Investment caseIncorporating 2018 Annual Results

page | 2

Agenda

Why invest in Sanlam

Overview

The Sanlam strategy and progress in 2018

Financial performance – 2018 annual results

Capital management and Solvency

Cluster results – 2018 annual results

Operating environment in 2018

page | 3

Why invest in Sanlam

Leading BBBEE credentials in

South Africa

Partnerships across networks,

industries and countries

page | 4

Our competitive positioning into the futureOur execution capability has set us apart from our peers and will continue to do so

Employ some of the best and

most experienced skills in the

industry

Competitive and diversified

financial solutions

Track record of responsible and

efficient capital allocationPresence in all forms of distribution

channels

Strong and trusted brand

A compelling offering through

our African footprint

Our diversification creates resilience while offering growth opportunities grounded

in our culture of client-centricity

A set of

capabilities

that enable us

to execute

effectively

Leader in BBBEE ownership in

South Africa

page | 5

The growth opportunity

46%

17%

14%

18%

22%

42%

18%

24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2006 2018

% o

f p

op

ula

tio

n

LSM 1-4 LSM 5 LSM 6-7 LSM 8-10

SA LSM

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Insurance penetration as % of GDP

Life Non-Life

Our Pan-African

opportunityA medium to long term growth engine

page | 7

0

1

2

3

4

5

6

7

8

9

10

% y

r

2012-2017 2018-2022

Pan-African GDP growthDriving accelerated organic growth over the medium to long term

Source: World Bank

page | 8

Pan-African insurance penetrationLeveraged organic growth over the medium to long term

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

World Africa SA Namibia Botswana India Morocco Ivory Coast Kenya Ghana Nigeria

Insurance penetration as % of GDP

Life Non-Life

page | 9

Key drivers of insurance penetration

Africa’s demographic dividend – population growth and urbanisation

Underlying economic growth (GDP)

Low insurance penetration presents opportunity for growth – nascent markets

Rising consumer demand (emerging middle class and increasing disposable income)

New technology

Mobile/online usage growth enables distribution, fulfilment and claims

Opportunities for cross industry collaboration

General insurance penetration increases first, followed by life insurance, employee benefits,

asset management and healthcare

Regulatory change, e.g. compulsory retirement savings and general insurance coverage

page | 10

Drive organic growth in current SEM GI

portfolio in conjunction with Saham Finances

Grow Saham Finances LI portfolio

New products, e.g. assistance and medical, in

current SEM market

Drive growth in specialist classes in

conjunction with Santam

Santam plays a meaningful role in 3rd party

reinsurance growth across the continent

Footprint enables multinational offering

including P&C and Employee Benefits (GLA

& Health)

Saham Finances has African health expertise

Internal reinsurance optimisation through

Saham Re

Opportunities

Saham Finances acquisitionA key component in our Pan-African strategy

Strong life footprint and

expertise

GI presence characterised

by start-up businesses

SEM

Strong GI expertise in SA

Specialist and reinsurance

skills

Santam

Complementary footprint provides us with an unparalleled

presence with minimal overlap

Strong GI footprint and expertise

Assistance and Health business - complementarity to Saham

Finances GI expertise

Life presence characterised by start-up businesses

Saham Finances

page | 11

An unmatched Pan-African footprintUnique offering to multinationals wrapped around local presence

India

Malaysia

Philippines

Ghana

The Gambia

KenyaUganda

RwandaBurundiTanzaniaMalawi

Zambia

Botswana

Namibia

Swaziland

South Africa

United Kingdom

USA

Australia

Ireland

Mozambique

MoroccoAlgeria

Tunisia

MaliSenegal

GuineaBurkina Faso

Ivory Coast

TogoBeninNigeria

CameroonGabon

Republic of the CongoAngola

Zimbabwe

MadagascarMauritius

Lesotho

Saudi Arabia

Lebanon

Niger

Luxembourg

France

EthiopiaEgypt

Emerging Markets - Indirect presence

Emerging Markets - Direct presence

Developed Markets

Potential future expansion

page | 12

Our African footprintMarket share target: Top 3 in Africa, Top 10 in India & Malaysia

