BRITAM INVESTOR BRIEFING PRESENTATION HALF YEAR 2014 GROUP FINANCIAL RESULTS Content 1. Group Overview

2. Asset Management Business performance

3. Insurance0.6 Business performance 2.6%

4. Group1.0% Financial performance 1.0%

5. Wrap up 1.0%

2 Welcome to Britam

Britam is a leading diversified financial services group, listed on the Securities Exchange. The group has interests across the East African region and offers a wide range of financial products and services in Insurance, Asset Management, Banking and Property. The product range includes; • life • health • general insurance • pensions • unit trusts • investment planning • wealth management • off-shore investments • retirement planning • discretionary portfolio management • property development • private equity. Our Group Structure

Britam

Asset Insurance Banking Property Management

Britam Britam Britam Britam Britam Housing Bramer Real Britam Equity Bank Kenya S. Sudan Kenya Uganda Finance Properties Ltd Insurance 10.1% 99% 100% 100% 100% 100% 100% 100% 21.46% 100%

Real Real Real Real Insurance Insurance Insurance Insurance Acorn Group Tanzania Kenya Ltd 55% 100% 65% 99% 25%

Our Journey so far: 1965-1995 49 years of achieving and sustaining excellence Our Journey so far: 2004-2010 49 years of achieving and sustaining excellence Our Journey so far: 2011-2014 49 years of achieving and sustaining excellence Our Footprint

9 Strategy Focus areas

Local expansion

IT enabled STRATEGY business Regional FOCUS expansion transformation AREAS

Property Development

10 Our Business Leaders

Dr. Benson I. Wairegi EBS •Group Managing Director Edwin H. Dande Stephen O. Wandera •Managing Director, Asset Management •Regional Director, Insurance

Reuben Kibiru Allan Mafabi •Chief Executive Officer, Britam Rwanda •Chief Executive Officer, Britam Uganda John K. Githinji •Chief Executive Officer, Britam

Charles Muyodi Kennedy Aosa •General Manager, Bancassurance& Ambrose Dabani •General Manager Insurance Microinsurance •General Manager, Life & Pension 11 Corporate Leadership

Gladys M. Karuri Muthoga Ngera Nancy K. Kiruki, •Director, Legal & Human Resources and Company •Group Finance & Strategy Director •Director, Marketing & Corporate Affairs Secretary

Carol Misiko Steve Magati Jack W. Maina •Group Risk & Compliance Manager •Group Internal Audit Manager •Group Chief Information Officer

“experienced, dynamic and cohesive leadership team and staff” 12 Asset Management business performance Asset Management to Drive Growth

Existing / Traditional New / Alternative & Actively Products to be 20% of revs Portfolio Managed Products to be 80% by 2016 Management of revs by 2016

Property – Offshore and Public Markets Property Fund Private Equity Regional & LLP for HNW Markets

Other Products Active •Advisory Strategies Equity Fixed Income •Diaspora Services (CMS, Active Portfolio, etc) GROWTH IN AUM There has been steady growth in AUM – currently managing KES 49 Bn

2011

49.0

2012

36.3

201 28.1 3 20.4

17.3 Figures in KES (Billions) in KES Figures 8.5

Dec - 09 Dec - 10 Dec - 11 Dec - 12 Dec - 13 Aug - 14

15 REVENUE GROWTH Asset Management revenues grew by 65% from June 2013

2011

Second Half Total 630 2012

First Half Total

201 377 3

238

Figures Figures in (Millions) KES 196 440.0

118 267.0 159.0 120.0 55.0 82.0

2009 2010 2011 2012 2013 Jun-14 16 PROFITABILITY GROWTH Asset Management PBT grew by 22% from June 2013

2011

Second Half Total 243

2012First Half Total

116 201 3 153.0 44 125.0

Figures in KES (Millions) in Figures KES 24 56.0 30.0 (23.0) 1.0

(43)

2009 2010 2011 2012 2013 Jun-14

17

Britam Asset Management Company has continued to grow and it has enhanced its operating platform. The product base has been expanded and the company launched new products in 2014.

The company will continue to ensure that the customers’ returns are maximized while ensuring excellent customer service.

Insurance business performance Overall Insurance revenues growth rate at 27% from 4.4b in 2013 to 4.4b in 2014

Insurance Business Revenues 5.6 billion – 93% of total revenue

Kenyan Business 89% of Regional Business 4% Revenues at 5.3b Revenues 263m (June 2013:118 million)

General Business Life Business 36% : 2.2b 53%: 3.1b Britam Britam Britam Uganda S.S Rwanda 2%: 2%: 0%: 125m 116m 22m

Medic Other Ordinary Group Unit al GB Life Life Linked DA: 7%: 29%: 40% 13% :525m 1.1b 430m 1.8b 2.4b 747m 20 Insurance Earned Revenue grew by 25%

