Liberty is not just our name it`s what we do.
Transcription
Liberty is not just our name it`s what we do.
About our report (continued)for Liberty’s integrated report 2014 and related content SITE MAP Financial highlights, chairman and CE reviews adjacent 2 About us Who we are and our brands 4 Our vision, purpose and values 5 Our business model 6 Our history, and focus on expansion in the rest of Africa 8 Our 2014 organisational structure 10 Our new organisational design 11 We are proud of 12 Governance at Liberty 13 Our competitive landscape and chosen markets 32 Our stakeholders 34 How we create sustainable value More on “About us” ?XZT_Xag\glfgehVgheX 5TaVTffheTaVX 5HeXi\Xjf Individual arrangements EXgT\_F4 Asset management FG4A?<5 ?\UXeglCebcXeg\Xf Group arrangements ?\UXegl;XT_g[ ?\UXegl4Ye\VT<afheTaVX ?\UXegl6becbeTgX Additional information according to JSE requirements 7XgT\_XWTaT_lf\fbYbjaXef[\c @T]bef[TeX[b_WXef Governance – long version, includes: 7XgT\_XWUbTeWbYW\eXVgbe·f6If 5bTeWTaWfgTaW\aZVb``\ggXXf`TaWTgXf 5bTeW`XXg\aZTggXaWTaVXeXVbeWf 8kVbTaW`XXg\aZTggXaWTaVXeXVbeWf 8kVb`TaWTgX >\aZ<<<V[XV^_\fg 6bWXbYXg[\Vf By key stakeholder Investors 36 Customers 44 Our people (employees) 50 Regulators 66 Communities 72 Explaining our strategy Our strategy delivery 76 Management of strategic risks 77 Our strategy 2020 at a glance 78 Summary of 2015 strategic objectives 80 What strategy 2020 means for our key stakeholders 81 Online sustainability review Introduction 4Ubhgg[XeXi\Xj Hf\aZg[XeXi\Xj J[bjXTeX BheVTc\gT_WXcXaWXaV\Xf EXfcbaW\aZgbbheVbagXkg @TgXe\T_\gl 7X_\iXefhfgT\aTU_XƇaTaV\T_eXfh_gf 9bVhfbabheVhfgb`Xef 5h\_WfbV\T_TaWeX_Tg\baf[\cVTc\gT_ 4ggeTVgTaWeXgT\adhT_\glX`c_blXXf Cebi\WXVb`c_\TagTaWeXfcbaf\U_XƇaTaV\T_fXei\VXf :E<\aWXk FgTgX`XagbYTffheTaVX 4UUeXi\Tg\baf Printed versions available on request Financial reporting Performance review Introduction 83 2014 Performance dashboard and 2015 targets 84 2014 Strategic objectives and self-assessment 85 2014 Performance review by key stakeholders 86 Why invest in Liberty? 101 Annexure: Summarised financial statements 102 Key performance measures – formulae and definitions 104 Back cover Detailed index Boundary and scope Web content: downloadable interactive PDFs. IR in HTML Integrated report contents About our report including directors’ approval and assurance About our report PDF Liberty Holdings Limited Annual financial statements and supporting information, including risk management, the report of the chairman of the group audit and actuarial committee and the independent auditor’s report Appendices Appendix A – Detailed accounting policies Appendix B – Report of the independent auditors on the group equity value report and the Group equity value report Appendix C – South African covered business embedded value Appendix D – Analysis of ordinary shareholders’ funds invested Appendix E – Liberty Holdings Limited and Liberty Group Limited rights and restricted shares and utilisation of share incentive scheme Appendix F – Consolidated mutual funds Appendix G – Long-term policyholder liabilities and short-term insurance liabilities reconciliation Appendix H – Summary of the group’s assets and liabilities by measurement basis Appendix I – Forward exchange contracts Appendix J – Six year review Appendix K – Abbreviations and definitions Contact details, company reference details PDF Liberty Holdings Limited Notice of annual general meeting and proxy form Our integrated report is addressed to you, our shareholders, as the primary stakeholder. This report informs you of our business, the 2014 performance compared to our previously stated ambitions and our plans for the future. We are fully committed to generating competitive sustainable value for our shareholders. We appreciate that this requires mutually beneficial partnerships with key stakeholders. We acknowledge that our duty is to prioritise Liberty's ongoing sustainability above short-term maximisation of profits. Our vision is to be the trusted leader in insurance and investment in Africa and in our chosen markets. We aim to provide an improved quality of life to all our customers. Our integrated report covers the performance of Liberty Holdings Limited and its subsidiaries for the year ended 31 December 2014. The report also identifies any risks, opportunities or events between 31 December 2014 and the date of this report that may have a material impact on the group. Materiality We focus our reporting on material aspects that impact our ability to be commercially viable and socially relevant in the communities in which we operate. Material aspects are defined as our material issues and any significant developments that would influence an assessment of Liberty's performance or opportunities. In achieving our vision various capital resources are consumed. Stakeholder partnerships, The report is themed around our chosen key stakeholder partnerships that maximise our ability to generate competitive sustainable value. These key partnerships are with: Investors – who provide financial capital Customers – who purchase our products and services (after obtaining appropriate advice on their financial needs) to achieve their financial goals Employees – who supply the necessary