-

0.5%

0.7% / 17

2.0% / 12

6.0% / 6

6.0% / 4

6.0% / 18

8.0% / 3

8.0% / 4

15.0% / 4

16.0% / 3

24.0% / 1

25.0% / 2

27.0% / 1

29.0% / 1

42.0% / 2

59.0% / 1

66.0% / 1

69.0% / 1 64%

60%

100%

57%

70%

100%

59% -100%

56%

100%

99%

38%

35%

57%

40%

58%

51%

42%

Various

19.0% / 2

-

1.4% / 18

2.0% / 19

17.0% / 1

12.0% / 3

2.0% / 18

1.0% / 19

5.0% / 7

14.0% / 1

25.0% / 1

-

37.0% / 1

22.0% / 1

11.0% / 4

36.0% / 1

20.0% / 1

23.0% / 1

3.0% / 12

Life insurance Market share / Position General insurance Market share / Position

Tanzania

Botswana

Rwanda

Malawi

Zambia

South Africa

Namibia

Mozambique

C'ote D'ivoire

Uganda

Lebanon

Nigeria

Kenya

Zimbabwe

Morocco

Malaysia

India

Developed

Angola

Country & effective interest

50%

60%

100%

57%

57%

62%

37%

100%

82%

38%

35%

39%

40%

58%

49%

43%

60%

Overviewof the Sanlam Group

page | 14

Overview

Leading financial services group in Africa, with presence in India and Malaysia

Established in 1918, listed in 1998 on the JSE & Namibian Stock Exchange

2 232 million issued shares, 450 000 shareholders

JSE/ALSI40 index stock; top-20 based on market capitalisation

Liquidity: >60% of shares traded in 2017

Institutional shareholding of 86%, 40% offshore shareholding, 14% direct BEE shareholding

page | 15

Operational structure

Sanlam Group

Group Office

SA & Developed

markets: investment

management,

wealth

management, credit

& structuring

Sanlam

Investments

100%

General insurance,

reinsurance & co-

investor in SEM

general insurance

businesses

Santam

62%

Emerging markets

ex-SA: life

insurance, general

insurance,

investments, credit

& banking

Sanlam Emerging

Markets

100%

SA Retail: life

insurance,

investment & other

financial services

Sanlam Personal

Finance

100%

SA & EM corporate:

employee benefits,

health

Sanlam

Corporate

100%

The Sanlam

StrategyGood progress on all pillars in 2018

page | 17

Inte

gra

ted

str

ate

gic

an

d o

pera

tio

nal m

an

ag

em

en

t

An integrated approach to sustainable performanceMaximising value for all stakeholders

Our Purpose

Our Vision

Our Strategic Intent

Our Strategic Pillars

page | 18

Returns to stakeholdersSustained through shared value creation

Our purpose is to build a world of Wealthsmiths™, supporting people in living their best possible

lives through financial resilience and prosperity

Shareholders

Employees

Shareholders

Resilient

Individuals

Resilient

Organisations

Resilient

Society

Sustainable

Sanlam

Clients Clients

Regulators, industry bodies, unions,

government, etc.

page | 19

Delivery on all strategic pillars in 2018Dual focus on operational execution and corporate activity for future growth

Our strategic intent

Sustainable value creation for all our stakeholders

Profitable top-line growth through a culture of

client-centricity

Enhancing resilience and earnings growth

through diversification

Extracting value through innovation and

improved efficienciesResponsible capital allocation and managementS

tra

teg

ic

pil

lars

Transformation

Our vision

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 & Malaysia

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

page | 20

Sustainable shareholder value creationSolid growth despite major headwinds

Dual fo

cus o

n fu

ture

gro

wth

and

div

iden

d flo

ws

0

200

400

600

800

1000

1200

1400

1600

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Consistent outperformance of RoGEV target

Target Actual

0

50

100

150

200

250

300

350

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Stable dividend growth

Dividend Cash earnings

Target: SA 9yr risk free + 4% Target: 2% - 4% real growth

10yr CAGR 12.3%10yr CAGR 15.6%

Strategic focus on growing dividends from SEM operations

page | 21

Our strategic scorecard - 2018Positioning for accelerated growth in SA and beyond

