Coronation Fund Managers : REVIEWED INTERIM RESULTS

INTERIM RESULTS

for the six months ended 31 March 2024

Assets under management

R631 billion

Fund management earnings per share

185.8 cents

Interim dividend per share

185.0 cents

Level 1

contributor to B-BBEE

CORONATION FUND MANAGERS' INTERIM RESULTS 2024

Last year, we celebrated the noteworthy milestone of our 30th birthday, a testament to the resilience of our client-focused operating model and owner-managed culture. Our mission remains unchanged from when we first opened our doors in 1993: to deliver long-term investment outperformance for our clients. As of 31 March 2024, Coronation's Global Houseview Strategy (a Regulation 28-compliant balanced fund) has delivered a since-inception return of 15% per annum. This means that if you had invested R100 000 in October 1993, you would now have R7.2 million, compared to the R5.0 million returned by the benchmark. This is an uplift of almost 50%1 and evidence of the effective application of our single, valuation-driven investment philosophy over time.

Coronation is a focused and independent active asset manager operating in a tough global environment that has seen many firms consolidate or close their doors. Our business has grown organically from a start-up investment boutique to the custodian of R631 billion of assets that we manage on behalf of millions of South Africans and a range of high-quality international institutional investors.

Our large, stable investment team is fully integrated across global markets, and we are one of a small group of local firms that can offer clients access to a well-established offshore capability that spans developed and emerging markets across the major asset classes.

The complexities and uncertainties at play in the global operating environment continue to deepen, while in South Africa, we face a unique set of economic challenges. In the six months under review, global equity markets delivered strong returns, while SA equity market returns remained relatively anaemic. Despite these considerable headwinds, Coronation has delivered exceptional multi-decade outperformance across our fund range, with close to 95% of our portfolios2 delivering since-inception alpha to investors, while short-term performance is also highly encouraging.

For the six months under review, total assets under management (AUM) have increased by 5% to R631 billion (30 September 2023: R602 billion) and average AUM was flat at R619 billion when compared to R618 billion as at 31 March 2023.

Net outflows for the period were in line with our expectations at 4% of average AUM. This is largely due to the weak SA savings industry, to which Coronation is significantly exposed. It also reflects the experience of the broader industry, as active asset managers around the world experience persistent net outflows. We expect that the domestic savings industry will continue to contract, as South Africa struggles to kickstart economic growth, formal employment remains stagnant, and households remain under pressure, exacerbated by the ongoing externalisation of both retirement and discretionary savings. We also expect a near-term uptick in industry-wide outflows once the new two-pot retirement system comes into play. However, we believe that this reform is positive for South African savers and the local savings industry over the long term.

Total operating expenses, excluding the impact of the tax matter, are up by 5% year on year. While we manage costs meticulously, we also need to look to the future and will continue to invest in our businesses to ensure that we use our scale and expertise to amplify our ability to compete globally. Areas of consistent investment include client service systems, resources to strengthen both our local and global investment capabilities, optimising information and technology systems and data management, and ensuring high standards of compliance in a demanding global regulatory environment.

We are pleased to note that fund management earnings per share (FMEPS) were 185.8 cents as at 31 March 2024 (194.7 cents excluding the impact of the tax matter3) on the back of improved revenues and our enduring focus on expense management. The tax matter3 was heard by the Constitutional Court on 13 February 2024 and we await its judgment.

TRANSFORMATION AND DIVERSITY

Our stakeholders and clients will know that the transformation of our own business and the broader industry has been a key driver of our business from the start. We are proud of the significant contribution we have made to the transformation of our industry over the past three decades.

We have maintained our Level 1 contributor status to B-BBEE4 since 2021, and we are 31% black- owned4, with R263 billion (42% of total AUM) managed by black investment professionals. Of our SA-based employees, 64% are black and 50% are women. Key leadership positions are held by black leaders, including our CEO, CFO, COO, Global Head of Institutional Business, Head of Fixed Interest, Head of Core Equity and Head of Absolute Return.

