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  • Notes

    1Sanlam investor presentation 2015 annual results

  • Notes

    The Sanlam strategy

    Operating environment

    Strategic delivery

    Financial review

    Priorities

    Outlook

    2 Sanlam investor presentation 2015 annual results

  • Notes

    The Sanlam StrategyMaximising shareholder value

    3Sanlam investor presentation 2015 annual results

  • Notes

    Strategic focusOptimising value creation

    Stra

    tegi

    c pi

    llars

    TransformationDiversification

    Optimal capital utilisation

    Operational efficienciesEarnings growth

    Sustainable value creation for shareholders

    Maximising RoGEV

    4 Sanlam investor presentation 2015 annual results

  • Notes

    A strategy focused on growthDriving geographic, segment and product diversification

    India/SE AsiaLower income

    segments have similar dynamics than SA ELM

    and RoA

    DevelopedNiche, solutions

    for SA & RoAclients

    South AfricaSolid base & cash flows

    Rest of AfricaDemographics, low

    insurance penetration, competitive

    environment, Pan-Africa opportunity

    5Sanlam investor presentation 2015 annual results

  • Notes

    Core regional focus areasDifferentiated approach per region

    Large player in mature market with strong competition

    Further diversifying distribution capability to drive growth: ELM footprint, Reality, health, digital, outcome based solutions, UB partnership, big data

    Operational and capital efficiencies key in managing legacy book

    South AfricaDelivering growth in mature market

    Effective capital managem

    ent

    6 Sanlam investor presentation 2015 annual results

  • Notes

    Core regional focus areasDifferentiated approach per region

    Large player in mature market with strong competition

    Further diversifying distribution capability to drive growth: ELM footprint, Reality, health, digital, outcome based solutions, UB partnership, big data

    Operational and capital efficiencies key in managing legacy book

    South AfricaDelivering growth in

    mature market

    Focus on accelerated organic growth to obtain leadership position in all countries

    Cross-border alliances and relationships; capitalise onexpanded footprint from Saham Finances transaction

    Geographic expansion in line with client and intermediary needs

    Other Emerging Markets

    Balance structural and organic growth

    Other Emerging Markets

    Balance structural and organic growth

    Other Emerging Markets

    Balance structural and organic growth

    Effective capital managem

    ent

    7Sanlam investor presentation 2015 annual results

  • Notes

    Core regional focus areasDifferentiated approach per region

    Focus on accelerated organic growth to obtain leadership position in all countries

    Cross-border alliances and relationships; capitalise onexpanded footprint from Saham Finances transaction

    Geographic expansion in line with client and intermediary needs

    Other Emerging Markets

    Balance structural and organic growth

    Products and services for SA and Rest of Africa client base

    Sanlam UK consolidation; focus on efficiencies and distribution under new CEO

    Wealth and investment management focus

    Developed Markets

    Niche approach

    Effective capital managem

    ent

    8 Sanlam investor presentation 2015 annual results

  • Notes

    Operating EnvironmentEconomic, political and internal pressures

    9Sanlam investor presentation 2015 annual results

  • Notes

    External operating environmentGlobal events impacting on our key markets

    Slower growth in

    ChinaUS interest

    rates

    Government & consumer

    debtCommodity

    prices

    Commodity-based

    economies under pressure

    10 Sanlam investor presentation 2015 annual results

  • Notes

    External operating environmentEmerging market economies under pressure from global events

    Robust economic growth in 2015Macro-economic adjustment required to address wide government budget and current account deficitsCurrency weakened in line with ZARStrong competitive environment across all segments

    Namibia

    Macro environment and structural constraints limiting capital investment and economic activity Modest growth in employment and disposable incomePolitical events contributed to investment market and currency volatilityPublic/private sector engagement and cooperation to drive economic and employment growth very necessary

    South Africa

    11Sanlam investor presentation 2015 annual results

  • Notes

    External operating environmentEmerging market economies under pressure from global events

    Commodity prices and tight financial conditions impacting on growth and currencies of a number of countriesSofter economic growth to persist in 2016 Low insurance penetration enables new business growth despite short-term challengesLonger term growth potential remains intact

    Rest of Africa

    Best sovereign rating in Africa due to sound management of government financesRobust economic growth, but need to diversify economy away from reliance on diamondsBIHL maintains strong competitive advantage

