First Mutual : Unaudited HY Results

Preliminary Report -

Abridged Financial Results

For The Period Ended 30 June 2023

SHORT-FORM FINANCIAL RESULTS

This short form financial announcement is the responsibility of the Directors which has been issued in terms of the Zimbabwe Stock Exchange (ZSE) Practice note 13.

This announcement is only a summary of the information contained in the full preliminary report of the abridged consolidated financial statements for the six months ended 30 June 2023. Any investment decision by investors and/or shareholders should be based on consideration of the preliminary report of the abridged consolidated financial results for the six months ended 30 June 2023. The abridged consolidated financial statements have been released on the ZSE Data Portal: WWW.ZSE.CO.ZWand the Company's website: https://firstmutualholdingsinvestor.com/. The full preliminary report is available for inspection, at no charge, at the registered offices of First Mutual Holdings Limited at the office of the Company Secretary on working days between 8:00am and 4:30pm.

Comprehensive Income and Cashflow highlights

	Inflation adjusted			Historical cost
	30-Jun-2330-Jun-22	Growth	30-Jun-23	30-Jun-22	Growth
	ZWL million	ZWL million	% ZWL million	ZWL million	%
Insurance contract revenue	199,510	97,329	105%	106,414	12,519	750%
Insurance service result	29,975	32,491	-8%	(18,334)	2,997	-712%
Net fair value gains - investment property	510,343	141,016	262%	746,663	55,997	1,233%
Net Investment return	109,276	6,046	1,707%	159,347	8,810	1,709%
Profit/ (loss) after tax	386,377	(2,001)	19,409%	486,668	34,040	1,330%
Basic earnings per share (ZWL)	305	(14)	2,279%	358	26	1,277%
Headline earnings per share (ZWL)	305	(14)	2,279%	358	26	1,277%
Financial Position highlights
	Inflation adjusted			Historical cost
	30-Jun-2331-Dec-22	Growth	30-Jun-23	31-Dec-22	Growth
	ZWL million	ZWL million	% ZWL million	ZWL million	%
Total assets	1,490,838	697,165	114%	1,454,711	220,005	561%
Shareholder equity	337,872	140,770	140%	298,662	71,230	319%
Total equity	585,942	237,668	147%	543,165	100,197	442%
Total Liabilities	904,896	459,497	97%	911,546	119,807	661%

DIVIDEND ANNOUNCEMENT

On 13 September 2023 the Board resolved that an interim dividend of 0.068 US cents per share amounting to USD500,000 be declared from the profits of the Company for the half year ended 30 June 2023. Further details on the payment of the dividend will be communicated in a separate dividend announcement.

AUDITOR'S STATEMENT

The audit review of the Group is incomplete pending the finalisation of the Insurance and Pension Commission forensic investigation currently underway at one of the Group's significant subsidiaries, First Mutual Life Assurance Company.

Amos Manzai

Chairman

13 September 2023

SUPPLEMENTARY INFORMATION - UNITED STATES DOLLARS
Comprehensive Income and Cashflow highlights
	30-Jun-2330-Jun-22	Growth
	USD000	USD000	%
Insurance contract revenue	62,036	53,884	15%
Insurance service result	10,184	10,120	1%
Net fair value gains - investment property	5,563	38	14541%
Net Investment return	4,963	(8,601)	158%
Profit/ (loss) after tax	9,211	(1,510)	710%
Financial Position highlights
	30-Jun-2331-Dec-22	Growth
	USD000	USD000	%
Total assets	219,493	197,706	11%
Shareholder equity	60,173	54,120	12%
Total equity	92,459	84,859	9%
Total liabilities	127,034	112,847	13%

Directors: A R T Manzai (Chairman), D Hoto* (Group Chief Executive Officer), W M Marere* (Group Finance Director) G Baines,

F Mabena, M Mangoma, A Masiiwa, E Mkondo, E K Moyo, M Mukondomi, I P Z Ndlovu, S V Rushwaya (* Executive Director)

FIRST MUTUAL HOLDINGS LIMITED, First Mutual Park, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box BW 178, Borrowdale, Harare

Tel: [phone] - 17 | E-mail: [e-mail] | Website: www.firstmutual.co.zw

ADRENALIN

Preliminary Report - Abridged Financial Results

For The Period Ended 30 June 2023

CHAIRMAN'SSTATEMENT

ECONOMICOVERVIEW

During the first half of the year macroeconomic developments continued to be negatively impacted by price and exchange rate volatility, particularly in Q2 2023. Significant policy interventions were implemented by Government towards the end of the period aimed at stabilising the Zimbabwe dollar and reducing inflationary pressures. However, the impact of these measures is likely to be fully felt post June 2023. Blended annual inflation had increased to 175.8% as at June 2023 compared to 101.5% in January 2023 and the ZWL also lost its value as the official exchange rate advanced from USD1:ZWL669 to USD1:ZWL5,739 by the end of the period. The Government revised its GDP growth estimates for 2023 from 3.8% to 5.3% on the back of better than anticipated agricultural output from tobacco. Moreover, the Reserve Bank of Zimbabwe expected the blended annual inflation to close the year at between 60%-70% from an initial estimate of between 10%-30%. The ratio of USD to ZWL bank deposits rose to 80%:20% in the first half of 2023 compared to a ratio of 64%:36% last year.

As the local economy increasingly dollarised, FMHL continued to expand its USD based product portfolio to maintain product relevance. In addition, the Group maintained its stance of diversifying its pool of investment assets with a skew towards real assets to minimise the impact of the volatility i in the macro-economic environment. Save for the VFEX listed equities, there was a positive real return on the remaining components of the investment portfolio, including ZSE listed shares, investment property and alternative investments.

FIRSTMUTUALLIFEFORENSICINVESTIGATION

During 2022, the Insurance and Pensions Commission (IPEC) instituted a forensic investigation on First Mutual Life Assurance Company (FML), a subsidiary of FMHL. The forensic investigation related to the separation of assets between the policyholders and shareholder during the period 1 February 2009 and 31 December 2021. The investigation formally commenced on 26 August 2022 following the appointment of BDO Zimbabwe to conduct the exercise. On 10 May 2023, FML received a copy of the forensic investigation report from IPEC. At the direction of IPEC, FML submitted its response to the forensic investigation report to the Ministry of Finance on 8 June 2023.

As at the date of issuing these results, the half year audit review of the Group interim financial statements is incomplete pending the finalisation of the forensic investigation and, consequently, the Group will not be in a position to publish audit reviewed financial statements in line with the Zimbabwe Stock Exchange listings requirements and approved timelines. In the interim, the board of directors, in consultation with the ZSE, has decided to publish the financial information in the form of a preliminary report.

IFRS17REPORTING

The International Financial Reporting Standard IFRS17 - Insurance Contracts (IFRS 17) was issued by the International Reporting Standards Board in May 2017. This standard replaced IFRS 4 on accounting for insurance contracts effective 1 January 2023. IFRS 17 requires a company to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts. This requirement will provide more transparent reporting on the financial position and risk of insurance entities. The Group financial highlights and performance have been analysed in line with the requirements of this new standard.