HIG

HL

IGH

TS

CH

AL

LE

NG

ES

Saham Finances: at R13bn

largest transaction in 100-year

history

Shareholder approval for

package of BBBEE transactions

Concluded Catalyst Fund

Managers and ACA

acquisitions

Capitec Bank funeral product

reached 500 000 sales in 9

months

3% capital raising at favourable

price

SEM operational structure

refocussed on pan-African

opportunity

Weak SA economic

environment

Investment market downturn in

a number of countries

Underperformance in East

Africa portfolio

Poor 2H18 claims experience &

market volatility at Saham

Finances

page | 22

Key priorities for the GroupSA and beyond

New solutions

needed for entry-level

life & savings

3rd party asset

management

Employee benefits needs to

deliver in 2/3 years

Health

Deliver on the Pan-African opportunity via SEM &

Santam

Extracting synergies from Saham acquisition

Continue to implement our strategy in SA

Strengthen wealth offering in the UK & expand into

Africa

page | 23

DiversificationResilience through line of business and geographic diversification

42%

58%

32%

21%

12%8%

10% 12%4%

1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Group Equity Value Net result fromfinancial services

Line of business (as at 31 December 2018)

Admin, health & other

Credit & structuring

Investment management

General insurance

Life insurance

60%

72%

83%

25%

14%

13%9% 10%

3%1%

1%5% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Group EquityValue

Net result fromfinancialservices

VNB

Geographic (as at 31 December 2018)

Other international

Malaysia

India

Rest of Africa

South Africa

page | 24

Strategic risksThe Group’s key top-down strategic risks and trends as at 31 December 2018

Strategic risks for 2018

Key Descriptors Trend Internal / external

Poor economic growth External

Disruptive threats / Fourth Industrial Revolution External

Cyber-risk External

Human resource scarcity and stretched resources Internal

Simultaneous regulatory implementation External

Diversified growth initiatives Internal

Implementation of the Group’s Pan-African strategy Internal

Transformation and diversity Internal

Political and social instability External

Severe weather / climate change External

Operating

environment in

2018Challenging conditions in South Africa

and Namibia

page | 26

Slow recovery in most regions

Regulatory changes supportive of

insurance opportunity

Risk-based capital introduced in a

number of markets – provides

opportunities

Steady rise in US interest rates during

2018

Uncertainties around Brexit

Escalating trade war between US and

China

Risks to Chinese economic growth and

impact on commodity prices

Renewed optimism at start of the year

soon turned into more realistic views of

path to recovery

Economic growth remains under

pressure; requires structural reform

Sovereign credit

rating downgrade risk remains

More positive outlook

Need to restore confidence

Liquidity constraints in India

Share prices of credit businesses

under pressure despite robust

operational performance

Strong economic growth prospects

Our business environment in 2018Not conducive to growth in short term, but more favourable outlook

South Africa

Rest of

Africa

India &

MalaysiaGlobal

Financial

PerformanceDiversification provided resilience under

difficult conditions

page | 28

Our economic and underwriting environment in 2018Weak equity markets had a pronounced negative effect on earnings and RoGEV

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18

SA bond yields & short-term interest rates

9 year 5 year Avg ST

-200

300

800

1,300

1,800

Santam underwriting result (Rm)

2017 2018

2.8%

-1.0%

1.4% 2.1%

-5.4%

5.8%

-2.3%

-6%

-4%

-2%

0%

2%

4%

6%

UnitedKingdom

USA Botswana Morocco India Malaysia Rest ofAfrica

Average Rand exchange rates

RoGEV: -2%

VNB: -6%

Overall earnings:

immaterial

ROGEV: +3%

Santam

underwriting

margin: 9%

EV investment

variances: -R2.7bn

Pressure on fee

income

10 500

11 000

11 500

12 000

12 500

13 000

13 500

14 000

44 000

46 000

48 000

50 000

52 000

54 000

56 000

58 000

60 000

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18

JSE Indices

All Share Swix Avg Swix

page | 29

Overview of 2018 performance

HIGHLIGHTS CHALLENGES

Adjusted RoGEV of 19.4% per share exceeded target of

13%

Weak investment markets impacted on SIG and SPF

profitability

Exceptional underwriting performance by Santam New business volumes at SIG and Glacier under

pressure from low investor confidence

Strong growth in VNB, sterling contributions from

Sanlam Sky and Sanlam Corporate

Adverse group risk claims experience continued in 2018

Positive experience variances exceeded R2 billion for

the first time

Underperformance in East Africa and Letshego

Dividend up 8% to 312 cents per share Saham Finances 2H18 results impacted by adverse

claims experience and lower investment markets

Net fund inflows of R42 billion

page | 30

Key Performance Indicators

Earnings

Net result from financial services increased by 4%

Normalised headline earnings down 8%

Business volumes

Net value of new covered business up 8% to R2 billion (+14% on consistent economic basis)