skills and expertise to deliver on our promises to stakeholders Regulators – who govern financial stability and market conduct for our industry Communities – who provide us with our social relevance and our future customers and employees Liberty is not just our name it’s what we do. Primary reporting framework This report is prepared under the guidance of the International Integrated Reporting hIRiFramework which has been adopted by the board. Secondary reporting frameworks Other reporting frameworks are complied with where appropriate, including: Throughout this report Liberty Holdings Limited and its subsidiaries is referred to as ‘Liberty’ or the ‘group’ Liberty Holdings Limited is referred to as the ‘company’ Standard Bank Group Limited and any subsidiary (excluding Liberty) is referred to as 'Standard Bank' Abbreviations We report on our management of the capital resources and our ability to replenish them through qualitative commentary, supported by assured key indicators. Our material issues were confirmed by the board as unchanged from the prior year. More emphasis is placed on the group’s South African operations as they account for 97% of the group’s headline earnings and revenue. material issues and capitals Our material issues are: Deliver sustainable financial results Focus on our customers Attract and retain quality employees Provide compliant and responsible financial services Build social and relationship capital Liberty acknowledges the dependency of capital resources availability and sustainable utilisation thereof in the conduct of its plans. The board considers financial, human, intellectual as well as social and relationship (brand trust) capitals as the most significant. Liberty is in itself not a significant consumer of natural resources, however, the board is committed through its investment criteria to promote responsible natural resource utilisation. BEE normalised Reflects the economic reality of Liberty’s 2004 Black Economic Empowerment transaction. The group's BEE preference shares are treated as an asset and the dividends received are included as income. Ordinary shares relating to the transaction are treated as in issue. Directors’ approval The board acknowledge their responsibility to ensure the integrity of Liberty’s 2014 integrated report and has applied its collective mind throughout the preparation of this report. The board believes that the integrated report is presented in compliance with the International Integrated Reporting <IR> Framework. The directors’ unanimously embrace the King Code of Governance Principles (King lll). The directors have applied their judgement to the disclosure of Liberty's strategic plans and ensured that these disclosures do not place Liberty at a competitive disadvantage. The integrated report contains certain forward-looking statements which, by their nature, involve risk and uncertainty because they relate to future events and circumstances that may be beyond Liberty’s control. In addition, regulations of the JSE prohibit making price sensitive forecasts without considerable independent review and process. The directors therefore advise readers to use caution regarding interpreting any forward-looking statements in this report. The board unanimously approved this report and authorised its release on 18 March 2015. PwC has checked the accuracy of extracts from the annual financial statements as well as the group equity value report contained in our Performance review section and the annexure to this report. In addition, PwC has provided a limited assurance report on selected other information contained in this report. Limited assurance was considered appropriate from a cost benefit perspective. The type of assurance obtained is specifically referenced where applicable. Assurance reports JSE Johannesburg Stock Exchange KPI Key Performance Indicator RDR Retail Distribution Review CAGR FSV SA Compound annual growth rate Financial Soundness Valuation (valuation methodology as issued by the Actuarial Society of South Africa used to measure insurance and investment contracts) South Africa SAM Solvency Assessment and Management CAR GEV SIP Capital adequacy requirement (minimum amount by which the FSB requires an insurer’s assets to exceed its liabilities) Group Embedded Value Shareholder Investment Portfolio CFU IFRS TCF Customer Facing Unit International Financial Reporting Standards Treating Customers Fairly Assurance The annual financial statements which comply with the South African Companies Act, are prepared under International Financial Reporting Standards and audited by PricewaterhouseCoopers Inc. (PwC). PwC issued an unmodified audit opinion on the group’s consolidated annual financial statements and an unmodified assurance opinion on the group equity value report. FSB Financial Services Board We have chosen to indicate the various levels of assurance received on reported information in the 2014 Performance review section only. This is indicated by: A = Full assurance provided by PwC { L = Limited assurance expressed over selected key performance indicators provided by PwC { V = Information verified by Empowerdex Economic Empowerment Rating Agency { Liberty Holdings Limited Integrated report 2014