1. Since inception, Coronation Balanced Plus, the unit trust equivalent of the strategy, launched in 1996, has delivered 2.4% above CPI+5% and 1.5% above its peer group average; this is 83% and 46% more capital, respectively.
2. Company-wide,asset-weighted,since-inception for funds with ≥10-year track record.
3. Refer to Note 7 of the appended condensed consolidated financial statements.
4. FSC scorecard.

1TRUST IS EARNED™

At Coronation, fostering a diverse and inclusive culture underpinned by excellence is not negotiable. We dedicate considerable resources to ensure that we recruit, develop and retain professionals who will help us achieve the best outcomes for our clients and stakeholders. In an industry where skills are scarce and competition is intense, a sharp focus on talent management and maintaining our strong culture of ownership (currently 29% employee-owned) is key to our continued success.

One of Coronation's considerable strengths is the stability of our team, with many of our top investment and senior operational roles occupied by long-tenured colleagues. However, we also look to the long term and the value that young minds bring to the table, which is why we pay particular attention to development and succession planning.

We do this through various in-house training and development programmes, as well as funding further education, such as CFA qualifications. This year, all the graduates in our internship programme are black and 60% are women. Over time, we have placed 52 of our interns in permanent positions at Coronation.

Extending beyond our business, we have made significant inroads in transforming the South African financial services industry. Aside from nurturing talent internally, we also award full bursaries to students from disadvantaged backgrounds who are pursuing careers in finance. Over the years we have established four black-owned financial services companies; provided financial and training support to black brokerages, independent financial advisers and analysts via partnerships with industry bodies; and supported black-owned businesses through our Preferential Procurement Policy.

As a demonstration of our commitment to gender equality in our industry, we are a signatory to the UN-supported Women's Empowerment Principles and a global corporate member of 100 Women in Finance (100WF), an organisation dedicated to advancing gender equity in the financial services industry. Our dedication to transformation and diversity initiatives has seen us place first in several prestigious local and international awards. Most recently, we won the 100WF's EMEA Diversity & Inclusion Award, which recognises organisations that are driving change and shaping the future of women in the financial services industry. As the drive to accelerate the transformation of the asset management arena gains momentum globally, we will identify ways in which we can improve representation across both race and gender.

STEWARDSHIP

We have been active stewards of our clients' capital for more than 30 years, with the goal of delivering long-term outperformance to the benefit of all of our stakeholders. While ESG and sustainability requirements have grown more complex over the last decade, we have always considered these factors and related externalities in our investment and business processes. Our ESG research and stewardship activities help us to identify and mitigate risks, ensure good governance and understand the drivers of sustainable value. Our sixth annual Stewardship Report, due to be published by June this year, will detail our active ownership activities for the calendar year 2023. It will also set out how our stewardship approach allows us to gain a holistic understanding of the underlying issues facing investee companies, how they are responding to these issues, and how we can advocate for change proactively and responsibly.

From a social impact perspective, entrepreneurship as well as primary school literacy and numeracy initiatives remain at the heart of our CSI programmes, along with a focus on providing hunger relief to schools and vulnerable communities in need.

INTERIM DIVIDEND

As per our policy, we endeavour to distribute a minimum of 75% of after-tax cash profit. After fully assessing any projected future cash requirements, an interim gross dividend of 185.0 cents per share has been declared for the six months ended 31 March 2024 from income reserves, resulting in a net dividend of 148.0 cents per share for shareholders subject to Dividends Tax.

In compliance with the Listings Requirements of the JSE Ltd, the following dates are applicable:

Declaration date:	Tuesday, 21 May 2024
Last day to trade cum dividend:	Tuesday, 11 June 2024
Trading ex-dividend commences:	Wednesday, 12 June 2024
Record date:	Friday, 14 June 2024
Payment date:	Tuesday, 18 June 2024

Share certificates may not be dematerialised or rematerialised between 12 June 2024 and 14 June 2024, both dates inclusive. In terms of Dividends Tax, the following additional information is disclosed: the local Dividends Tax rate is 20%. The number of ordinary shares in issue at the date of this declaration is 349 592 298. Coronation's tax reference number is 9 675 107 719.

