agenda Operating environment Strategic overview Financial
review Priorities and outlook 2014 interim resultsagenda
Slide 3
operating environment fundamentals remain weak
Slide 4
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 2014 interim resultsoperating
environment
Slide 5
sa economy Growth in real retail sales, GDP and PDI (%) sub-2%
growth outlook 2014 interim resultsoperating environment
Slide 6
sa interest rates SA 9-year bond yields and short-term interest
rates higher LT rates had negative impact on RoGEV and VNB growth
2014 interim resultsoperating environment Impact on growth: Net VNB
-4% New business margin -3%
Slide 7
sa equity and bond markets Higher average AuM (average Alsi up
20%) 2014 interim resultsoperating environment 2,3% 11,8% -1,3%
3,4%
Slide 8
average exchange rate benefiting non-sa results 2014 interim
resultsoperating environment Contribution to growth: Net result
from financial services 5% New business volumes 2% Net VNB 1%
Slide 9
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 2014 interim resultsoperating
environment
Slide 10
strategic delivery value delivered
Slide 11
strategic focus remains unchanged maximise shareholder return
2014 interim resultsstrategic delivery Returns (ROGEV) Capital
Efficiency Optimal Application Return of Excess Strategic
Investments Growth / Operational Efficiency Net Business Flows
Operational Efficiency Diversification
Slide 12
core strategic objectives progress in all areas during 2014,
particularly growth markets 2014 interim resultsstrategic delivery
South Africa Delivery of sustainable growth International Creating
a platform for future growth Maximising return on Investment in
existing business Efficient and effective management Identification
of core markets for growth & expansion Effective capital
management Sourcing new growth opportunities
Slide 13
top-line earnings growth 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)
financial performance in 1H2014 2014 interim resultsstrategic
delivery
Slide 14
operational efficiencies Gross VNB grew by 9%; 13% on
comparable economic basis profitable volume growth 2014 interim
resultsstrategic delivery
Slide 15
operational efficiencies Persistency SA middle-income market
focus on quality 2014 interim resultsstrategic delivery
Slide 16
operational efficiencies Persistency SA lower income market
focus on quality 2014 interim resultsstrategic delivery
Slide 17
investment performance Percentage of SIMs AUM to exceed
benchmark focus on long-term performance track record 2014 interim
resultsstrategic delivery
Group Equity ValueNet operating profit diversification
diversified earnings base 2014 interim resultsstrategic delivery *
General insurance
Slide 20
diversification international positioning 2014 interim
resultsstrategic delivery RSA based Rest of Africa Botswana Ghana
Kenya Lesotho Malawi Mozambique Namibia Nigeria Rwanda South Sudan
Swaziland Tanzania The Gambia Uganda Zambia South-East Asia India
Malaysia Philippines Developed markets UK / Ireland Switzerland
Australia USA Emerging Markets - Direct presence Emerging Markets -
Indirect presence Developed Markets
Slide 21
diversification growth markets delivering value 2014 interim
resultsstrategic delivery Net VNB 1H03 (R100m)Net VNB 1H14
(R626m)
Slide 22
1H03 R756 million diversification Contribution to group net
operating profit increasing contribution from growth markets 2014
interim resultsstrategic delivery 1H13 R2 409 million1H14 R3 461
million
Slide 23
diversification contribution from businesses outside of South
Africa 2014 interim resultsstrategic delivery South AfricaOther
emerging marketsDeveloped markets Net operating profitNet VNBGroup
Equity Value
Slide 24
capital efficiency Final SAM specifications expected towards
end of the year SAM QIS3 results indicate that sufficient capital
is allocated to life operations R1,8 billion of investments in
growth opportunities finalised during 1H14 Discretionary capital of
R3,3 billion earmarked for investment in growth opportunities
optimising capital base 2014 interim resultsstrategic delivery
Slide 25
capital efficiency Balance 1 January 20144 000 Investments(1
761) SE Asia(1 258) Rwanda(255) Botswana(95) Rest of Africa(81)
SEM/Santam co-investment43 Developed markets(25) South Africa(90)
Investment return & other1 061 Balance 30 June 20143 300
discretionary capital 2014 interim resultsstrategic delivery
Slide 26
sanlam group financial review
Slide 27
changes in presentation / key assumptions Accounting policies
