Results for the year ended 31 December 2006 Financial highlights · Adjusted operating profit* up 16% to £1,459 million (2005: (IFRS basis): £1,261 million) · Adjusted operating profit (European up 22% to £1,687 million (2005: Embedded Value (EEV) basis): £1,387 million) · Profit for the financial year £836 million (2005: £867 million) attributable to equity holders of the parent (IFRS basis): · Adjusted operating earnings per down 18% to 15.1p (2005: 18.5p) share* (IFRS basis): · Adjusted operating earnings per down 14% to 17.8p (2005: 20.7p) share (EEV basis): · Basic earnings per share (IFRS 17.0p (2005: 25.1p) basis): · Net cash flow in relation to funds under management of £24 billion (2005: £13 billion) · Funds under management of £239 billion at 31 December 2006 (2005: £182 billion), an increase of 31% · Total life assurance sales, on an EEV Annual Premium Equivalent (APE) basis, of £1,535 million, an increase of 137% (2005: £648 million) · Adjusted embedded value per share 157.2p at 31 December 2006 (2005: (EEV basis): 174.0p) · Recommended final dividend up 13.7% to 4.15p (58c)** Old Mutual plc Results for the year ended 31 December 2006 continued Jim Sutcliffe, Chief Executive, commented: “This set of results reflects a healthy overall performance from around the group. Funds under management grew an impressive 31% with operating profits benefiting both from a better than expected result from the Skandia acquisition and from investment in our existing businesses. Despite earnings being impacted by unfavourable currency translation impact, our strong financial position has enabled us to declare a final dividend increase of 13.7%. The current year has started well. Although exchange rates, the cost of investing to achieve synergies across Europe, and costs in Sweden and at our South African life business to put these businesses on a sound basis for the future will hold back earnings growth for 2007, we have an excellent set of growing businesses and are clear about the tasks we must complete. We are on track to achieve over £300 billion of funds under management by the end of 2008, which should provide a solid basis for substantial future earnings growth.” 26 February 2007 Wherever the items asterisked in the Highlights are used, whether in the Highlights, the Chief Executive’s Statement or the Group Business Review, the following definitions apply: * For long-term and general insurance business, adjusted operating profit is based on a long-term investment return, includes investment returns on life funds' investments in Group equity and debt instruments and is stated net of income tax attributable to policyholder returns. For all businesses, adjusted operating profit excludes goodwill impairment, the impact of acquisition accounting, initial costs of Black Economic Empowerment schemes, the impact of closure of unclaimed shares trusts, profit / (loss) on disposal of subsidiaries, associated undertakings and strategic investments and dividends declared to holders of perpetual preferred callable securities. Adjusted operating earnings per ordinary share is calculated on the same basis as adjusted operating profit. It is stated after tax attributable to adjusted operating profit and minority interests. It excludes income attributable to Black Economic Empowerment trusts of listed subsidiaries. The calculation of the adjusted weighted average number of shares includes own shares held in policyholders' funds and Black Economic Empowerment trusts. ** Indicative only, being the Rand equivalent of 4.15p converted at the exchange rate prevailing on 20 February 2007. The actual amount to be paid by way of final dividend to holders of shares on the South African branch register will be calculated by reference to the exchange rate prevailing at the close of business on 19 April 2007, as determined by the Company, and will be announced on 20 April 2007. For further information on Old Mutual plc, please visit our website at www.oldmutual.com. Old Mutual plc Results for the year ended 31 December 2006 continued Enquiries Investor Relations Malcolm Bell UK +44 (0)20 7002 7166 Deward Serfontein SA +27 (0)11 523 9616 Media James Crampton UK +44 (0)20 7002 7133 Nad Pillay SA + 27 (0)21 504 8026 College Hill (UK) Tony Friend UK +44 (0)20 7457 2020 Gareth David UK Forward-looking statements This announcement contains forward-looking statements with respect to certain of Old Mutual plc’s plans and its current goals and expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond Old Mutual plc’s control, including, among other things, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties or of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in territories where Old Mutual plc or its affiliates operate. As a result, Old Mutual plc’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Old Mutual plc’s forward-looking statements. Old Mutual plc undertakes no obligation to update any forward-looking statements contained in this announcement or any other forward-looking statements that it may make. Notes to Editors: A webcast of the analyst presentation and Q&A will be broadcast live at 9.30 a.m. (UK time), 10.30 a.m. (Swedish time), and 11.30 a.m. (South African time) today on the Company’s website, www.oldmutual.com. Copies of these results and the associated analyst presentation, together with high-resolution images (at http://oldmutual.com/vpage.jsp?page_id=2220) and biographical details of the executive directors of Old Mutual plc, are available in electronic format to download from the Company’s website. An interview with Jim Sutcliffe, Chief Executive, Old Mutual in video/audio and text is now available on the Company’s website and on http://www.cantos.com. The 2006 preliminary results Financial Disclosure Supplement can be found on the website. This contains a summary of key financial data for 2006 and 2005.
Results for the year ended 31 December 2006
| Source: Old Mutual plc