RNS Number:0748I
Liberty Group Ld
27 February 2003
LIBERTY GROUP LIMITED
(Registration number 1957/002788/06)
(Alpha code LGL)
(Issuer code LIBU)
(ISIN code ZAE00002453)
(Incorporated in the Republic of South Africa)
Audited preliminary results for the year ended 31 December 2002
COMMENTARY ON RESULTS
2002 was characterised by strong operational performance amidst poor
investment markets and demanding economic conditions. All key indicators other
than investment markets produced good results. Indexed new business sales
increased by 23,5%, expenses were well controlled, net cash flows from
insurance operations continued to increase and new business margins improved.
INVESTMENT RETURNS
Investment markets and the strengthened Rand have had a negative impact on
the earnings of the group. Despite STANLIB Asset Management outperforming its
investment return benchmarks, the weighted average investment return on the
equity, managed and foreign assets portfolios was -9,5%.
This compares with a positive return of 25,3% for 2001 and the actuarial
expectation of 14,5% for 2002. Shareowners earn 10% of capital bonuses
declared to policy-owners on certain classes of business and the negative
return for 2002 has impacted adversely on the life fund operating surplus.
Liberty's property portfolio benefited from increased tourism, major sporting
events and summits, providing a before tax return of 15,5%.
HEADLINE EARNINGS ON CONTINUING OPERATIONS
Headline earnings decreased by 28,7% to R1 069 million or 391,5 cents per
share, due to the lower investment returns resulting in a 33% decline in the
life fund operating surplus, and the impact of a much higher secondary
taxation on companies (STC) charge on ordinary dividends of R86,1 million for
2002 (2001: R28,6 million).
Revenue earnings attributable to shareowners' funds increased by 39% from R251
million in 2001 to R348 million in 2002.
Liberty Ermitage contributed R27,9 million to Group headline earnings for 2002
compared with R11,5 million in respect of 2001 while Liberty Group Properties'
headline earnings for 2002 amounted to R24,0 million (28,3% higher than the
R18,7 million recorded for 2001). Liberty Healthcare, bolstered by once off
revenue as a result of the transfer of its administration to Medscheme,
contributed R29,8 million to headline earnings for 2002 against a loss of
R12,7 million in respect of 2001.
NEW BUSINESS
Recurring new business premiums increased by 27,7%, single premiums increased
by 11,5% with the resulting indexed new business increasing by 23,5%. New
bancassurance premiums increased by 90,5% to R3 164 million.
Liberty Personal Benefits' results once again exceeded growth and
profitability targets. Single premium new business rose by 21,2% while
recurring premium new business rose by 27,9%. Liberty's market share of new
individual single premiums increased from 14,8% at 30 June 2001 to 17,3% at 30
June 2002 while market share of new recurring individual premiums increased
further from 17,2% at 30 June 2001 to 17,4% at 30 June 2002.
Liberty Corporate Benefits' new recurring premiums increased by 23,2%, while
new single premiums decreased by 3,4% thereby resulting in an overall 2,4%
increase in new business premiums (16,2% increase on an indexed basis). More
than a thousand new schemes were acquired by the group during the year.
Charter Life's new recurring premiums increased by 30,7% to R495 million,
while new single premiums rose by 40,4% to R1 378 million.
The bancassurance channel produced 28% of total new sales for 2002, with the
sale of simple products (mainly credit life and funeral policies) rising by
30,5% and the sale of complex (high advice) products by 98,1%.
Productivity in the franchise distribution channel improved significantly with
new business sales increasing by 23,1% notwithstanding the number of sales
producers in the franchise division being managed down from 997 at
31 December 2001 to 646 at 31 December 2002.
The strong support of 'non-group brokers' (i.e. non-Standard Bank Financial
Consultants) is also most pleasing.
PRODUCT INNOVATION
Liberty Personal Benefits launched its Excelsior range of products in June 2002,
following extensive market research that highlighted the need for a tax-
efficient investment vehicle that is flexible, cost-effective, transparent and
able to meet longer term wealth creation needs. Excelsior has been extremely
well received by clients and intermediaries alike and is to be a core offering
in the future.
The new medical insurance product (Medical Lifestyle Plus) is considered to be
the leading product of its kind. The product was launched in January 2003 and
early indications are positive.
