1 2020 Reviewed Interim Results FOR THE PERIOD ENDED 31 MARCH 2020 - PowerPoint PPT Presentation

1

2020 Reviewed Interim Results FOR THE PERIOD ENDED 31 MARCH 2020 26 May 2020 Anton Pillay, CEO Mary-Anne Musekiwa, CFO 2

Agenda Economic environment Highlights AUM and financial results Business update Good corporate citizenship Questions Annexure A 3

Economic environment 4

Global & SA macro overview NO ONE COULD HAVE FORESEEN THE POSSIBILITY OR PREPARED FOR THE IMPACT OF COVID-19 At the end of 2019, geopolitical tensions eased and world markets began to recover Record-breaking market moves; first quarter of 2020 sharp declines, only to recover with equal speed Policymakers implementing extraordinary measures to limit economic meltdown - deep rate cuts, quantitative easing & fiscal stimulus We expect developed markets will recover reasonably quickly due to demand and stimulus Concerned about low-income emerging countries: lack of ability to finance households & SMMEs; no social safety nets; uncoordinated responses MARKET MOVEMENT GLOBAL: REAL GDP , % (IMF , APRIL 2020) 120 10 8 110 6 100 4 2 90 0 80 -2 -4 70 -6 60 -8 09/2019 10/2019 11/2019 12/2019 01/2020 02/2020 03/2020 04/2020 1995 1999 2003 2007 2011 2015 2019 ALSI (in Rand) MSCI-ACW (NET) MSCI-EMU (NET) MSCI-ACW (US$) MSCI-EMU (US$) World Advanced economies Emerging markets 5 Source: IMF Source: IRESS & Bloomberg

Highlights 6

Singular focus on clients THROUGH ACTIVE ASSET MANAGEMENT INVESTMENT Very encouraging outperformance by our clients’ portfolios in 2019, Total AUM PERFORMANCE supporting continued long-term outperformance R508 bn R1.8 bn REVENUE Increase due to improved performance 5.2 % COSTS Total dividend per share Increase in operating costs 178.0 c 178.3 c HEADLINE EARNINGS PER Increase of 10% SHARE Diluted HEPS increase of 12% (excl. IFRS 9 effect) 7

AUM & financial results 8

Assets under management AUM REFLECTIVE OF MARKET CONDITIONS 4% 3% 700 610 614 599 587 571 Local Rbn International Rbn Avg AUM Rbn 36% 588 600 27% 141 155 508 127 176 492 163 500 164 85 1% 160 7% 400 22% 339 40 300 247 Equity Local 24 469 461 203 444 438 424 Fixed Interest Local 407 406 200 15 155 348 Cash Local 134 125 299 11 12 101 12 223 Other Local (UT’s, Hedge, Pooled) 100 82 188 9 64 54 144 7 122 113 Equity Foreign 7 92 7 75 57 47 0 Fixed Interest Foreign Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept Sep Sep Sep Mar Cash Local 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Coronation 9

Market performance and net flows NET FLOWS IN LINE WITH EXPECTATIONS 600,0 8,0% 580,0 5,4% 6,0% 560,0 3,7% 4,0% 540,0 2,0% 1,3% 520,0 500,0 0,0% 480,0 -2,0% 460,0 -4,0% -3,4% -3,8% 440,0 -5,2% -6,0% 420,0 -6,9% 400,0 -8,0% -7,5% 2018 Mar-19 2019 Mar-20 Total Flows as % of opening AUM Capital and Currency as a % of opening AUM Closing AUM 10 Source: Coronation

Revenue STRONG PERFORMANCE OVER SIX MONTHS NET FEE MARGIN March March 90 bps Change 2020 2019 80 bps Revenue (from fund 8% R1 769m R1 632m 70 bps management) 60 bps Profit (from fund 50 bps 10% R834m R758m management) 40 bps 30 bps Profit after tax 8% R624m R578m 20 bps 10 bps Cost-to-income 0 bps 53.5% 54.0% ratio 11 Source: Coronation

