 and remains amongst the highest in the
industry.
Prospects
We will continue to focus on the business (and value) drivers under our control
such as growing new business, improving service levels, cost reduction, capital
management and people, thereby ensuring sustainable benefits in the short to
medium term. However, future earnings will continue to be impacted by the
performance and volatility of local and international financial markets.
Dividend
Notice is hereby given that interim ordinary dividend No. 77 of 162,0 cents per
share has been declared in respect of the year ending 31 December 2004
(unchanged from the 2003 interim dividend).
The important dates pertaining to this dividend are:
Last day to trade cum dividend on the JSE Friday, 3 Sept 2004
First trading day ex dividend on the JSE Monday, 6 Sept 2004
Record date Friday, 10 Sept 2004
Payment date Monday, 13 Sept 2004
Share certificates may not be dematerialised or rematerialised between Monday, 6
September 2004 and Friday, 10 September 2004, both days inclusive.
Where applicable, dividends in respect of certificated shareholders will be
transferred electronically to shareholders` bank accounts on payment date. In
the absence of specific mandates, dividend cheques will be posted to
shareholders. Shareholders who have dematerialised their shares will have their
accounts with their CSDP or broker credited on Monday, 13 September 2004.
Derek Cooper Myles Ruck
Chairman Chief Executive
11 August 2004
Accounting policies and presentation
The accounting policies adopted comply with South African Statements of
Generally Accepted Accounting Practice as well as the South African Companies
Act, 1973. The financial information has been prepared on the historical cost
basis, modified by the revaluation of investment property, owner occupied
property and the fair value adjustments required by the accounting statement on
Financial Instruments: Recognition and Measurement (AC 133). These accounting
policies are consistent with those applied at 31 December 2003 except for the
determination of the operating profit from insurance operations, embedded value,
capital adequacy requirement and value of new business, which reflect the
Statutory Actuary`s best estimate for interim reporting purposes. A full
valuation is not performed at half year.
Summarised group balance sheet
(unaudited) (audited)
30 June 31 December
2004 2003
Rm Rm
Assets
Investments 93 126,0 91 508,4
Owner-occupied properties 750,8 725,4
Goodwill 74,6 80,5
Intangible assets 174,3 195,5
Tangible assets 366,3 363,3
Current assets 3 705,0 3 684,8
Total assets 98 197,0 96 557,9
Capital, reserves and liabilities
Shareholders` funds 8 922,4 8 782,2
Minority interests 1,0 1,0
Policyholder liabilities 85 196,8 83 839,6
Liabilities under insurance contracts 55 419,8 56 296,0
Liabilities under investment contracts 29 777,0 27 543,6
Redeemable bonds 1 408,0 1 499,8
Retirement benefit obligation 158,0 155,1
Deferred tax 309,5 313,2
Current liabilities 2 201,3 1 967,0
Total capital, reserves and liabilities 98 197,0 96 557,9
Capital adequacy requirement 3 501,9 3 402,7
Capital adequacy requirement: times covered 2,55 2,58
Summarised group income statement
(unaudited)
Six months ended 30 June
2004 2003 %
Rm Rm Change
Operating profit from insurance operations
net of tax 335,0 252,7 32,6%
Revenue earnings attributable to
shareholders` funds 166,0 148,2 12,0%
Preference dividend in subsidiary (40,6) (45,0) (9,8%)
Headline earnings 460,4 355,9 29,4%
Goodwill amortisation and impairment (6,0) (71,7) (91,6%)
Realised investment gains attributable to
shareholders` assets net of
capital gains tax 44,6 9,6 364,6%
Total earnings 499,0 293,8 69,8%
Per share details
cents cents
Headline earnings per share
Basic 167,2 130,0 28,6%
Fully diluted 166,3 129,8 28,1%
Total earnings per share
Basic 181,3 107,3 68,9%
Fully diluted 179,2 107,2 67,2%
Weighted average number of shares in issue
(millions) 275,3 273,7 0,6%
Total number of shares in issue (millions) 275,8 273,8 0,7%
Fully diluted weighted average number of
shares (millions) 298,5 274,1 10,6%