MANAGEMENT EXPENSES
The average renewal cost per policy and the acquisition cost per policy
decreased by 1,6% and 1,3% respectively which substantially outperformed the
actuarial expense inflation assumptions. Management action taken early in 2002
to control costs was successful and the resultant positive effect on earnings
partially offset the negative effect of poor investment markets. Direct
expenses increased by 7,4% while the number of individual policies in-force
increased by 50 595 (2001: 1 697).
NET CASH FLOW FROM INSURANCE OPERATIONS
Net cash inflows from insurance operations increased by 53,6% to R4 501 million,
reflecting the underlying operational strength and success of
the customer value management (CVM) programme.
Net premium income increased by 16,2% from R14 122,2 million for 2001 to R16
415,1 million for 2002, while total claims and policy-owner benefits increased
by only 6,5% from R11 191,6 million to R11 913,8 million.
VALUE OF NEW BUSINESS AND NEW BUSINESS MARGIN
The value of new business increased by 32,9% to R604,6 million. The new
business margin improved to 20,3% (from 18,5%), as a result of reduced
maintenance and acquisition costs per policy, increased sales of products with
higher margins and the successful launch of the Excelsior range of products.
CORPORATE ACTIVITY
Corporate activity has focused on the strategic positioning of Liberty in the
international market to best serve a South African client base, while at the
same time consolidating our local portfolio in order to focus on our strengths.
The acquisition of Liberty Ermitage in 2000 is a prime example. This
acquisition provides a cost effective conduit to international markets for
clients. Liberty Ermitage's assets under management increased from US$2 152
million at 31 December 2001 to US$2 266 million at 31 December 2002, with good
sales volumes and solid performance of the hedge funds having offset declines
in market value. Headline earnings increased by 142% to R27,9 million, a
pleasing performance especially in the light of world market conditions.
Similarly, the acquisition of Hightree Financial Services, a small boutique
brokerage company based in London, was another strategic offshore investment.
The acquisition not only enhances the pursuit of the group's
internationalisation strategy, but also provides an avenue for the
distribution of Liberty Ermitage products into the United Kingdom retail
market.
On the corporate restructuring front, the decision was taken in September 2002
to close the Freestyle customer loyalty programme. The Freestyle programme was
launched in February 2002. Sales and fee income were however not at the levels
expected. The loss attributable to Freestyle and the remaining operations of
MyLife amounted to R39,7 million in 2002 compared with a loss of R50,8 million
in respect of MyLife for 2001. No further operational expenditure on these
discontinued operations will be incurred.
On 23 April 2002 Liberty announced that administration of the two established
Liberty Healthcare medical schemes, ProCure and ProVia, was to be transferred
to Medscheme. The Group has thereby exited the highly competitive, low-margin
business of being a medical scheme administrator, but has retained the client
base and reinsurance arrangements. Liberty Healthcare has been restructured
and repositioned comprehensively during 2002 to become a specialist health
insurance company marketing and supporting the Medical Lifestyle Plus product.
The Liberty Midlands Mall development, in Chase Valley, Pietermaritzburg, is a
project that will boost the group's existing portfolio of properties. The
project has progressed well and is on schedule and within budget to open at
the end of September 2003. Property backed products are extremely attractive
in the current market environment with sales reaching R1 058 million in 2002.
STANLIB
One of the most important strategic events of Liberty's recent history is the
creation of STANLIB, the merger of Standard Bank Group Limited (Stanbank) and
Liberty's asset management and wealth management operations.
Highlights of the year's activities include:
The development of the strategy for the merged entity;
Human resource and corporate culture integration;
Reviewing the product range and commencing with rationalisation;
IT upgrades and a start on systems integration;
The consolidation of five different locations into one at Melrose Arch;
and
Financial integration and systems implementations.
Normalised headline earnings (eliminating the effect of merger costs) of the
STANLIB group amounted to R131,6 million for 2002 with STANLIB Asset Management
contributing R49,3 million and STANLIB Wealth Management contributing
R82,3 million.
STANLIB is benefiting from the Stanbank, Liberty and its own distribution
channels. STANLIB Asset Management experienced a net inflow in assets under
management of R2 billion and maintained its total assets under management at
R128 billion despite weakening markets. STANLIB Wealth Management sales for
the year reached R34 billion while net cash inflows amounted to
R8 billion.
Now that the merger has been fully implemented from a human resource and
corporate culture integration perspective, the necessary economies of scale
have to be realised into 2003 and 2004 as IT platforms, processes and products
are rationalised further. Merger and integration costs amounted to R34,1
million for 2002 and are within budget. Integration costs will continue into
2003 as systems and processes are rationalised.
