2 0 0 7 Results 1 3 Novem ber 2 0 0 7 Review ed Agenda Overview - - PDF document

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2 0 0 7 Results 1 3 Novem ber 2 0 0 7 Review ed Agenda Overview - - PDF document

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2 0 0 7 Results 1 3 Novem ber 2 0 0 7 Review ed Agenda Overview of company Financial results Business review Institutional Personal Investments Prospects Overview Company structure at 30 September 2007 Coronati ronation Fund

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SLIDE 1

2 0 0 7 Results Review ed

1 3 Novem ber 2 0 0 7

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SLIDE 2

Agenda

Overview of company Financial results Business review

  • Institutional
  • Personal Investments

Prospects

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SLIDE 3

Overview

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SLIDE 4

Company structure

at 30 September 2007

C Coronati ronation Investm n Investment ent Managem anagement (Pty) Ltd ent (Pty) Ltd Coronati ronation Asset

  • n Asset

Managem anagement (Pty) Ltd ent (Pty) Ltd Coronati ronation n Managem anagement C ent Company pany Ltd Ltd Coronati ronation Li

  • n Life

fe Assurance C ssurance Company pany Ltd Ltd CFM (Isl (Isle of M e of Man) Ltd an) Ltd Coronati ronation Fund

  • n Fund Managers Ltd

anagers Ltd The Im The Imvul vula Trust Trust Coronati ronation Fund

  • n Fund

Managers (Botsw anagers (Botswana) ana) (Pty (Pty) Ltd ) Ltd

10% 51% Botswana 100% 100% 100% 100% 90%

Coronati ronation Investm

  • n Investment

ent Serv Servic ices es (Pty (Pty) Ltd ) Ltd Namibi bia Asset a Asset Managem anagement C ent Compan pany y (Pty (Pty) Ltd ) Ltd

Namibia 100% 55%

Professi Profession

  • nal

al Provi Provident Soci dent Society ety Investm Investments (Pty) Ltd ents (Pty) Ltd

49%

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SLIDE 5

Top shareholders

30 September 2007

Company Shares held % held

Allan Gray Asset Management 90 276 266 75 436 103 52 627 989 13 104 403 12 921 830 11 200 000 11 000 000 5 645 925 5 499 576 1 493 931 1 333 679 Coronation staff 28.15 23.50 16.41 4.09 4.03 3.50 3.43 1.75 Investec Asset Management 1.71 0.47 CIT Public Investment Corporation Blue Bay Neil Benjamin McWilliams Trust Tiedemann Stanlib Asset Management RMB CFM 0.42

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SLIDE 6

Market movements

September 2007

Economic Group 3 Months % 6 Months % 6.71 11.29 21.30 13.40

  • 3.30

13.5 2.10 Financials

  • 1.6

19.20 12 Months % All Share 37.38 45.90 Small Cap 59.40 Resource 20

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SLIDE 7

Share price review

3 Feb Ex div : 3 6 cps 1 5 Jun – 2 5 Aug Buyback : 3 5 m 1 1 Dec Ex distr : 5 3 cps 4 Jun Ex distr : 2 0 cps 3 1 Jul – 1 5 Aug Buyback : 3 5 .5 m

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SLIDE 8

Assets under management

2003 – September 2007

53,697 63,759 81,930 101,440 125,440 133,730 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2003 Sept 2004 Sept 2005 Sept 2006 Sept 2007 Mar 2007 Sept

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SLIDE 9

Reconciliation of AUM (Rbn)

6 months 12 months Opening market value 125.44 1.25

  • 1.05

8.08 133.73 Net Flows 101.42 1.47

  • 3.17

33.03 Other Capital appreciation Closing market value 133.73

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SLIDE 10

Unit Trust Mix

September 2007

30/ 09/ 2007 30/ 09/ 2004 RM RM ASSET ALLOCATION FUNDS 11,270 40% 1,693 20% 566% FIXED INTEREST FUNDS 7,941 28% 2,351 28% 238% EQUITY FUNDS 5,295 19% 2,188 26% 142% REAL ESTATE FUNDS 1,180 4% 620 7% 90% WORLDWIDE FUNDS 1,378 5% 750 9% 84% FOREIGN FUNDS 1,116 4% 866 10% 29% Total 28,180 8,468