& basis of presentation No change from 2013 Changes in RDR:
(Sanlam Life 11,0%) 30 bps up from December 2013 70 bps up from
June 2013 Negative impact on valuations and RoGEV 2014 interim
resultsfinancial review
Slide 28
salient features 20142013 Group Equity Value*cps4 2774 1214%
Annualised RoGEV per share%18,014,3 Annualised RoGEV per share
(adjusted)%15,315,1 CAR cover (Sanlam Life)*4,44,5 Net operating
profitR mil3 4612 40944% cps169,2118,143% Normalised Headline
earningsR mil4 3933 44927% cps214,8169,127% New business volumes +R
mil81 83375 7968% Net fund flows + R mil19 22213 74640% New Life
business EV (net)R mil6265877% New Life EV margin%2,682,83 2014
interim resultsfinancial review * Comparative information as at 31
December 2013 + Excludes white label
Slide 29
sanlam personal finance R million20142013 New business flows23
66219 23923% Sanlam Sky474503-6% Individual Life5 8215 3688%
Glacier17 36713 36830% Net flows8 0876 564 Sanlam Sky1 3071 410
Individual Life(859)(701) Glacier7 6395 855 2014 interim
resultsfinancial review
Slide 30
sanlam personal finance R million20142013 Value of new life
business437450-3% Sanlam Sky135146-8% Individual Life228240-5%
Glacier746416% Comparable economic basis4674504% New business
margin2,73%3,07% Sanlam Sky7,62%7,46% Individual Life2,59%2,89%
Glacier1,37%1,45% Comparable economic basis2,89%3,07% 2014 interim
resultsfinancial review
Slide 31
sanlam personal finance R million20142013 Gross operating
profit2 4391 94126% Sanlam Sky51836044% Individual Life life and
investments1 5711 26724% Glacier17112240% Personal loans148157-6%
Other3135-11% Net operating profit1 7631 40925% Group Equity
Value*36 97635 666 RoGEV (six months)8,7%6,8% 2014 interim
resultsfinancial review * Comparative information as at 31 December
2013ite label
Slide 32
sanlam emerging markets R million20142013 New business flows4
0305 933-32% Namibia1 5414 263-64% Botswana1 13787131% Rest of
Africa82743690% India/Malaysia52536345% Net fund flows1 762607
Namibia343(419) Botswana478460 Rest of Africa814530
India/Malaysia12736 Value of new life business19613644%
Margin7,30%6,52% 2014 interim resultsfinancial review
Slide 33
sanlam emerging markets R million20142013 Gross operating
profit1 12969762% Namibia254112127% Botswana34827626% Rest of
Africa1087642% India/Malaysia43224477% Corporate(13)(11)-18% Net
operating profit62439160% Group equity value*12 96710 189 RoGEV
(six months)12,3%22,0% 2014 interim resultsfinancial review *
Comparative information as at 31 December 2013
Slide 34
sanlam investments R million20142013 Net investment business
flows4 8712 959 Investment management SA3 883(810) Wealth
management(457)2 457 International1 3461 312 Capital management99-
New life business4 3893 64420% Employee benefits9521 157-18% Sanlam
UK3 4372 48738% Net life business1 4911 235 Value of new life
business645321% Margin1,16%1,13% 2014 interim resultsfinancial
review
Slide 35
sanlam investments R million20142013 Gross operating
profit98268743% Investment management60545134% Employee
benefits21617424% Capital management16162160% Net operating
profit72752339% Group Equity Value*19 26717 971 Covered business7
2686 901 Other11 99911 070 RoGEV (six months)11,2%9,2% 2014 interim
resultsfinancial review * Comparative information as at 31 December
2013
Slide 36
santam R million20142013 Net earned premiums8 4598 0964% Gross
operating profit871296194% Underwriting surplus626101520% Working
capital & other24519526% Net operating profit353128176%
Underwriting margin7,4%1,3% Group Equity Value*13 23612 644 RoGEV
(six months)7,0%2,9% 2014 interim resultsfinancial review *
Comparative information as at 31 December 2013
Slide 37
business flows GrossNet R million20142013 20142013 by business
Personal Finance23 66219 23923%8 0876 564 Emerging Markets4 0305
933-32%1 762607 Sanlam Investments45 68242 5287%6 3624 194 Santam8
4598 0964%3 0112 381 by licence Life insurance17 53614 95617%6 1375
159 Investment55 25152 4365%9 9796 160 Short-term9 0468 4048%3 1062
427 Total81 83375 7968%19 22213 746 2014 interim resultsfinancial
review * Excludes white label
Slide 38
value of new covered business Value of New BusinessMargin R
million20142013 20142013 Personal Finance437450-3%2,73%3,07%
Emerging Markets19613644%7,30%6,52% Employee
Benefits423040%2,30%1,45% Sanlam UK2223-4%0,59%0,87%
Total6976399%2,88%2,98% Net of minorities6265877%2,68%2,83%
Comparable economic basis65058711%2,77%2,83% 2014 interim
resultsfinancial review
Slide 39