INTERIM RESULTS 2024

2

PROSPECTS

We expect the difficult operating environment to extend into the foreseeable future. Coronation is a Top 100 JSE-listed company, a leading South African asset management firm, and a household name, positions we have worked hard to earn.

We have operated successfully through numerous cycles and remain a resilient, well-capitalised and sustainable business. We will continue to invest in our business and remain committed to the delivery of superior long-term investment returns while fulfilling our role as an active and responsible investor, employer and corporate citizen.

EXTERNAL AUDIT REVIEW

The external auditors, KPMG Inc., reviewed the condensed consolidated statement of financial position of Coronation Fund Managers Ltd as at 31 March 2024, and the related condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows, earnings per share and condensed consolidated segment report for the period then ended and the notes to the condensed consolidated interim financial statements. The review has been conducted in accordance with the International Standard on Review Engagements 2410 (ISRE 2410). The unmodified review report of KPMG Inc. is included as Annexure A of these condensed consolidated interim financial statements and is available on the JSE cloudlink as well as the Coronation website.

The auditor's review report does not necessarily report on all of the information contained in this interim results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement, they should obtain a copy of the auditor's review report together with the accompanying financial information. Any forward-looking information contained in this interim results has not been reviewed or reported on by the Company's external auditors.

Alexandra Watson	Anton Pillay	Mary-Anne Musekiwa
Chairperson	Chief Executive Officer	Chief Financial Officer
Cape Town
21 May 2024

3TRUST IS EARNED™

CONDENSED CONSOLIDATED STATEMENT

OF COMPREHENSIVE INCOME

	SIX MONTHS	SIX MONTHS		FULL YEAR
	REVIEWED	REVIEWED		AUDITED
	31 MARCH	31 MARCH		30 SEPT
	2024	2023	%	2023
	R MILLION	R MILLION	CHANGE	R MILLION
Fund management activities
Revenue (note 2)	1 893	1 815	4%	3 647
Other income	22	29		76
Total operating expenses	(1 076)	(1 153)	(7%)	(2 154)
Results from operating activities	839	691	21%	1 569
Finance and dividend income	35	18		50
Finance expense	(17)	(26)		(58)
Profit from fund management	857	683	26%	1 561
Share of profit of equity-accounted investee	2	2		5
Sundry gains	91	120		110
Income attributable to policyholder linked assets and
investment partnerships	9	11		13
Net fair value gains on policyholder and investment
partnership financial instruments	18	59		118
Administration expenses borne by policyholders
and investors in investment partnerships	(9)	(48)		(105)
Profit before income tax	959	816	18%	1 689
Income tax expense	(258)	(794)		(1 049)
Taxation on shareholder profits (note 8)	(249)	(783)		(1 036)
Taxation on policyholder investment contracts	(9)	(11)		(13)

Profit for the period

Other comprehensive gains/(losses)

Foreign currency translation differences for foreign operations

Total comprehensive income for the period

Profits attributable to:

• equity holders of the company
  Profit for the period

Total comprehensive income attributable to:

- equity holders of the company

Total comprehensive income for the period

Earnings per share (cents)

• basic
• diluted

Headline earnings per share (cents)

• basic
• diluted

701	22	3 086%	640
2	(10)		(6)
2	(10)		(6)
703	12		634
701	22	3 086%	640
701	22		640
703	12	5 758%	634
703	12		634
200.5	6.2	3 134%	182.9
200.5	6.2	3 134%	182.9
200.5	6.2	3 134%	182.9
200.5	6.2	3 134%	182.9

INTERIM RESULTS 2024

4

CONDENSED CONSOLIDATED STATEMENT

OF FINANCIAL POSITION

REVIEWED	REVIEWED	AUDITED
31 MARCH	31 MARCH	30 SEPT
2024	2023	2023
R MILLION	R MILLION	R MILLION

Assets Intangible assets Equipment Right-of-use assets

Investment in equity-accounted investees Deferred tax assets

Investments backing policyholder funds and investments held through investment partnerships

