UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION - Moneyweb
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UNAUDITED
SUMMARY RESULTS
ANNOUNCEMENT
AND CASH DIVIDEND
DECLARATION
for the six months ended
31 December 2019
Contents
02 Basis of preparation
ENDURING VALUE CREATED These unaudited summary financial results for the six months ended
31 December 2019 have been prepared in accordance with:
03 • International Financial Reporting Standards (IFRS), including IAS 34: Interim
financial reporting;
ABOUT RMI
• The requirements of the Companies Act, 71 of 2008, as amended;
04 • The SAICA Financial Reporting Guide as issued by the Accounting Practices
Committee;
INVESTMENT OVERVIEW • The Financial Reporting Pronouncements as issued by the Financial Reporting
Standards Council; and
07 • The Listings Requirements of the JSE Limited.
PERFORMANCE The accounting policies applied are consistent with those applied in the previous
financial period, except for changes required by the mandatory adoption of new
11 and revised IFRS. During the six months ended 31 December 2019, the group
adopted IFRS 16: Leases, which replaced IAS 17: Leases. The implementation
RMI’S STRATEGY
of IFRS 16 resulted in the recognition of a right-of-use asset and corresponding
12
lease liability on the statement of financial position. More detail is provided in the
financial review section of this report.
OUTLOOK AND ENDURING Schalk Human MCom (Acc) CA (SA) prepared these consolidated financial
VALUE CREATION results under the supervision of Herman Bosman LLM CFA. The board of
directors takes full responsibility for the preparation of this announcement and for
14 correctly extracting the financial information for inclusion in the announcement.
CASH DIVIDEND DECLARATION The summary consolidated financial statements for the six months ended
31 December 2019 contained in this booklet have not been audited.
15 Normalised earnings presented in these summary financial results constitute pro
PORTFOLIO REVIEW forma financial information. The pro forma financial information is the
responsibility of RMI’s board of directors and is presented for illustrative
Discovery 15
purposes. As a result of its nature, pro forma financial information may not fairly
Hastings 16 present RMI’s financial position, changes in equity, results of operations or
Momentum Metropolitan 17 cash flows.
OUTsurance 18 The forward-looking information has not been commented or reported on by the
group’s external auditor.
19
FINANCIAL REVIEW
36
ADMINISTRATION
01
Artwork used in this announcement
RMI approached Khayelitsha-born furniture designer Bonga Jwambi to create a
timber bench in RMI’s colours. 31-year-old Bonga uses plastic strapping, palette
wood and nylon rope as materials to form the base of his output, and he has
developed an admired ability to take these overlooked waste materials and
translate them into clean-lined, contemporary designs, worthy of a place in the
modern home.
His creations speak to RMI’s ongoing sustainability journey.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
02
Enduring value
created
for the six months ended 31 December 2019
Compound Normalised Dividend
shareholders’ earnings
return
since listing in 2011
16.9% R1 804 45 cents
per annum million per share
(2018: R2 094 million) (2018: 45 cents per share)
((14%) to 117.8 cents per share)
(14%) Unchanged
About RMI 03
RMI is a JSE-listed investment holding
company with a proud track record of
investing in disruptive and 25.0%
Discovery Limited (Discovery)
entrepreneurial financial services
businesses. The group’s long-term
performance has been achieved by
partnering with exceptional 29.8%
Hastings Group Holdings plc (Hastings)
management teams. RMI positions itself
as a value-adding, stable and
aspirational shareholder.
27.3%
Momentum Metropolitan Holdings
Limited (Momentum Metropolitan)
RMI is a strategic, active
manager of a R47 billion
financial services portfolio
89.1%
OUTsurance Holdings Limited
(OUTsurance)
RMI’s effective interest in these group entities is
different from the actual interest due to consolidation
RMI Investment Managers Group
100%
adjustments in respect of treasury shares.
Proprietary Limited
See page 19. (RMI Investment Managers)
100%
AlphaCode Proprietary Limited
(AlphaCode), with its next-generation
investments:
• Entersekt
• Guidepost
• Luno
• Merchant Capital
• Prodigy Finance
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 201904
Investment
overview
RMI’s significant
investments as at
31 December 2019
Listed or unlisted JSE-listed LSE-listed JSE-listed Unlisted
MARKET CAPITALISATION/ R79.4 R21.9 R32.7 R23.1
IMPLIED VALUE (100%)
billion billion billion billion
RMI’S INTEREST 25.0% 29.8% 27.3% 89.1%
RMI’S RANKING AS
SHAREHOLDER 1st 1st 1st 1st
MARKET VALUE/IMPLIED R19.9 R6.5 R8.8 R20.5
VALUE OF RMI’S INTEREST
billion billion billion billion
SHARE OF RMI PORTFOLIO
BASED ON VALUE 35% 12% 16% 37%
NORMALISED
EARNINGS FOR THE SIX
R2 117 R596 R1 772 R1 103
MONTHS (100%) million million million millionRMI’s investments continued
05
Listed investments
Discovery is a pioneering market Hastings is a UK-listed, fast- Momentum Metropolitan is an
leader with uniquely-positioned growing, agile, digitally-focused insurance-based financial services
businesses in the healthcare, long- general short-term insurance provider group which is listed on the
and short-term insurance, wellness to the UK car, van, bike and home JSE Limited.
and financial services industries. It is insurance market. It has strong
The core businesses of Momentum
listed on the JSE Limited. relationships with all the major price
Metropolitan offer long- and
comparison websites, a cost-
It operates in South Africa, the United short-term insurance, asset
effective digital marketing model and
Kingdom (UK), China, Singapore, management, savings, investment,
a focus on client retention.
