Notes to the Financial Statements
for the year ended 31 December 2004
29 Minority Interests
| £m | ||
| 29(a) Equity interests | At 31 December 2004 |
At 31 December 2003 |
| At beginning of year | 652 |
783 |
| Minority interests' share of profit/(loss) | 44 |
(117) |
| Minority interests' share of dividends paid | (25) |
(61) |
| Net acquisition/(disposal) of interests | 121 |
(41) |
| Foreign exchange and other movements | 77 |
88 |
| At end of year | 869 |
652 |
| £m | |||
| Reconciliation of minority interests share of profit/(loss) | Notes |
Year to 31 December 2004 |
Year to 31 December 2003 |
| The minority interest charge/(credit) is analysed as follows: | |||
| Adjusted operating profit | 83 |
7 |
|
| Goodwill amortisation and impairment | (27) |
(78) |
|
| Loss on disposal of investment in Dimension Data Holdings plc | - |
(2) |
|
| Restructuring and integration costs | 5(d)(ii) |
(7) |
(13) |
| Change in credit provisioning methodology | - |
(30) |
|
| Short term fluctuations in investment returns | 4 |
(1) |
|
| Non-operating items | 17(b) |
(9) |
- |
| Reported charge/(credit) | 44 |
(117) |
| £m | ||
| 29(b) Non-equity interests | Year to 31 December 2004 |
Year to 31 December 2003 |
| R2,000 million non-cumulative preference shares (banking subsidiary)1 | 184 |
168 |
| R792 million non-cumulative preference shares (banking subsidiary)2 | 73 |
69 |
| US$750 million cumulative preferred securities3 | 391 |
421 |
| Other (general insurance subsidiary)4 | 7 |
3 |
655 |
661 |
|
| Unamortised issue costs | (9) |
(12) |
| Undistributed profits due to minority interests | 12 |
9 |
658 |
658 |
Notes:
1 200 million R10 preference shares issued by Nedbank Limited (Nedbank), the Group’s banking subsidiary. These shares are non-redeemable
and non-cumulative and pay a cash dividend equivalent to 75% of the prime overdraft interest rate of Nedbank. Preference shareholders are only
entitled to vote during periods when a dividend or any part of it remains unpaid after the due date for payment and when resolutions are proposed
that directly affect any rights attaching to the shares or the rights of the holders. Preference shareholders will be entitled to receive their dividends
in priority to any payment of dividends made in respect of any other class of Nedbank’s shares.
2 77.3 million R10 preference shares issued at R10.68 per share by Nedbank on the same terms as the securities described in 1 above. Included
in original proceeds were R33 million cumulative dividend paid during 2004.
3 US$750 million Guaranteed Cumulative Perpetual Preference Securities issued on 19 May 2003 by Old Mutual Capital Funding L.P., a subsidiary
of the Group. Subject to certain limitations, holders of these securities are entitled to receive preferential cash distributions at a fixed rate of
8.0% per annum payable quarterly in arrear. The Group may defer payment of distributions at its sole discretion, but such an act may restrict
Old Mutual plc from paying dividends on its ordinary shares for a period of 12 months. Arrears of distributions are payable cumulatively only on
redemption of the securities or at the Group’s option. The securities are perpetual, but may be redeemed at the discretion of the Group from
22 December 2008. The costs of issue are being amortised over the period to 22 December 2008.
4 The Group has a general insurance subsidiary which offers clients a share of underwriting surpluses, in preference to ordinary shares, which
accrue in respect of certain policies.
