Ian Kirk, Sanlam Group CEO

28 August 2017

Group strategic positioning

Brief SEM overview

The opportunity before us as an Industry

Key priorities for SEM Expanding onto the African Continent and

other Emerging Markets

To lead in client-centric wealth creation, management and protection in South Africa

To be a leading Pan-African financial services group with a meaningful presence in India and Malaysia

To play a niche role in wealth and investment management in specific developed markets.

Our purpose…to create a world worth living in and to enable people to live their best possible lives within it

Sanlam Personal Finance

Sanlam Emerging Markets

Sanlam Investments Sanlam Corporate Santam

100% 100% 100% 100% 62%

India/SE AsiaLower income

segments have similar dynamics than SA ELM

and RoA

DevelopedAsset & wealth

management for SA & RoA clients

South AfricaSolid base & cash flows

Rest of AfricaDemographics, low

insurance penetration, competitive

environment, Pan-Africa opportunity

India

Malaysia

Philippines

Ghana

The Gambia

KenyaUganda

RwandaBurundiTanzania

MalawiZambia

BotswanaNamibia

SwazilandSouth Africa

Switzerland

United Kingdom

USA

Australia

Ireland

Mozambique

MoroccoAlgeria

Tunisia

MaliSenegal

GuineaBurkina Faso

Cote D’Ivoire

TogoBeninNigeria

CameroonGabon

Republic of the CongoAngola

Zimbabwe

MadagascarMauritius

Lesotho

Saudi Arabia

Lebanon

Niger

Niger

Luxembourg

France

Emerging Markets - Indirect presence

Emerging Markets - Direct presence

Developed Markets

Saham Finances presence

Sanlam and Saham presence

• Aflife• Shriram Life• Shriram

General• Letshego• Uganda

2010

• Shriram Capital

2012

• FBN Life• Nico Life• Nico

Holdings• Namibia• Medical

2011

• P&O• STFC• CIH• Nico General• Santam

Namibia

2013

• BIC• Saham

2016

• Nico Vida• Zimnat• Gateway

2015

• MCIS• Soras• Oasis• MicroEnsur

e• EIC

2014

• Shriram General JV

2008

• African Life• Shriram

Life JV

2005

• Sanlam Namibia

Pre 2005

• Saham II• PineBridge

2017

flexible and evolutionary

approachsimple strategy focus on

execution passionate people

partnerships (similar values

and culture)

entrust local boards and

management to run operations

support local job creation and skills

development

9

Source: IMF WEO April 2017, Standard Chartered Research

SSA growth is underperforming world growthGDP, % y/y

10

SSA’s two largest economies saw weak Q1 GDP growthGDP growth, % y/y

Source: NBS, STATS SA, Standard Chartered Research

Source: StanChart, UNPD 2010 and 2011 revisions, population in millions, ‘high fertility case’

11

Rank 2010 2050 21001 China 1341 India 1692 India 25702 India 1225 China 1296 China 15873 US 310 US 403 Nigeria 10254 Indonesia 240 Nigeria 390 US 7065 Brazil 195 Indonesia 294 Tanzania 4506 Pakistan 174 Pakistan 275 Indonesia 4227 Nigeria 159 Brazil 223 Pakistan 4188 Bangladesh 149 Bangladesh 195 DR Congo 3149 Russian Federation 143 Philippines 155 Brazil 314

10 Japan 127 DR Congo 149 Philippines 27811 Mexico 113 Ethiopia 146 Bangladesh 27512 Philippines 93 Mexico 144 Uganda 247 13 Viet Nam 88 Tanzania 138 Kenya 23814 Ethiopia 83 Russian Federation 126 Ethiopia 23715 Germany 82 Egypt 124 Mexico 21616 Egypt 81 Japan 109 Iraq 20917 Iran 74 Viet Nam 104 Egypt 19918 Turkey 73 Kenya 97 Zambia 19019 Thailand 69 Uganda 94 Sudan 18920 DR Congo 66 Turkey 92 Niger 188

Source: UN population stats, Standard Chartered Research12

Africa’s demographic dividend

Africa has the demographic advantage – Working-age population (% of total)

SSA – Rapid demographic growth, rapid urbanisation

§ Strong consumption growth

§ Less age dependency

§ Higher returns

Source: Swiss Re World Insurance in 2015

Ultimately, we want to be client centric as this is the best chance we have to ensure a sustainable

industry. However, the journey to be client centric rests on a number of pillars.

The journey to Client CentricityEducation

(financial literacy & professional

training)

Distribution (Omni-channel)

Regulatory (Prudential &

Market conduct)

Education

• World Economic Forum says more kids are going to school, but quality of education is becoming an issue, due to:• More kids in a class room• Little expansion of school

infrastructure• Industry needs to support all

efforts to drive bigger school enrolment with focus on quality education

• Focus is on improving maths & science enrollment levels and pass rates

Consumer Financial Literacy

• Has to cover personal financial circumstances through to understanding insurance products (i.e. benefits & costs)

• Financially literate consumers is a strong antidote for high lapse rates

• True client centricity cannot happen when consumers are not financially literate

• A financially literate consumer is the cornerstone to our industry sustainability

Industry Professional Training

• Systems and processes are core to our operational success• Needs to be addressed over

short to medium term• Technical skills (i.e. actuarial)

and expertise are relatively scarce and we have to build it over time• Needs to be addressed over

medium to longer term• Assess for appropriate skills

within insurers but also within regulator

Role of the

Regulator

Company licensing

Product licensing

Financial Control

Market regulation

Consumer Protection

BenefitsAssists with providing consumer confidence & trust + level playing

field for insurersEnsures solvency to

companies

Fairness & financial benefits to consumers

Issues

Over regulation

Appropriate or fit for purpose regulation

No real cost benefit to either company or

consumer

OpportunitiesContinuously building trust through ethical business conduct Open and honest engagement with

regulatorPut client at center of

all key decision making

ImpactAppropriate regulation

will draw required investmentAppropriate regulation

will support insurers to provide real benefit to low income consumersAppropriate regulation

will support sustainability of

industry

Consumer Financial Education

Professional industry training

DistributionAppropriate Regulation

Client centric outcome

Reputation

• Our products are intangible and integrity of the product is based on the promise we make to clients

• Issue of Trust is paramount in our industry

• This is amplified when industry players do not live up to promises they made

• Industry has to be seen as one which treats customers fairly

Key challenges in Africa

• Fragmented key markets (i.e. Kenya & Nigeria)• General Insurance (GI) business opportunities

greater than Life• Require strong GI capability

• Continuous focus on basics and getting fundamentals right (i.e. systems, collections, renewals & persistency)

• Skills development opportunities for staff – professional training & development

• Governance & ethics• Risk management & compliance• Regulation inconsistency

profitable growth and innovation by

“sweating” our current footprint, entrenching strong governance principles

and ensuring that there are sufficient capabilities to execute

local brokers

shift in focus from acquisitive to

accelerated organic growth through

specific focus on GI businesses

explore new product offerings (health, PFA,

reinsurance)

increased visibility of Sanlam brand as

partnership brand for markets and our

employees

deliver on corporate opportunities in Africa in

support of retail and commercial business

growth

increased collaboration on human resource

development across the cluster

continued focus on governance, compliance

and ethics

industry consolidation/increasing shareholding/strategic partnerships where it

makes sense