investment case sustainable value creation

Insurance Financial Planning Retirement Investments Wealth agenda

Overview

Strategic positioning

Strategic delivery

Financial performance – 2014 interim results

Page 2 overview

Leading financial services group in Africa, with presence in India and SE Asia.

Established in 1918, listed in 1998 on the JSE & Namibian Stock Exchange

2 166 million issued shares, 494 000 shareholders

Market Cap of > R100bn

JSE/ALSI40 stock with > 80% free-float

Average daily trading stats 4 - 5 million shares per day >50% of shares trade p.a.

Institutional shareholding of 86%, 32% offshore shareholding

Page 3 operational structure

Sanlam Group

Group Office

100% 100% 100% 60% Sanlam100 Personal Sanlam100 Emerging Sanlam100 60% Santam %Finance %Markets Investments%

SA Retail: long-term Emerging markets ex- SA & Developed General insurance in insurance, investment SA: long-term markets: investment SA & co-investor in & other financial insurance, general management, wealth SEM general insurance services insurance, management, businesses investments, credit & employee benefits banking

Page 4 strategic positioning

focus on growth markets strategic focus remains unchanged maximise shareholder return

Net Business Flows

Diversification

Growth / Efficiency

Operational Operational Efficiency Returns (ROGEV) Optimal Application

Strategic Investments Capital Capital

Efficiency Return of Excess

Page 6 core strategic objectives

progress in all areas during 2014, particularly growth markets Effective capital Effectivecapital management

South Africa Maximising return on Investment in existing business Delivery of sustainable growth Efficient and effective management

International Sourcing new growth opportunities Creating a platform for future growth Identification of core markets for growth & expansion

Page 7 five strategic pillars underpinning the Group business model

Improving performance through top-line growth Increasing market share in key segments Diversifying the base (including geographical presence, products, market segments and distribution platforms)

Improved operating and cost efficiencies (including quality)

Prioritising Sanlam’s international positioning (diversification)

Improving capital-efficiency on an on-going basis

Embracing and accelerating transformation of the Group

Page 8 the growth opportunity growth markets in

50% 47% 45%

40% 36% 35%

30% 25% 25% 22% 22% 20% 17%

% of populationof % 16% 15% 15%

10%

5%

0% 2006 2013

LSM 1-4 LSM 5 LSM 6-7 LSM 8-10

Page 9 the growth opportunity life insurance penetration in Africa

11.4%

5.4%

% GDP % of Global average: 3.7%

1.9% BRIC average: 1.9% 0.9% 1.1% 0.5% 0.4% 0.1% 0.2% 0.1% South Africa Ghana Nigeria

Source: Swiss Re and AXCO

Page 10 strategic delivery consistency and prudence top-line earnings growth financial performance in 1H2014

Earnings per share Net operating profit per share increased by 43% Normalised headline earnings per share up 27%

Business volumes New business volumes increased by 8% to R82bn (excl white label) Net fund inflows of R19bn (excl white label), up 40% Net life VNB up 7% to R626m Net VNB margin of 2,68% – maintained on per product basis Group Equity Value of 4 277 cents per share Annualised RoGEV per share of 18% (15,3% adjusted)

Page 12 operational efficiencies profitable volume growth

Gross VNB grew by 9%; 13% on comparable economic basis

800 3.2%

700 2.7%

600 2.2% 500 1.7% 400 1.2% 300 0.7% 200

100 0.2%

0 -0.3% 1H06 1H07 1H08 1H09 1H10 1H11 1H12 1H13 1H14

South Africa Africa Other International Margins - rhs

Page 13 operational efficiencies focus on quality

Persistency – SA middle-income market Lapses, surrenders & fully paid-ups as % of in-force per half year

5% 4.8%

4.2% 4.2% 3.9%4.0%3.9% 3.9% 4% 3.8% 3.8% 3.6%3.7% 3.6% 3.4% 3.4% 3.0%2.9%2.9% 2.9% 2.9%2.9% 3% 2.8% 2.7%2.8%

2%

1%

0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

H1 H2

Page 14 operational efficiencies focus on quality

Persistency – SA lower income market Number of NTUs, lapses and surrenders as % of in-force 30% 27.6%

25%

20% 17.5% 16.8% 15.2% 15% 14.1% 14.5% 12.7% 12.7% 11.4%11.1% 11.1% 11.0% 11.3% 10.4% 10.0% 10%

5%

0% 2007 2008 2009 2010 2011 2012 2013 2014

H1 H2

Page 15 operational efficiencies experience variances

Focus on quality, costs + prudence = consistent positive experience 1 200 5.0%

1 021 4.5% 1 000 4.0%

3.5% 800 681 3.0% 636 600 555 2.5% 468 477 2.0% 400 1.5% 277 288 278 241 1.0% 200 142 138 0.5%