EMBEDDED VALUE
The audited embedded value at 31 December 2002 amounted to R55,28 per share, 2%
up on the R54,21 for 2001. The effect of the poor investment markets has been
offset by the strong operational performance of life insurance operations.
DEPLOYMENT OF CAPITAL AND CAPITAL ADEQUACY
In line with its strategy to deploy capital in areas aligned with its core
business and to access growth markets, Liberty disposed of certain non-core
shareowner assets during the year. Investments sold included 2,5 million Gold
Fields shares, 2,2 million SABMiller shares and various low yield properties.
Capital adequacy cover has become of increasing importance in the global life
insurance industry. Liberty's capital adequacy multiple, which is amongst the
highest in the industry, was 3,0 at the end of December 2002. This compares
with 3,5 at 31 December 2001 and 3,4 at 30 June 2002 and provides a
comfortable level of cover given the current uncertainty in investment
markets. On the revised more stringent basis which has been proposed by the
Financial Services Board, the capital adequacy cover multiple reduces to 2,9
and is expected to remain amongst the highest in the industry.
HIV/AIDS
The impact of AIDS on the life insurance operations of the group has been
assessed and current experience reveals no major increase in AIDS deaths or
HIV prevalence at new business testing stage. Reserves have been set aside in
accordance with guidance notes issued by the Actuarial Society of South
Africa.
A large number (2 486) of employees (excluding agents) participated in a
group-wide, voluntary, anonymous testing initiative to assess the HIV
prevalence level in the group. The results indicated a prevalence level of
approximately 3%, which is lower than anticipated. Consequently the projected
financial risk to the company is currently assessed as relatively low.
Many initiatives to support employees were implemented in 2002 guided by a
newly appointed, full-time AIDS co-ordinator, with visible involvement of the
executive team.
PROSPECTS
The Liberty Group has a cohesive management team, clearly defined strategies,
a strong reputation and access to a formidable sales force. Demanding goals
and targets have been set for 2003, which are expected to achieve significant
further operational improvements and market share gains. Future earnings will
continue to be influenced by world investment markets.
DIVIDEND
A final dividend of 116 cents per share has been declared. This final dividend
maintains the total dividend for the year at 278 cents. The dividend cover for
2002 on this basis is 1,4 times headline earnings on continuing operations.
The level of cover is considered appropriate to distribute excess capital to
shareowners while maintaining a healthy capital adequacy cover required to
sustain the business in volatile investment market conditions.
Notice is hereby given that the final ordinary dividend No. 74 of 116 cents
per share has been declared in respect of the year ended 31 December 2002,
thus maintaining the total dividends for 2002 at the same level as for 2001.
The important dates pertaining to this dividend are:
Last day to trade cum dividend on the JSE and LSE Thursday, 20 March 2003
First trading day ex dividend on the JSE and LSE Monday, 24 March 2003
Record date Friday, 28 March 2003
Payment date Monday, 31 March 2003
Share certificates may not be dematerialised or rematerialised between Monday,
24 March 2003 and Friday, 28 March 2003 both days inclusive. Payment in
respect of dividends for shares listed on the London Stock Exchange will be
converted from rand to sterling equivalent on Monday, 31 March 2003.
Where applicable, dividends in respect of certificated shareowners will be
transferred electronically to shareowners' bank accounts on payment date. In
the absence of specific mandates, dividend cheques will be posted to
shareowners. Shareowners who have dematerialised their shares will have their
accounts with their CSDP or broker credited on Monday, 31 March 2003.
AUDIT OPINION
The auditors, PricewaterhouseCoopers Inc., have issued their opinions on the
Group financial statements and embedded value statement for the year ended 31
December 2002. A copy of the auditors' unqualified reports are available for
inspection at the Company's registered office.
Derek Cooper Roy Andersen
Chairman Group Chief Executive
27 February 2003
TRANSFER SECRETARIES:
Computershare Investor Services Limited
(Registration number 1958/003546/06)
70 Marshall Street, Johannesburg, 2001.
PO Box 1053, Johannesburg, 2000.
Telephone +27 11 370-5000
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 of 1973 and the Long-term Insurance Act of 1998.
These accounting policies are consistent with those applied at 31 December
2001. The income statement reflects earnings from continuing operations
separately from proforma earnings attributable to the capital reduction in the
previous year in order to make comparison of results more meaningful. The
proforma earnings attributable to the capital reduction for the twelve months
ended 31 December 2001 represent the earnings that were attributed to
shareowners' assets that were utilised to fund the capital reduction on 4
April 2001.
