INVESTMENT CASE

Our Equity Growth Story

December 2022
CONTENTS
Our purpose

Who is Sanlam?

The African growth opportunity

Why Sanlam?

How will Sanlam deliver?

Our future aspiration: Sanlam’s investment case

2
Our purpose

Inspired by a transformative organisational Purpose

Empowering generations to be
financially confident, secure and prosperous

Providing superior Promoting financial Making our products

financial advice to inclusion at scale accessible
protect and grow wealth

3
Who is Sanlam?

The Sanlam Group today

Group equity value of

31 Countries All product
Pan-Africa, India & Malaysia
Top 3 market position in 11 African $8 billion segments
countries for life and 14 for general
insurance

8 of
Present in Assets under management

the top 10
and administration over
120 105
largest economies in
Africa
$70 billion employees
worldwide

Largest top
insurer
32 million+
lives touched across Africa
Certified
employer
on the continent and 22 million+ lives touched
in India and Malaysia

4
Who is Sanlam?

Achieving that purpose, driving that growth

Unrivalled long-term growth potential
as one of the leading non-banking financial services group on the African continent

Unlocked through

DIVERSE PARTNERSHIPS TECHNOLOGY SUSTAINABILITY

PRODUCTS
Insurance | Savings and
Investments | Corporate benefit |
Asset and Wealth Management |
Retail Credit | Financial Planning
and Advice | Healthcare
Banks | Telcos | Financial
Services | Non-financial
Services | Retailers | Strategic
co-investors in Africa
Modernising core business |
Future-fit client ecosystems |
Disruptive product innovation and
digitalisation | Digital native
businesses
Shared value creation | Financial
inclusion | ESG integration in
asset management | Partnerships

1 Brand appeal and customer loyalty

Supported by 2 Strong capital base and operational cash generation

3 Best skills and expertise in the industry

Built on a foundation of
Purpose | Values | Culture
5
The African growth opportunity

Growth opportunities for financial services in Africa

Africa macro-economic and sector trends

STRONG • 1.5 billion people by 2025

POPULATION • 2.4% CAGR growth expected (2020-2025E)
GROWTH
• 19% of global population in 2025 WESTERN

STRONG GDP 41% 13% 1%

OUTLOOK IN • Average +4.0% CAGR real growth expected EASTERN
THE MEDIUM-
(2020–2025E) CENTRAL
TO-LONG TERM 52% 29% 1%

38% 11% 1%

RAPID • Urban population to increase by c.100 million

URBANISATION people, growing from 40% to 42% as a % of
total population (2020–2025E) SOUTHERN*

EASE OF • Increased trade activity with the rest of the 58% 25% 2%
DOING world
BUSINESS • Improved ease of business over last decade

Bank account
MOBILE AND • 1.2 billion mobile connections with c.610 penetration %*
BROADBAND million smartphones by 2025 Credit and/or debit
USERS • Current internet users at 30% of population card penetration %*

Insurance
penetration %*
Source: Company information, Economist intelligence unit, World Bank, GSMA, IHS, Statista, Fitch Solutions, Data Hub
Western Africa includes: Benin, Burkina Faso, Côte D'Ivoire, Ghana, Guinea, Niger, Nigeria, Senegal, Togo; Central Africa includes: Cameroon, Chad, Republic of Congo, Gabon; Eastern Africa
includes: Burundi, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Tanzania, Uganda; Southern Africa includes: Angola, Botswana, Mozambique, Namibia, eSwatini, Zimbabwe, Zambia
* Excluding South Africa 6
 Unrivalled Pan-African footprint with a diversified tailored offering
African growth opportunity

Country Life insurance General insurance Asset management

Licence Market position Market position Market position

South Africa  1 1 2
Tanzania  1 11
Botswana  1 1 1
Rwanda  1 2
Malawi  2 1
Zambia  1 2 Building
Mali  2 1 scale
where it
Namibia  2 1 2 matters
Mozambique  1 –
Côte d’Ivoire  4 1
Uganda  6 1 1
Nigeria  2 15
Kenya  5 11 2
Zimbabwe  6 4
Morocco  7 1
India  16 19
Angola  – 2

Life insurance General insurance Asset management Health Other

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Based on management's best estimates and understanding of the market
Why Sanlam?