0.6 Kenya 2.6%

1.0% 1.0%

Tanzania 1.0%

21 Insurance Business profitability grew by 27%

Second Half First Half

0.6 2,442 Kenya 2.6%

1.0% 1.0% 1,456

Figures inMillion 1,022 1,089

1,563 Tanzania 1.0% 1,230 760 763 784

2010 2011 2012 2013 2014

22 Insurance growth drivers • Ordinary life revenues grew by 27% from Shs 1.9b to Shs 2.4b • Microinsurance & Bancassurance grew by 58% from Shs 686m to Shs 1082m • General Insurance conventional products grew by 30% from Shs 641m to Shs 835m • Britam Uganda revenues grew by 63% • South Sudan revenues grew by 183% Embedded Value Long-Term Business 2014 2013 Increase

KShs 000s KShs 000s (%) *Adjusted Net worth : 7,924,623 5,904,972 34% Present Value of Inforce : 4, 316,448 3, 542,781 22% Cost of Required Capital : (316,894) (285, 280) 11% Cost of Restriction on Surplus : (2, 538, 318) (1,865,566) 36 % *Embedded Value : 9,385, 859 7,296,907 28.6%

24 Group Financial Performance Revenues grew by 29%, PBT by 32 %%

Shs’ million June 2014 June 2013 % change Gross Revenue 6,025 4,669 29% Earned Income 5,441 4,092 33% Investment income 4,648 3,745 24% Other Income 154 150 3% 0.6 Total Income Kenya 2.6% 10,243 7,986 28%

Net Claims payable1.0% (3,599) (2,497) 44% 1.0% Interest/unit gain (861) (1,178) -27% Commission payable (1,094) (888) 23% Tanzania 1.0% Operating expenses (1,833) (1,229) 49% Associate’s Profit share 153 86 77% Profit before tax 3,010 2,280 32% Profit after tax 2,746 2,158 27% Comp. Income 6,066 3,677 65% Steady Revenue Growth for the past 5 Years

Revenue Grew by 29% from June 2013

9,461 Second half First half

7,227 0.6 Kenya 2.6% 5,846

1.0%

4,5291.0% Figures inMillions

Tanzania 1.0% 6,025 4,669 3,509 2,116 2,704

2010 2011 2012 2013 2014 Revenue Growth by 29%

• 22% Growth in Life business revenue (From Shs 2,592 million in June 2013 to Shs 3,158 million in June 2014) 0.6 • 29% GrowthKenya in2.6% general business revenue (From Shs 1,692 million in June 2013 to Shs 2,190 million in June 2014) 1.0% 1.0% • 54% Growth in Asset management revenue (From Shs 268 million in June 2013 to Shs 414 million in June 2014) Tanzania 1.0%

Group Performance Group Balance Sheet

Shs’ million % June 2014 June 2013 change

Share capital/share premium 3,353 3,353 0 Other reserves 13,643 8,094 69 Retained earnings0.6 5,531 5,059 9 Kenya 2.6% Shareholders’ Funds 22,527 16,506 36 1.0% Total assets1.0% 55,150 42,973 28

Total liabilities (32,623) (26,467) 23 Tanzania 1.0% Net Assets 22,527 16,506 36

29 Total Assets YTD at Shs 55.1b – 28% growth in 2014

55,150

46,903

35,820

25,632 25,639 Figures inMillions

2010 2011 2012 2013 June 2014

30 Key Group Numbers

June 2014 June 2013 % Increase ROE for OCI 36% 29% 6% ROE for PAT 16% 17% -1% Total Assets 55,151M 42,973M 28% AUM 41,476M 32,677M 27%

Investment in property has grown to 9% of our total asset portfolio from 4% in June 2013

32% Quoted ordinary shares 35%

Jun-13 31% Fixed income assets 28%

Jun-14 17% Unit trusts 13%

13% • We continue to invest Other assets 10% towards a Diversified and Optimal Asset 4% Investment property & Property fund 9% Portfolio • Increase our property 4% Investment in associates 4% portfolio to between 20% & 30%

• The equities portfolio grew due to rise in share prices of the equities in the portfolio

32 WRAP UP OUR CSR ACTIVITIES

1.0% “ As we grow our business, we continue to engage communities in line with our corporate conviction to transform lives.

34 Our Community Initiatives

Britam donated Ksh 600,000 to • Britam donated Kshs 10 million to Anglican Church of Kenya, to support support the “Beyond Zero Campaign” a marathon by the Diocesan Synod of Nairobi.

Britam presented bags to children who had participated in the annual National Britam donated assorted furniture to Environmental Competition, 2014 to Kigumo Girls School mark the world environmental day. Our Accolades

• CEO Of the Year 2013 – COYA • Dr. Benson Wairegi receives Honorary Degree from

Best Life Insurance Company in Kenya 2013- World Finance

• Medical Underwriter of the Year • Lifetime Achievement Award, Dr. Benson Wairegi

Fund manager of the year Unit trust of the year THANK YOU