Investment securities Taxation receivable Trade and other receivables Cash and cash equivalents

Total assets

Liabilities

Long-term borrowings (note 4) Long-term other payables Lease liabilities

Deferred tax liabilities

Policyholder investment contract liabilities and liabilities to holders of interests in investment partnerships

External investors in consolidated funds (note 6) Tax payable (note 7)

Trade and other payables

Total liabilities

Net assets

Equity

Share capital and premium

Retained earnings

Reserves

Total equity

1 088	1 088	1 088
19	26	26
53	71	58
38	38	41
92	70	175
64 315	60 359	61 483
959	754	639
-	4	-
657	690	686
876	320	1 141
68 097	63 420	65 337
533	478	535
57	40	29
77	107	88
-	-	41
64 294	60 346	61 469
218	-	-
156	351	433
561	649	669
65 896	61 971	63 264
2 201	1 449	2 073
256	256	256
1 792	1 050	1 668
153	143	149
2 201	1 449	2 073

5TRUST IS EARNED™

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	SHARE	FOREIGN		SHARE-
	CAPITAL	CURRENCY		BASED
	AND	TRANSLATION	RETAINED	PAYMENT	TOTAL
	PREMIUM	RESERVE	EARNINGS	RESERVE	EQUITY
	R MILLION	R MILLION	R MILLION	R MILLION	R MILLION
Balance at 30 September 2022 (audited)	256	141	1 630	12	2 039
Total comprehensive income for the period
Profit for the period			22		22
Other comprehensive losses
Currency translation differences		(10)			(10)
Total comprehensive income for the period		(10)	22		12
Transactions with owners recorded directly to equity
Share-based payments
Dividends paid			(602)		(602)
Total transactions with owners			(602)		(602)
Balance as at 31 March 2023 (reviewed)	256	131	1 050	12	1 449
Total comprehensive income for the period
Profit for the period			618		618
Other comprehensive income
Currency translation differences		4			4
Total comprehensive income for the period		4	618		622
Transactions with owners recorded directly to equity
Share-based payments				2	2
Dividends paid
Total transactions with owners				2	2
Balance at 30 September 2023 (audited)	256	135	1 668	14	2 073
Total comprehensive income for the period
Profit for the period			701		701
Other comprehensive income
Currency translation differences		3			3
Total comprehensive income for the period		3	701		704
Transactions with owners recorded directly to equity
Share-based payments				1	1
Dividends paid			(577)		(577)
Total transactions with owners			(577)	1	(576)
Balance at 31 March 2024 (reviewed)	256	138	1 792	15	2 201

INTERIM RESULTS 2024

6

CONDENSED CONSOLIDATED STATEMENT

OF CASH FLOWS

	SIX MONTHS	SIX MONTHS	FULL YEAR
	REVIEWED	REVIEWED	AUDITED
	31 MARCH	31 MARCH	30 SEPT
	2024	2023	2023
	R MILLION	R MILLION	R MILLION
Cash flows from operating activities
Profit from fund management	857	683	1 561
Non-cash and other adjustments	6	200	2
Operating profit before changes in working capital	863	883	1 563
Working capital changes	(52)	(365)	(175)
Decrease/(increase) in trade and other receivables	28	(4)	(10)
Decrease in trade and other payables	(80)	(361)	(165)
Cash flows generated from/(utilised in) policyholders and investment
partnership activities*	1 139	704	(21)
Cash generated from operations	1 950	1 222	1 367
Interest on lease liabilities paid	(3)	(4)	(7)
Interest paid	(17)	(20)	(36)
Tax paid	(497)	(283)	(512)
Net cash generated from operating activities	1 433	915	812
Cash flows from investing activities
Finance and dividend income	32	18	43
Acquisition of equipment	-	(18)	(25)
Net (purchase)/disposal of investment securities	(3)	72	210
Net cash from investing activities	29	72	228
Cash flows from financing activities
Dividends paid	(577)	(602)	(602)
Proceeds from long term borrowings	-	-	46
Lease liabilities paid	(11)	(7)	(14)
Repayment of long term liabilities	(2)	-	-
Net cash utilised in financing activities	(590)	(609)	(570)
Increase in cash and cash equivalents	872	378	470
Net (decrease)/ increase in cash and cash equivalents - shareholders	(267)	(326)	491
Net increase/(decrease) in cash and cash equivalents - policyholders and
investment partnerships*	1 139	704	(21)
Cash and cash equivalents at beginning of period	6 924	6 460	6 460
Cash and cash equivalents at beginning of period - shareholders	1 141	656	656
Cash and cash equivalents at beginning of period - policyholders
and investment partnerships*	5 783	5 804	5 804
Effect of exchange rate fluctuations on cash held	2	(10)	(6)
Cash and cash equivalents at end of period	7 798	6 828	6 924
Cash and cash equivalents at end of period - shareholders	876	320	1 141
Cash and cash equivalents at end of period - policyholders
and investment partnerships*	6 922	6 508	5 783