Australia, Japan, Europe and the healthcare administration and
USA through various business lines. Hastings provides refreshingly employee benefits. These product
straightforward products and and service solutions are provided to
Its innovative Shared-Value business
services. It has 2.9 million live client all market segments through the
model incentivises people to be
policies and is a multi-award-winning Momentum and Metropolitan
healthier and enhances and protects
business. operating brands.
their lives. This delivers superior
actuarial dynamics for the insurer and Refer to page 16 for further Refer to page 17 for further
a healthier society. information on Hastings’ performance information on Momentum
in the past year. Metropolitan’s performance in the
Refer to page 15 for further
past six months.
information on Discovery’s
performance in the past six months.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 201906
Unlisted investments
OUTsurance provides short- and RMI Investment Managers’ affiliate AlphaCode identifies, partners and
long-term insurance products in model enables the company to grows extraordinary next-generation
South Africa, Australia and Namibia. access a differentiated part of the financial services entrepreneurs. Its
Investment products are offered by investment management industry by investments to date are:
OUTvest. investing in and partnering with • Entersekt, a leader in
independent investment managers. authentication app security and
OUTsurance’s mission is to provide payments-enablement technology,
world-class value-for-money RMI Investment Managers has taken
offering a highly scalable solution
insurance products backed by minority equity stakes in boutique
set, with a track record of success
industry-leading client service. investment managers which span the
across multiple continents;
Premiums are calculated according asset class spectrum across active,
• Guidepost, a high-touch health
to a client’s unique risk profile. Clients passive, traditional and alternative.
and insuretech innovator that is
who remain claim-free receive a cash
While the team is predominantly poised for international growth;
OUTbonus, the first such reward
focused on the execution of the • Luno, who makes it safe and easy
system in South Africa.
growth initiatives at each affiliate, they to buy, store and learn about
Refer to page 18 for further continue to look for opportunities that digital currencies like Bitcoin and
information on OUTsurance’s will complement the existing suite of Ethereum. Luno has more than
performance in the past six months. managers as the group builds its 2 million clients in 40 countries;
share of the South African investment • Merchant Capital, a provider of
management market. alternative sources of working
Royal Investment Managers is a capital for small and medium
joint venture between RMI Investment enterprises in South Africa; and
Managers and Royal Bafokeng • Prodigy, an international fintech
Holdings (RBH). It acquires equity platform that offers loans to
stakes in either existing or new asset postgraduate students attending
management firms with a strong and top universities.
unrelenting focus on diversity.
AlphaCode is actively seeking to fund
new and dynamic, sustainable and
scalable business models in the
financial services industry. AlphaCode
is committed to building a pipeline of
next-generation financial services
businesses and has launched a
number of structured learning and
mentorship programmes geared for
different stages of business maturity
to build this pipeline.Performance 07
RMI is committed to creating long-term value for its stakeholders by investing
in and remaining influential in businesses that can deliver capital growth and a
steady dividend flow. By being a shareholder of influence, RMI can enable
sustainable growth and bring and hold businesses together. RMI invests with a
view to long-term involvement. Its investment decisions are influenced by the
external environment.
EXTERNAL ENVIRONMENT
The macroeconomic environment within which RMI’s investee companies operate experienced significant challenges during the reporting period:
SA government President Ramaphosa recognised the economic challenges SA currently face in his State of the Nation address to
under pressure Parliament, including unreliable energy provision, the precarious fiscal position and, more broadly, the weak GDP
growth environment, while placing more emphasis on the role of the private sector to help solve these challenges.
The impact of the President’s proposal on confidence and economic prospects remains to be seen.
Ratings going All three major credit rating agencies have SA’s credit rating on a negative outlook. If Finance Minister Tito Mboweni’s
down budget is not viewed as providing a credible fiscal consolidation trajectory over the medium term, ratings
downgrades could follow. This will raise the cost of funding in SA, dealing a further blow to depressed business and
consumer confidence.
Slow or no Three of the four quarters of 2019 experienced a GDP decline. Load shedding affected both factories and trade
economic growth negatively.
Moody’s lowered its outlook for real GDP growth to 0.7% in 2020, from a previous forecast of 1%. They anticipate
growth to marginally pick up in 2021 to 0.9% and cited lacklustre private sector demand and a lack of action to
contain state spending as key risks.
Unemployment The unemployment rate remained at 29.1% in the fourth quarter of 2019.
concerns
Inflation up but Consumer inflation, as measured by the consumer price index (CPI), accelerated to a seven-month high of 4.5% in
subdued January 2020. In the short term, inflation is expected to remain subdued.
Market volatility The JSE was in part lifted by higher gold and resource mining shares. The gold price reached a multi-year high due
to an increase in safe-haven demand as non-China Coronavirus cases rose. However, gold price gains were capped
by a stronger dollar. The sharp rise in resource shares was more than offset by a fall in the industrials and financial
indices. The softer local bourse was in line with the weaker performance of global equity markets.
UK growth also GDP growth also stalled in the UK during the fourth quarter of 2019. The weak performance was driven by ongoing
slowing Brexit uncertainty and a slowdown in international trade. Consumer spending increased at the weakest rate in four
years and manufacturing output fell sharply, especially in the car industry. A slowdown in international trade amid the
US-China trade war also weighed heavily on UK growth.
Impact of the Fears regarding the impact that Covid-19 could have on economic growth reflected in the markets and emerging
Coronavirus market currencies, including the Rand.
Climate change The effects of global warming and changes to the planet have affected the group’s investees more in the past year
than ever before, from raging bushfires in Australia and drought in South Africa to health crises. The World Economic
Forum has now emphasised the importance of global leaders addressing climate change urgently.
This external environment remains volatile and poses significant downside risk. Consumers are under pressure, which makes growing the
underlying investments in the group challenging.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2019Performance continued
effect. Including the risk mix effect, Hastings decreased by 6%. The devastating bushfires
08 OVERVIEW OF RESULTS experienced overall earned premium in Australia severely impacted the claims
RMI’s group consolidated normalised
deflation of 2%. Live client policies increased ratio performance for the six-month period.
earnings decreased by 14% to R1.8 billion
by 5% to 2.85 million, driven by higher At 31 December 2019, Youi’s gross claims
for the six months ended 31 December
retention rates. Claims increased by 8% due exposure was R352 million with an
2019. This result is mainly attributable to the
to increased policy volumes and claims expected R146 million in reinsurance
significant increase in spend on new
inflation of between 7% and 8%. The claims recoveries resulting in a net estimated loss
strategic initiatives at Discovery and
ratio of 82.6% (post-Ogden) was of R206 million. In South Africa, OUTsurance
OUTsurance and an increase in the claims
significantly higher than the 75% claims ratio experienced two catastrophe events during
ratio of the short-term insurance operations
in the prior year and above the long-term the period under review with a combined
at OUTsurance following the Australian
target of between 75% and 79%. net cost of R84 million, compared to none
bushfires and also at Hastings.
