| Fri 15 Apr 2005, 15:28 | | Renewal of cautionary announcement |
|
Sage - Provisional report for the year ended 31 December 2004 and renewal of
cautionary announcement
Sage Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1970/010541/06)
(Share code: SGG)
ISIN: ZAE000006623
(`Sage Group` or `the Group`)
Provisional report for the year ended 31 December 2004 and renewal of cautionary
announcement
Sage Life
- Sage Life earnings from operations up 138% to R312,6 million (2003: R131,1
million)
- Individual life new business recurring premiums up 12,2% to R266,3 million
(2003: R237,4 million)
- Individual single premiums up 31,8% to R333,2 million (2003: R252,8 million)
- Employee Benefits recurring new business decreased 16,1% to R53,8 million
(2003: R64,1million)
- New business margin improved from 15,0% in 2003 to 15,9% in 2004
- In force individual annual premiums up 6% from R1 017,9 million to R1 078,9
million
Sage Group
- Debt at Group level increased by 49% to R743,5 million (2003: R500,4 million)
- Total attributable loss of R47,5 million compared to attributable earnings of
R74,6 million in 2003
- Headline loss per share of 12,8 cents compared to headline earnings of 23,5
cents in 2003
Garth Griffin, Sage Group CEO commented: `We have shown a gratifying improvement
in operational performance for the 2004 year assisted by our brand
revitalisation programme. The good operational performance was, importantly,
across all aspects of the business, from new business to business retention and
investment performance, and reflects the inherent capability of the business and
the strength of the brand. The group is however burdened by its debt position
which continues to receive close attention.`
Enquiries:
Sage Group 011 377 5000
Garth Griffin 011 377 5364
Nombini Mehlomakulu 011 377 5821
College Hill 011 447 3030
Nick Williams 083 607 0761
Nicola White 083 293 1146
Salient features
2004 2003
Operational earnings Rm 312,6 131,1
Financing activities at Group level (1) Rm (337,8) (50,7)
Total (loss)/earnings attributable to
ordinary shareholders Rm (47,5) 74,6
Total (loss)/earnings per share cents (13,1) 28,7
Headline (loss)/earnings Rm (46,3) 61,2
Headline (loss)/earnings per share cents (12,8) 23,5
Sage Life embedded value Rm 1 567,7 1 341,9
Group embedded value Rm 791,0 804,4
Group embedded value per share cents 218 222
Average number of shares in issue
(excluding treasury shares) million 362,3 260,0
Total number of shares in issue
(excluding treasury shares) million 362,3 362,3
Debt at Group level Rm 743,5 500,4
Total assets under management Rm 11 840,8 10 566,5
New business volumes (2) Rm 1 025,8 816,8
Life new business APE (3) Rm 357,6 329,3
Life new business embedded value Rm 39,7 32,3
Net fund flows Rm (92,7) (138,4)
Financial ratios
Life new business embedded value margin (4) % 15,9 15,0
Capital adequacy requirement -
Sage Life Limited times 2,36 2,15
1. Financing activities at Group level include the fair value and foreign
exchange adjustments relating to the equity linked notes (ELNs).
2. New business volumes: total life new business (including automatic increases)
plus external unit trust sales.
3. APE: Annual Premium Equivalent is equal to new recurring premiums (including
automatic increases) plus 10% of single premiums.
4. Life new business embedded value margin: calculated using APE excluding
automatic increase premiums.
Introduction
In 2004 we made considerable progress on a number of fronts, as evidenced by the
strong improvement in the operating performance of the group. Earnings of Sage
Life were up 138% to R312,6 million and excellent sales were achieved in our
life individual new business and unit trust operations. Most significantly, the
new Sage Financial brand was successfully launched in September. This was very
well received by our brokers, agents and clients alike and followed an extensive
internal and external review of the qualities of the Sage business and of
opportunities within the middle income segment of the market.
We have continued to address the need for re-financing the group`s debt position
as a key priority. The Equity Linked Notes (`ELNs`) were re-financed during
January 2005 and replaced with a short-term loan facility from ABSA and Remgro
Finance Corporation, which we announced towards the end of last year. As
outlined in our cautionary announcement of 17 March, we are continuing
discussions which may lead to a potential transaction which, inter alia, will
address our outstanding debt obligations. Clearly the Group`s net financing
costs in respect of the ELNs had a negative impact on the Group earnings with a
headline loss per share of 12,8 cents compared to headline earnings of 23,5
cents last year. This deterioration
was largely due to the negative fair value and foreign exchange adjustments on
the ELNs, which last year were positive.