0 0.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H14

R'million % of VIF (rhs)

Page 16 investment performance focus on long-term performance track record

Percentage of SIM’s AUM to exceed benchmark 100% 100%

90% 90%

80% 80%

70% 70%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0% Rolling 3 Yr Rolling 5 Yr

2011 2012 2013 1H14 2011 2012 2013 1H14

Page 17 capital efficiency optimising capital base

Optimising capital allocated to clusters - driving increased returns

Discretionary capital invested in growth markets as preference

Return to shareholders if not utilised in reasonable timeframe

Prudent approach while awaiting final SAM specifications

Discretionary capital earmarked mainly for Africa, India and SE Asia

Page 18 capital efficiency capital redeployed since 2005

35 000

30 000

25 000

20 000

15 000

Discretionary capital 10 000 South Africa Developed markets 5 000 Emerging markets Share buy back/special dividend - Capital released Capital deployed

Page 19 capital efficiency composition of GEV transformed since 2005

100 000

90 000

80 000

70 000

60 000

50 000

40 000 Discretionary capital 30 000 Other capital 20 000 Non-life operations Value of in-force 10 000 Life Required Capital - GEV 2005 GEV Jun 2014

Page 20 diversification international positioning

RSA based

Rest of Africa

Botswana Ghana Kenya Malawi South-East Asia Namibia India Nigeria Malaysia Philippines Swaziland Developed markets Tanzania UK / Ireland Developed Markets The Gambia Switzerland Uganda Australia Emerging Markets - Direct presence Zambia USA Emerging Markets - Indirect presence

Page 21 diversification geographic profile

Life insurance General insurance Country – direct stake Main brand Effective interest market share market share South Africa Sanlam/Santam 100%/60% 23% >22% Botswana Botswana Insurance Holdings 60% 82% 3% Namibia Sanlam Namibia 58% - 100% 17% 28% Zambia African Life Zambia 70% 33% 12% Tanzania African Life Tanzania 64% 48% 4% Kenya Pan Africa Life 56% 13% - Malawi NICO Holdings 25% 48% 38% Uganda Sanlam Uganda 100% 13% 2% Ghana Enterprise Life Assurance 49% 23% - Nigeria FBN Life 35% 2% 1% Rwanda Soras Group 63% 35% 37% India Shriram Capital 20% - 26% 0.2% 2% Malaysia Pacific & Orient 49% - 4% Malaysia MCIS Insurance 51% 3% - Developed markets Various 33% - 100% <1% -

Page 22 diversification product mix

COUNTRY LIFE ASSURANCE SHORT-TERM INSURANCE ASSET MANAGEMENT CREDIT BANKING OTHER

Botswana Botswana Life BIHL SURE Botswana Insurance Fund Management Letshego Bank

Ghana Enterprise Life ●

India Shriram Life Shriram General STFC, SCUF ●

Kenya Pan Africa Life Pan Africa Asset Management Letshego ●

Lesotho Letshego

Malawi NICO Life NICO General Insurance NICO Asset Management NBS Bank ●

Malaysia MCIS Insurance Pacific & Orient

Mozambique NICO Vida Letshego

Namibia Sanlam Life Santam Sanlam Investment Management Letshego Bank Windhoek ●

Nigeria FBN Life Oasis Insurance

Philippines Monarch

Rwanda Soras VIE Soras AG Letshego

Tanzania African Life Assurance NIKO Insurance Letshego

The Gambia Enterprise Life

Uganda Sanlam Life NIKO Insurance Letshego ●

Letshego Zambia African Life Assurance NICO Insurance African Life Financial Services Cavmont ●

Direct presence Indirect presence via associated company l Holding Co., Properties, Employee Benefits, Funeral

Page 23 diversification diversified earnings base

Group Equity Value Net operating profit

Admin, health & other Admin, health & other 8% 3% Credit & banking Credit & banking 14% 8%

Investment Investment management management 14% 13%

Short-term Short-term insurance* Life business insurance* Life business 17% 53% 13% 57%

* General insurance

Page 24 diversification growth markets delivering value

Net VNB – 1H03 (R100m) Net VNB – 1H14 (R626m)

Other international Rest of Africa 3% Namibia 8% 2% Botswana 8%

Namibia 4%

SA Traditional SA Entry-level 98% 22%

SA Traditional 55%

Page 25 diversification increasing contribution from growth markets

Contribution to group net operating profit

1H03 – R756 million 1H13 – R2 409 million 1H14 – R3 461 million

Other international 6% India/Malaysia Other International 7% India/Malaysia 6% Rest of Africa Namibia Other international 7% 1% 1% Rest of Africa 1% Botswana 2% Botswana 5% 4% Namibia Namibia 5% 5%