FINANCIALHIGHLIGHTS

In October 2019 the Public Accountants and Auditors Board concluded that the conditions for applying International Accounting Standard IAS 29 - Financial Reporting in Hyperinflation Economies had been met in Zimbabwe. The historical cost financial results have been restated to consider changes in the purchasing power of the local currency during the year. Effective February 2023, the Zimbabwe National Statistics Agency ( ZimStat) ceased the publication of the ZWL Consumer Price Indices (CPIs) and replaced them with the weighted average consumer price index also known as blended indices in line with the Statutory Instrument 27 of 2023 which requires the inflation rate to be calculated as the weighted average of the ZWL and USD rates. This created challenges for financial reporting purposes as the weighted average consumer price index does not comply with the International Accounting Standard (IAS) 29 which requires the use of a General Price Index (GPI) of the hyperinflationary currency (ZWL) as a basis of restatement. FMHL has continued to apply IAS 29 for the half-year ended 30 June 2023 with the CPI estimated using the Total Consumption Poverty Line (TCPL) movement. The inflation adjusted financial results therefore represent the main financial statements with historical cost financials provided as supplementary information:

Comprehensiveincomehighlights
	Inflation adjusted	Historical cost
	30-Jun-2330-Jun-22	30-Jun-2330-Jun-22
	ZWL000	ZWL000	ZWL000	ZWL000
Insurance contract revenue	199,509,637	97,329,185	106,413,926	12,519,290
Insurance service result	11,294,327	31,909,264	(37,014,490)	2,878,488
Rental income	7,993,506	3,689,916	3,715,096	489,923
Net Investment return	109,275,636	6,046,006	159,347,140	8,809,483
Profit/(loss) after tax	386,377,001	(2,000,981)	486,668,413	34,039,943
Financial position and Cashflow highlights
	Inflation adjusted	Historical cost
	30-Jun-2331-Dec-22	30-Jun-2331-Dec-22
	ZWL000	ZWL000	ZWL000	ZWL000
Total assets	1,367,311,128	606,413,469 1,341,292,649 193,725,861
Total equity	585,942,075	237,668,168	543,165,432	100,197,445
Investment contract liabilities
without DPF	23,163,505	10,110,043	23,163,505	3,240,398
Share performance
	Inflation adjusted	Historical cost
	30-Jun-2330-Jun-22	30-Jun-2330-Jun-22
Market price per share (ZWL)	141	24	141	24
Basic earnings per share (ZWL)	305	(14)	358	26
Headline earnings per share (ZWL)	305	(14)	358	26

FINANCIALPERFORMANCE

STATEMENTOFCOMPREHENSIVEINCOME

Insurance contract revenue

During the period under review, Insurance Contract Revenue (ICR) at $199.5 billion, grew by 105% compared to prior year (a growth of 750% to $106.4 billion compared to the prior year in historical cost terms). The growth in comparison to the same period last year was largely driven by the continued revaluation of ZWL insurance policy values to ensure adequate cover for clients as well as a migration of more policies to the USD for value restoration in case of the occurrence of an insured event. The proportion of the USD business being written by the Group constituted 74% of the total ICR at USD 45.8 million.

Insurance service result

The Insurance service result declined by 65% to $11.2 billion compared to the prior year (1,379% to a negative insurance service result of $37.1 billion compared to prior year negative result of $2.9 billion in historical cost terms). The deterioration was as a result of increases in direct insurance expenses despite the growth in ICR as well as significant foreign denominated business written mostly in Q1 2023 and translated to ZWL at a lower exchange rate against the claims expenses that were settled at a higher exchange rate during the course of the period as the ZWL rapidly depreciated. The underlying pure USD business was profitable.

Rental income and Investment return

During the period under review, rental income grew by 117% to $7.9 billion compared to the prior year (658% growth to $3.7 billion compared to the prior year in historical cost terms). The growth arose from a combination of factors which included a migration to the USD denominated leases as well as inflation driven adjustments on ZWL rentals. The occupancy levels stood at 88.10% compared to prior year of 89.99% and the average rental/square metre was $4.02/ square metre compared to prior year of $3.3/ square metre. The overall Group net investment returns amounted to $109.3 billion ($159.3 billion in historical cost terms) that was 1,701% above prior year. The positive investment outturn was mainly due to fair value gains on the ZSE and the ZWL depreciating at a faster rate than the USD fair value losses on the VFEX.

Profit for the period

The Group achieved a profit for the period of $386.4 billion which represented a 19,409% increase relative to the prior year (a growth of 1,330% to $486.7 billion compared to the prior year in historical cost terms). The increase is attributable to the increases rental income, net fair value gains in investment properties and listed equities.

STATEMENTOFFINANCIALPOSITION

The Group's total assets grew by 125% to $1.4 trillion in inflation adjusted terms and 591% to $1.3 trillion in historical cost terms compared to 31 December 2022. The growth in both inflation adjusted and historical cost terms was mainly driven by positive fair value adjustments on investment properties and the impact of the depreciation of the ZWL on USD denominated current assets including balances with banks, insurance contract assets.

In recent periods, the investment properties have witnessed significant growth in Zimbabwe dollar values and this was the case for the period under review. The ZWL continued to decline in comparison to the USD for the period under review, which had an impact in the forward- looking information utilised in the valuations by property experts, hence the net fair value gains of $510.3 billion in inflation adjusted terms and $746.6 billion in historical cost terms. The total investment property value grew by 147% compared to last year in inflation adjusted terms and 670% in historical cost terms.

SUSTAINABILITY

The Group has prioritised the sustainability agenda not only from a risk management perspective but also considering the various aspects in Group operations that include value creation and maximisation, potential growth and compliance with reporting requirements as well as fulfilling the good corporate citizenry mandate as a governance tool. The Group's objective to create sustainable economic value is a pillar of our corporate strategy and core values.

In order to achieve the above, the Group makes an allowance for environmental, social and governance ("ESG") aspects in its strategy. FMHL has also laid out processes to ensure that the impact of sustainability is not only limited to core operations but also stretches to other areas of the business.

FIRSTMUTUALINTHECOMMUNITY

First Mutual continues to actively support the communities in which we operate including the ongoing provision of educational support through the First Mutual Foundation to deserving students from disadvantaged backgrounds. This includes tuition fees, stationery, laptops, uniforms and other ancillary support as necessary. The recipients are spread across primary and secondary schools as well local universities.

As part of expanding the tertiary bursary programme, FMHL partnered with Africa University and established the First Mutual Scholarship Fund, which supports an additional 6 students under this initiative which is cognisant of the Group's diversity policy and incorporates students with vulnerabilities.

Additional community support was implemented through donations to charitable causes as well sponsorship of industry bodies as the Group believes that this is an integral part of thought leadership and capacitating industry to ensure a vibrant and sustainable business environment.

OUTLOOK

The strategic assumptions for the outturn of the economic environment have remained largely unchanged however policy fluidity may lead to temporary negative outcomes during the realignment period. With that background, the various business units within the Group will deploy their strategies accordingly and adjust as appropriate to new policy measures but maintaining the aim to achieve sustainable real growth into the future. FMHL will continue to pursue value enhancing initiatives such as investments in real assets to preserve and grow the net assets of the Group.

DIRECTORATE

There were no changes to the directorate during the period under review.

DIVIDEND

On 13 September 2023 the Board resolved that an interim dividend of 0.068 US cents per share amounting to USD500,000 be declared from the profits of the Company for the half year ended 30 June 2023. Further details on the payment of the dividend will be communicated in a separate dividend announcement.

APPRECIATION

On behalf of the FMHL Board, I would like to thank our clients and stakeholders for their continued support. I also extend my appreciation and gratitude to FMHL employees and management for their commitment to serve our clients and ensuring that the Group continues to adapt to operate sustainably in a challenging environment. I would also like to extend my gratitude to my fellow board members for their continued support, including their valuable contributions, insight and guidance to management as we pursue the realisation of the Group's strategy.