Group Earnings: Summary
The contribution to the Group by the operating subsidiaries, including Sage
Life, amounted to R312,6 million compared to R131,1 million for the year to
December 2003. Group level costs, in respect of other activities amounted to
R22,8 million (2003: R20,9 million) before reversing provisions no longer
required in respect of discontinued international operations (2004: R0,5
million; 2003: R15,1 million). Financing costs amounted to R337,8 million (2003:
R50,7 million) and included all ELNs related items of R317,6 million (2003:
R29,4 million). Total Group headline loss amounted to R46,3 million compared to
headline earnings of R61,2 million in the prior year.
Results of Operating Entities
New Business
Total life new business for the year showed a satisfactory improvement of 8,6%
to R357,6 million compared to the previous twelve months in terms of
Annual Premium Equivalent (annualised recurring premiums plus 10% of single
premiums - `APE`). New individual life recurring premiums were up 17,2%, while
premium increases on existing policies rose by 1,3%, giving an overall increase
in individual new business recurring premiums of 12,2%. Individual single
premiums were up 31,8% to R333,2 million. Individual APE was consequently up
14,1% year on year, with this considered a solid achievement given overall
industry results. Employee benefits new business was disappointing, with a 13%
decline in APE over the year.
Unit trust sales to external parties (i.e. excluding intra group sales) rose 39%
to R330,9 million for the year.
The life new business margin improved to 15,9%, from 15,0% in 2003. This
percentage was restated to allow for tax and is now in line with industry
practice.
Expense Management
Management expenses were well controlled, with a rise of 5,6% over the year.
They include, for 2004, special non recurring contributions to the pension fund
of R12 million to cover historical deficits and the past service cost of the new
minimum benefits required by law, as well as a strategic investment of some R14
million in the Group`s new branding launched towards the middle of the year.
Total administration staff declined from 629 to 609 over the year, while total
sales staff increased from 681 to 729.
Terminations
The experience with policy terminations also showed marked improvements over the
year. The number of policies lapsed reduced by over 21%, while the number of
recurring premium policies surrendered reduced by almost 19%. In force recurring
premiums rose over the year by 6% to R1 078,9 million.
Claims and Other Policy Movements
Consistent with the prior year, Sage Life`s underwriting results contributed
positively in terms of both mortality and morbidity, as did the net result of
other policy movements, including automatic premium updates where we continue to
experience high levels of uptake.
Investment Performance
Client investment returns continued their positive trend from 2003, on both an
absolute and a relative basis. The money weighted average performance across all
domestic individual life portfolios was 18,0% for 2004 (19,8% in 2003), and
24,2% across the employee benefit portfolios (19,3% in 2003).
The Sage Unit Trusts` investment performance was outstanding for the year, with
the majority of the funds not only performing ahead of their benchmarks, but
also ahead of the medians in their respective peer groups.
Sage Life`s shareholder`s funds benefited directly from the positive performance
of the ABSA holding (primarily held as an indirect hedge for the Group`s ELNs
liability), although the overall investment in ABSA has been reduced as part of
a prudent diversification strategy.
The good investment performance had a positive impact on overall results.
Net Flows
Sage Life experienced a net outflow of R37,2 million over the twelve months
(2003: Net outflow of R12,7 million) due in the main to the termination of a
large investment only pension fund. Unit trust third party outflows were R58,8
million, down from outflows of R133,0 million in the previous year.
Sage Life Policyholder Fund Earnings
Earnings from the Sage Life policyholder fund improved significantly to a R65,7
million surplus from a R19,3 million deficit in the previous year. This was
mainly attributable to the positive influences of underwriting profits, the
margins from other policy movements, a lower expense overrun, the effect of
capitalised changes in the valuation basis, and some prior year adjustments.
Sage Life Shareholder`s Funds Earnings
Net Group attributable earnings arising from the Sage Life shareholder`s funds,
excluding the earnings from operating subsidiaries, amounted to R234,3 million
compared to R117,3 million in the previous year. A major portion of this return
was again due to the strong performance of the ABSA holdings in the
shareholder`s funds.
Other Operating Subsidiary Results
In aggregate, other operating subsidiaries showed after tax profits of R12,6
million compared to R33,1 million in the previous year.