SA Entry-level 11% SA Entry-level 11% SA Traditional 98% SA Traditional 65%

SA Traditional 65%

Page 26 diversification contribution from businesses outside of South Africa

Net operating profit Net VNB Group Equity Value

82% 81% 76% 76% 77% 77%

20% 18% 18% 16% 14% 13% 6% 6% 7% 6% 3% 4%

1H14 1H13 1H14 1H13 1H14 1H13

South Africa Other emerging markets Developed markets

Page 27 diversification competitive advantage

Largest exposure to ex-SA emerging markets of South African insurers

Diversified operations shield Group earnings from difficult operating environment in specific countries

Expanding SA entry-level footprint

Strengthening relationships in Africa

Shriram Capital – unique business model in India

Expansion into South-East Asia – synergies and organic growth

Page 28 sanlam group financial performance – 2014 interim results operating environment

Challenging operating conditions Slow growth in global demand Weak economic growth in SA Industrial action, in particular platinum mines SA consumer under pressure

SA economy Growth Interest rates Equity markets Currencies

Africa/India/Malaysia

Page 30 rest of africa/india/malaysia

Botswana Resilient economy and consumer base

Rest of Africa GDP growth prospects exceed SA, despite slow growth in global demand Ghana economy struggling; devaluation of currency

India Below-trend economic growth Buoyant equity market Positive environment post elections

Malaysia Growth prospects remain in place

Page 31 salient features

2014 2013  Group Equity Value* cps 4 277 4 121 4% Annualised RoGEV per share % 18,0 14,3 Annualised RoGEV per share (adjusted) % 15,3 15,1 CAR cover (Sanlam Life)* 4,4 4,5 Net operating profit R mil 3 461 2 409 44% cps 169,2 118,1 43% Normalised Headline earnings R mil 4 393 3 449 27% cps 214,8 169,1 27% New business volumes + R mil 81 833 75 796 8% Net fund flows + R mil 19 222 13 746 40% New Life business EV (net) R mil 626 587 7% New Life EV margin % 2,68 2,83 * Comparative information as at 31 December 2013 + Excludes white label

Page 32 business flows

Gross Net R million 2014 2013  2014 2013 by business Personal Finance 23 662 19 239 23% 8 087 6 564 Emerging Markets 4 030 5 933 -32% 1 762 607 Sanlam Investments 45 682 42 528 7% 6 362 4 194 Santam 8 459 8 096 4% 3 011 2 381 by licence Life insurance 17 536 14 956 17% 6 137 5 159 Investment 55 251 52 436 5% 9 979 6 160 Short-term 9 046 8 404 8% 3 106 2 427 Total 81 833 75 796 8% 19 222 13 746

* Excludes white label

Page 33 value of new covered business

Value of New Business Margin R million 2014 2013  2014 2013

Personal Finance 437 450 -3% 2,73% 3,07%

Emerging Markets 196 136 44% 7,30% 6,52%

Employee Benefits 42 30 40% 2,30% 1,45%

Sanlam UK 22 23 -4% 0,59% 0,87%

Total 697 639 9% 2,88% 2,98%

Net of minorities 626 587 7% 2,68% 2,83%

Comparable economic basis 650 587 11% 2,77% 2,83%

Page 34 net operating profit

R million 2014 2013 

Personal Finance 1 763 1 409 25%

Emerging Markets 624 391 60%

Sanlam Investments 727 523 39%

Santam 353 128 176%

Corporate & other (6) (42) 86%

Total 3 461 2 409 44%

Page 35 income statement

R million 2014 2013  Net operating profit 3 461 2 409 44% Per share 169,2 118,1 43% Net investment return 1 122 1 150 -2% Other (190) (110) -73% Normalised headline earnings 4 393 3 449 27% Per share 214,8 169,1 27% Fund transfers 54 25 Headline earnings 4 447 3 474 28% Per share 220,2 171,4 28%

Page 36 group equity value

Equity Value* RoGEV+ R million 2014 2013 Rm %

Group operations 82 446 76 470 7 282 9,5% Personal Finance 36 976 35 666 3 107 8,7% Emerging Markets 12 967 10 189 1 258 12,3% Investments 19 267 17 971 2 031 11,2% Santam 13 236 12 644 886 7,0% Discretionary & Other 5 142 7 939 6 0,1% TOTAL 87 588 84 409 7 288 8,6% cps 4 277 4 121 356 8,6% Adjusted return 7,4% Return target 5,9% * Comparative information as at 31 December 2013 + Return for six months

Page 37 group equity value earnings

R million Actual Adjusted Net value of new business 626 626 Existing business 2 260 2 260 Expected return on VIF 1 659 1 659 Operating experience variance 477 477 Operating assumption changes 124 124 2 886 2 886 Inv variances in-force 497 (497) - Tax changes (3) 3 - Economic assumption changes (200) 200 - 3 180 (294) 2 886 Return on net worth 765 (189) 576 EV earnings 3 945 (483) 3 462 Non-life 3 343 (578) 2 765 GEV earnings 7 288 (1 061) 6 227