• The above cash flows include the policyholder and investment partnership activities. These cash flows represent net contributions and withdrawals by policyholders and investment partnerships and the related investing activities. Cash and cash equivalents of policyholders and investment partnerships are not available for use by the shareholders of the Group.

7TRUST IS EARNED™

EARNINGS PER SHARE

	SIX MONTHS	SIX MONTHS	FULL YEAR
	REVIEWED	REVIEWED	AUDITED
	31 MARCH	31 MARCH	30 SEPT
	2024	2023	2023
	R MILLION	R MILLION	R MILLION
Earnings attributable to shareholders	701	22	640
Headline earnings attributable to shareholders	701	22	640
Earnings per share (cents)			182.9
- basic	200.5	6.2
- diluted	200.5	6.2	182.9
Headline earnings per share (cents)			182.9
- basic	200.5	6.2
- diluted	200.5	6.2	182.9
Dividend per share (cents)
- interim	185.0	-	-
- final			165.0

CONDENSED CONSOLIDATED SEGMENT REPORT

	AFRICA
SIX MONTHS	SIX MONTHS	FULL YEAR
REVIEWED	REVIEWED	AUDITED
31 MARCH	31 MARCH	30 SEPT
2024	2023	2023
R MILLION	R MILLION	R MILLION

	INTERNATIONAL
SIX MONTHS	SIX MONTHS	FULL YEAR
REVIEWED	REVIEWED	AUDITED
31 MARCH	31 MARCH	30 SEPT
2024	2023	2023
R MILLION	R MILLION	R MILLION

	GROUP
SIX MONTHS	SIX MONTHS	FULL YEAR
REVIEWED	REVIEWED	AUDITED
31 MARCH	31 MARCH	30 SEPT
2024	2023	2023
R MILLION	R MILLION	R MILLION

Segment external
revenue	1 328	1 308	2 568	565	507	1 079	1 893	1 815	3 647
Segment operating
expenses	(787)	(823)	(1 559)	(289)	(330)	(595)	(1 076)	(1 153)	(2 154)
Segment profit	541	485	1 009	276	177	484	817	662	1 493
Net finance and other
income/(expenses)	39	(57)	127	1	78	(59)	40	21	68
Profit from fund
management	580	428	1 136	277	255	425	857	683	1 561
Share of income of
equity-accounted
investee	2	2	5	-	-	-	2	2	5
Sundry gains							91	120	110
Income attributable
to policyholder linked
assets and investment
partnerships							9	11	13
Profit before
income tax								959	816	1 689
Segment assets	1 577	1 038	1 426	987	823	1 124	2 564	1 861	2 550
Investments and
other assets*							65 533	61 559	62 787
Total assets							68 097	63 420	65 337
Segment liabilities	1 049	826	984	553	799	770	1 602	1 625	1 754
Investor liabilities**							64 294	60 346	61 510
Total liabilities							65 896	61 971	63 264

Total tax on shareholder profits amounts to R249 million (31 March 2023: R783 million; 30 September 2023: R1 036 million). Tax on policyholder investment

contracts amounts to R9 million (31 March 2023: R11 million; 30 September 2023: R13 million).