Consistent track record of sustainable growth

Life insurance new business volumes
(R billion)** Group value of new business margins (%)
100

80 3

60
2
92.5 89.3 3.06
40
71.0 73.0 71.1 2.67 2.98 2.87
2.58
1
20

0 0
2018 2019 2020 2021 2022* 2018 2019 2020 2021 2022*

Group net value of new business (R billion) Sanlam Investments net client cash inflows
3 40 (R billion)
30
2

2.8 20
2.7
1 2.0 2.3
1.9 26.4
10 20.1
10.4 13.9
0 0 4.1
2018 2019 2020 2021 2022* 2018 2019 2020 2021 2022
8
*constant economic basis, **present value of new business premiums excluding UK disposals
Why Sanlam?

Consistent track record of sustainable growth (continued)

20% Growth in Enterprise value*
18%
16%
14%
12%
10% Impacted
18% 18% 19% by
8% 15% 16% 15%
COVID-19 15%
6% 11% 12%
4%
2% 3%
0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

+7%
CAGR
Annual ordinary dividend (cents per share) 360
350 334 334
312 300
290
300 268
245
250 225
200
200
150
100
50
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
9
* measured by adjusted Return on Group Equity Value (RoGEV)
How will Sanlam deliver?

Diversification driving our competitive edge

Line of business Region

-2 11 4 5
16 14 11
11
43 5
9 Earnings Enterprise Earnings 11 Enterprise
(%) 8 value (%) 5 (%) value (%)
60
7
17 66
72
27
Life insurance South Africa
General insurance Other Southern Africa
Investment management North and West Africa
Credit and structuring India
Other Other

Ref: FY2022 10
How will Sanlam deliver?

Disciplined capital allocation in support of group strategy

Core business Core business Discretionary capital Target return on Real dividend
is self financing annual investment allocation record shareholder value of Growth of 2% - 4%
at high returns more than risk free + 4% over a rolling three-
• R3 billion of available
across portfolio year period
discretionary capital

Focus area Key transactions Discretionary Key outcomes

capital impact
• ARC FS buys into Sanlam Investments
• One of SA’s largest black-owned asset managers
• Sanlam buys into ARC FS
• Leading group risk business
• Alexforbes Life, LISP and EB
Fortress SA • Leading LISP business
• Afrocentric
R1,5 billion outflow • #1 health risk administrator, #2 medical scheme administrator
• Absa Investments
• Leading fiduciary business, strong VNB contribution, revenue
• Brightrock
synergies, capital synergies, expense efficiencies
• Capital Legacy

• Sale of 12 sub-scale businesses • Enhanced growth potential and diversified risk

African Champion Capital neutral
• Allianz JV • Revenue, cost and capital synergies
• Restructuring of Shriram – merger of
• Simplified focus on India
two credit businesses
India Capital neutral • Synergies created
• Sell stake in Shriram General Insurance
• Uplift to GEV
(SGI) to KKR
UK • Disposal of three businesses R3,7 billion inflow • Redeploy capital to strategic growth areas
• Platform to take insurance digitally to continent with MTN as a
Fintech • MTN aYo R0,8 billion outflow
partner to 200 million customers
Balance
SANLAM sheet
ANNUAL
and other
• 2022
RESULTS PRESENTATION
•
Capital
Other
release, share repurchase R1,4 billion inflow •
•
Repurchase of 20 million shares at discount to GEV
Smaller transactions, recapitalisations
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How will Sanlam deliver?

The journey to digital business transformation

Digital New Products
and
Innovation Innovation

B2B
Platform
Sanlam Digitised
Advice
Play 3.0
Sanlam Sanlam
1.0 2.0 Ecosystems Networks

Sanlam 1.0: Sanlam 2.0: Digital version of Sanlam 3.0 : advice innovatively built into overall
Optimise current business engagement model and value proposition, delivered
through scalable technology

New clients New ecosystems New channels Net new revenue New digital models

Hyper Sanlam Credit

Solutions
scale
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How will Sanlam deliver?