Sage Life Capital Adequacy
The inherent resilience of Sage Life`s financial soundness was demonstrated by
the improvement in its published capital adequacy ratio to 2,36 times from 2,15
times at December 2003, despite the payment of R130 million as dividends by Sage
Life to the Group during the year. This further reflects the impact of positive
investment markets as well as successful ongoing management action in realigning
investment portfolios and improving asset and liability matching.
Other Activities
Costs attributable to other activities, comprising net Group expenses and
taxation, totalled R22,8 million against R20,9 million in the previous year,
before reversing provisions no longer required for the discontinued
international operations of R0,5 million (2003: R15,1 million).
Group Financing Activities
Total Group net financing costs in 2004 were R337,8 million compared with R50,7
million in the previous year. The major components were:
- Interest of R14,5 million paid to ELNs noteholders (compared to R34,4 million
in the previous year).
- Negative fair value and foreign exchange adjustments totalling R268,5 million
in respect of the ELNs, compared to positive adjustments totalling R82,6 million
in the previous year.
- A loss of R40,9 million (2003: R80,1 million loss) on the forward exchange
contract put in place during 2003 to cover the outstanding ELNs.
- Other net funding costs totalling R13,9 million in respect of net domestic
borrowings (R18,8 million in the previous year).
Debt at Group level at the year end had increased to R743,5 million from R500,4
million at December 2003, due mainly to the impact of the sharp rise in the ABSA
share price and its impact on the fair value of the ELNs, which have been fully
redeemed since the year end.
Embedded Value Results
Sage Life`s embedded value grew over the year by 17%, from R1 341,9 million to
R1 567,7 million, mainly due to the increase in Sage Life`s shareholder`s funds
from R726,7 million to R911,6 million. However, because of the costs of
financing the Group debt, Group embedded value declined marginally over the year
from R804,4 million (222 cents per share) to R791,0 million (218 cents per
share).
Dividends
No dividends were declared by the Group in respect of the financial year under
review.
Key Group Issues
Group Balance Sheet
A secured short-term loan was obtained from ABSA and Remgro Finance Corporation
late in 2004 for the express purpose of redeeming the outstanding ELNs. This
enabled the Group to `call` the outstanding ELNs, with the result that ELNs
totalling R461,8 million were fully repaid by the end of January 2005. The ELNs
debt was replaced by a combination of internal funding, bank facilities and a
R540 million short-term loan facility, of which R107,5 million was utilised at
year end to fund ELNs redemptions. This debt facility is subject to monthly roll
over at the discretion of the lenders and repayable by no later than 31 July
2005, and discussions regarding the settlement of this debt, as noted in the
Group`s cautionary announcements of 23 December 2004, 3 February and 17 March
2005, are continuing.
Operations
During the year, the new Group brand was launched, focusing on the use of `Sage
Financial` as the Group`s retail brand for both life assurance and unit trust
products. This launch took place later in the year than planned, but was delayed
in the hope of linking the launch to an announcement with regard to a BEE
transaction at Group level which, in the event, has not materialised.
Notwithstanding this, the launch was successful and was a material factor in the
improved operating performance during 2004.
Delay in Announcing Results
The Group had intended to announce its results by mid March. Towards the
beginning of March, the Group became aware that certain interpretations relied
on for the purpose of computing Sage Life`s taxable income might be open to
challenge by SARS. To resolve this issue, the Group has taken advice and
proactively engaged with SARS directly on the matter. After intensive review and
based on the responses to date from SARS, Sage Life has made an additional
provision of R16 million mainly for transitional tax in respect of the 2001
financial year, following the introduction of S29A of the Income Tax Act that
governs the determination of life assurance tax. This provision of R16 million
is reflected in the results for the year under review.
Audit Opinion
The joint auditors, Grant Thornton and KPMG Inc., have issued their opinion on
the Group`s financial statements for the year ended 31 December 2004. A copy of
their unqualified report is available for inspection at the Company`s registered
office.
Preparation of Provisional Report
The provisional report has been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice on a basis consistent with
the prior audited period.
Renewal of Cautionary Announcement
Shareholders are referred to a previous cautionary announcement made on SENS on
17 March 2005, and are advised that the Group is still continuing discussions
that may lead to a potential transaction which, inter alia, will address its
outstanding debt obligations. Shareholders are advised that they should continue
to exercise caution in dealing in their shares until a further announcement is
made.
2004 Annual Report and Annual Financial Statements
The Group`s 2004 annual report will be posted to shareholders on or about 3 May
2005. The annual financial statements of Sage Group Ltd and Sage Life Ltd will
be available on the Group`s website (www.sage.co.za) on or about 20 April 2005.