Group embedded value and value of new business
(unaudited) (audited)
30 June 31 December
2004 2003 %
Rm Rm Change
Risk discount rate 12,5% 11,5%
Shareholders` net assets 8 922,4 8 782,2 1,6%
Net value of life business in force 6 279,1 6 493,8 (3,3%)
Value of life business in force 6 523,7 6 685,5 (2,4%)
Cost of solvency capital (244,6) (191,7) 27,6%
Financial services entities fair
value adjustment (vii) - Bases and
assumptions 685,6 540,9 26,8%
Embedded value 15 887,1 15 816,9 0,4%
Embedded value per share R57,59 R57,58
Value of new business and new business margins
(unaudited)
Six months ended 30 June
2004 2003 %
Rm Rm Change
Value of new business written during the
period 330,2 261,7 26,2%
Gross of cost of solvency capital 342,7 267,7 28,0%
Cost of solvency capital (12,5) (6,0) 108,3%
New single premiums 4 859,6 4 064,4 19,6%
New recurring premiums net of natural
increases
(2004: R392,0 million; 2003: R354,6 million) 1 090,3 1 018,0 7,1%
New business index net of natural increases 1 576,2 1 424,4 10,7%
Value of new business as a percentage of
indexed new
business (new business margin) 20,9% 18,4% 2,5%
Embedded value profits/(losses)
(unaudited)
Six months ended 30 June
2004 2003
Rm Rm
Embedded value at the end of the period 15 887,1 14 622,5
Less capital raised (52,7) (4,8)
Plus dividends paid 318,6 317,4
Less embedded value at the beginning of the period(15 816,9) (15 126,6)
Embedded value profits/(losses) 336,1 (191,5)
Return on shareholders` net assets (annualised) 7,8% (4,5%)
Return on embedded value (annualised) 4,3% (2,5%)
Analysis of embedded value profits/(losses)
(unaudited)
Six months ended 30 June
2004 2003
Rm Rm
Investment return on shareholders` net assets and fair
value adjustment 334,6 (344,4)
Translation losses in respect of foreign assets (24,2) (40,8)
Other investment returns on shareholders` assets 358,8 (303,6)
Expected return on value of life business (iv) - Bases
and assumptions 361,5 362,6
Investment experience variation on life business
in-force (219,4) (258,7)
Other experience variations (viii) - Bases and
assumptions (11,3) (29,0)
Changes in economic assumptions (ix) - Bases and
assumptions (87,5) 142,4
Changes in non-economic assumptions (x) - Bases and
assumptions (223,2) (123,1)
Value of new business 330,2 261,7
Changes in modelling methodology (xi) - Bases and
assumptions (148,8) (203,0)
Embedded value profits/(losses) 336,1 (191,5)
Bases and assumptions
(i) Future investment returns on the major classes were set with reference to
the market yield on medium-term South African government stock. The
investment returns used are:
Investment return p.a
2004 2003
Government stock 10,5% 9,5%
Equities 12,5% 11,5%
Property 11,5% 10,5%
(ii) The risk discount rate has been set equal to the
investment return on equity assets 12,5% 11,5%
(iii) Maintenance expense inflation rate 6,5% 5,5%
(iv) The expected return on value of life business is obtained by applying the
previous year`s discount rate for the full analysis period to the value
of life business in force at the beginning of the year and the current
discount rate for half of the analysis period to the value of new
business.
(v) Tax has been allowed for on the Four Funds Tax basis with tax rates of
30%. Full tax relief on expenses to the extent permitted was assumed.
Capital Gains Tax (CGT) has been taken into account in the embedded value
and allowance has been made for future expected Secondary Tax on
Companies.
(vi) Other bases, bonus rates and assumptions:
In general, parameters reflect best estimates of future experience,
consistent with the Financial Soundness Valuation basis used by the
Statutory Actuary, excluding any first- or second-tier margins. However,
in contrast to the valuation basis assumption, the embedded value does
make allowance for expected automatic premium and benefit increases.
(vii) Basis of calculation of financial services entities fair value
adjustment:
The fair value adjustment reflects the excess of the fair value over the
value of the tangible assets as included in the shareholders` funds.