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SLIDE 11

Financial Highlights

AUM R134bn 33% Headline earnings 79.6cps 72.7cps 67cps Headline earnings (diluted) 53% 55% Distribution 26%

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SLIDE 12

Financial Highlights (2)

Revenue 962m 36% Income fund management R432m R285 R354m PAT 47% 45% Cashflow (operating activities)

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SLIDE 13

Total Net Margin

0.64% 0.52% 0.76% 0.88% 0.99% 0.62% 0.63% 0.74% 0.69% 0.70% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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SLIDE 14

Share buy back results

July 2007 (34% )* 10 598 566 Total costs including brokerage (R m) 299.58 Aug 2007 (64% )* 24 906 027 Total shares bought back & cancelled 3 5 5 0 4 5 9 3 Average price (Rand) 8.44 % of total issued shares acquired 9.97%

* % of volum e traded in m onth

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SLIDE 15

Other

International -

Assets under management up from $1.2bn (Sept 06) to $1.75bn (Sept 07)

Success in Botswana NAM restructuring complete – focused fund manager Imvula NAV: R152m - Sept 07 (R86m - Sept 06)

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SLIDE 16

Financial Review of the Group

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SLIDE 17

Earnings

% Change Sept-2007 Sept-2006 Attributable earnings 283,886 195,528 EPS 57 81.4 51.9 HEPS 53 79.6 51.9 Diluted HEPS 55 72.7 46.8 Distribution 221,983 185,276 DPS 26 67c 53c Weighted average shares in issue 348,894 376,671 Headline earnings 277,870 195,515

Adjustm ents: HEPS – Profit on sale of financial assets Diluted HEPS – BEE transaction to 2 0 1 0

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SLIDE 18

Earnings (cont)

% Change Sept-2007 Sept-2006 EBITDA 44% 448,725 310,754 Cost to income - Actual 5% 57.2 60.4 Market capitalisation 33% 2,780,753 2,097,464 Share price @ 30 September 45% 8.67 6.00

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SLIDE 19

Shares in issue

2007 2006 Opening balance – 1 Oct 349,577,402 382,274,930 Issued during the year 6,659,990 2,618,324 Bought back and cancelled (35,504,593) (35,315,852) Weighted average – 30 Sept 348,893,885 376,670,543 Closing balance – 30 Sept 320,732,799 349,577,402

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SLIDE 20

Earnings summary

2007 2nd half versus 1st half

Variance % Apr-Sept’2007 Rm Oct-Mar’2007 Rm 24 (14) (36) (35) 30 (44) 557.9 24 Operating expenses (233.5) 451.2 (204.8) (42.0) (17.1) 187.3 (60.2) Trailer Commissions (57.0) 127.1 IFRS 2 charges (23.1) 244.3 (86.9) 157.4 Revenue PBT Tax PAT

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SLIDE 21

Cash returned to shareholders

Sept-2007 R’000 Sept-2006 R’000 Share-buy back 299,577 200,168

  • Special distribution – BEE deal
  • 95,569

185,276

  • 385,444

349,577,402

  • Distribution – interim

71,238

  • Distribution – final

165,819 138,197 Dividend tax (15,074)

  • No. of shares in issue

@ 30 Sept 320,732,799 382,274,930 521,560 Sept-2005 R’000 233,766 Total cash returned

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SLIDE 22

IFRS 2 effect

Sept-2006 R’000 Sept-2007 R’000 Sept-2008 R’000 December 2003 options 1,968 5,877 13,132 CIT transaction 2 (April 2005) 9,556 9,556 7,754 CIT transaction 3 (September 2005) 8,156 5,645 2,408 Preference shares 12,695