Enhanced client reach and engagement through strategic partnerships

STRATEGIC BANKS AGENTS AND

TELCO’S DIRECT
PARTNERSHIPS BROKERS

Broad-based Partner on Absa for scale in Partnering with the largest Sanlam uses a vast
empowerment in the African South African asset mobile operator in Africa network of tied agents
South Africa continent management and and independent
outside of Digital businesses
expanded distribution Access to more than brokers across the
South Africa to be leveraged in
60 million active mobile money African continent and
Leading fiduciary business
new business models
users, more than through Shriram in India
200 million clients
And other banking partners Direct selling through
across the Africa continent partnerships with retailers
India Healthcare

• Continue to defend against new entrants by investing in new business models and entrepreneurs to disrupt ourselves
• Through partnerships we are able to acquire customers at lower cost than traditional channels
• MTN aYo has over 4 million active customers, through Capitec partnership we reached over 2 million clients, Allianz brings 2 million customers in Africa, Easy Equities over
700k active clients, Indie and MiWay Life grown to over 80k clients
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How will Sanlam deliver?

Sanlam 3.0: We will acquire up to 50 million

clients across Africa by 2025 (from 32 million in 2022)

Sanlam Credit
Solutions

Largest micro insurance Africa’s fastest growing

provider in Africa with
access to more than 60
million active mobile
money users, more than
200 million clients
South Africa’s Disruptive digital Shriram – purely
small equity investments
fastest growing insurance models digital life and GI
platforms to empower
digital credit offering new value App to lower and
generations for financial
platform creation middle-income
security, prosperity and
confidence segments in India

Making digital customer acquisition our biggest measure through new business models

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How will Sanlam deliver?

Sanlam sustainability overview

Sustainability is integrated into Sanlam’s strategy and business where we focus on the areas that provide the
biggest opportunity for sharing Sanlam’s core strengths for the benefit of all stakeholders

SUSTAINABILITY

Social Environment

Financial strength,
Trust and
resilience and consistent Financial inclusion Partnerships Investing for good
reputation
performance

Governance
Environment Social Governance
Investing for good Trust and reputation, financial strength, Sanlam applies the highest levels of
resilience and consistent performance, financial corporate governance in all businesses
inclusion, partnerships
1515
How will Sanlam deliver?

Investing for good - climate and people

• Creating wealth, investing in job creation, reducing inequalities
and combatting climate change Our latest impact strategies
• Committing R2.5 billion into new investment strategies aligned
with the core impact theme of job preservation and creation
• On track to impact over 27 000 lives Climate Sustainable South African
• Raising and deploying innovative investment vehicles to Investor Funds Infrastructure Fund SME Debt Fund
mitigate and adapt to climate change Renewable energy projects Focus on economic In conjunction with
in the wind, solar and run- growth, job growth, the Eskom Pension
• ESG leader in asset management through Robeco partnership of-river hydro sectors market development and and Provident Fund
environmental
• Sanlam partnership with WWF-SA for nature, Sanlam Gauge One: Final close USD950m sustainability Focus on financing
(30% above target) black-owned
and Sanlam ESG Barometer
Sanlam has invested businesses across
Two: projects in the water,
• From 2023, 10% of Group Exco short-term incentives are sanitation and ocean
R7 billion across more sectors, prioritising
than 25 assets over manufacturing
linked to ESG and culture KPIs split evenly sectors: USD855m raised in recent years and has and agro-processing
two tranches,USD1bn committed a further R6
target billion to new assets
Future funds:
Three: landscapes
Four: cities

1616
Our future aspiration

Unlocking the growth potential into shareholder value

Empowering generations to be financially confident, secure and prosperous

DIVERSE
PRODUCTS x PARTNERSHIPS
x TECHNOLOGY

50

40

30

20

10

0
2022 2025 2013 2016 2019 2022 2025 2013 2016 2019 2022 2025 2013 2016 2019 2022 2025
African clients Volumes Enterprise value Dividends
Sanlam 2.0 ---------- Sanlam 3.0

Targets

Real dividend growth: 2% - 4% over a rolling 3-year period Enterprise value growth*: risk free + 4%

Protecting and growing wealth

Promoting financial inclusion
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Our future aspiration

A compelling investment case

Diversification by product Modern omni-channel

line and geography creates
1 stability in earnings and value
client engagement to meet 2
clients where they are
creation

At the core of our Partnership model

3 value creation
philosophy is the client
increases reach at scale
and reduces risk
4

Disciplined capital Transforming digitally to

allocation, track record modernise current business
5 of resilient and margin
and build new digital businesses to
reach new client segments and
6
accretive growth
revenue sources

Improving margins and ROC from

Structured to deliver sustainable Capital efficient business
scale, superior client value
long-term growth model
propositions and efficiency

New business growth rates to Self-financing business growth Long-term real RoGEV at
exceed nominal GDP growth translates to value attractive level
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