This adjustment consisted of the following:
(unaudited) (audited)
30 June 31 December
2004 2003
Rm Rm
Liberty Group Properties (Proprietary) Limited 230,0 216,0
Liberty Ermitage Jersey Limited 184,0 140,0
STANLIB Limited 387,2 306,9
Carrying value of in-force business acquired from
Investec Employee Benefits (115,6) (122,0)
685,6 540,9
In the case of Liberty Group Properties (Proprietary) Limited and Liberty
Ermitage Jersey Limited a price earnings ratio multiple was applied to the
net after tax recurring earnings of the subsidiaries. The multiples used
for both Liberty Group Properties (Proprietary) Limited and Liberty
Ermitage Jersey Limited were maintained at 10 times recurring earnings.
In the case of STANLIB Limited a price earnings ratio multiple was applied
to the net after tax recurring earnings of STANLIB Limited. The multiple
used was maintained at 10 times recurring earnings, the R387,2 million
represents Liberty Life`s 37,4% share of the excess over the net asset
value of STANLIB Limited and effectively values the ordinary and
preference shares in STANLIB Limited at R1.7 billion.
(viii)The amount of R11,3 million shown for other experience variations arises
mainly from worse than expected withdrawal experience.
(ix) The amount of R87,5 million arises from a change in economic assumptions
to a higher level as set out in (i) above.
(x) The amount of R223,2 million shown for changes in non-economic
assumptions mainly arises from changes to the withdrawal bases and
expense bases in respect of corporate business and shareholders`
expenses.
(xi) The amount of R148,8 million shown for changes in modelling methodology
arises mainly from allowing more accurately for expected future Secondary
Tax on Companies.
(xii) Non-recurring expenses amounting to R50,3 million were identified in
2004. These were largely due to discontinued salary costs, the renovation
of Liberty Life Centre, and impairment to internally developed software.
These expenses are included in the analysis of embedded value profits but
do not form part of the future projections.
Summarised group cash flow statement
(unaudited)
Six months ended 30 June
2004 2003
Rm Rm
Cash flows from operating activities 2 480,9 2 603,4
Cash flows from investing activities (2 623,6) (2 343,2)
Cash flows from financing activities 51,9 8,1
Net (decrease)/increase in cash and cash equivalents (90,8) 268,3
Cash and cash equivalents at beginning of year 345,5 273,5
Foreign exchange movements on cash balances (39,8) (8,2)
Cash and cash equivalents at end of the period 214,9 533,6
New business
Recurring premium Single premium
(unaudited) (unaudited)
Six months ended Six months ended
30 June 30 June
2004 2003 2004 2003
Rm Rm Rm Rm
Individual business 1 264,5 1 149,4 4 096,0 3 036,3
Corporate business 217,8 223,2 763,6 1 028,1
Total new business 1 482,3 1 372,6 4 859,6 4 064,4
Change 8,0% 19,6%
New business index
Total premium
(unaudited)
Six months ended
30 June
2004 2003 %
Rm Rm Change
Individual business 5 360,5 4 185,7 28,1%
Corporate business 981,4 1 251,3 (21,6%)
Total new business 6 341,9 5 437,0 16,6%
Change
New business index 1 968,3 1 779,0 10,6%
Net cash inflow from insurance operations
Individual Business Corporate Business
(unaudited) (unaudited)
Six months ended Six months ended
30 June 30 June
2004 2003 2004 2003
Rm Rm Rm Rm
Net premium income and inflows
from investment contracts 7 755,4 6 060,4 1 967,8 1 943,7
Single 4 095,3 2 914,2 763,9 1 028,1
Recurring 3 660,1 3 146,2 1 203,9 915,6
Claims, policyholders` benefits and
payments under investment
contracts (5 424,1) (5 201,7) (1 917,3) (1 072,2)
Net cash inflow 2 331,3 858,7 50,5 871,5
Total
(unaudited)
Six months ended
30 June
2004 2003 %
Rm Rm Change
Net premium income and inflows
from investment contracts 9 723,2 8 004,1 21,5%
Single 4 859,2 3 942,3 23,3%
