Old Mutual PLC

Mar 23, 2018 - Copyright © PSG. OML Highlights. • Quilter (Old Mutual Wealth):. • Comprised 21% of adjusted NAV. • Revenue ↑ 13%. • Normalised operating profit flat. • Normalised operating margin ↓ to 29% from 32%. • Old Mutual Limited (previously Old Mutual Emerging Markets):. • Comprised 41% of adjusted NAV.
673KB Sizes 1 Downloads 117 Views
Old Mutual PLC 23 March 2018

Copyright © PSG

Recommendation • • • • •

Attractively priced at current levels Clear indications on separation Uncertainty in valuation of individual businesses Pre-listing statements could provide more clarity Share currently trading at a slight premium to management’s adjusted NAV ➢ After adjusting for exchange rate and share price movements

• • • •

Share price has historically traded at a discount to adjusted NAV Adjusted NAV undervalues standalone entities Valuation for separate listings likely to be supported by attractive dividend yield The head office will receive cash for the secondary offer ➢ 9.6% of the interest in Quilter (Old Mutual Wealth)

• Potential for excess cash to be returned to shareholders 2 Copyright © PSG

OML Highlights • Quilter (Old Mutual Wealth): • • • •

Comprised 21% of adjusted NAV Revenue ↑ 13% Normalised operating profit flat Normalised operating margin ↓ to 29% from 32%

• Old Mutual Limited (previously Old Mutual Emerging Markets): • • • •

Comprised 41% of adjusted NAV Adjusted operating profit ↑ 5% Adjusted earnings ↑ 2% Pro-forma adjusted headline earnings ↑ 25% to R13.4bn (includes a 19.9% stake in Nedbank)

• Nedbank: 3

• Comprised 33% of adjusted NAV • Net interest income ↑ 4.5% • Headline earnings ↑ 3%

Copyright © PSG

Portfolio Guidance • Capped SWIX weighting of 2.36% • Recommended portfolio exposure of up to 5.16%

4 Copyright © PSG

Place a trade

5 Copyright © PSG

Disclaimer The information and content made available through this webinar is provided by PSG as general information about the companies and their products and/or services. PSG does not guarantee the suitability or value of any information or particular investment source. Any information in this webinar is provided "as is" and not intended nor does it constitute financial, tax, legal, investment, or other advice. Nothing contained in this webinar constitutes a solicitation, recommendation, endorsement or offer by PSG. You should consult your financial adviser before relying on any information in this webinar. This webinar may contain views or opinions that are not necessarily those of PSG.

6 Copyright © PSG

FAIS Affiliates of the PSG Konsult Group are authorised financial services providers. Copyright © PSG