Cost control VARIABLE COST MODEL CONTINUES TO PROVE ITS STRENGTH REVENUE AND COSTS 2,50 March March 80,00% Change 2020 2019 65,00% 2,00 Fixed costs 11% R402m R362m 50,00% 1,50 35,00% Variable costs* 1% R533m R527m 20,00% 1,00 5,00% -10,00% Operating costs 5% R935m R889m 0,50 -25,00% - -40,00% 2015 (Q2) 2016 (Q2) 2017 (Q2) 2018 (Q2) 2019 (Q2) 2020 (Q2) Other costs** R15m R2m Total Costs (R'bn) Total Revenue (R'bn) Cost-to-income Ratio Cost to Income Ratio Cost-to-income (excl. IFRS 9) *Includes distribution costs of R75m **Includes Share-based payment expense and foreign exchange losses 12 Source: Coronation

Fixed costs INFORMATION TECHNOLOGY & SYSTEMS SPEND TO DRIVE EFFICIENCY & MANAGE RISKS March March Change 2020 2019 8% 10% Total fixed costs 11% R402m R362m 49% - Employee costs 6% R195m R183m 25% - Information systems & 43% R100m R70m technology 8% - Professional fees* 28% R32m R25m - Marketing (12%) R34m R39m Employee costs Professional fees Information services & technology Other business Employee complement 333 339 Marketing *Includes MiFD Research Costs Source: Coronation 13

Dividend declared reflects cash earnings 100% OF DILUTED HEADLINE EARNINGS PER SHARE DECLARED 600 106,0% March March Change 2020 2019 500 104,0% Diluted HEPS 8% 178.3c 165.1c 400 102,0% (cents) 300 100,0% Interim dividend 8% 178.0c 165.0c per share (cents) 200 98,0% 100 96,0% 0 94,0% 2015 2016 2017 2018 2019 2020 Interim 14

Business update 15

Our business 26 YEARS OF INTEGRATED STEWARDSHIP OF CLIENT ASSETS An active manager with a singular focus on long-term investing Long-term performance Creating a sustainable We put our clients first Active Corporate Citizen our true measure of success global business We focus on growing the value of Long-term investment performance Response to COVID-19 by business Cyclical nature of business means client assets over the long term remains compelling across our to support affected communities we need to manage for the long rather than growing the pool of entire fund range term Active participants of CEO assets under our management Investment approach unchanged – Initiative, BSA, BLSA & ASISA Committed to investment in Closed institutional strategies for encouraged by excellent organic growth Transformation of industry & five years outperformance in 2019 company remains a key focus Employee ownership level Strong symmetry & value for 97% of institutional client assets 1 maintained at 25% Implement good corporate money: fees aligned with client have outperformed their citizenship initiatives to ensure Cash-generative business with outcomes benchmarks since inception inclusive society and financial strong balance sheet 98% of our retail assets 2 have Continue to ensure clients are kept services sector abreast of market, company and outperformed peers since inception Seed new products with own cash ESG analysis integrated into our investment strategy developments investment process to allow for Employ and retain the best people Do not target AUM or share price, collaboration and engagement only alpha Diverse product range 1 Asset-weighted, mandates with >10-year history 2 Assets invested in our rand-denominated unit trust funds 16

Institutional business A SIGNIFICANT MANAGER OF INSTITUTIONAL ASSETS IN SA AND A GROWING NUMBER OF GLOBAL CLIENTS Local Clients Global Clients Total client AUM R292 bn Client outflows totalling 5.8% of opening Client outflows totalling 0.2% of opening balance in line with prior year’s flows; we balance expect to see continued outflows Local client AUM R224 bn Future focus: Future focus: Maintaining our world-class client service Confident in the long-term outlook for our global strategies as well as our value Continued focus on enhancing ESG Global client AUM proposition to clients through active integration R68 bn management Build out relationships with key allocators Continued focus on enhancing ESG & look to maintain existing clients integration Build out relationships with key allocators 17

Retail business CORONATION REMAINS ONE OF SA’S FOREMOST MANAGERS OF RETAIL SAVIN GS AT R216BN AUM Industry remains under pressure due to tough economic conditions and muted medium-term returns R240bn -2.5% -7.3% R216bn - We expect industry flows to remain under pressure for the foreseeable future Coronation unit trust net outflows 2.5% of opening CIS AUM vs all active vs all active single managers single managers - Coronation net flow mix similar to industry experience (-2.5%) and (-6.4%) and industry overall industry overall (-2.1%) (-7.0%) We remain focused on client outcomes - Long-term performance remains excellent - Service clients across the wealth spectrum NCCF% MVM% AUM O/B AUM C/B - Continuing to invest in client service infrastructure Source: Morningstar as at 31 March 2020. All fund categories included. Overall CFM CIS assets adjusted for institutional clients in line with SENS disclosure. 18