Net new covered business margin of 2.8% on consistent economic basis (2.94% in 2017)

New business volumes increased by 1% to R223 billion

Net fund inflows of R42 billion compared to R37 billion in 2017

Group Equity Value

Group Equity Value of R63.41 per share

RoGEV per share of 11.6%; adjusted 19.4% compared to hurdle of 13%

Dividend per share of 312 cents; up 8% (3% real growth)

page | 31

Business flows

Gross Net

R million 2018 2017 2018 2017

by business

Personal Finance 60 971 58 615 4% 10 294 8 454 22%

Emerging Markets 26 224 21 903 20% 8 607 2 140 >100%

Investment Group 99 696 114 391 -13% 7 214 18 678 -61%

Santam 22 812 21 435 6% 8 986 7 265 24%

Sanlam Corporate 13 326 4 828 176% 6 438 606 >100%

by licence

Life insurance 53 815 44 615 21% 16 814 10 235 64%

General insurance 32 685 27 557 19% 12 946 9 417 37%

Investment 136 529 149 000 -8% 11 779 17 491 -33%

Total 223 029 221 172 1% 41 539 37 143 12%

page | 32

Net value of new covered business

Net value of New Business Margin

R million 2018 2017 CEB* 2018 2017 CEB*

Personal Finance 1 504 1 407 7% 14% 3,08% 3,20% 3,26%

Emerging Markets 338 347 -3% -1% 4,04% 4,86% 4,11%

Sanlam Corporate 143 87 64% 71% 1,03% 1,05% 1,06%

Total 1 985 1 841 8% 14% 2,67% 2,94% 2,80%

* Consistent economic basis

page | 33

Net value of new covered business

Value of new business (Rm) vs new business margins (%)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

South Africa Rest of Africa Other International Margins - rhs

page | 34

Net operating profit

R million 2018 2017

Personal Finance 4 033 4 235 -5%

Emerging Markets 2 038 1 793 14%

Investment Group 1 152 1 227 -6%

Santam 1 196 851 41%

Sanlam Corporate 580 558 4%

Corporate & other (109) (115) 5%

Total 8 890 8 549 4%

page | 35

Income statement

R million 2018 2017

Net operating profit 8 890 8 549 4%

Per share (cents) 423,6 417,2 2%

Net investment return 707 1 663 -57%

Amortisation of intangible assets (400) (261) -53%

Project expenses and other (141) (116) -22%

Normalised headline earnings 9 056 9 835 -8%

Per share (cents) 431,5 480,0 -10%

Fund transfers 106 (78)

Headline earnings 9 162 9 757 -6%

Per share (cents) 441,1 481,3 -8%

page | 36

Group Equity Value

Equity Value RoGEV

R million 2018 2017 Rm %

Group operations 132 658 113 829 13 526 11,6%

Personal Finance 43 185 43 401 4 832 11,4%

Emerging Markets 44 659 27 621 4 580 14,8%

Investment Group 18 703 18 331 682 3,7%

Santam 20 102 18 108 2 658 14,7%

Sanlam Corporate 6 009 6 368 774 12,8%

Discretionary & Other 1 394 7 934 (668) -12,0%

TOTAL 134 052 121 763 12 858 10,6%

cps 6 341 5 940 691 11,6%

Adjusted RoGEV cps 19,4%

Return target 13,0%

page | 37

Group Equity Value earnings

10 676

22 646

12 858

1 985

4 937

2 114 338

1 302

12 638

668755

3 988

5 045

0

5,000

10,000

15,000

20,000

25,000

VNB Expectedreturn on

VIF

Experiencevariances

Assumptionchanges

Expectedinv return &

currencymvmt

AdjustedLife

earnings

Otheroperations

Othercapital

AdjustedRoGEV

Economicassump

changes -Life

Other -Life(1)

Other -Non-life(2)