net operating profit R million20142013 Personal Finance1 7631
40925% Emerging Markets62439160% Sanlam Investments72752339%
Santam353128176% Corporate & other(6)(42)86% Total3 4612 40944%
2014 interim resultsfinancial review
Slide 40
income statement R million20142013 Net operating profit3 4612
40944% Per share169,2118,143% Net investment return1 1221 150-2%
Other(190)(110)-73% Normalised headline earnings4 3933 44927% Per
share214,8169,127% Fund transfers5425 Headline earnings4 4473
47428% Per share220,2171,428% 2014 interim resultsfinancial
review
Slide 41
group equity value Equity Value*RoGEV + R million20142013Rm%
Group operations82 44676 4707 2829,5% Personal Finance36 97635 6663
1078,7% Emerging Markets12 96710 1891 25812,3% Investments19 26717
9712 03111,2% Santam13 23612 6448867,0% Discretionary & Other5
1427 93960,1% TOTAL87 58884 4097 2888,6% cps 4 2774 1213568,6%
Adjusted return7,4% Return target5,9% 2014 interim resultsfinancial
review * Comparative information as at 31 December 2013 + Return
for six months
Slide 42
group equity value earnings R millionActualAdjusted Net value
of new business626626 Existing business2 2602 260 Expected return
on VIF1 6591 659 Operating experience variance477477 Operating
assumption changes1241242 886 Inv variances in-force497(497)- Tax
changes(3)3- Economic assumption changes(200)200- 3 180(294)2 886
Return on net worth765(189)576 EV earnings3 945(483)3 462 Non-life3
343(578)2 765 GEV earnings7 288(1 061)6 227 2014 interim
resultsfinancial review
Slide 43
summary Delivery on strategy: Shareholder value Cumulative
RoGEV per share exceeds hurdle Profitable growth Strong growth in
most markets and segments Net VNB +11% on comparable basis Net
operating profit up 29% on comparable basis Diversification
Increasing contribution from growth markets Capital management
Investments in growth markets 2014 interim resultsfinancial
review
Slide 44
rogev versus target Out perform cumulative growth target of
long-bond rate + 400bps since listing 2014 interim resultsfinancial
review
Slide 45
priorities for 2H14
Slide 46
sanlam personal finance Focus on sales growth and maintain
margins on same discount rate Grow adviser force in all market
segments Product innovation, particularly recurring premiums
Improve Sanlam Sky broker channel performance Increased focus on
persistency Continue focus on operational efficiency - manage costs
Focus on transformation and employer of choice Meet regulatory
obligations 2014 interim resultspriorities for 2014
Slide 47
sanlam emerging markets Focus remains on Africa, India and
South-East Asia Continue focus on top-line growth, efficiencies and
capital optimisation in current operations Bed down new
acquisitions in Rwanda and Malaysia Unlock Shriram Capital
synergies Bed down IT implementations Delivery on revenue
diversification initiatives Bolt-on transactions/deepening existing
partnerships in Africa, India and Malaysia Strong deal-making focus
to remain the leading player in Africa Continuously refine
organisational capacity to support growth Governance, ethics and
values 2014 interim resultspriorities for 2014
Slide 48
sanlam investments Maintain consistent upper quartile
investment performance Grow market share in higher margin areas
Institutional fund flows Retail fund flows Large mandates from
promising EB pipeline Provide appropriate, innovative and cost
effective solutions to clients from across SI value chain Further
leverage competitive active and passive management capabilities
Accelerate efforts to grow a market leading African Investments
proposition Continued focus on collaboration and efficiencies
across businesses 2014 interim resultspriorities for 2014
Slide 49
santam Deliver on diversified growth Market diversification
(specialist business, Santam Re, investment in SEM partners)
Continued growth at MiWay Increased emphasis on quality of risk
pool Ongoing segmented premium rate increases Underwriting actions
to rectify unprofitable accounts Drive efficiency through value
chain Focus on cost management and strategic sourcing to counter
rand weakness Ongoing implementation of key strategic projects in
Santam Commercial and Personal 2014 interim resultspriorities for
2014
Slide 50
outlook
Slide 51
outlook for 2014 Weak SA environment will continue to hamper
new business growth Some market volatility likely in second half of
2014 Focus on bedding down new acquisitions Number of investment
opportunities under consideration Compliance to regulatory changes
2014 interim resultsoutlook