in the comparative period. OUTsurance also
Momentum Metropolitan recorded a 10% incurred R20 million more in net claims
It is important to note that:
increase in diluted normalised earnings to related to power surge and dip claims due
• Sporadic and, most notably, natural
R1.8 billion for the six-month period under to load shedding. As a result, the group’s
catastrophe-linked claims spikes are an
review and a 12% increase in diluted overall claims ratio increased from 51.6%
inevitable part of a short-term insurance
normalised earnings per share, reflecting the to 53.4%.
business; and
positive impact of the R2 billion share
• RMI is pleased with the investments in buy-back programme that was completed in RMI Investment Managers is now in its
strategic initiatives at Discovery and November 2018. This growth was fifth year of operations, with its financial
OUTsurance, which are all showing signs supported by a resilient performance in the performance tracking in line with
of market traction and success. core South African life insurance businesses, management’s expectations of investments
Discovery’s normalised earnings decreased underpinned by disciplined expense in affiliates at such an early stage of
by 11% for the six months ended management and steady underwriting development.
31 December 2019. All of Discovery’s results. Guardrisk delivered an excellent
The six-month period to December was
established and emerging businesses, with performance which, together with the sale
characterised by high volatility in the local
the exception of VitalityLife, produced robust of loss-making operations in the rest of
market that further precipitated risk aversion
operating results. VitalityLife’s earnings were Africa, contributed to the overall growth in
among investors. The JSE All Share Index
negatively impacted by the strategic normalised earnings. The diluted embedded
was flat during the period, but portfolio
decision to mitigate its exposure to further value per share increased by 7% to R28.56,
returns among local equity managers
interest rate declines in the UK. In addition, which represents an annualised return on
ranged between -13% to 25%, reflecting the
the group invested R1 billion in new embedded value per share of 10.6%. The
high volatility experienced. Managers who
initiatives, an increase of 81% over the prior group’s main life insurance entity
were overweight gold and platinum stocks
period. Of this spend, 53% was dedicated strengthened its regulatory solvency position
had a very successful six-month period,
to Discovery Bank, which is expected to to 2.2 times the Solvency Capital
while those who had overweight positions in
remain the dominant investment going Requirement (SCR), which is higher than the
financials and REITs underperformed. South
forward. New business annualised premium target range of 1.7 to 2.1 times the SCR.
African equities, helped by the precious
income increased by 17% to R11.1 billion. The dividend increased by 14% to 40 cents
metal rally, outperformed emerging market
Performance of cash and capital metrics per ordinary and the dividend cover of
equities by 5.5% as geopolitical risks
remained within guidance, with the group 3.0 times remains at the upper end of the
lowered investors’ appetite for riskier assets.
financial leverage ratio at 24.3% and the target range of 2.0 to 3.0 times. Momentum
Notwithstanding the challenging political and
cash buffer at R2.5 billion. Metropolitan also maintained its Level 1
macroeconomic conditions, the affiliate
B-BBEE status.
RMI included normalised earnings of managers remained focused on delivering
R170 million from Hastings for the six The highlights at OUTsurance for the good investment performance for their
months to 31 December 2019, 51% lower six-month period were the continued growth clients while continuing to strengthen their
than the R348 million in the comparative recovery at Youi, the successful continuation businesses through a more diversified client
period. Hastings announced its of the expansion of OUTsurance Business base and bolstering their investment and
31 December 2019 year-end results on and strong OUTsurance Personal growth operational capabilities.
27 February 2020, which reflected a 52% within a difficult economic climate. Overall
Royal Investment Managers is a joint
decline in normalised earnings in Sterling group gross written premiums increased by
venture between RMI Investment Managers
terms. Gross written premiums were in line 6% to R8.6 billion and annualised new
and RBH. The portfolio performed in line
with the prior year, with volume growth premium written increased by 15% to
with expectations during the period under
offset by a change in the risk mix. Earned R2.1 billion. Normalised earnings, including
review.
premium inflation for Hastings’ financial year OUTsurance’s stake in Hastings, decreased
amounted to 1% excluding the risk mix by 12% to R1.2 billion. Excluding its share in
Hastings, OUTsurance’s normalised earningsThe net funding and holding company
costs increased by 14% to R365 million. SOURCES OF NORMALISED EARNINGS 09
This increase is mainly attributable to a fair RMI regards normalised earnings as the appropriate basis to evaluate business performance
value gain on an interest rate swap included as it eliminates the impact of non-recurring items and accounting anomalies. The total
in the comparative period which did not reported normalised earnings of RMI’s investee companies for the six months under review are
recur in the current period. This interest rate listed in the table below:
swap was entered into to fix the interest rate Six months ended
on the GBP-denominated funding. RMI also 31 December Year ended
channelled its enterprise and supplier 30 June
development spend into its AlphaCode R MILLION 2019 2018 % change 2019
initiative as part of its overall commitment to
an enhanced transformation strategy. The Discovery 2 117 2 376 (11) 5 035
net funding and holding company costs Hastings 596 1 223 (51) 1 941
incurred in the six-month period under Momentum Metropolitan 1 772 1 618 10 3 074
review are more in line with the R360 million OUTsurance (excluding
incurred in the second half of the 2019 Hastings) 1 103 1 172 (6) 2 390
financial year.
– OUTsurance (including
Hastings) 1 169 1 329 (12) 2 634
– Hastings included in
OUTsurance (66) (157) 58 (244)
Other1 (5) (12) 58 (22)
1. Other includes RMI Investment Managers and AlphaCode investments.
A reconciliation of the adjustments made to derive normalised earnings is presented on
page 22.
