Discovery Limited (DSY) investor relations material

Executive summary

• Operating profit grew 29% to over R15.2 billion for the year ended 30 June 2025, with robust performance across all business segments.

• Normalised profit rose 27% year-over-year to R7,020m, with headline earnings and normalised headline earnings both up 34%.

• Group cash generation was strong, with R17.7 billion generated and net cash of R5.4 billion after investments and finance costs.

• The business is now structured around two composites: Discovery South Africa and Vitality globally, both showing significant growth.

• The group is targeting a 15–20% annual growth corridor over the next five years, with this year’s results exceeding that range.

Financial highlights

• Normalized headline earnings increased 30% to over R9.6 billion; profit before tax grew 33% year-over-year.

• Final dividend declared at R2.01, total dividend for the year R2.88, up 33% with a five times cover.

• Group embedded value increased, with annualised ROEV at 19%.

• Cash conversion improved to nearly 77%; financial leverage ratio decreased to 16.8%.

• Solvency cover and centre liquidity remain strong, with R3.2bn available and sufficient buffers.

Outlook and guidance

• Internal focus remains on achieving 15–20% compound annual growth from FY2025 to FY2029.

• Ambition for 12.5–17.5% annual earnings growth in SA and 20–30% in Vitality from FY25–FY29.

• ROE expected to climb above 15% as Discovery Bank scales; cash generation supports potential for higher dividends.

• Spend on new initiatives to be around 5% of profit, with major investments in Vitality AI and digital platforms.

• Bank targets R400m operating profit growth per annum and R3bn profit by FY29.