• Investments are attributable to investments backing policyholder funds and investments held through investment partnerships (31 March 2024: R64 315 million;
  31 March 2023: R60 359 million and 30 September 2023: R61 483 million), consolidated funds and other assets.
• Investor liabilities include policyholder investment contract liabilities and liabilities to holders of interest in investment partnerships and external investors in consolidated funds.

INTERIM RESULTS 2024

8

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1 BASIS OF PREPARATION AND ACCOUNTING POLICIES

The condensed consolidated interim financial statements have been prepared in accordance with the International Accounting Standard 34 Interim Financial Reporting (IAS 34); the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council (the Listings Requirements of the JSE Ltd); as well as the South African Companies Act, No. 71 of 2008 (as amended). The condensed consolidated interim financial statements do not include all of the information required for a complete set of IFRS® Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) annual financial statements.

These condensed consolidated interim financial statements have been prepared in accordance with the historical cost basis except for certain financial instruments which are stated at fair value. The condensed consolidated interim financial statements are presented in South African Rand (R), rounded to the nearest million.

The preparation of the condensed consolidated interim financial statements, in conformity with IAS 34, requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key areas in which judgement and estimation uncertainty is applied include:

The valuation of unlisted investments is a notable area of judgement applied in the preparation of these condensed consolidated interim financial statements. It is the opinion of the directors that fair value approximates carrying amount;

Valuation of the share-based payment expense where inputs are based on observable market inputs, adjusted for factors that specifically apply to the transaction and recognise market volatility;

Assessing whether the Group controls an investee by assessing the power over the investee, exposure or rights, to variable returns from its involvement with its investee and the ability to use its power over the investee to affect the amount of the Group's returns; and

assessing the impact of the Supreme Court of Appeal (SCA) judgment in favour of SARS, in relation to SARS vs Coronation Investment Management SA (Pty) Ltd (CIMSA) tax matter, management has determined that the SCA judgment is an obligating event. The related taxation payable recognised is management's best estimate of the obligation as at 31 March 2024. IFRS Accounting Standards do not specifically address the accounting treatment for interest and penalties related to income taxes. The International Financial Reporting Standards Interpretations Committee (IFRIC) discussed the accounting for interest and penalties and concluded that a reporting entity should apply and disclose its judgement in assessing whether interest or penalties are themselves income tax. An entity must assess the facts of the particular matter to determine whether the entity has made a financing decision (intentional or due to an oversight) or whether a significant tax uncertainty exists and as such the total obligation is as a result of the tax uncertainty. Where the entity has a dispute with the tax authorities and there is significant uncertainty regarding the amount of income tax to be paid, further consideration is required. There was a significant uncertainty regarding CIMSA taxes due as a result of this dispute, due to a difference of opinion on tax treatment (interpretation of the provisions of s9D) between CIMSA and SARS. There was no delay in the payment of any taxes due (as calculated in terms of guidance provided by expert advice and CIMSA's interpretation of the law) as a result of a conscious decision to delay payment nor any administrative oversight. As a result, any interest charged due to this significant uncertainty in tax treatment should be accounted for as an operating expense. In addition, should the Group be liable for any penalties these will be accounted for as an operating expense as well.

The accounting policies applied in the presentation of the condensed consolidated financial statements are consistent with those presented in the 2023 annual financial statements. These reviewed results have been prepared under the supervision of N Salie CA(SA).

2 REVENUE FROM CONTRACTS WITH CUSTOMERS

	SIX MONTHS	SIX MONTHS
	REVIEWED	REVIEWED	AUDITED
	31 MARCH	31 MARCH	30 SEPT
	2024	2023	2023
	R MILLION	R MILLION	R MILLION
Management fees	1 678	1 660	3 353
Performance fees	215	155	294
	1 893	1 815	3 647

Revenue from contracts with customers comprises fees earned in respect of fund management activities.

Refer to the condensed consolidated segment report for disaggregation of revenue based on the geographical split of revenue earned.

All revenue from contracts with customers is earned over time.

9TRUST IS EARNED™