RMI’s consolidated normalised earnings for the period under review is listed in the table below:
Six months ended
31 December Year ended
30 June
R MILLION 2019 2018 % change 2019
Discovery 527 597 (12) 1 261
Hastings 170 348 (51) 552
Momentum Metropolitan 479 429 12 825
OUTsurance (excluding
Hastings) 998 1 052 (5) 2 145
– OUTsurance (including
Hastings) 1 058 1 193 (11) 2 364
– Hastings included in
OUTsurance (60) (141) 57 (219)
Other1 (5) (12) 58 (22)
Funding and holding company
costs (365) (320) (14) (680)
Normalised earnings 1 804 2 094 (14) 4 081
Normalised earnings per
share (cents) 117.8 137.2 (14) 266.9
1. Other includes RMI Investment Managers and AlphaCode investments.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2019Performance continued
10 MARKET VALUE OF INVESTMENTS DIVIDEND POLICY
During the 2019 calendar year, RMI’s share price decreased by 15% (2018: decreased by It is RMI’s objective to provide shareholders
21%), compared to a 7% decrease in the life insurance index and a 2% decrease in the with a consistent annual dividend flow. RMI’s
non-life insurance index. RMI has delivered a total annually compounded return to dividend policy is to pay out all normal
shareholders of 16.9% since its listing in March 2011. dividends received from underlying
investments after servicing any funding
The individual investment performances during the 2019 calendar year are outlined below:
commitments at holding company level and
• Discovery’s share price decreased by 25% (2018: decreased by 14%).
considering its debt capacity and investment
• Hastings’ share price decreased by 4% in Pound Sterling terms (2018: decreased by 42%) pipeline. The intention is however to, where
and by 3% in Rand terms (2018: decreased by 36%). possible, target dividend growth in line with
• Momentum Metropolitan’s share price increased by 27% (2018: decreased by 18%). CPI. This policy seeks to achieve a sound
• On a “look-through” basis, based on share prices as at 31 December 2019, the value balance between providing an attractive
attributed to RMI’s unlisted investments decreased by 15% (2018: decreased by 15%) to yield to shareholders, achieving sustained
R22.1 billion (2018: R26 billion). These unlisted investments include OUTsurance (excluding growth and maintaining an optimal capital
OUTsurance’s 49% stake in the group’s holding in Hastings) (89.1% held), RMI Investment structure, while remaining agile. Given RMI’s
Managers and the AlphaCode investments. active investment strategy, this policy will be
assessed on a regular basis.
As at 31 December As at
30 June
R MILLION 2019 2018 % change 2019 INTERIM DIVIDEND
Market value of listed PAYMENT
investments 34 832 39 577 (12) 38 726 The board believes RMI is adequately
capitalised and that the company will be
Discovery 19 881 26 335 (25) 24 575 able to meet its obligations in the
Hastings (RMI’s effective foreseeable future after payment of the
holding) 6 192 6 372 (3) 6 543 interim dividend declared below.
– 29.8% holding 6 541 6 731 (3) 6 912 The board resolved to declare an interim
dividend of 45.0 cents (2018: 45.0 cents)
– Attributable to non-
per ordinary share. The interim dividend per
controlling interest in
ordinary share is covered 2.6 times (2018:
OUTsurance (349) (359) 3 (369)
3.0 times) by the normalised earnings of
Momentum Metropolitan 8 759 6 870 27 7 608 117.8 cents (2018: 137.2 cents) per share.
Market value of unlisted Shareholders are referred to the dividend
investments 22 117 26 036 (15) 22 948 declaration on page 14 regarding the
RMI Investment Managers applicability of Dividend Withholding Tax to
and AlphaCode 1 568 836 88 1 035 the ordinary dividend.
Implied market value of
RMI’s stake in OUTsurance EVENTS AFTER THE
(excluding Hastings) 20 549 25 200 (18) 21 913 REPORTING PERIOD
The directors are not aware of any material
Gross market value of
adjusting or non-adjusting events relating to
portfolio 56 949 65 613 (13) 61 674
the six months ended 31 December 2019
Net liabilities of holding that occurred between the date of the
company (9 708) (9 794) 1 (9 638) statement of financial position and the date
RMI market capitalisation 47 241 55 819 (15) 52 036 of this report.
RMI closing share price
(cents) 3 084 3 644 (15) 3 397RMI’s strategy 11
The investment team continues to investigate potential investment opportunities, both locally and globally, that conform to RMI’s investment
philosophy and generate superior returns for shareholders.
In addition to optimising its existing portfolio, RMI plans to diversify and modernise its investment portfolio through opportunities across a wide
spectrum of scale and life cycles of financial services businesses.
OPTIMISE DIVERSIFY MODERNISE
RMI focuses on continuously improving RMI is constantly evaluating RMI is aware of renewal in its industries
the value of its investee companies to opportunities to expand the services and and will acquire proven businesses or
create better enduring value for its reach of its existing investee companies invest in start-ups with special
shareholders. and to add new investments, thereby opportunities and drivers, which can
creating more enduring value. create new enduring value.
MAJOR MILESTONES OVER MAJOR MILESTONES OVER MAJOR MILESTONES OVER
PAST FIVE YEARS PAST FIVE YEARS PAST FIVE YEARS
• Increased shareholding in OUTsurance • Started RMI Investments Managers • AlphaCode has established itself as a
and Momentum Metropolitan (via the and invested in 12 affiliates; centre of fintech excellence in South
share buy-back programme of • Created a debt programme; Africa and a source of innovation and
Momentum Metropolitan); • Invested in Hastings; next-generation thinking for the
broader RMI portfolio;
• Explored new products and strategic • Supported Discovery in diversifying
projects to diversify revenue streams into short-term insurance and • Invested in five next-generation
for OUTsurance; banking; and businesses;
• Ongoing strategic dialogue with • RMI continues to evaluate later-stage, • Pipeline of potential future investment
Discovery, Momentum Metropolitan capital-lite business models with opportunities created; and
and Hastings; organic growth potential. • Ongoing substantial investment by
• Sold RMB Structured Insurance; and Discovery, Hastings, Momentum
Metropolitan and OUTsurance in latest
• RMI Investment Managers is
technology.