Amos Manzai

Chairman

13 September 2023

GROUPCHIEFEXECUTIVEOFFICER'SREVIEWOFOPERATIONS

The operating environment continued to be volatile with high inflation and a depreciating local currency during the review period. The country experienced significant Zimbabwe dollar exchange rate depreciation between May and June 2023 driven by both demand and supply factors. The demand factors mainly reflected elevated demand for foreign currency for purposes of value preservation. The effect of the high demand for foreign currency on the economy was coupled with the sudden decline in the demand for local currency. The measures instituted by the Reserve Bank of Zimbabwe (RBZ), which included further liberalisation of the exchange rate, tighter monetary policy and the introduction of gold-backed digital tokens bore fruit as evidenced by the recovery of the ZWL and relatively stable exchange rate. As at 30 June 2023, the exchange rate stood at USD1:ZWL5,739 compared to USD1:ZWL4,516 at 31 July 2023. The blended month-on-month inflation moved in sympathy with exchange rate with a steep increase from 15.7% in May 2023 to 74.5% in June 2023 followed by a significant reversal in July 2023 to minus 15.3%. Similarly, the blended annual inflation, which had risen from 86.5% in May 2023 to 175.8% in June 2023, fell to 101.3% in July 2023.

During the first half of the year 2023 the Zimbabwe Stock Exchange (ZSE) registered nominal gains which tended to track money supply dynamics rather than fundamental corporate performance. The ZSE registered a return of 779.3% which was behind both official and alternative market exchange rate movements for H1 2023. The Victoria Falls Stock Exchange (VFEX) All Share Index was characterized by bearish sentiments during the period and declined by 23.1% in the first 6 months of the year.

This was despite its market capitalization rising due to new listings on the bourse.

The Botswana economy continues to be stable despite the BWP weakening against the USD. In Mozambique, the economy has maintained signs of growth as evidenced by a stable exchange rate and declining inflation.

OPERATIONSREVIEW

The commentary below relates to the unconsolidated performance of each business unit in both inflation adjusted and historical cost terms for the period ended 30 June 2023. All the figures are in ZWL except where another currency is indicated.

LIFEANDHEALTHCLUSTER

First Mutual Life Assurance Company (Private) Limited

Insurance contract revenue ("ICR") for the period amounted to $15.7 billion in inflation adjusted terms which was 343% above the prior year $0.7 billion in historical terms representing a growth of 1,457% against the prior year). The year-on-year growth in the ICR was driven by the regular revisions in sums assured with the objective of retaining the value of policyholder benefits. Growth in premiums from the retail segment was largely due to significant growth in USD denominated premiums on the Eternal Life Plan and E-FML Gold Funeral products. In the corporate segment, growth in premiums was attributable to growth in the Group Life Assurance portfolio arising from new business and organic growth. The organic growth stemmed from the effect of employee salary increases, as employers sought to attain the target financial security benefits of this product.

The business achieved a profit for the period of $103.8 billion in inflation adjusted terms that reflected a growth of 202% compared to the prior year and a 1,257% growth in historical cost terms to $132.8 billion. The profit after tax growth was driven by increases in premiums as noted above and net investment returns (investment property and quoted and unquoted equities).

First Mutual Health Company (Private) Limited

For the period ended 30 June 2023, the business achieved an ICR of $82.1 billion which represented a growth of 117% compared to prior year in inflation adjusted terms (in historical cost terms the ICR grew by 714% to $40.3 billion). The growth in both inflation adjusted and historical cost terms was largely driven by the regular exchange rate linked reviews to premiums in response to increased medical benefit costs in order to cushion members from the negative impact of shortfalls driven by price increases effected by medical service providers. There were also modest adjustments of USD premiums on account of rises in USD costs of medical benefits by service providers. There was a gradual growth in pure USD medical policies as members are migrating to a more stable product.

The unit generated a profit for the period ended 30 June 2023 amounting to $33.1 billion in inflation adjusted terms representing a growth of 1,410% against prior year. In historical cost terms, the profit for the period amounted to $41.8 billion, 2,319% higher than the prior year. The positive outturn arose from significant fair value gains on the equity portfolio and a positive operating result.

The business continues to roll-out medical services facilities (clinics, pharmacies, dental and optometry services) as a long-term strategic priority. Our objective in this space is to complement government efforts to provide greater access to Zimbabweans to quality healthcare at affordable prices.

GENERALINSURANCECLUSTER

NicozDiamond Insurance Limited

The ICR grew by 35% to $44.1 billion in inflation adjusted terms and 465% to $23.2 billion in historical cost terms. The revenue increase was primarily a function of increased migrations to USD denominated policies, organic growth as well as the continued review of statutory covers in line with exchange rate linked reviews.

The business recorded a profit for the period ended 30 June 2023 in inflation adjusted terms of $49.6 billion which represented a growth of 78% against the prior year. The historical cost terms profit for the period amounted to $23.9 billion a 3,003% rise above the prior year. The improved performance was mainly driven by a notable growth in the ICR as well as growth in net fair value gains in equities and investment properties.

Diamond Seguros - Mozambique

Diamond Seguros recorded an ICR of $4.2 billion which was 133% above the prior year in inflation adjusted terms (55% growth to $0.6 billion in historical cost terms). The growth was mainly driven by continued improvements in broker business reflecting increasing market confidence. In Mozambican Metical (MZN) terms, an ICR growth of 57% to MZN99.9 million was recorded compared to prior year.

REINSURANCECLUSTER

FMRE Property and Casualty (Proprietary) Limited - Botswana

The ICR for the period went up by 169% to $40.4 billion in inflation adjusted terms and 977% to $22.6 billion in historical cost terms. In Botswana Pula (BWP), the year-on-year growth was 16% at BWP134.4 million compared to BWP116.3 million in the prior year. The double-digit growth was partly attributable to improved local and international treaty participation and growth of specialist lines of business under the casualty segment. The BWP stood at USD1:BWP12.9 to the USD at the beginning of the year, closing at USD1: BWP13.5 as at 30 June 2023, shedding almost 5% of its total value against the USD. However, this movement in the exchange rate was lower than the growth in the ICR in both BWP and ZWL terms.

First Mutual Reinsurance Company Limited - Zimbabwe

The business recorded an increase of 447% to $20.4 billion in the ICR in inflation adjusted terms and 1,936% to $11.1 billion in historical cost terms for the period ended 30 June 2023. The increase in ICR was attributed to the significant increases in demand for USD policies by clients, which consequently led to more business for reinsurers as there was limited USD underwriting capacity at local direct insurers.

The business achieved an inflation adjusted profit for the period of $28.2 million, 727% above the profit for the same period in prior year and $34.5 million which represented a growth of 6,225% in historical cost terms. The growth in profit was driven by increases in ICR and exchange gains.

INVESTMENTSCLUSTER

First Mutual Properties Limited

Rental income for the period ended 30 June 2023 grew by 121% to $7.9 billion in inflation adjusted terms and 668% to $3.6 billion in historical cost terms. The growth compared to prior year is largely attributed to the migration to USD foreign denominated leases with those maintained in the local currency being adjusted for inflation linked reviews. This growth in revenues occurred despite a decrease in the occupancy rate to 88.10% in 2023 compared to 89.61% in 2022. Independent investment property valuations as at 30 June 2023 resulted in net fair value gains of $744.4 billion.