  • 51,384

637 149 Imvula transaction 8,969 6,087 CIT transaction 1 (February 2005) 15,405 10,158 Total 40,212 26,556

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SLIDE 23

Cost Comparison

% Change Sept-2007 R’000 Sept-2006 R’000 Fixed operational costs (18) 183,943 155,633 IFRS 2 22 40,212 51,384 TOTAL OPERATIONAL COSTS (32) 563,507 427,976 Other costs 35 14,030 21,622 TOTAL COSTS (28) 577,537 449,598 Variable costs (54) 339,352 220,959

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SLIDE 24

I nstitutional

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SLIDE 25

Performance

SA Large Manager Watch 3 years ending 30 September 2007

30.18% 30.37% 30.47% 31.54% 31.96% 32.31% 32.60% 33.04% 33.30% 33.66% 35.10% 35.48% Cadiz African Harvest Sanlam Metropolitan RMBAM Oasis OMIGSA Median Stanlib Prudential Coronation Investec Allan Gray

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SLIDE 26

Performance

Global Large Manager Watch 3 years ending 30 September 2007

29.01% 29.44% 29.66% 29.85% 29.93% 30.64% 30.99% 31.12% 31.33% 31.34% 31.78% 32.97% Sanlam RMBAM Metropolitan Cadiz African Harvest Stanlib Median Oasis Coronation OMIGSA Prudential Allan Gray Investec

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SLIDE 27

Performance

Absolute Return product Periods ending 30 September 2007

1 Year 3 Years Since inception* Absolute 25.0% 27.9% 5.4% 12.4% 21.9% CPIX 6.4% 6.3% CPIX + 7 13.4% 13.3%

* Since inception – August 1 9 9 9

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SLIDE 28

Performance

Coronation Houseview Equity 3 years ending 30 September 2007

35.69% 37.88% 38.60% 39.06% 39.50% 40.51% 40.68% 41.66% 41.67% 41.68% 42.19% 44.88% RMBAM Equity Aggressive Active RMBAM Equity Moderate Active Regarding Capital Management OMIGSA Value Equity Investments Value Portfolio Investec Value* Oasis Specialist Domestic Fraters Equity Coronation Houseview Equity Fraters Specialist Equity ABSA Asset Management Value Stanlib Value Fund Allan Gray

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SLIDE 29

Performance

SA Bond Manager Watch 1 year ending 30 September 2007

8.54% 8.58% 8.82% 8.89% 8.95% 9.14% 9.17% 9.18% 9.30% 9.36% 9.45% 9.48% 9.52% 9.52% 9.58% 9.65% 9.65% 9.67% 9.87% 9.88% 9.91% 10.10% 10.24% Tri-Linear Fixed I ncom e JM Busha BondPlus Prescient Bond QuantPlus SYm m ETRY Bond Portfolio Prescient Bond Quant I nvestm ent Solutions Pure Fixed I nterest Portfolio OMI GSA Fixed I ncom e I nvestm ents Bond Portfolio Trident Capital-PQ Active Bond RMBAM Bond Portfolio I nvestec Core Bond Portfolio Prudential Yield Enhanced Portfolio Median Argon Dom estic Core Bond Cadiz African Harvest Core Bond Advantage Moderate Bond FOF Stanlib Core Bond Portfolio Pan Africa AM Segregated Dom estic Bond I nvestec Dynam ic Bond Portfolio Coronation Core Bond Coronation Active Bond Portfolio SI M Duration Bond Fund Metropolitan Managed Gilt Portfolio Futuregrowth Yield Enhanced