partnering its boutique investment
managers in a supportive but
non-interfering manner.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2019Outlook and future value creation continued
12
Outlook and enduring
value creation
Discovery has set a bold ambition for 2023 Hastings will be looking to build on its In pursuit of its Reset and Grow strategy,
of being a leading financial services operational highlights of its 2019 financial Momentum Metropolitan made great
organisation globally, positively influencing year: strides in several important aspects:
100 million lives, with 10 million directly • Pricing discipline has remained a priority • Embedding a culture of financial discipline
insured, and being a powerful force for and it continued to increase rates during with a commitment to disciplined financial
social good. Achieving this ambition will 2019 ahead of the market, alongside management by carefully managing the
require continued execution of market- continued development of enhanced risk discretionary and overhead expense
specific strategies: selection and pricing capabilities; levels;
• South Africa: a disruptive composite • The 2020 reinsurance programme was • Effective deployment of capital and
model, with market-leading businesses placed successfully with strong demand; maintaining a strong balance sheet. The
and a successful entry into banking; • Client retention increased by five financial position and sustainability of the
• United Kingdom: a differentiated offering percentage points over the last year, group have been strengthened through
through a composite Vitality Shared-Value reflecting the benefits of the new pricing the share buy-back, a prudent dividend
model; models and operational initiatives policy and investments in technology;
• Ping An Health: the leading health insurer implemented. The successful transition to • Scaling its short-term business by
in China with over 50 million clients; and new repair service and mobility providers concluding the acquisition of Alexander
• Vitality Group: a sophisticated global supported improved client service; Forbes Insurance;
behaviour-change platform linked to • A next-generation anti-fraud platform has • Delivering innovative products and
financial services. been able to detect sophisticated types improving client service;
of policy and claims fraud through using • New Initiatives performing in line with
The globalisation of Discovery’s Vitality
social network analytics and new data expectations with the share of losses on
Shared-Value model is being enabled by
point connections, with a 96% increase in new initiatives reducing; and
Vitality1, the globally unified systems
the number of fraud cases identified; and • Retaining its Level 1 B-BBEE status.
platform. Vitality1 is live in nine markets after
• A continued focus on digital investments
18 months of operating, touching two million Momentum Metropolitan will continue to
and strategic initiatives has contributed
members and creating efficiencies in rolling focus on its Reset and Grow strategy, a
towards an 18% reduction in client
out in new markets. Every day the platform roadmap that has served it well up to now.
service calls.
logs more than four million workouts and It will continue to invest carefully in new
allocates more than 35 000 rewards. The board and management of Hastings are revenue generating opportunities and in
confident in the group’s profitable growth improved ways of work, while maintaining a
Discovery is well positioned for growth over
opportunities and its ability to deliver on its clear focus on running the core South
its planning horizon to 2023, with the capital
vision to become the best and biggest African life insurance operations optimally.
plan intact. Key priority areas are:
digital insurance provider, with growth in the Consumers are under strain from the
• Execute on VitalityLife’s stated plans to
right market conditions. This will be driven continued slow growth in disposable income
manage in the low interest rate
by its competitive advantages of agile and uncertain economic environment. This
environment, stabilise experience
pricing, anti-fraud capabilities and digital could have a moderating impact on the
variances and return to robust profit in
distribution. Consumer switching is set to group’s operational performance in the
the 2021 financial year;
continue and digital channels, including second half of the 2020 financial year.
• Achieve significant traction in new
price comparison websites in particular, Momentum Metropolitan remains cautiously
initiatives, most notably Discovery Bank,
continue to grow at the expense of more optimistic that it will successfully deliver on
and ensure short-term new business
traditional distribution models. This plays to its Reset and Grow target of normalised
thresholds are achieved for each initiative;
Hastings’ core strategy of providing good headline earnings between R3.6 billion and
• Ensure the established businesses retain value products in an accessible way for R4.0 billion in the 2021 financial year.
their insurgency; and clients, enabled by digital technology.
• Capitalise on emerging businesses’ Trading in 2020 has started in line with OUTsurance’s medium-term strategic focus
unique attributes and positioning to expectations. Hastings remains focused on is to expand its insurance product range
achieve scale and materiality. pricing discipline, targeting a 75% – 79% and widen the distribution footprint to
loss ratio on written business, supported include multiple sales and service channels.
by advanced risk selection and claims During the six months under review, it
initiatives. Hastings does not expect any continued to expand the size and capability
material impact on its operations following of its tied-agency force. A new motor
the UK’s withdrawal from the European Union. warranty offering was added to bolster thecomprehensive motor product. OUTsurance RMI Investment Managers will ensure that science and entrepreneurship through the
entered into a partnership arrangement with its reputation as a trusted, value-adding but AlphaCode Explore learnership. 13
Shoprite Holdings Limited. This partnership non-interfering shareholder of choice for the
will allow it to distribute long-term and independent asset management industry As part of the mandate of investing in
short-term insurance products to the various remains a core philosophy. disruptive, innovative financial services
client bases of the Shoprite group’s businesses, AlphaCode grew its investment
operating brands and will commence with The asset raising environment remains portfolio by deploying additional equity
the distribution of a funeral insurance difficult. Low economic growth and the funding into one of its existing investee
product during the second quarter of 2020. resultant job losses have put most pension companies, Entersekt. Entersekt is a
During the six months under review, both funds into annual deficits. As the size of the provider of multi-factor authentication
OUTsurance and Youi continued to roll out institutional asset pool has remained services to financial services companies
innovative digital service features, in line with stagnant, growth for the group’s affiliates globally. Entersekt has partnered with global
the group’s strategic priority of digitising has had to come at the expense of other payments giant, Mastercard, to rapidly
service delivery. managers. South African investors have deploy its technology. The follow-on capital
continued to support retail Collective was provided to fund further research and
Growth in the OUTsurance Personal Investment Schemes (CIS) portfolios development in the business and expand its
operation is expected to be maintained throughout 2019. Total net flow into CIS regional presence in Europe and North
within the current range unless there is a portfolios was R123 billion in 2019. The America.
real improvement in the South African group’s affiliates have grown their retail
economy in the near term. Product assets by 22% during the same period, For and on behalf of the board.
expansion, face-to-face distribution and albeit off a low base. Investors’ return
distribution partnerships will play an expectations for local equities remained
important future role in supporting the subdued. Flows into CIS equity and
growth of this segment. multi-asset portfolios (excluding income)
were negative for the year (R30 billion), JJ Durand HL Bosman
OUTsurance Business is a key growth
whereas CIS fixed income and money Chairman Chief executive officer
catalyst and will benefit from the continued
market portfolios received R151 billion
investment to expand distribution capacity Sandton
during 2019. The CIS multi-asset income
and build on the success achieved to date. 12 March 2020
category received the largest net inflows of
Youi is expected to continue to improve its all the categories with R70.5 billion. The fact
organic growth trajectory, aided by the that the largest beneficiaries in this category
expansion of the product range, coupled are not bank or insurance-linked businesses
with the new distribution partnership with was another confirmation that independent
Blue Zebra Insurance, a young managing boutiques have a role to play in the fixed
general agent equipped with leading income market.
technology and a large independent broker
The team and its partners in Momentum
footprint.