The results for the twelve months ended 31 December 2002 include 50% of
STANLIB Limited's consolidated results. Liberty's investment in STANLIB has
been equity accounted both at company level and at group level from 1 January
2002, the effective date of the implementation of the merger. The Liberty
entities that now form part of STANLIB were previously consolidated.
All related party transactions are conducted at arms length. Full details will
be provided in the annual report.
Summarised Group
income statement
Continuing Capital Total
Operations Reduction(1) Operations
31 December 31 December 31 December
2002 2001 % 2002 2001 2002 2001
Rm Rm Change Rm Rm Rm Rm
Life fund operating
surplus 889,1 1 319,7 (32,6%) 889,1 1 319,7
Revenue earnings
attributable to
shareowners' funds 347,7 250,7 38,7% 47,0 347,7 297,7
Secondary tax on
companies
attributable to
shareowners' funds on
ordinary dividends (86,1) (28,6) 201,0% (86,1) (28,6)
Preference dividend
in subsidiary (81,9) (42,9) 90,9% (81,9) (42,9)
Headline earnings 1 068,8 1 498,9 (28,7%) 47,0 1 068,8 1 545,9
Goodwill
amortisation (13,6) (15,8) (13,9%) (13,6) (15,8)
Investment surpluses
attributable to
shareowners' funds 52,4 1 089,4 (95,2%) 12,9 52,4 1 102,3
Secondary tax on
companies relating to
capital reduction (232,8) (232,8)
Capital gains tax
attributable to
shareowners'
investment surpluses (8,8) (143,0) (93,8%) (8,8) (143,0)
Total earnings 1 098,8 2 429,5 (54,8%) (172,9) 1 098,8 2 256,6
Headline return on
equity 13,5% 24,9%
Per share details cents cents cents cents cents
Headline earnings per
share (2)
Basic 391,5 551,0 (28,9%) 17,3 391,5 568,3
Fully diluted 389,6 537,2 (27,5%) 15,8 389,6 553,0
Total earnings per share
Basic 402,5 893,1 (54,9%) (63,5) 402,5 829,6
Fully diluted 400,5 849,7 (52,9%) (58,1) 400,5 791,7
Dividends per share 278,0 278,0 278,0 278,0
Interim 162,0 128,0 26,6% 162,0 128,0
Final (2002
declared; 2001 paid) 116,0 150,0 (22,7%) 116,0 150,0
Weighted average
number of shares in
issue (million) 273,0 272,0 0,4% 273,0 272,0 273,0 272,0
Fully diluted
weighted average
number of shares
(millions) 274,3 297,8 (7,9%) 274,3 297,8 274,3 297,8
(1) The proforma earnings attributable to the capital reduction for the year
ended 31 December 2001 represent the earnings on shareowners' assets that were
utilised to fund the capital reduction on 4 April 2001.
(2) Certain amendments to the calculation of headline earnings were introduced
in Circular 07/02 issued by the South African Institute of Chartered
Accountants to accommodate the changes arising from the implementation of AC133
on financial instruments. The Group will be adopting AC133 in 2003 and have
accordingly excluded investment surpluses attributable to shareowners' funds,
which are of a capital nature, from headline earnings.
Summarised Group balance sheet 31 December 31 December
2002 2001
Rm Rm
Assets
Investments 81 369,3 84 984,1
Owner-occupied properties 625,1 633,4
Goodwill 158,2 112,9
Other intangible assets 35,6 69,9
Tangible assets 321,7 371,9
Current assets 3 750,2 3 229,2
Total assets 86 260,1 89 401,4
Capital, reserves and liabilities
Shareowners' funds 8 588,1 8 345,8
Minority interests 1,0 1,0
Life funds 73 700,3 75 918,4
Convertible bonds 1 946,8 2 874,2
Retirement benefit obligation 143,0 135,4
Deferred tax 120,8 118,5
Current liabilities 1 760,1 2 008,1
Total capital, reserves and liabilities 86 260,1 89 401,4
Capital adequacy requirement 2 856,6 2 391,3
Capital adequacy requirement: times covered 3,0 3,5
Group embedded value and value of new business
31 December 31 December
2002 2001 %
Rm Rm Change
Risk discount rate 12,75% 13,75%
Shareowners' net assets 8 588,1 8 345,8 2,9%
Net value of life business in force 5 700,4 5 111,9 11,5%
Value of life business in force 5 837,0 5 235,1 11,5%
Cost of solvency capital + (136,6) (123,2) 10,9%
Financial services entities fair
value adjustment 838,1 1 309,7 (36,0%)
Embedded value 15 126,6 14 767,4 2,4%
+ The cost of solvency capital arises from the difference between the net
after-tax expected return on shareowners' assets backing the capital adequacy
requirement and the risk discount rate.
