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 management capitalEffective 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 Sanlam 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 South Africa 50% 47% 45% 40% 36% 35% 30% 25% 25% 22% 22% 20% 17% % of population% of 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 Namibia Botswana Malawi Kenya Ghana Zambia Tanzania Nigeria Uganda 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 Lesotho Malawi South-East Asia Mozambique Namibia India Nigeria Malaysia Rwanda Philippines South Sudan 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 Gaborone ● 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