Recurring 4 864,0 4 061,8 19,7%
Claims, policyholders` benefits and
payments under investment
contracts (7 341,4) (6 273,9) 17,0%
Net cash inflow 2 381,8 1 730,2 37,7%
Analysis of shareholders` funds
Group funds invested
(unaudited) (audited)
30 June 31 December
2004 2003
Rm Rm
Charter Life (excluding
operating profit from
insurance operations) 924,6 885,6
Financial services operations 1 141,4 1 137,5
Listed investments 1 596,8 1 303,6
Edcon 44,8 38,6
GoldFields 106,3 153,6
Metro Cash and Carry 223,5 232,1
SABMiller 769,7 655,1
Other 452,5 224,2
Other investments 5 259,6 5 455,5
Cash, preference shares and unit
trusts 2 361,0 2 096,6
Foreign assets 1 454,7 1 560,0
Redeemable bonds (1 407,3) (1 499,8)
Unlisted investments 76,3 76,6
Fixed assets and working capital 1 211,2 1 708,9
Share of pooled portfolios 1 563,7 1 513,2
Management expenses
Normal taxation
Secondary tax on companies
Total 8 922,4 8 782,2
Group net revenue earned
(unaudited)
Six months ended
30 June
2004 2003
Rm Rm
Charter Life (excluding
operating profit from
insurance operations) 22,9 25,4
Financial services operations 69,6 46,9
Listed investments 25,1 24,6
Edcon 1,6 4,3
GoldFields 0,7 6,2
Metro Cash and Carry
SABMiller 14,7 13,9
Other 8,1 0,2
Other investments 142,6 129,0
Cash, preference shares and unit
trusts 72,8 61,7
Foreign assets 42,5 51,1
Redeemable bonds (51,3) (62,4)
Unlisted investments (1,2) 9,6
Fixed assets and working capital
Share of pooled portfolios 79,8 69,0
Management expenses (47,1) (39,2)
Normal taxation (16,0) (5,0)
Secondary tax on companies (31,1) (33,5)
Total 166,0 148,2
Group investment gains/(losses)
(unaudited)
Six months ended
30 June
2004 2003
Rm Rm
Charter Life (excluding
operating profit from
insurance operations) 1,3 2,5
Financial services operations (51,7) (57,8)
Listed investments 85,4 (123,2)
Edcon 6,2 48,4
GoldFields (47,3) (79,7)
Metro Cash and Carry (8,5) 8,1
SABMiller 114,5 (95,9)
Other 20,5 (4,1)
Other investments (57,3) (147,9)
Cash, preference shares and unit
trusts 0,9 1,9
Foreign assets (93,7) (236,8)
Redeemable bonds 98,0 246,5
Unlisted investments 0,8 (32,1)
Fixed assets and working capital
Share of pooled portfolios (63,3) (127,4)
Management expenses
Normal taxation
Secondary tax on companies
Total (22,3) (326,4)
Statement of changes in group shareholders` funds
(unaudited)
Six months ended 30 June
2004 2003
Rm Rm
Shareholders` funds at 31 December as previously
published 8 782,2 8 588,1
Restatement of opening retained surplus on
implementation of AC133 (91,5)
Shareholders` funds restated as at 1 January 8 782,2 8 496,6
Total earnings 499,0 293,8
Unrealised investment losses on shareholders` assets
net of capital gains tax (87,9) (291,1)
Ordinary dividends (318,6) (317,4)
2002 Final dividend No. 74 of 116 cents - LDR 20 March
2003 (317,4)
2003 Final dividend No. 76 of 116 cents - LDR 26 March
2004 (318,6)
Translation difference relating to equity component of
the redeemable bonds (5,0) (12,5)
Subscriptions for shares 52,7 4,8
Shareholders` funds at end of period 8 922,4 8 174,2
Commitments
(unaudited) (audited)
30 June 31 December
2004 2003
Rm Rm
Capital commitments 84,9 164,8
Under contracts 72,9 147,7
Authorised by the directors but not contracted 12,0 17,1
Operating lease commitments 98,6 48,5
Less than 5 years 71,9 45,9
5 to 10 years 26,7 2,6
Total commitments 183,5 213,3
Group figures above include the Group`s share of commitments of joint ventures
amounting to R54,8 million (2003: R57,8 million).
The expenditure will be financed by available bank facilities, cash resources
and funds internally generated.
Transfer Secretaries
Computershare Investor Services 2004 (Proprietary) Limited
(Registration number 2004/003647/07)
70 Marshall Street, Johannesburg, 2001.
PO Box 61051, Marshalltown, 2107.
Sponsor
Merill Lynch
11 August 2004