Bases and assumptions
31 December 31 December
2002 2001
The principal bases and assumptions used
are:
(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:
Government stock 10,8% 11,8%
Equities 12,8% 13,8%
Property 11,8% 12,8%
(ii) The risk discount rate has been set
equal to the investment return on equity
assets 12,8% 13,8%
(iii) Maintenance expense inflation rate 6,8% 7,9%
(iv) The expected return on value of life business is obtained by applying the
previous year's discount rate to the value of life business in force at the
beginning of the year and the current year's discount rate for half a year to
the value of new business.
(v) Tax has been allowed for on the Four Fund Tax basis with tax rates of 30%.
Full tax relief on expenses to the extent permitted was assumed. Capital Gains
Tax (CGT) introduced with effect from October 2001 has been taken into account
in the embedded value. At 31 December 2001 the effect of the introduction of
CGT was a reduction in value of R152,7 million.
(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 automatic premium and benefit increases.
(vii) Basis of calculation of financial services entities fair value
adjustment:
The financial services entities fair value adjustment reflects the excess of
the fair value over the value of the tangible net assets of entities as
included in the shareowners' funds.
This adjustment consisted of the following:
31 December 31 December
2002 2001
Rm Rm
Liberty Group Properties (Proprietary)
Limited 240,0 224,4
Liberty Ermitage Jersey Limited 190,4 228,8
STANLIB Limited 407,7
STANLIB components in 2001 856,5
----- -------
838,1 1 309,7
These items were calculated as follows:
In the case of Liberty Group Properties (Proprietary) Limited and Liberty
Ermitage Jersey Limited a price earnings ratio multiplier was applied to the
net after tax recurring earnings of the subsidiaries. The multipliers used
were 10 and 15 (2001: 12 and 20) respectively.
In the case of STANLIB Limited the R407,7m represents 50% of the internally
generated goodwill on the sale of the Liberty entities to STANLIB. This has
the effect of showing the fair value of Liberty's portion of STANLIB at the
value used for purposes of the joint venture transaction effective
1 January 2002.
(viii)The amount of R488,2m shown for changes in assumptions in 20002 arises
mainly from:
the effect of the reduction of the risk discount rate partially offset by
the effect of the corresponding reduction in the future investment returns;
the corresponding reduction in the future rate of expense inflation; and
the reduction in expenses arising from reduced costs per policy experienced in
the 2002 base year.
Value of new business and new business margins
31 December 31 December
2002 2001 %
Rm Rm Change
Value of new business written in the year 604,6 454,8 32,9%
New single premiums 8 518,2 7 639,4 11,5%
New recurring premiums net of natural increases 2 131,4 1 700,6 25,3%
New business index net of natural increases 2 983,2 2 464,5 21,0%
Value of new business as a percentage of
indexed new business (new business margin) 20,3% 18,5% 1,8%
Embedded value profits
31 December 31 December
2002 2001
Rm Rm
Embedded value at the end of the year 15 126,6 14 767,4
Less capital raised (44,1) (27,4)
Plus dividends paid 851,0 348,1
ess embedded value at the beginning of the year (14 767,4) (11 941,1)
Embedded value profits 1 166,1 3 147,0
Return on shareowners' net assets 14,0% 51,4%
Return on embedded value 7,9% 26,4%
Analysis of embedded value profits
31 December 31 December
2002 2001
Rm Rm
Investment return on shareowners' net assets and
financial services entities' fair value adjustment (311,5) 1 537,4
Expected return on value of life business 756,9 751,6
Investment experience variation on life business (696,8) 681,3
Other experience variations 155,2 27,2
Changes in assumptions 488,2 (78,7)
Variation in tax 50,8 (152,7)
Value of new business 604,6 454,8