Metropolitan and RBH remain excited and
The bushfires continued to rage subsequent committed to working with the group’s
to 31 December 2019, albeit at a lower affiliates to support their growth to scale
severity. The estimated net loss for bushfire while playing a meaningful part in transforming
claims subsequent to 31 December 2019 is the investment management industry.
A$4 million. In addition to the continued
AlphaCode is building on the
bushfire exposure, a net loss of
entrepreneurial legacy record of financial
A$9.5 million was incurred in January 2020
innovation in RMI. AlphaCode identifies,
relating to hailstorms which will impact
partners and grows the next-generation of
second half earnings. Youi’s reinsurance
financial services entrepreneurs through
protection for the remainder of the financial
incubation, acceleration, collaboration and
year remains adequate. The group will
investment. The flagship initiative,
review the terms of its reinsurance
AlphaCode Incubate, has identified and
arrangements, where possible, specifically in
supported 40 black-owned next-generation
relation to natural catastrophe events
financial services businesses over the past
resulting from the effects of climate change.
four years and provided more than
Reinsurance treaties only covered seven
R50 million in grant capital to these
days of claim events in respect of the recent
businesses. AlphaCode also trained
Australian bushfires.
38 students on the fundamentals of data
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2019Outlook and future value creation continued
14
Cash dividend
declaration
Notice is hereby given that a gross interim cash dividend of 45.0 cents per ordinary share, payable out of income reserves, was declared on
12 March 2020 in respect of the six months ended 31 December 2019.
The dividend will be subject to Dividend Withholding Tax at a rate of 20%, which will result in a net dividend of 36.0 cents per ordinary share for
those shareholders who are not exempt.
The company’s tax reference number is 9469/826/16/9. Its issued share capital at the declaration date comprises 1 531 807 770 ordinary
shares.
Shareholders’ attention is drawn to the following important dates:
• Last day to trade in order to participate in this dividend Tuesday, 31 March 2020
• Shares commence trading ex-dividend on Wednesday, 1 April 2020
• The record date for the dividend payment will be Friday, 3 April 2020
• Dividend payment date Monday, 6 April 2020
No dematerialisation or rematerialisation of share certificates may be done between Wednesday, 1 April 2020 and Friday, 3 April 2020
(both days inclusive).
By order of the RMI board.
Schalk Human
Company secretary
Sandton
12 March 2020
Investor call
Herman Bosman (chief executive officer) invites you to join him in a conversation about RMI's performance for the six months
ended 31 December 2019.
He will be joined by Jan Hofmeyr, chief financial officer and Marthinus Visser, chief executive officer of OUTsurance.
This investor call will take place on Thursday, 12 March 2020 at 13:00 (SAST).
Participants can register for the conference by navigating to http://www.diamondpass.net/2845908.
Please note that registered participants will receive their dial in number upon registration.VALUE CREATED
Portfolio review 15
MARKET
CAPITALISATION
R79.4
billion WHY RMI INVESTS IN DISCOVERY
Discovery Life remains well capitalised with
an above-target SCR coverage of 172%
• Visionary, ambitious leadership and generated cash in line with plan.
• Diversified earnings base and In response to the environment, VitalityLife
2018: R105.2 billion continuous investment in new
implemented the interest rate hedge,
initiatives
adapted the legal structure of the business,
(25%)
• Globally recognised business model
• Excellent growth optimised its capital position and deferred
• Ease of international expansion the Part VII transfer of the VitalityLife back
• Innovative new product pipeline book written on the Prudential Assurance
Company’s license by three years. The
impact of low interest rates is expected to
HOW DISCOVERY remain a feature of the profits for the
NORMALISED PERFORMED DURING remainder of the year.
EARNINGS THE SIX MONTHS Ping An Health had a remarkable period,
with total revenue growing by 56% to
R2 117
• Core new business annualised premium
income increased by 5% to R9.5 billion; R11.1 billion and new business premium
• Normalised profit from operations before growing over 27% to R5.5 billion. It
million investment in new initiatives increased by
5% to R4.6 billion;
exceeded its written premium target of
R21 billion for the 2019 calendar year.
Discovery’s share of after-tax operating profit
• Normalised earnings decreased by 11%
grew by 467% to R68 million.
to R2.1 billion;
• Gross inflows under management
2018: R2 376 million
increased by 11% to R74.8 billion;
(11%)
• Embedded value increased by 8% to
R73.2 billion, with an annualised return on
embedded value of 8%; and
• The interim dividend for the six months
remained unchanged at 101.0 cents per
share.
DIVIDENDS As at 18 February 2020, Discovery Bank
PAID had 78 000 clients with 180 000 accounts,
nearly half of which had never held a
RMI included
R527 million of
101 cents Discovery card before; deposits had grown
strongly to R1.2 billion; total credit card
Discovery’s earnings in
per share
spend was R2.6 billion and total credit limits
granted was R2.5 billion – with over R1 billion
in credit facility used. Early member
its normalised earnings
engagement is positive and the client base (2018: R597 million).
is exhibiting appealing spend, credit, arrears
and deposit behaviour, better than the
2018: 101 cents per share performance of the previous Discovery card
For a detailed review of Discovery’s
and considerably better than the market.