DC Cronje G Griffin
Chairman Group Chief Executive
15 April 2005
Summarised Group Balance Sheet
at 31 December 2004 2004 2003
R millions Note Audited Audited
ASSETS
Non-current assets 8 314,9 7 511,4
Tangible assets 18,0 19,1
Intangible assets 54,0 65,2
Financial assets 18,5 15,4
Investments of the life assurance
subsidiary 8 224,4 7 411,7
Current assets 655,3 652,5
Total assets 8 970,2 8 163,9
EQUITY AND LIABILITIES
Ordinary shareholders` interest 1 76,4 123,9
Non-current liabilities 23,7 379,2
Equity linked notes 2 - 360,3
Deferred taxation 23,7 8,9
Other - 10,0
Policyholder liabilities 7 802,5 7 119,7
Insurance contract liabilities 4 520,1 4 262,8
Investment contract liabilities 3 282,4 2 823,0
Deferred taxation - 33,9
Current liabilities 1 067,6 541,1
Short-term borrowings 3 579,3 30,7
Bank borrowings 4 44,2 24,4
Derivative liabilities - 102,9
Other 444,1 383,1
Total equity and liabilities 8 970,2 8 163,9
Summarised Group Income Statement
for the year ended 31 December 2004 2004 2003
R millions Note Audited Audited
Sage Life Limited operating
surplus/(deficit) 65,7 (19,3)
Attributable to Sage Life Limited
shareholder`s funds:
- Net earnings 8 234,3 117,3
- Other operating income 9 12,6 33,1
Attributable earnings from
operations, after taxation 312,6 131,1
Other activities 10 (22,3) (5,8)
Financing activities 11 (337,8) (50,7)
Total attributable (loss)/earnings (47,5) 74,6
Reconciliation of attributable (loss)/
earnings to headline (loss)/earnings:
Total attributable (loss)/earnings (47,5) 74,6
Capital items 1,2 (13,4)
Headline (loss)/earnings (46,3) 61,2
Weighted average number of ordinary
shares in issue (millions)* 362,3 260,0
Total number of ordinary shares in
issue (millions)* 362,3 362,3
*excluding 4,8 million treasury shares
Total attributable (loss)/earnings
per ordinary share (cents) (13,1) 28,7
Headline (loss)/earnings
per ordinary share (cents) (12,8) 23,5
Group Statement of Changes in Equity
for the year ended 31 December 2004 2004 2003
R millions Audited Audited
Balance at beginning of year 123,9 (249,2)
AC133 transitional adjustment - (23,2)
Consolidation of the share incentive schemes - (10,4)
Ordinary shares issued - 350,0
Share issue expenses - (17,9)
(Loss)/earnings attributable to ordinary
shareholders (47,5) 74,6
Balance at end of year 76,4 123,9
Summarised Cash Flow Statement
for the year ended 31 December 2004 2004 2003
R millions Audited Audited
Cash inflow from operating activities 265,5 48,5
Cash (outflow)/inflow from investing activities (15,0) (15,9)
Cash outflow from financing activities (191,3) (21,9)
Net increase in cash and cash equivalents 59,2 10,7
Cash and cash equivalents at beginning of year 321,7 311,0
Cash and cash equivalents at end of year 380,9 321,7
Policyholders 251,3 260,0
Shareholders (in subsidiaries) 129,6 61,7
380,9 321,7
Notes to the Group Financial Statements
2004 2003
R millions Audited Audited
1 Reconciliation between ordinary
shareholder`s interest in Sage Life
Limited and Sage Group Limited
Shareholder`s funds - Sage Life Limited 911,6 726,7
Adjustment to fair values of Sage Life
subsidiaries (83,0) (82,5)
Shareholder`s funds of Sage Life Limited
at net asset value 828,6 644,2
Equity linked notes (461,8) (385,0)
Other interest bearing liabilities (161,7) (40,4)
Goodwill 12,3 13,9
Tangible and intangible assets 0,2 4,0
Financial assets 0,2 -
Intercompany loan (120,0) (75,0)
Net working capital items (21,4) (37,8)
Shareholders` interest - Sage Group Limited 76,4 123,9
2 Equity linked notes (ELNs)
US$33,5 million (2003: US$48,3 million) 8% unsecured equity linked notes stated
at fair value. The ELNs were fully redeemed by 28 January 2005, financed by
means of short-term loans.