First Mutual Microfinance (Private) Limited

The interest income grew by 304% to $4.2 billion for the period ended 30 June 2023 in inflation adjusted terms and 1,697% to $2.4 billion in historical cost terms. The growth was principally due to increases in the USD loan book which was 92% of the total loan book as at 30 June 2023. The corresponding interest costs amounted to $1.3 million in inflation adjusted terms, 214% above prior year and $0.7 billion in historical costs terms which represented an increase of 1,157%. The business turned a corner and attained critical mass leading to a profit for the period ended 30 June 2023 of $1.9 billion 1,161% above the prior year in inflation adjusted terms and 7,069% growth to $2.4 billion in historical cost terms.

DIRECTORS: A R T Manzai (Chairman), D Hoto* (Group Chief Executive Officer), W M Marere* (Group Finance Director) G Baines, F Mabena, M Mangoma, A Masiiwa, E Mkondo, E K Moyo, M Mukondomi, I P Z Ndlovu, S V Rushwaya (* EXECUTIVE DIRECTOR)	1
FIRST MUTUAL HOLDINGS LIMITED, First Mutual Park, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box BW 178, Borrowdale, Harare | Tel: [phone] - 17 | E-mail: [e-mail] | Website: www.firstmutual.co.zw

ADRENALIN

Preliminary Report - Abridged Financial Results

For The Period Ended 30 June 2023

First Mutual Wealth Management (Private) Limited

The business recorded investment management fees of $982.6 million, 170% above the prior period in inflation adjusted terms and 221% growth to $526.6 million in historical cost terms. This growth was mainly driven by higher funds under management. Funds under management for the period ended 30 June 2023 grew by 888% to ZWL368 billion partly as a result of increased support from third party contributions, growth

STATEMENTOFFINANCIALPOSITION

AS AT 30 JUNE 2023

on the ZSE and fair value gains on investment property.

HUMANCAPITAL

Since our Group is involved in the provision of financial and investment services, we consider employees to be a key success factor in navigating a volatile and complex operating environment. Amidst these challenges, our employees have demonstrated commitment and resilience to serve our clients and other stakeholders, including the implementation of our consensus driven strategy. We will ensure that investment in human capital retention and development programs is prioritised on a Group-wide scale to improve the skills of our staff to align towards future requirements.

APPRECIATION

On behalf of First Mutual, I would like to thank all our stakeholders for their continued trust in the Group. We will continue to be reliable partner and remain focused on our customers as we strive to exceed your expectations.

Douglas Hoto

Group Chief Executive Officer

13 September 2023

CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME

FOR THE PERIOD ENDED 30 JUNE 2023
		INFLATIONADJUSTED	HISTORICALCOST
		UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED
		30-Jun-23	30-Jun-22	30-Jun-23	30-Jun-22
	Note	ZWL000	ZWL000	ZWL000	ZWL000
INCOME
Insurance contract revenue	21	199 509 637	97 329 185	106 413 926	12 519 290
Insurance service expenses from insurance contracts issued	23	( 309 784 346)	( 98 895 987)	( 230 124 355)	( 14 386 530)
Insurance service result before reinsurance		( 110 274 709)	( 1 566 802) ( 123 710 429)	( 1 867 240)
Net expenses from reinsurance contracts held		140 249 416	34 058 154	105 376 319	4 864 279
Movement in premium credit adjustment		( 18 680 380)	( 582 088)	( 18 680 380)	( 118 551)
Insurance service result		11 294 327	31 909 264	( 37 014 490)	2 878 488
Insurance finance result		( 269 945 114)	( 153 052 253)	( 366 580 208)	( 23 387 147)
Net insurance & reinsurance performance		( 258 650 787) ( 121 142 989) ( 403 594 698)	( 20 508 659)
Net investment return	22	109 275 636	6 046 006	159 347 140	8 809 483
Net gains/losses from fair value adjustments to investment properties		510 342 668	141 016 240	746 662 662	55 996 725
Net change in investment contract liabilities		( 13 761 036)	7 533 795	( 20 205 742)	( 1 627 540)
Movement in shareholder risk reserve		( 1 970 821)	668 896	( 2 616 901)	( 110 519)
Net insurance & reinsurance performance after investment return		345 235 660	34 121 948	479 592 461	42 559 490
Rental income		7 993 506	3 689 916	3 715 096	489 923
Property expenses		( 5 857 957)	( 2 289 158)	( 3 170 256)	( 345 871)
Other income		15 908 033	8 818 262	7 799 396	1 643 654
Foreign currency exchange gains		67 786 322	7 856 172	77 093 952	1 513 340
Other administration expenses		( 47 529 875)	(24 079 469)	(23 579 890)	( 2 785 495)
Movement in allowance for credit losses		( 1 752 382)	( 264 229)	( 1 752 382)	( 53 814)
Inflation adjustment monetary gain		25 921 895	1 224 706	-	-
Profit before share of (loss)/profit of associate		407 705 202	29 078 149	539 698 377	43 021 226

ASSETS

Property, plant and equipment

Investment property Right of use of assets

• IFRS 16 Goodwill
  Other intangible assets

Investment in subsidiaries

Investment in associates- other companies

Financial assets:

• Equity securities at fair value through profit or loss
• Debt securities at amortised cost

Investment in gold coins

Deferred tax asset

Non current assets held for sale

Income tax asset Inventory

Reinsurance contract assets

Rental receivables Other receivables

Cash and cash equivalents

TOTALASSETS

EQUITYAND

LIABILITIES

Equity attributable to equity holders of the parent

Share capital Share premium

Non-distributable reserves

IFRS 17 adoption reserve

Retained profits

Total equity

	INFLATIONADJUSTED	HISTORICALCOST	INFLATIONADJUSTED	HISTORICALCOST
Note	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED
	GROUP	GROUP	GROUP	GROUP	COMPANY	COMPANY	COMPANY	COMPANY
	30-Jun-23	31-Dec-22	30-Jun-23	31-Dec-22	30-Jun-23	31-Dec-22	30-Jun-23	31-Dec-22
	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000
5	10816229	7325745	2405654	708321	77830	66756	18558	2861
6	858141901	347676985	858141901	111434931	5810000	3684096	5810000	1180800
7	374503	149100	374503	47789	923711	1085460	87183	102449
	1542098	472248	1542098	151362	-	-	-	-
	97867	136907	6353	6757	-	-	-	-
	-	-	-	-	329957358	106243229	253643725	31824110
	9532269	5033767	6527110	1061625	73598	73598	7207	7207
	-	-	-	-	-	-	-	-
9	181629249	55139158	181629249	17672807	5258959	1666500	5258959	534135
10	37752294	7844821	37752294	2514366	583439	168237	583439	53922
	3216744	863029	3216744	276612	-	-	-	-
19	11985818	2298080	7766829	702885	-	-	-	-
	280000	119808	280000	38400	-	-	-	-
	153909	36347	153909	11650	-	-	-	-
	1666600	1043823	508435	170615	56033	38618	10995	1970
11	117723671	112527507	110355956	37967311	-	-	-	-
12	3765510	1540785	3765510	493841	10107	-	10107	-
12	16990014	12186695	15223650	3793940	1323589	767822	1323589	246097
13	111642452	52018664	111642452	16672649	1968774	393187	1968774	126022
	1367311128	606413469	1 341 292647	193725861	346043398	114187503	268722536	34079573

1292762	1292762	54878	54878	1292762	1292762	54878	54878
25925742	25925742	39417	39417	25925742	25925742	39417	39417
(25829878)	(2099191)	(29821193)	2589976	460426	460426	345	345
26000516	26000516	34271787	34271787	-	-	-	-
310482580	89650558	294117496	34273565	314676992	84690244	264940420	33402136