Page 38 group equity value out perform growth target of long-bond rate + 400bp

25

20

9.8 4.8 15 3.1 5.8 5.5 3.3 6.2

10

13.1 13.4 12.4 12.2 12.2 12.4 5 10.8

0 2009 2010 2011 2012 2013 2014 Avg

Target Outperformance

Page 39 group equity value (adjusted return) out perform growth target of long-bond rate + 400bp

25

20

15 2.6 2.4 2.8 3.1 2.5 3.8

10

13.1 13.4 12.4 12.2 12.2 12.4 5 10.8

0 2009 2010 2011 2012 2013 2014 Avg

Target Outperformance

Page 40 rogev versus target

Out perform cumulative growth target of long-bond rate + 400bps since listing 1200

1000

800

600

400

200

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Target Cost of Capital (RFR + 300bps) Actual

Page 41 Sanlam group cluster results for 1H2014 sanlam personal finance

R million 2014 2013 

New business flows 23 662 19 239 23% Sanlam Sky 474 503 -6% Individual Life 5 821 5 368 8% Glacier 17 367 13 368 30%

Net flows 8 087 6 564 Sanlam Sky 1 307 1 410 Individual Life (859) (701) Glacier 7 639 5 855

Page 43 sanlam personal finance

R million 2014 2013 

Value of new life business 437 450 -3% Sanlam Sky 135 146 -8% Individual Life 228 240 -5% Glacier 74 64 16% Comparable economic basis 467 450 4%

New business margin 2,73% 3,07% Sanlam Sky 7,62% 7,46% Individual Life 2,59% 2,89% Glacier 1,37% 1,45% Comparable economic basis 2,89% 3,07%

Page 44 sanlam personal finance

R million 2014 2013 

Gross operating profit 2 439 1 941 26% Sanlam Sky 518 360 44% Individual Life life and investments 1 571 1 267 24% Glacier 171 122 40% Personal loans 148 157 -6% Other 31 35 -11% Net operating profit 1 763 1 409 25% Group Equity Value* 36 976 35 666 RoGEV (six months) 8,7% 6,8%

* Comparative information as at 31 December 2013ite label

Page 45 sanlam emerging markets

R million 2014 2013  New business flows 4 030 5 933 -32% Namibia 1 541 4 263 -64% Botswana 1 137 871 31% Rest of Africa 827 436 90% India/Malaysia 525 363 45% Net fund flows 1 762 607 Namibia 343 (419) Botswana 478 460 Rest of Africa 814 530 India/Malaysia 127 36 Value of new life business 196 136 44% Margin 7,30% 6,52%

Page 46 sanlam emerging markets

R million 2014 2013 

Gross operating profit 1 129 697 62% Namibia 254 112 127% Botswana 348 276 26% Rest of Africa 108 76 42% India/Malaysia 432 244 77% Corporate (13) (11) -18% Net operating profit 624 391 60% Group equity value* 12 967 10 189 RoGEV (six months) 12,3% 22,0%

* Comparative information as at 31 December 2013

Page 47 sanlam investments

R million 2014 2013 

Net investment business flows 4 871 2 959 Investment management SA 3 883 (810) Wealth management (457) 2 457 International 1 346 1 312 Capital management 99 - New life business 4 389 3 644 20% Employee benefits 952 1 157 -18% Sanlam UK 3 437 2 487 38% Net life business 1 491 1 235 Value of new life business 64 53 21% Margin 1,16% 1,13%

Page 48 sanlam investments

R million 2014 2013 

Gross operating profit 982 687 43% Investment management 605 451 34% Employee benefits 216 174 24% Capital management 161 62 160% Net operating profit 727 523 39%

Group Equity Value* 19 267 17 971 Covered business 7 268 6 901 Other 11 999 11 070 RoGEV (six months) 11,2% 9,2%

* Comparative information as at 31 December 2013

Page 49 santam

R million 2014 2013 

Net earned premiums 8 459 8 096 4% Gross operating profit 871 296 194% Underwriting surplus 626 101 520% Working capital & other 245 195 26% Net operating profit 353 128 176% Underwriting margin 7,4% 1,3% Group Equity Value* 13 236 12 644 RoGEV (six months) 7,0% 2,9%

* Comparative information as at 31 December 2013

Page 50 Sanlam ADR programme Sponsored level 1 ADR

Ticker symbol: SLLDY CUSIP: 80104Q208 Ratio: 1 ADR : 5 Ordinary Shares Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contact: Stanley Jones ADR broker helpline: +1 212 250 9100 (New York) +44 207 547 6500 (London) e-mail: [email protected] ADR website: www.adr.db.com

Depositary bank’s local custodian: Computershare South Africa

Page 51