Opening balance 385,0 558,4
Redemption/repurchases (191,7) (116,4)
Fair value and foreign exchange adjustments 268,5 (69,3)
Effect of AC133 transitional adjustment
on ELNs - 12,3
Closing balance 461,8 385,0
Less: Current portion of the liability
included in short-term borrowings (461,8) (24,7)
- 360,3
3 Short-term borrowings
Interest bearing borrowings
- ELNs 461,8 24,7
- Redeemable preference shares issued
by subsidiary 10,0 -
- Short-term loans 107,5 -
- Other borrowings - 6,0
579,3 30,7
Short-term loan facilities of R540 million, of which R107,5 million was utilised
at year-end, were fully utilised after year-end in completing the redemption of
the ELNs. These facilities are secured by a pledge of 77,3% of the ordinary
shares in Sage Life Limited.
4 Bank borrowings 44,2 24,4
Bank facilities totalling R46,2 million, of which R44,2 million has been
utilised, are secured by means of a pledge of 22,7% of the ordinary shares in
Sage Life Limited.
5 Debt at Sage Group level
Non-current borrowings - 370,3
Short-term borrowings 579,3 30,7
Bank borrowings 44,2 24,4
Loan from Sage Life Limited 120,0 75,0
743,5 500,4
6 Total assets under management
Sage Life Limited assets 9 147,3 8 215,9
Reversal of revaluation adjustments (83,0) (82,5)
Other Group (liabilities)/assets (94,1) 30,5
8 970,2 8 163,9
Unit Trusts third party assets 2 870,6 2 402,6
11 840,8 10 566,5
2004 2003
R millions Audited Audited
7 Contingent liabilities
7.1 Contingent liabilities in respect of various material Group disputes or
queries with the South African Revenue Services amount to R47,4 million (2003:
R39,6 million)
7.2 Disputed benefit claims of the life subsidiary totalled R14,2 million (2003:
R18,9 million)
8 Sage Life Limited shareholder`s funds - net earnings
Investment income 30,2 27,3
Realised and unrealised net surpluses
on financial assets 283,8 109,6
Taxation (70,5) (8,0)
Current and adjustment for prior year (55,9) -
Deferred (14,6) (8,0)
Other (9,2) (11,6)
234,3 117,3
9 Other operating income
Earnings of unlisted subsidiaries
- Sage Unit Trusts 9,5 25,3
- Other 3,1 7,8
12,6 33,1
10 Other activities
Net expenses (18,4) (16,5)
Goodwill amortisation (1,7) (1,7)
Taxation at Group level (2,7) (2,7)
Discontinued international operations 0,5 15,1
(22,3) (5,8)
11 Financing activities
ELNs (317,6) (29,4)
- interest paid (14,5) (34,4)
- fair value and foreign exchange adjustments (268,5) 82,6
- loss on forward exchange contract (40,9) (80,1)
- interest received on forward exchange
collateral deposit 6,3 2,5
Redeemable preference share dividends (0,8) (2,8)
Interest paid on short-term loans (0,5) -
Interest on bank and other short-term borrowings (4,3) (9,6)
Interest paid to Sage Life Limited (14,6) (8,9)
(337,8) (50,7)
Segmental analysis
2004 2003
R millions Audited Audited
Assets
Life insurance 8 899,9 8 008,2
Unit trusts 26,2 25,4
Group and other activities 44,1 130,3
8 970,2 8 163,9
Liabilities
Life insurance 8 235,7 7 484,5
Unit trusts 7,2 16,2
Group and other activities 650,9 539,3
8 893,8 8 040,0
Headline (loss)/earnings
Life insurance 300,0 83,5
Unit trusts 9,5 25,3
Group and other activities (355,8) (47,6)
(46,3) 61,2
Fund inflows
Life insurance 1 517,1 1 418,7
Unit trusts 330,9 238,1
Other 6,9 8,1
1 854,9 1 664,9
Fund outflows
Life insurance (1 554,3) (1 431,4)
Unit trusts (389,7) (371,1)
Other (3,6) (0,8)
(1 947,6) (1 803,3)
Net fund flows
Life insurance (37,2) (12,7)
Unit trusts (58,8) (133,0)
Other 3,3 7,3
(92,7) (138,4)
New Business*
R millions 2004 2003
Life insurance premiums (gross)
Individual 599,5 490,2
- Annualised recurring 190,0 162,1
Automatic increases 76,3 75,3
- Single 333,2 252,8
Employee benefits 95,4 88,5
- Annualised recurring 22,3 25,9
Automatic increases 31,5 38,2
- Single 41,6 24,4
Total Life new business 694,9 578,7
Unit trust sales
External 330,9 238,1
Internal 1 671,1 3 362,7
2 002,0 3 600,8
*Certain lines of business have been reclassified and 2003 comparatives have
been restated accordingly.