Share of profit/(loss) of associate

Profit before income tax

Income tax expense

Profit/(loss) for the period

2 439 827	( 40 095)	2 530 784	152 658
410 145 029	29 038 054	542 229 161	43173884
( 23 768 028)	( 31 039 035)	( 55 560 747)	( 9 133 941)
386377001	( 2 000 981)	486668414	34 039 943

attributable to equity holders of the parent

Non-controlling interests

Total equity

337871722	140770387	298662385	71229623	342355922	112369174	265035060	33496776
248070353	96897781	244503047	28967822	-	-	-	-
585942075	237668168	543165432	100197445	342355922	112369174	265035060	33496776

Other comprehensive income/(loss)

Other comprehensive income/(loss) to be reclassified to statement of comprehensive income in subsequent period

Exchange (loss)/gain on translating foreign operations Share of other comprehensive profit

Other comprehensive (loss)/income to be reclassified to statement of comprehensive income in subsequent periods

( 2 902 526)	1 851 985	( 15 614 687)	3 547 586
459 679	170 397	807 963	34 704
( 2 442 847)	2 022 382	( 14 806 724)	3 582 290

Liabilities				-	-
Investment contract
liabilities without DPF	14	23163505	10110043	23163505	3240398	-	-	-	-
Shareholder risk
reserves	15	2921655	950834	2921655	304754	-	-	-	-
Member assistance
fund		9041	28207	9041	9041	-	-	-	-
Lease liabilities	7	1216262	388078	1216262	124384	2246829	796605	2246829	255322
Borrowings- from third
parties		20918657	5243231	20918657	1680523	-	-	-	-

Total comprehensive profit for the period	383 934 154	21 401	471 861 690	37 622 233
Profit/(loss) attributable to:
Non-controlling interest	164 683 937	8 085 845	226 639 786	15 230 635
Equity holders of the parent	221 693 064	( 10 086 826)	260 028 628	18 809 308
Profit/(loss) for the period	386377001	( 2 000 981)	486668414	34 039 943
Total Comprehensive income attributable to:
Non-controlling interest	165 877 015	7 947 364	226 521 600	15 092 154
Equity holders of the parent	218 057 139	( 7 925 963)	245 340 090	22 530 079
Total comprehensive income for the period	383 934 154	21 401	471 861 690	37 622 233
Basic earnings per share (cents)	30 523	( 1 389)	35 801	2 590
Diluted earnings per share (cents)	30 523	( 1 389)	35 801	2 590

The Group has adopted IFRS 17- Insurance contracts, a new accounting standard that became effective on 1 January 2023. The adoption of the new standard has resulted in new financial statement lines as presented in the primary financial statements. Prior year numbers have been restated in accordance with the new standard & provisions of IAS 8 from 1 January 2022.

Put option liability	20	31240253	10051246	31240253	3221553	-	-	-	-
Insurance contract
liabilities	16	513518043	253171082	530994374	56411984	-	-	-	-
Investment contract
liabilities with DPF	17	61819262	23997163	61819262	7682170	-	-	-	-
Share based payment
liabilities		1242908	677678	1242908	217205	383637	219081	383637	70218
Other payables	18	44500716	16776164	43608078	5262258	1057010	802643	1057010	257257
Deferred tax liability	19	73414165	46093933	73588634	14971056	-	-	-	-
Current income tax
liabilities		7404586	1257642	7404586	403090	-	-	-	-
Total liabilities		781369053	368745301	798127215	93528416	3687476	1818329	3687476	582797
TOTALEQUITYAND
	367311128	606413469	1341292647	193725861	346043398	114187503	268722536	34079573
LIABILITIES

The Group has adopted IFRS 17- Insurance contracts, a new accounting standard that became effective on 1 January 2023. The adoption of the new standard has resulted in new financial statement lines as presented in the primary financial statements. Prior year numbers have been restated in accordance with the new standard & provisions of IAS 8 from 1 January 2022.

DIRECTORS: A R T Manzai (Chairman), D Hoto* (Group Chief Executive Officer), W M Marere* (Group Finance Director) G Baines, F Mabena, M Mangoma, A Masiiwa, E Mkondo, E K Moyo, M Mukondomi, I P Z Ndlovu, S V Rushwaya (* EXECUTIVE DIRECTOR)	2
FIRST MUTUAL HOLDINGS LIMITED, First Mutual Park, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box BW 178, Borrowdale, Harare | Tel: [phone] - 17 | E-mail: [e-mail] | Website: www.firstmutual.co.zw

ADRENALIN

Preliminary Report - Abridged Financial Results

For The Period Ended 30 June 2023

STATEMENTOFCHANGESINEQUITY

FORTHEENDED30JUNE2023

INFLATIONADJUSTED		Share	Non-	IFRS17		Total	Non-
	Sharecapital	premium	distributable	Adoption	Retained	equity	controlling	Total
		reserves	reserves	reserve	earnings	forparent	interest	equity
	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000
Asat1January2022	1292762	25925742	8026103	-	46490374	81734981	64289137	146024119
ImpactofadoptingIFRS17	-	-	-	26000516	-	-	-	-
Restatedasat1January
2022	1292762	25925742	8026103	26000516	46490374	81734981	64289137	146024119
Profitfortheyear	-	-	-	-	(10086826)	(10086826)	8085845	(2000981)
Othercomprehensive(loss)/
income	-	-	2160863	-	-	2160863	( 138481)	2022382
Totalcomprehensive
(loss)/income	-	-	2160863	-	(10086826)	(7925963)	7947364	21401
Transactionswith
shareholdersintheir
capacityasowners
FMPredemptionofshares	-	-	-	-	-	-	2543	2543

CONSOLIDATEDSTATEMENTOFCASHFLOWS

FOR THE PERIOD ENDED 30 JUNE 2023

Profit before income tax

Total non- cash and separately disclosed items

Operating cash flows before working capital changes

Working capital changes

Cash (utilised in)/generated from operations

Finance costs on lease liability

Interest received

Tax paid

Net cash flows(utilised in)/ generated from operating activities Net cash flow generated from/(used in) investing activities Net cash flow used in financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Effects of exchange rate changes on cash and cash equivalents Effects of inflation on cash and cash equivalents

Cash and cash equivalents at the end of the period

INFLATIONADJUSTED	HISTORICALCOST
UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED
30-Jun-23	30-Jun-22	30-Jun-23	30-Jun-22
ZWL000	ZWL000	ZWL000	ZWL000
410 145 029	29 038 054	542 229 161	43173884
62 550 064	( 133 320 533)	( 888 028 375)	( 63 482 384)
472 695 093 ( 104 282 479) ( 345 799 214)	( 20 308 500)
( 425 993 258)	114 387 445	425 500 367	25 886 398
46 701 835	10 104 966	79 701 153	5 577 898
( 187 451)	( 34 889)	( 150 230)	( 4 867)
9 133 319	1 361 633	3 412 967	247 571
( 1 136 634)	7 900 209	( 446 615)	( 661 230)
54 511 069	19 331 919	82 517 275	5 159 372
( 82 192 754)	( 11 289 351)	( 44 522 333)	( 1 410 306)
6 752 833	( 530 518)	3 719 987	( 90 138)
( 20 928 852)	7 512 050	41 714 929	3 658 928
52 018 664	32 837 615	16 672 649	3 053 838
139 908 163	11 161 595	53 254 874	2 273 237
( 59 355 522)	( 7 389 985)	-	-
111 642 452	44 121 275	111 642 452	8 986 003