Unchanged
performance, RMI’s shareholders are
referred to www.discovery.co.za.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 201916 VALUE CREATED
MARKET
CAPITALISATION
£1 181
million
Hastings remains highly cash generative.
WHY RMI INVESTS IN HASTINGS
Net debt has remained stable in 2019, with
• Entrepreneurial leadership funding secured by the long-term fixed rate 2018: £1 229 million
• Geographic diversification bonds issued in 2018. Hastings’
(4%)
• Strong foothold in the price underwriting business, AICL, is well
comparison website market in the UK capitalised and its Solvency II capital ratio of
• Constant innovation 151% continues to track the target range of
• Growth trajectory 140%-160%.
• Good fit with OUTsurance
Hastings remains supportive of the Financial
Conduct Authority’s Market Pricing Study
HOW HASTINGS and has provided input and insight NORMALISED
PERFORMED DURING throughout the process. The study is well EARNINGS
progressed and conclusions are expected
THE LAST YEAR to be available during the first quarter of
for the year
£71.5
Hastings has a 31 December year-end. The 2020. Hastings is well placed to respond
latest published results are for the year to the conclusions which aim to further
ended 31 December 2019. All the numbers protect clients.
and commentary below relate to the year
ended 31 December 2019.
• Gross written premiums remained stable
Hastings is supportive of the whiplash
reforms and is working with the Motor
million
at £961.6 million (2018: £958.3 million); Insurance Bureau, which is aiming to
introduce the reforms by April 2020. 2018: £148.5 million
• Sustained increase in clients, with live
client policies up by 5% to 2.85 million
(2018: 2.71 million);
• Further growth in home insurance, (52%)
reflecting a 27% increase to 209 000
policies;
• Loss ratio of 81.6% (pre-Ogden rate
RMI included
change) for the year ended 31 December
2019, above the target range of between
R170 million of DIVIDENDS
75% and 79% (2018: 75%). The increase Hastings’ earnings in PAID
in the loss ratio is due to claims inflation
exceeding premium inflation; normalised earnings for for the year
• Free cash generation of £141.0 million
(2018: £167.7 million); and
the six months ended
31 December 2019
10.0 pence
• Final dividend of 5.5 pence per share
(2018: 9.0 pence per share). The total
dividend for the financial year ended
(2018: R348 million). per share
31 December 2019 is 10.0 pence per
share (2018: 13.5 pence per share). 2018: 13.5 pence per share
For a detailed review
(26%)
of Hastings’s performance,
RMI shareholders are referred to
www.hastingsplc.com.VALUE CREATED 17
MARKET
CAPITALISATION
R32.7
billion
Momentum Corporate’s new business
WHY RMI INVESTS IN
volumes reduced by 51% to R4.8 billion due
MOMENTUM METROPOLITAN
2018: R25.7 billion to the R5 billion single premium with-profit
• Well-known and trusted brands annuity transaction recorded in the prior
+27% • High level of cash generation period not recurring. The value of new
• Traditionally produced a high dividend business deteriorated from R198 million to
yield -R12 million in the first half of the year,
• New management with a revitalised driven by the lower new business volumes
strategy and a change in new business mix towards
• Established business which provides lower margin products, both within
stability to the RMI portfolio FundsAtWork and the group risk portfolio.
NORMALISED The lumpy nature of new business flows in
EARNINGS this market causes volatility in the new
HOW MOMENTUM business volumes and value of new
R1 772 METROPOLITAN
PERFORMED DURING
business.
The acquisition of the Alexander Forbes
million THE SIX MONTHS
• New business volumes decreased by 9%
Insurance business was concluded on
31 January 2020. The successful migration
to R26.2 billion, due to lower new and integration of this business into
business volumes in Momentum Momentum Short-term Insurance will be a
Corporate; key focus area over the next two years. The
2018: R1 618 million desired end state is a single, fully integrated
• The value of new business decreased by
52% to R160 million, also as a result of business operating under one insurance
+10% Momentum Corporate;
• The South African retail operations
license.
delivered growth in new business
volumes and value of new business of
13% and 24% respectively;
• The embedded value per share increased
RMI included
DIVIDENDS by 7% to R28.56, with an annualised R479 million of
PAID return on embedded value per share of
10.6%; Momentum
40 cents • Momentum Metropolitan’s normalised
earnings increased by 10% to
Metropolitan’s earnings
in its normalised
per share R1.8 billion;
• Diluted normalised earnings per share
increased by 12%, benefitting from the
earnings
impact of the share buy-back programme (2018: R429 million).
completed in November 2018;
2018: 35 cents per share • The interim dividend of 40 cents per
ordinary share is at the upper limit of the
+14%
For a detailed review of Momentum
dividend cover range; and
Metropolitan’s performance,
• Momentum Metropolitan maintained its RMI’s shareholders are referred to
Level 1 B-BBEE rating. www.momentummetropolitan.co.za.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2019Portfolio review continued
18 VALUE CREATED
NET ASSET
VALUE
WHY RMI INVESTS IN OUTSURANCE
Personal cost-to-income ratio has levelled
off following a period of material investment
R10
• Dynamic management team
• Market leader in direct insurance
in new business growth. The continued
investment in OUTsurance Business is the
primary contributor to the higher cost-to-
billion
• Well-loved and easily recognised
brand income ratio.
• World-class technology and claims
handling processes Youi continues to experience an incremental
2018: R10.8 billion
• High level of cash generation and recovery in revenue growth with gross
dividend-paying capabilities
(7%)
written premium growing by 6% in Australian
• Preferred employer, thereby attracting Dollar and 4% in Rand terms. The improved
talented people growth is attributed to increased marketing
spend and improved operational execution.
Premium inflation adjustments on the motor
HOW OUTSURANCE book registered below general inflation
PERFORMED DURING whereas the home book experienced a
THE SIX MONTHS recovery in inflation. Youi’s claims ratio NORMALISED
• Group normalised earnings decreased by increased from 56.2% to 57.9%.