Sage Life Limited shareholder`s funds analysis
R millions 2004 2003
Listed investments - ABSA 410,4 440,7
Other investments
Unlisted subsidiaries 115,1 104,0
Net asset value 32,1 21,5
Revaluation adjustments 83,0 82,5
Properties 42,1 81,0
Other interest bearing investments 127,2 82,2
Current and other assets 218,2 42,8
Amount due from/(to) policyholders 65,7 (19,3)
Taxation (67,1) (4,7)
911,6 726,7
Capital adequacy requirements (CAR) 386,8 338,2
CAR ratio (times) 2,36 2,15
Shareholder`s funds as a percentage of:
- Policyholder liabilities (%) 11,7 10,2
- Non-market related liabilities (%) 27,8 22,9
Sage Life Limited embedded value
R millions 2004 2003
Shareholder`s funds 890,6 702,8
Excess of assets over liabilities 911,6 726,7
Value of future corporate expenses (21,0) (23,9)
Present value of future profits 677,1 639,1
Value of life insurance business in force 700,7 660,0
Cost of capital (23,6) (20,9)
Embedded value 1 567,7 1 341,9
Embedded value earnings
Embedded value at end of the year 1 567,7 1 341,9
Dividend declared 130,0 -
1 697,7 1 341,9
Embedded value at beginning of the year 1 341,9 1 331,8
Embedded value earnings 355,8 10,1
Components of embedded value earnings*
R millions 2004 2003
New business 39,7 32,2
Expected return 81,4 89,3
Operating experience variations (57,9) (111,1)
- Investment return (31,5) (42,4)
- Expenses (62,2) (69,2)
- Mortality 37,9 31,0
- Lapses and surrenders (15,4) (52,5)
- Premium updates 15,9 17,0
- Other (2,6) 5,0
Operating assumption changes (26,2) (94,5)
37,0 (84,1)
Return on shareholder`s funds 266,1 66,4
- Income 31,5 52,2
- Capital gains 297,0 41,7
- Taxation and expenses (62,4) (27,5)
Change in future corporate expenses 2,9 (23,9)
Change in risk discount rate 49,8 51,7
318,8 94,2
Embedded value earnings 355,8 10,1
APE (excluding automatic increase premiums) 249,8 215,7
Value of new business as a percentage of
APE (new business/APE) (%) 15,9 15,0
*The individual elements in the components of embedded value earnings, including
the value of new business, are net of the applicable tax. The 2003 figures have
been restated accordingly.
Principal actuarial assumptions
% %
Risk discount rate 10,25 11,5
Pre-tax investment returns
Equities 10,25 11,5
Properties 9,25 10,5
Fixed interest securities 8,25 9,5
Cash 6,25 7,5
Expense inflation 4,5 5,5
Sage Group Limited embedded value
R millions 2004 2003
Shareholders` funds 76,4 123,9
Value of future corporate expenses (45,5) (41,1)
Group (24,5) (17,2)
Sage Life (21,0) (23,9)
Adjustment for revaluation of unlisted
subsidiaries 83,0 82,5
Present value of future profits 677,1 639,1
Group embedded value 791,0 804,4
Group embedded value per share
Shares in issue (millions)* 362,3 362,3
Group embedded value per share (cents) 218 222
*Ordinary shares excluding treasury shares
Sage Group Limited
(Incorporated in the Republic of South Africa) Registration number
1970/010541/06 Share code: SGG ISIN: ZAE000006623
Directors
Dr DC Cronje (Chairman) G Griffin+ (Group Chief Executive) Dr MP Adonisi JP
Davies+ Dr BM Ilsley L Kaplan+ JA Treger* HL Shill AF van Biljon CL van
Wyk Adv T van Wyk FJ Visser Secretary CS Cant* (*British) (+Executive)
Registered office
Sage Group Limited (`the Group`) 11th Floor Sage Centre 10 Fraser Street
Johannesburg 2001 PO Box 7755 Johannesburg 2000
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited 70 Marshall Street
Johannesburg 2001 PO Box 61051 Marshalltown 2107
Sponsor
Grant Thornton Corporate Finance (Proprietary) Limited 137 Daisy Street corner
Grayston Drive Sandown 2196 Private Bag X28 Benmore 2010
www.sage.co.za