FMPtreasurysharesbuyback	-	-	2735	-	2909589	2912324	(2912324)	-
ReclassificationofNCItoput
optionliability	-	-	-	-	-	-	( 665584)	( 665584)
RemeasurementofPut
optionliability	-	-	1820023	-	-	1820023	-	1820023
Dividenddeclaredandpaid	-	-	-	-	( 739708)	( 739708)	-	( 739708)
Asat30June2022	1292762	25925742 12009724	26000516	38573429 77801657	68661136 146462794
Asat1January2023	1292762	25925742	(2099191)	26000516	89650558 140770387	96897781 237668168
Profitfortheyear	-	-	-	-	221693064	221693064	164683937	386377001
Othercomprehensive
income	-	-	(3635925)	-	-	(3635925)	1193078	(2442847)
Totalcomprehensive			(3635925)		221693064	218057139	165877015	383934154
income	-	-	-
Transactionswith
shareholdersintheir
capacityasowners
FMPredemptionofshares	-	-	-	-	-	-	11419	11419
FMPtreasurysharesbuyback	-	-	( 242)	-	( 2468)	( 2710)	2710	-
RemeasurementofPut
optionliability	-	-	(20094520)	-	-	(20094520)	-	(20094520)
Reclassificationtoputoption
liability	-	-	-	-	-	-	(13264826) (13264826)
Dividenddeclaredandpaid	-	-	-	-	( 858575)	( 858575)	(1453746) (2312321)
Asat30June2023	1292762	25925742 (25829878)	26000516 310482580 337871722 248070353 585942075
HISTORICALCOST		Share	Non-	IFRS17		Total	Non-
	Sharecapital	premium	distributable	Adoption	Retained	equity	controlling	Total
		reserves	reserves	reserve	profits	forparent	interest	equity
	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000
Asat1January2022	414347	8309533	2572469	-	14900761	26197110	20605493	46802603
ImpactofadoptingIFRS17	-	-	-	34271787	-	34271787	-	34271787
Restatedasat1January
2022	414347	8309533	2572469	34271787	14900761	60468897	20605493	81074390
Profitfortheyear	-	-	-	-	18809308	18809308	15230635	34039943
Othercomprehensive(loss)/
income	-	-	3720771	-	-	3720771	( 138481)	3582290
Totalcomprehensive
(loss)/income	-	-	3720771	-	18809308	22530079	15092154	37622233
Transactionswith
shareholdersintheir
capacityasowners
FMPredemptionofshares	-	-	-	-	-	-	518	518
FMPtreasuryshares	-	-	( 870)	-	593738	592868	( 592868)	-
ReclassificationofNCItoput
optionliability	-	-	-	-	-	-	( 404269)	( 404269)
RemeasurementofPut
optionliability	-	-	( 778002)	-	-	( 778002)	-	( 778002)
Dividenddeclaredandpaid	-	-	-	-	( 115003)	( 115003)	-	( 115003)
Asat30June2022	414347	8309533	5514368	34271787	34188804 48427052	34701028 83128080
Asat1January2023	54878	39417	2589976	34271787	34273565 71229623	28967822 100197445
Profitfortheyear	-	-	-	-	260028628	260028628	226639786	486668414
Othercomprehensive
income	-	-	(14688538)	-	-	(14688538)	( 118186)	(14806724)
Totalcomprehensive		- (14688538)		260028628	245340090	226521600	471861690
income	-	-
Transactionswith
shareholdersintheir
capacityasowners
FMPredemptionofshares	-	-	-	-	-	-	5347	5347
FMPtreasurysharesbuyback	-	-	12410	-	126382	138792	( 138792)	-
ReclassificationofNCItoput
optionliability	-	-	-	-	-	-	(10283660)	(10283660)
RemeasurementofPut
optionliability	-	-	(17735040)	-	-	(17735040)	-	(17735040)
Dividenddeclaredandpaid	-	-	-	-	( 311078)	( 311078)	( 569272)	( 880350)
ASAT30JUNE2023	54878	39417 (29821193)	34271787	294117496	298662385	244503047	543165432

The Group has adopted IFRS 17- Insurance contracts, a new accounting standard that became effective on 1 January 2023. The adoption of the new standard has resulted in new financial statement lines as presented in the primary financial statements. Prior year numbers have been restated in accordance with the new standard & provisions of IAS 8 from 1 January 2022.

The Group has adopted IFRS 17- Insurance contracts, a new accounting standard that became effective on 1 January 2023. The adoption of the new standard has resulted in new financial statement lines as presented in the primary financial statements. Prior year numbers have been restated in accordance with the new standard & provisions of IAS 8 from 1 January 2022.

NOTESTOTHEFINANCIALSTATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2023

1. Corporate information

The main business of First Mutual Holdings Limited ("the Company") and its subsidiaries (together the "Group") is that of provision of life and funeral assurance, health insurance, short term insurance, reinsurance, property management and development, wealth management, micro lending, funeral services and health services. First Mutual Holdings Limited is a public company, incorporated and domiciled in Zimbabwe whose shares are publicly traded on the Zimbabwe Stock Exchange. As at 13 September 2023, the Company's major shareholders were the National Social Security Authority ("NSSA") which owns 34.25% (2021: 65.53%) directly and an additional 5.33% (2021: 7.10%) indirectly through Capital Bank Limited (NSSA owns 84% (2021: 84%) of Capital Bank Limited) and CBZ Holdings Limited ("CBZHL") after acquiring 31.22% shares from NSSA in a transaction that was concluded on 6 September 2023. The registered office is located at Second Floor, First Mutual Park, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe. The consolidated historical and inflation adjusted financial statements of the Company and the Group for the period ended 30 June 2023 were authorised for issue in accordance with a resolution of the Directors at a meeting held on 13 September 2023.

1. Statement of compliance
   The Group's Abridged financial statements are an extract of the complete set of financial statements that have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting", as issued by the International Accounting Standards Board ("IASB"), International Financial Reporting Committee Interpretations ("IFRIC") as issued by the International Financial Reporting Interpretations Committee ("IFRS IC") and in a manner required by the Zimbabwe Companies and Other Business Entities Act (Chapter 24:31). The financial statements are based on statutory records that are maintained under the historical cost convention except for investment properties, equity securities at fair value through profit or loss and insurance and investment contract liabilities that have been measured on a fair value basis. For the purpose of fair presentation in accordance with IAS 29 "Financial Reporting in Hyperinflationary Economies", this historical cost information has been restated for changes in the general purchasing power of the Zimbabwe Dollar and appropriate adjustments and reclassifications have been made. Accordingly, the inflation adjusted financial statements represent the primary financial statements of the Group and Company and historical information is supplementary.
2. Accounting policies
   The accounting policies applied in the reviewed abridged financial results are consistent with the accounting policies in the prior year financial statements except for the adoption of IFRS 17 - Insurance contracts which are detailed below:

1. IFRS 17 - Insurance contracts and transitional provisions
   On 1 January 2023 the Group adopted International Financial Reporting Standard (IFRS) 17 - Insurance Contracts. IFRS 17 requires the Group to measure its insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to those insurance contracts. These requirements are intended to provide uniformity across the industry as well as provide more transparent reporting on the financial position and risk of insurance businesses.
   The Group is provided with various options of transition from IFRS 4 - Insurance contracts in reporting. Considering the various circumstances from both an operational and financial reporting perspective, the Group opted for the full retrospective transitional approach for all its insurance & reinsurance contracts with the exception of growth annuities to which the fair value approach has been applied. The date of such transition is 1 January 2022 for practical purposes. The fair value transitional approach has been applied to growth annuities carried under the Variable Fee Approach (VFA) due to impracticability in determining the Contractual Service Margin (CSM) IFRS 17 at the date of transition as required by IFRS 17 for the full retrospective approach.
2. Measurement models

1. Premium Allocation Approach (PAA)
   The majority of contracts issued by the Group are accounted for under the PAA measurement model, the eligibility criteria which has been met by the Group contracts for all of its short-term insurance contracts. The Group reasonably expects that such simplification (that is adoption of the PAA) will produce a measurement of the liability for remaining coverage (LRC) for the Group that would not differ materially from the one that would be produced by applying the requirements under other measurement models.
2. Variable Fee Approach (VFA)
   The Group accounts for annuity contracts issued by its Life business contracts under the VFA measurement model.