EARNINGS
12% to R1.2 billion, caused mainly by an On 25 September 2019 OUTsurance agreed
R1 169
increase in the claims ratio resulting from to transfer the New Zealand insurance
the Australian bushfires and two natural portfolio business to Tower Insurance
catastrophe events in South Africa;
million
Limited, New Zealand’s third largest general
• Annualised new business premiums insurer for consideration of N$12.6 million.
written increased by 15% to R2.1 billion; Following a regulatory approval by the
• Gross written premiums increased by 6% Reserve Bank of New Zealand, the transfer
to R8.6 billion, of which the Australasian was effected on 31 December 2019. The
operations contributed 45%; sale provides an opportunity for Youi to
• The claims ratio increased to 53.4%; unlock value on favourable terms and, going 2018: R1 329 million
forward, will allow the Youi group to focus
(12%)
• The cost-to-income ratio increased from
27.3% to 28.1%; and on its Australian business where the greater
scale and diversity of the market offers more
• Despite the lower operating earnings
growth opportunities for a challenger brand.
generated by the group, the strong
capital position of the operating entities OUTsurance Life increased gross written
supports the unchanged interim dividend premiums by 10%, with headline earnings
of 24.7 cents per share. decreasing by 4% to R78 million. Since June
2019, the embedded value increased by 4% NORMAL
Considering the large natural perils claims
and the investment made to expand the
to R1.2 billion. Growth in the underwritten life DIVIDENDS PAID
segment remained slow as the difficult
tied-agency force, OUTsurance’s South
African operations delivered a satisfactory
operating and financial performance for the
economic conditions impacted new business
volumes. The funeral segment, which was 24.7 cents
per share
launched in June 2018, gained more traction
six months under review, with headline
through a traditional inbound advertising and
earnings down by less than 1% to
a call centre distribution strategy.
R862 million. Gross written premium
increased by 8%, supported by improved
growth from both the Personal and RMI included
Business segments. The claims ratio R1 058 million of 2018: 24.7 cents per share
increased from 49.5% to 51.9% as a result
of increased exposure to natural OUTsurance’s earnings
catastrophe events in the six months under
review. The cost-to-income ratio increased
in its normalised Unchanged
from 22.8% to 23.2%. The OUTsurance earnings
(2018: R1 193 million).
For a detailed review of OUTsurance’s
performance, RMI’s shareholders are
referred to
www.outsurance.co.za.Financial review 19
EFFECTIVE INTEREST
RMI’s effective interest in the group entities is different from the actual holdings as a result of the following consolidation adjustments:
• Treasury shares held by group entities;
• Shares held by consolidated share incentive trusts;
• “Deemed” treasury shares arising from B-BBEE transactions entered into; and
• “Deemed” treasury shares held by policyholders and mutual funds managed by them.
The effective interest held by RMI can be compared to the actual interest in the statutory issued share capital of the companies as follows:
As at 31 December 2019 As at 31 December 2018
R MILLION Effective Actual Effective Actual
Discovery 25.1% 25.0% 25.1% 25.0%
Hastings 29.8% 29.8% 29.9% 29.9%
Momentum Metropolitan 27.7% 27.3% 27.6% 27.3%
OUTsurance 90.7% 89.1% 90.3% 89.1%
RMI Investment Managers 100.0% 100.0% 100.0% 100.0%
Merchant Capital 25.9% 25.9% 25.1% 25.1%
Entersekt 29.6% 29.6% 25.1% 25.1%
Guidepost 25.1% 25.1% – –
The group’s interests in Prodigy Finance and Luno are treated as financial assets at fair value through profit or loss, as the sizes of these
shareholdings do not enable the group to exercise significant influence, which is the criterion for classifying an investment as an investment in
associate.
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 201920 Summary consolidated income statement
Six months ended
31 December Restated
Year ended
Restated 30 June
2019 2018 2019
R MILLION Unaudited Unaudited % change Audited
Earned premiums net of reinsurance 7 939 7 467 6 15 012
Commission and other income 26 15 73 35
Investment income 141 111 27 211
Interest income on financial assets using the effective interest rate method 241 313 (23) 587
Net fair value (losses)/gains on financial assets (90) (49) 84 33
Net income 8 257 7 857 5 15 878
Net claims paid (4 011) (3 603) 11 (7 143)
Provision for cash bonuses (243) (227) 7 (451)
Fair value adjustment to investment contracts and insurance contract provisions 12 (24) >100 (122)
Fair value adjustment to financial liabilities (74) (104) (29) (169)
Acquisition, marketing and administration expenses (2 341) (2 111) 11 (4 415)
Profit before finance costs, results of associates and taxation 1 600 1 788 (11) 3 578
Finance costs (346) (379) (9) (729)
Share of after-taxation results of associates 984 1 139 (14) 2 612
Profit before taxation 2 238 2 548 (12) 5 461
Taxation (495) (547) (10) (1 096)
Profit for the period from continuing operations 1 743 2 001 (13) 4 365
Profit for the period from discontinued operation 104 2 >100 9
Profit for the period 1 847 2 003 (8) 4 374
Attributable to:
Equity holders of the company 1 679 1 851 (9) 4 047
Non-controlling interests 168 152 11 327
Profit for the period 1 847 2 003 (8) 4 374Summary consolidated statement of comprehensive income 21
Six months ended
31 December Year ended
30 June
2019 2018 2019
R MILLION Unaudited Unaudited % change Audited
Profit for the period 1 847 2 003 (8) 4 374
Other comprehensive income for the period
Items that may subsequently be reclassified to profit or loss
– Fair value (losses)/gains on other comprehensive income financial instruments (19) (5) 53
– Deferred tax on fair value (losses)/gains on other comprehensive income
financial instruments 1 2 (12)
– Exchange differences on translation of foreign operations (16) 20 (78)
Share of comprehensive income/(loss) of associates 126 5 (82)
– Items that may subsequently be reclassified to profit or loss, after taxation 122 41 (59)
– Items that will not be reclassified to profit or loss, after taxation 4 (36) (23)
Other comprehensive income/(loss) for the period 92 22 >100 (119)
Total comprehensive income for the period 1 939 2 025 (4) 4 255
Attributable to:
Equity holders of the company 1 773 1 872 (5) 3 949
Non-controlling interests 166 153 8 306
Total comprehensive income for the period 1 939 2 025 (4) 4 255
UNAUDITED SUMMARY RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2019You can also read
