Coronation Fund Managers : REVIEWED INTERIM RESULTS

Assets under management (AUM)

R625 billion

Diluted headline earnings per share

199.1 cents

Fund management earnings per share

214.8 cents

Interim dividend per share

214.0 cents

CORONATION 2022 HALF-YEAR RESULTS

The start of 2022 has brought dramatic and rapid changes to the global political economy. Just as the world was returning to a semblance of post-pandemic normal, albeit at a disjointed pace, Russia invaded Ukraine in February, a month before the end of this reporting period. This radical act sent markets tumbling and saw existing geopolitical fault lines broaden. With inflation already soaring around the world due to supply chain bottlenecks and extremely loose developed market monetary policy, markets have now had to deal with the inflationary impact of Russian sanctions and curtailed exports of Ukrainian wheat and fertiliser. Energy and commodity prices have soared as a result, and have dramatically impacted global food supply, leading to fears of extended food insecurity, especially in the Middle East and North Africa and other already fragile emerging economies.

Locally, economic fundamentals continued to improve at the beginning of the year. As a significant exporter of commodities, South Africa has been a beneficiary of the commodities supply constraint - which has offset the impact of the hike in oil prices. But this is a temporary situation, and, given South Africa's infrastructure challenges, the country has not been able to capture the full benefits of this tailwind. It remains clear that in order to achieve sustainable economic growth, it is imperative that we execute the structural reforms necessary to avoid a return to a low-growth,high-inflation environment.

RESULTS

Global markets were volatile as a result of the war in Ukraine, the threat of sticky inflation, rising supply chain constraints and, consequently, higher prices. For the six months ended 31 March 2022, the MSCI All Country World Index was up 1% (USD) and the MSCI Global Emerging Markets Index was down 8% (USD). Local markets fared far better, the FTSE/JSE All Share Index was up 20% (ZAR) on the back of improved terms of trade resulting from higher commodity prices.

After a period of earning elevated levels of fund management fees, due to exceptional portfolio performance resulting from opportunities presented by the Covid-19 pandemic, earnings have started to normalise. This is in line with management's expectations, and we anticipate ongoing market volatility given the impact of unfolding and unpredictable macro events. We remind shareholders that as a cyclical business, our earnings are linked to our active management, valuation-based portfolio positioning and market performance.

While somewhat less than recent reporting periods, as well as our estimates of the outflows being experienced by the South African savings pool, we continued to experience net outflows representing 2% of our average AUM. As a significant manager of South African assets, we expect Coronation's flows to continue reflecting those of the broader savings industry and the prevailing economic conditions in which we operate. These are both likely to remain under pressure for some time to come.

For the period under review, average AUM increased by 8% to R646 billion (March 2021: R600 billion),

while closing AUM was down 1% to R625 billion (September 2021: R634 billion). As an investment-led business, our primary focus remains on growing the value of the client assets entrusted to us over the long term, rather than simply looking to grow the pool of assets under our management.

Total operating expenses decreased by 13% to R948 million, compared to R1 088 million for the six months ended 31 March 2021. Variable expenses responded to the reduction in revenue, highlighting the strength of our variable cost model, which we continue to expect to offer shareholder protection. While variable costs decreased by 21%, fixed expenses were relatively contained, remaining flat year on year. It is worth noting that we operate in an environment where the ongoing need to invest in business operations makes it challenging to contain fixed costs below inflation. Key areas of focus that require ongoing investment include compliance, client experience, information technology and information systems.

Investment in our business is consistent with our promise of service excellence to our clients. With the increased risks of cybercrime and data breaches, it is becoming increasingly important for us to ensure world-class cyber security and data protection for all of our stakeholders. This means that we are constantly striving to lead and innovate in our security and data management systems. The relaxing of lockdowns and resultant resumption of travel, marketing and advertising activities have also added to our costs during the current period.

Fund management earnings per share (FMEPS) for the six months ended 31 March 2022 have decreased by 12% to 214.8 cents when compared to 244.0 cents in the prior corresponding period. FMEPS is used to measure operating financial performance, being profit for the period excluding the net mark-to-market impact of fair value gains and losses, and related foreign exchange, on investment securities held.

Diluted and basic headline earnings per share decreased by 22% to 199.1 cents (March 2021: 255.8 cents).

BUSINESS UPDATE AND CORPORATE CITIZENSHIP

We are a large independent asset manager and custodian of the savings of millions of South Africans, as well as several international retirement funds, endowments and family offices. This is a fiduciary responsibility that we take very seriously. With this in mind, we are an active corporate citizen that is committed to contributing to the health and prosperity of society and the South African economy.

1

2

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South Africa-based employees

As per Financial Sector Code scorecard 30 September 2021 financial year

PROGRESS IN TRANSFORMING OUR BUSINESS

Level 1

B-BBEE contributor as measured by the Financial Sector Code

INTERIM CASH DIVIDEND

We continue to reward shareholders through regular and significant distributions of free cash flow generated. We endeavour to distribute at least 75% of after-tax cash profit. After assessing any projected future cash requirements, an interim gross dividend of 214.0 cents per share has been declared for the six-month period ended 31 March 2022 from income reserves, resulting in a net dividend of 171.2 cents per share for shareholders subject to Dividends Tax. In compliance with the Listings Requirements of the JSE Ltd, the following dates are applicable:

Share certificates may not be dematerialised or rematerialised between Wednesday, 8 June 2022 and Friday 10 June 2022, 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 349 799 102. Coronation's tax reference number is 9 675 107 719.

PROSPECTS

The macroeconomic environment remains uncertain and unpredictable. We are currently faced with an escalating conflict in Europe, with material and long-lasting global political and economic repercussions. Global central banks have shifted from their long held accommodative stance in order to contain rampant inflation, significantly changing the medium-term prospects for interest rates and the cost of capital.

Capital markets have responded to this uncertainty through significant declines, with many key markets already in a technical bear market, which is defined as a decline of more than 20% from its peak. At an individual stock level, the moves have been even more extreme, with many global share prices down in excess of 50%. It is important to bear in mind that periods of intense volatility typically create the most fertile ground for significant value-creating investment opportunities. As active, long-term stock pickers, we are incredibly excited by the opportunities the market is presenting us, both locally and globally. This is reflected in our portfolios across all our strategies. As always, we remain focused on actively managing our clients' portfolios to ensure we deliver superior long-term investment outcomes.

After the prior period of exceptional portfolio performance, we do not expect to maintain the levels of performance fees earned. We also continue to invest in our business and remain committed to playing our part as an active and responsible corporate citizen, especially given the current macroeconomic uncertainty.

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 2022, 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 explanatory notes. The review has been conducted in accordance with the International Standard on Review Engagements 2410 (ISRE 2410). Copies of the unmodified report of KPMG Inc. are available for inspection at the registered office of the Company. Any forward-looking information contained in this announcement has not been reviewed or reported on by the Company's external auditors.