Allowance for current and future STC (133,9)
Changes in modelling methodology 118,7 60,0
Embedded value profits 1 166,1 3 147,0
Net cash flows from insurance operations
Individual Corporate
business business Total
31 December 31 December 31 December
2002 2001 2002 2001 2002 2001 %
Rm Rm Rm Rm Rm Rm Change
Total
premiums 13 376,4 11 435,8 3 038,7 2 686,4 16 415,1 14 122,2 16,2%
Total single
premiums 7 376,7 6 416,8 1 182,5 1 224,7 8 559,2 7 641,5 12,0%
Total recurring
premiums 5 999,7 5 019,0 1 856,2 1 461,7 7 855,9 6 480,7 21,2%
Total claims
and policy-
owners'
benefits (9 665,6) (8 737,2)(2 248,2) (2 454,4) (11913,8)(11 191,6) 6,5%
Net cash
inflow 3 710,8 2 698,6 790,5 232,0 4 501,3 2 930,6 53,6%
Statement of changes in Group shareowners' funds 31 December 31 December
2002 2001
Rm Rm
Shareowners' funds at beginning of year as
previously published 8 345,8 6 152,4
Changes in accounting policies:
Capital reduction of 1 200 cents - LDR 30 March 2001 3 260,0
Secondary tax on companies relating to capital reduction 232,8
Provision for leave pay net of deferred tax (29,6)
Shareowners' funds restated at beginning of year 8 345,8 9 615,6
Total earnings 1 098,8 2 256,6
Ordinary dividends (851,0) (348,1)
2001 Interim ordinary dividend No. 71 of 128 cents
- LDR 24 August 2001 (348,1)
2001 Final dividend No. 72 of 150 cents - LDR 20 March 2002 (408,6)
2002 Interim dividend No. 73 of 162 cents - LDR 23 August 2002 (442,4)
Capital reduction of 1 200 cents - LDR 30 March 2001 (3 260,0)
Translation difference relating to equity component
of the convertible bonds (49,6) 54,3
Subscriptions for shares 44,1 27,4
Shareowners' funds at end of year 8 588,1 8 345,8
Analysis of shareowners' funds
Group Group investment
Group net revenue surpluses/
funds invested earned (deficits)
31 December 31 December 31 December
2002 2001 2002 2001 2002 2001
Rm Rm Rm Rm Rm Rm
Charter Life
(excluding life
fund operating
surplus) 698,2 645,1 47,5 39,5 3,6 53,0
Financial services
operations 1 232,1 947,6 112,1 78,5 298,7 156,0
Listed investments 1 250,6 1 526,3 39,9 67,4 62,8 875,2
Edcon 117,4 58,1 4,7 2,3 59,3 (0,9)
Gold Fields 315,1 292,9 10,4 7,4 193,0 162,0
Metro Cash and
Carry 210,7 194,7 15,7 112,3
SABMiller 585,7 934,8 23,9 55,3 (166,4) 616,4
Other 21,7 45,8 0,9 2,4 (38,8) (14,6)
Other investments 5 407,2 5 226,8 233,7 170,9 (312,7) 18,1
Cash and
preference shares 1 177,5 1 066,8 100,8 86,9 (2,1) (2,7)
Jersey assets 2 037,6 2 993,0 151,2 150,4 (954,4) 1 171,0
Convertible bonds (2 032,1) (2 874,2) (189,4) (161,5) 980,5 (1 130,0)
Unlisted
investments 338,7 379,2 41,8 12,3 (59,1) 8,3
Fixed assets and
working capital 1 931,9 1 510,5
Share of pooled
portfolios 1 953,6 2 151,5 129,3 82,8 (277,6) (28,5)
Management expenses (57,3) (53,6)
Normal taxation (28,2) (5,0)
Secondary tax on
companies on
ordinary dividends (86,1) (28,6)
Total 8 588,1 8 345,8 261,6 269,1 52,4 1 102,3
Summarised Group cash flow statement
31 December 31 December
2002 2001
Rm Rm
Cash flows from operating activities 3 096,1 (779,9)
Cash flows from investing activities (3 712,2) (28,2)
Cash flows from financing activities 32,0 26,3
Net decrease in cash and cash equivalents (584,1) (781,8)
Cash and cash equivalents at beginning of year 912,1 1 424,3
Foreign exchange movements on cash balances (54,5) 269,6
Cash and cash equivalents at end of year 273,5 912,1
Commitments
31 December 31 December
2002 2001
Rm Rm
Capital commitments 450,8 41,0
Under contracts 297,2 24,7
Authorised by the directors but not contracted 153,6 16,3
Operating lease commitments 156,4 32,2
Less than 5 years 114,7 32,2
5 to 10 years 41,7
Total commitments 607,2 73,2
Group figures above include the Group's share of commitments of joint ventures
amounting to R85,3 million. The expenditure will be financed by available bank
facilities, existing cash resources and funds internally generated.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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