2.2.3 Future cashflows and estimates

1. Best estimates of future cash flows
   Best estimates of future cashflows refer to amounts expected to be collected from premiums and payouts for claims, benefits and expenses, and are projected using a range of scenarios and assumptions based on the Group's demographic and operating experience along with external mortality data where the Group's own experience data is not sufficiently large in size to be credible. The estimates of future cash flows are adjusted to reflect the effects of the time value of money and the financial risks to derive an expected present value.
2. Discount Rates
   The discount rate is defined as the financial adjustment that is made to the future cashflows in order to determine their present value. Under IFRS 17, the discount rate is primarily used to adjust the estimates of future cash flows to reflect the time value of money and to accrete interest on the CSM. A bottom-up approach is used to determine the discount rate to be applied to a given set of expected future cash flows. For the period ended 30 June 2023, the Group has determined the risk-free rate by making reference to corporate bonds with an estimated range of between 10% to 12% and they are based on observable market data in addition to their other characteristics such as:

1. Covering a longer duration period compared to other instruments in the market.
2. Traded regularly in the market.

1. Risk adjustment for non-financial risk
   The risk adjustment reflects the compensation required by the Group for bearing the uncertainty about the amount and timing of future cash flows (understated premiums and overstated claims) that arises from non-financial risk. The Group estimates these factors by reference to the business units' claims experiences. The Group does not disaggregate changes in the risk adjustment between insurance service result and insurance finance income or expenses as all adjustments are included in insurance service result through the election to present net finance costs/ income relating insurance and reinsurance contracts in the profit and loss.

DIRECTORS: A R T Manzai (Chairman), D Hoto* (Group Chief Executive Officer), W M Marere* (Group Finance Director) G Baines, F Mabena, M Mangoma, A Masiiwa, E Mkondo, E K Moyo, M Mukondomi, I P Z Ndlovu, S V Rushwaya (* EXECUTIVE DIRECTOR)	3
FIRST MUTUAL HOLDINGS LIMITED, First Mutual Park, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box BW 178, Borrowdale, Harare | Tel: [phone] - 17 | E-mail: [e-mail] | Website: www.firstmutual.co.zw

ADRENALIN

Preliminary Report - Abridged Financial Results

For The Period Ended 30 June 2023

NOTESTOTHEFINANCIALSTATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2023

For the period ended 30 June 2023, the following risk adjustments factors were adopted:

Business Unit	Direct Business/Reinsurance issued	Reinsurance/Retrocession held
NicozDiamond Insurance Limited	8%	11%
First Mutual Health	0.30%	n/a
FMRE P & C Botswana	11%	11%
First Mutual Reinsurance Zimbabwe	11%	11%
First Mutual Life	10%	11%

1. Contractual Service Margin (CSM)
   The CSM represents the future profit that the Group expects to earn from the portfolio of annuity contracts and is deferred to the Statement of Financial Position, effectively not resulting in income or expense at initial recognition. The CSM is remeasured and adjusted at each subsequent reporting period for changes in fulfilment cash flows relating to future service. The CSM is systematically recognized in insurance contract revenue to reflect the insurance contract services provided, based on the coverage units of the group of contracts.
2. Onerous Contracts
   An insurance contract is onerous at the date of initial recognition if the fulfilment cash flows allocated to the contract, any previously recognised insurance acquisition cash flows and any cash flows arising from the contract at the date of initial recognition in total are a net outflow and shall be immediately recognized on initial recognition in the Income Statement on day one.
3. Acquisition cashflows
   Acquisition cashflows represent commissions on insurance & reinsurance business from intermediaries, these are deferred over a period in which the related premiums are earned. Management has however made an accounting policy choice as per IFRS 17 to expense upfront such costs (instead of reduction in liability for remaining coverage) when the coverage period is one year or less.

2.3 Inflation adjusted

IAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of a measuring unit current at the statement of financial position date, and that corresponding figures for previous periods be stated in the same terms to the latest statement of financial position date. To comply with IAS 29 requirements the Group estimated the inflation rate for February 2023 to June 2023 by adjusting the last published consumer price index (January 2023) based on the monthly movement using the Total Consumption Poverty Line (TCPL). The resultant CPIs and their corresponding conversion factors are as follows:

Period	CPI	Conversion factor
30 June 2023	8,707	4.91
31 December 2022	13,673	3.20
30 June 2022	42,711	1.00

All items in the income statements are restated by applying the relevant monthly conversion factors.

2.3.1 CPI Estimation

1. Total Consumption Poverty Line (TCPL) data from ZIMSTAT has been considered to be appropriate for the purposes of estimating the movement in inflation for the period from February 2023 to June 2023 due to the following reasons:

   • There is correlation rate of 99% between TCPL and the previously published Consumer Price Indices (CPIs) based on a research carried out by the Institute of Chartered Accountants of Zimbabwe
   • Using The TCPL data as estimation of movement in inflation allows for comparability of the Group's financial results with the rest of the market.
2. Functional and presentation currency
   Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The financial statements are presented in the ZWL which is the Company and the Group's functional and presentation currency.
3. Audit review
   The audit review of the Group is incomplete pending the finalisation of the Insurance and Pension Commission forensic investigation currently underway at one of the Group's significant subsidiaries, First Mutual Life Assurance Company.