    Botswana

    12 Sanlam investor presentation 2015 annual results

  • Notes

    External operating environmentEmerging market economies under pressure from global events

    Below-potential economic growth in 2015, but improvingDelays in roll out of infrastructure projects impacted on credit businesses activity picked up towards end of 2015More stringent provisioning regulations implemented during 2016 will not affect IFRS-based resultsRobust long-term growth expectations

    India

    Relatively firm economic growth in 2015, some moderation expected in 2016Lower two-wheeler sales and competitive pressure impacting on general insurance growthUncertainty around effect of de -tariffing in 2016

    Malaysia

    13Sanlam investor presentation 2015 annual results

  • Notes

    SA economy

    Growth in real retail sales, GDP and PDI

    Modest growth in all key metrics

    -10%

    -5%

    0%

    5%

    10%

    15%

    20%

    Growth y-o-y in real retail sales Growth y-o-y in real GDP Growth y-o-y in real PDI

    14 Sanlam investor presentation 2015 annual results

  • Notes

    Regional economic growthHigher growth outside of SA

    -15%

    -10%

    -5%

    0%

    5%

    10%

    15%

    20%

    25%

    South Africa Namibia Botswana Ghana Kenya India Malaysia

    IMF estimates

    15Sanlam investor presentation 2015 annual results

  • Notes

    4%

    5%

    6%

    7%

    8%

    9%

    10%

    12-1

    3

    01-1

    4

    02-1

    4

    03-1

    4

    04-1

    4

    05-1

    4

    06-1

    4

    07-1

    4

    08-1

    4

    09-1

    4

    10-1

    4

    11-1

    4

    12-1

    4

    01-1

    5

    02-1

    5

    03-1

    5

    04-1

    5

    05-1

    5

    06-1

    5

    07-1

    5

    08-1

    5

    09-1

    5

    10-1

    5

    11-1

    5

    12-1

    5

    9-year 5-year Short-term Avg Short-term

    +200bps

    +40bps

    Interest rates

    SA bond yields and short-term interest rates

    Higher SA rates; other regions stable

    Impact on growthVNB overall -12%Sanlam Sky VNB -25%Higher float income

    16 Sanlam investor presentation 2015 annual results

  • Notes

    SA equity and bond markets

    Pressure on fee income in 2015 and 2016

    Limiting growth in assets under management

    95

    100

    105

    110

    115

    120

    125

    12-1

    3

    01-1

    4

    02-1

    4

    03-1

    4

    04-1

    4

    05-1

    4

    06-1

    4

    07-1

    4

    08-1

    4

    09-1

    4

    10-1

    4

    11-1

    4

    12-1

    4

    01-1

    5

    02-1

    5

    03-1

    5

    04-1

    5

    05-1

    5

    06-1

    5

    07-1

    5

    08-1

    5

    09-1

    5

    10-1

    5

    11-1

    5

    12-1

    5

    All Share rebased All Bond rebased

    7,6%

    1,9%

    10,1%

    -3,9%

    Average Alsi up 6%Average Albi up 8%

    17Sanlam investor presentation 2015 annual results

  • Notes

    Rand exchange rateSharp depreciation in 2015 against most currencies

    80

    90

    100

    110

    120

    130

    140

    150

    160

    12-1

    3

    01-1

    4

    02-1

    4

    03-1

    4

    04-1

    4

    05-1

    4

    06-1

    4

    07-1

    4

    08-1

    4

    09-1

    4

    10-1

    4

    11-1

    4

    12-1

    4

    01-1

    5

    02-1

    5

    03-1

    5

    04-1

    5

    05-1

    5

    06-1

    5

    07-1

    5

    08-1

    5

    09-1

    5

    10-1

    5

    11-1

    5

    12-1

    5

    United Kingdom United States Botswana India Malaysia Rest of Africa

    18 Sanlam investor presentation 2015 annual results

  • Notes

    Average Rand exchange rateSupported non-SA results

    17.1%

    8.6%

    3.8%

    -3.2%

    11.7%

    -1.4%

    -5%

    0%

    5%

    10%

    15%

    20%

    USA UnitedKingdom

    Botswana Rest of Africa India Malaysia

    Contribution to growthNet result from financial services +R82m

    New business +R1.5bn

    Net VNB +R6m

    RoGEV +4%

    19Sanlam investor presentation 2015 annual results

  • Notes

    Internal operating environment20

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