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SLIDE 30

Net fund flows within the industry

  • 5.6%

9.5% 2.8% 2.8% 4.4%

  • 0.5%

2.3% 2.4%

  • 9.1%
  • 5.9%

1.3%

  • 10.2%
  • 6.3%
  • 6.2%
  • 17.6%
  • 10.9%
  • 1.03%
  • 0.51%

5.12%

  • 8.20%
  • 6.20%

3.05% 1.26%

  • 4.9%
  • 0.3%
  • 12.2%
  • 7.8%
  • 5.2%
  • 10.2%

16.2%

  • 8.3%
  • 20.00%
  • 15.00%
  • 10.00%
  • 5.00%

0.00% 5.00% 10.00% 15.00% 20.00% 2001 2002 2003 2004 2005 2006 2007 annualised Privat e market Coronat ion Official Tot al market

Source: SARB

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SLIDE 31

Personal I nvestm ents

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SLIDE 32

Highlights

September 2007

  • I nvestm ent perform ance rem ains com petitive
  • Market share up to 8 %
  • R5 .5 bn net inflow s: Highest absolute num ber in Coronation’s

history

  • Market-leading funds:
  • Strategic Income (R5.2bn) the largest managed income fund in SA
  • Capital Plus (R4.7bn) the largest long-only absolute return fund in SA
  • Found traction in Balanced Plus ( + R8 0 5 m ) and Optim um Grow th

( + R3 1 2 m )

  • Added 4 0 0 + interm ediaries to serviced client base
  • Personal pension revenue now exceeds directly attributable costs
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SLIDE 33

Unit trust assets R28.5bn

as at 30 September 2007

Fixed int erest funds 7,207 25.0% Cash funds 2,063 7.2% Managed funds 11,401 40.0% Equit y funds 5,337 18.7% I nt ernat ional funds 2,506 8.7%

Total assets doubled over the last 24 months, with managed funds up 2.9 times and fixed interest funds up 2.2 times Most supported funds in 2007: Strategic Income: + R1.9bn Capital Plus: + R1.8bn

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SLIDE 34

CIS industry

Getting to the comparable market

Assets Under Management Sep 07 Sep 06 Long-term single manager assets R330bn R249bn Fund of Funds R81bn R55bn Institutional Multi-Manager funds R70bn R58bn Institutional Single-Manager funds R57bn R46bn Money Market & Enhanced cash funds R149bn R120bn Dividend Income funds R27bn R15bn Total industry assets R716bn R546bn

Source: ACI Quarterly Statistics, Septem ber 0 6 / 0 7

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SLIDE 35

CIS industry

Overall net flows (unadjusted)

1 2 Months

Grand Total 92,541 ABSA 21,414 PRUDENTIAL 19,952 ALLAN GRAY 16,491 STANLIB 6,748 INVESTEC 6,578 CORONATI ON 6 ,4 8 8 OLD MUTUAL 6,234 METROPOLITAN 3,805 NEDGROUP 3,576 SIS 2,810 EFFICIENT GROUP 1,984 PSG 1,963 OASIS CRESCENT 1,817 PRESCIENT 1,308 RMB 1,038 OTHER 2,420 AYANDA

  • 1,336

SATRIX

  • 4,697

ADVANTAGE

  • 6,051

Source: ACI Quarterly Statistics, Septem ber 0 6 / 0 7

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SLIDE 36

Single manager cash flows

to end September ‘07

Net inflows: Long-term single managers only ranking excl. cash and dividend income funds

12 Months

ALLAN GRAY 14,857 CORONATI ON 5 ,4 6 0 INVESTEC 3,258 STANLIB 2,643 RMB 2,015 NEDGROUP 1,981 PRUDENTIAL 1,135 METROPOLITAN 825 OASIS CRESCENT 796 FOORD 688 OTHER 2,373 MARRIOTT

  • 1,184

OLD MUTUAL

  • 1,824

SATRIX

  • 4,697

Grand Total 28,327

Source: ACI Quarterly Statistics, Septem ber 2 0 0 7

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SLIDE 37

Prospects

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SLIDE 38

Bull Markets don’t last

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SLIDE 39

Year ahead

GEM initiative International products New Building

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SLIDE 40

Thank you