		INFLATIONADJUSTED	HISTORICALCOST	INFLATIONADJUSTED	HISTORICALCOST
		UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED
		GROUP		GROUP	GROUP	GROUP	COMPANY	COMPANY	COMPANY	COMPANY
		30-Jun-23		31-Dec-22	30-Jun-23	31-Dec-22	30-Jun-23	31-Dec-22	30-Jun-23	31-Dec-22
		ZWL000		ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000
5	Property, vehicles and
	equipment
	At 1 January	7 325 745		5 146 212	708 321	140 853	66 756	72 737	2 861	2 210
	Additions	4 631 667		3 459 562	1 819 908	610 928	46 330	3 460	17 839	747
	Disposals	( 19 808)		( 19 478)	( 3 042)	( 887)	-	-	-	-
	Depreciation charge
	and disposal	( 1 121 376)		( 1 260 551)	( 119 533)	( 42 573)	( 35 256)	( 9 441)	( 2 142)	( 96)
	Closing balance	10 816 229		7 325 745	2 405 654	708 321	77830	66 756	18 558	2 861
6	Investment property
	At 1 January	347 676 985		241 562 593	111 434 931	22 506 950	3 684 096	-	1 180 800	-
	Additions	122 248		468 821	44 308	82 790	-	5 261 558	-	1 074 138
	Disposal or transfer to
	Subsidiaries	-		( 679 255)	-	( 160 028)	( 2 717 155)	( 916 531)	( 1 305 500)	( 272 000)
	Transfer to Non-current
	asset held for sale	-		( 119 808)	-	( 38 400)	-	-	-	-
	Fair value adjustments	510 342 668		106 444 634	746 662 662	89 043 619	4 843 059	( 660 931)	5 934 700	378 662
	Closing balance	858 141 901	347 676 985 858 141 901 111 434 931	5 810 000	3 684 096	5 810 000	1180800
	The Group's fair values of its investment properties are based on valuations performed by Knight Frank Zimbabwe an accredited independent valuer.
	Knight Frank is a specialist in valuing these types of investment properties and has recent experience in the location and category of the investment
	properties being valued. The valuations are based upon assumptions on future rental income, anticipated maintenance costs, future development
	costs and the appropriate discount rate. Where the market information is available, the valuers make use of market information from transactions of
	similar properties . Significant judgements were applied as at 30 June 2023 as a result of the uncertainties resulting from the hyperinflationary economic
	environment, currency shifts, excessive market volatility and lack of recent transactions conducted in ZWL.
7	Leases
	Right of use of assets
	As at 1 January	149 100		149 903	47 789	13 967	1 085 460	625 614	102 449	23 124
	Additions	-		220 609	-	38 957		-
	Modification	-		-	-	-	-	705 276	-	102 489
	Depreciation charge for
	the year	( 441 749)		( 96 365)	( 173 575)	( 17 017)	( 161 749)	( 245 430)	( 15 266)	( 23 164)
	Exchange rate effects	667 151		( 125 047)	500 290	11 882	-	-	-	-
	Closing balance	374 503		149 100	374 503	47 789	923 711	1 085 460	87183	102 449
	Lease liability
	Current	194 565		5 343	194 565	1 713	456 789	13 399	456 789	4 295
	Non-current	1 021 697		382 735	1 021 697	122 671	1 790 040	783 206	1 790 040	251 027
	Closing balance	1 216 262		388078	1 216 262	124 384	2 246 829	796 605	2 246 829	255 322

NOTESTOTHEFINANCIALSTATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2023

	INFLATIONADJUSTED	HISTORICALCOST	INFLATIONADJUSTED	HISTORICALCOST
	UNAUDITED	UNAUDITED	UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED
	GROUP	GROUP	GROUP	GROUP	COMPANY	COMPANY	COMPANY	COMPANY
	30-Jun-2331-Dec-22	30-Jun-2331-Dec-22	30-Jun-2331-Dec-22	30-Jun-2331-Dec-22
	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000	ZWL000
8 Investmentin
subsidiaries
First Mutual
Microfinance (Private)
Limited	-	-	-	-	2 689 100	492 520	2 609 524	104 603
First Mutual Life
Assurance Company
(Private) Limited	-	-	-	-	164 162 490	59 383 603	151 988 363	18 206 148
First Mutual Health
Company (Private)
Limited	-	-	-	-	48 590 074	15 701 100	37 922 776	4 427 245
First Mutual Reinsurance
Company (Private)
Limited	-	-	-	-	22 685 673	2 709 324	25 393 860	927 000
FMRE Property &
Casualty (Proprietary)
Limited	-	-	-	-	20 120 680	6 066 709	3 179 443	1 944 458
First Mutual Wealth
Management (Private)
Limited	-	-	-	-	3 235 901	722 308	3 173 941	213 764
NicozDiamond
Insurance Limited	-	-	-	-	68 473 439	21 167 665	29 375 818	6 000 892
Total	-	-	-	-	329 957 358	106 243 229	253 643 725	31 824 110

9 Financial assets at fair value through profit orloss

At 1 January	55 139 158	65 830 730	17 672 807	6 133 603	1 666 500	3 335 448	534 135	310 771
Purchases	25 655 809	13 264 459	9 765 669	2 342 385	39 236	6 109	15 156	1 349
Disposals	( 3 858 729)	( 899 065)	( 1 516 200)	( 158 767)	( 6 104)	( 148 353)	( 4 934)	( 23 605)
Fair value gain on
unquoted investments	15 434 517	953 821	25 236 106	2 066 947	-	-	-	-
Fair value gain on
quoted equities	89 258 495	( 24 010 786)	130 470 866	7 288 639	3 559 327	( 1 526 704)	4 714 602	245 620
Closing balance	181 629 249	55 139 158	181 629 249	17 672 807	5 258 959	1 666 500	5 258 959	534 135
10 Debt securities at
amortised cost
At 1 January	7 844 821	2 003 341	2 514 366	186 656	168 237	253 672	53 922	23 635
Purchases	57 852 958	13 735 689	35 276 194	2 425 600	1 141 232	130 010	566 837	37 540
Maturities	( 97 385)	( 554 334)	( 38 265)	( 97 891)	( 94 979)	( 42 750)	( 37 320)	( 7 253)
Monetary gain/ loss
adjustment	( 27 848 099)	( 7 339 875)			( 631 050)	( 172 695)	-	-
Closing balance	37 752 294	7 844 821	37 752 294	2 514 366	583 439	168 237	583 439	53 922

11	Net Reinsurance
	contract assets
	Reinsurance contract
	assests	154 493 207	147 530 890	154 493 207	46 062 987	-	-	-	-
	Reinsurance contract
	Liabilities	( 36 769 536)	( 35 003 383)	( 44 137 251)	( 8 095 676)	-	-	-	-
	Net reinsurance
	contract assets	117 723 671	112 527 507	110 355 956	37 967 311	-	-	-	-
12	Tenant and other
	receivables
	Tenant receivables	3 765 510	1 540 785	3 765 510	493 841	10 107	-	10 107	-
	Amounts due from
	Group companies	-	-	-	-	213 860	368 941	213 860	118 250
	Other receivables	16 990 014	12 186 695	15 223 650	3 793 940	1 109 729	398 881	1 109 729	127 847
	Total	20 755 524	13 727 480	18 989 160	4 287 781	1 333 696	767 822	1 333 696	246 097
13	Cash and balances
	with banks
	Money market
	investments with
	original maturities less
	than 90 days	25 449 000	27 248 545	25 449 000	8 733 508	1 025 832	121 582	1 025 832	38 969
	Cash at bank and on
	hand	86 193 452	24 770 119	86 193 452	7 939 141	942 942	271 605	942 942	87 053
	Cash and balances
	with banks	111 642 452	52 018 664	111 642 452	16 672 649	1 968 774	393 187	1 968 774	126 022

14 Investment contract liabilities without DPF

At 1 January	10 110 043	18 024 541	3 240 398	1 679 388	-	-	-	-
Movement for the
period	13 053 462	( 7 914 498)	19 923 107	1 561 010	-	-	-	-
Closing balance	23 163 505	10110043	23 163 505	3 240 398	-	-	-	-

15 Shareholder risk reserve

At 1 January	950 834	-	304 754	-	-	-	-	-
Movement	1 970 821	950 834	2 616 901	304 754	-	-	-	-
Closing balance	2 921 655	950 834	2 921 655	304 754	-	-	-	-

DIRECTORS: A R T Manzai (Chairman), D Hoto* (Group Chief Executive Officer), W M Marere* (Group Finance Director) G Baines, F Mabena, M Mangoma, A Masiiwa, E Mkondo, E K Moyo, M Mukondomi, I P Z Ndlovu, S V Rushwaya (* EXECUTIVE DIRECTOR)	4
FIRST MUTUAL HOLDINGS LIMITED, First Mutual Park, 100 Borrowdale Road, Borrowdale, Harare, Zimbabwe | P O Box BW 178, Borrowdale, Harare | Tel: [phone] - 17 | E-mail: [e-mail] | Website: www.firstmutual.co.zw