RoGEV

1 Investment variances, currency movements, goodwill write-off & other

2 Investment variances, economic assumption changes, currency movements & other

page | 38

Experience variancesRisk, working capital, credit spreads major contributors

636

468

681

555

1 021 9911 081

1 558

2 114

0

500

1000

1500

2000

2500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

R m

illio

n

% o

f V

IF

983

447 535

67147

452

507

396

437196

488

FY17 FY18-400

100

600

1100

1600

2100

2600

R m

illio

n

Risk experience Persistency Working capital

Credit spreads Other% of VIF

page | 39

Return on Group Equity ValueOut perform growth target of long-bond rate +400bp

12.2 12.114.1 13.2 13.0 12.9

6.2

0.7

-2.3

1.6

-1.4

1.0

- 5

0

5

10

15

20

2014 2015 2016 2017 2018 Avg

Target Out performance

12.2 12.114.1 13.2 13.0 12.9

5.8 2.7

3.7

2.6

6.44.2

0

5

10

15

20

25

2014 2015 2016 2017 2018 Avg

Target Out performance

Actual RoGEV Adjusted RoGEV

Capital

management and

Solvency

page | 41

Discretionary capital

R1bn – R1.5bn

post BBBEE

share issuance

page | 42

Solvency positionSolvency cover exceeding upper end of target range

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Sanlam Life 31/12/2017 Sanlam Life 31/12/2018 Sanlam Life covered31/12/2017

Sanlam Life covered31/12/2018

Sanlam Group31/12/2017

Sanlam Group31/12/2018

SAM solvency cover

Own funds SCR

274%

Target: 170% – 210%

264%

237%221%

218%215%

page | 43

Capital management philosophyDual focus on stable dividend growth and investment for future growth

We follow a prudent approach: we only use free cash flow to fund dividends

We do not manage our capital and solvency through our dividend policy

Cash earnings generated by

operations available to fund

Sanlam dividend

Not allowed

for in dividend

cash flows

We maintain a cash dividend cover ratio of between 1,0

and 1,2 times to manage smooth real dividend growth of

2% - 4% per annum

Any excess dividend cover is

added to the discretionary

capital portfolio

Any excess investment return

is added to the discretionary

capital portfolio

Discretionary capital

redeployed for structural

growth or returned to

shareholders

Sources of

cash earnings

Net result

from financial

services

Investment

return on

capital

Strong cash generation in mature markets support real

dividend growth, allowing SEM to reinvest for growth

Funding for increased capital

requirements and maintaining

solvency

Allocated capital for SA life operations assumes that investment

return will be free cash flow under normal conditions

page | 44

DividendCash dividend generation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018

Dividend as % of net result from financial services

Sanlam Personal Finance Sanlam Emerging Markets Sanlam Investments Santam

Sanlam Corporate Group office Sanlam Group

Cluster resultsannual 2018

Financial reviewSanlam Personal Finance

page | 47

Sanlam Personal Finance

R million 2018 2017

New business volumes 60 971 58 615 4%

Sanlam Sky 2 494 1 455 71%

Individual life recurring 1 125 994 13%

Capitec Bank credit and funeral 999 - -

Other channels 370 461 -20%

Recurring premium & SBD 3 412 2 838 20%

Glacier 55 065 54 322 1%

Life 28 336 27 135 4%

Non-life 26 729 27 187 -2%

Net flows 10 294 8 454

Sanlam Sky 3 625 3 623

Recurring premium & SBD (2 355) (4 074)

Glacier 9 024 8 905

page | 48

Sanlam Personal Finance

R million 2018 2017 CEB*

Net value of new life business 1 504 1 407 7% 14%

Sanlam Sky 606 521 16% 28%

Recurring premium & SBD 447 396 13% 20%

Glacier 451 490 -8% -6%

Net new business margin 3,08% 3,20% 3,26%

Sanlam Sky 7,89% 8,88% 8,93%

Recurring premium & SBD 3,47% 3,55% 3,54%

Glacier 1,60% 1,82% 1,63%

* Consistent economic basis

page | 49

Sanlam Personal Finance

R million 2018 2017

Net operating profit 4 033 4 235 -5%

Sanlam Sky 897 875 3%

Excl NUB strain and African Rainbow Life 970 875 11%

Recurring premium sub cluster 2 028 1 856 9%

Glacier 854 1 264 -32%

SBD & Other 254 240 6%

Excluding growth initiatives 4 258 4 280 -1%

Group Equity Value 43 185 43 401

RoGEV 11,4% 17,5%

Financial reviewSanlam Emerging Markets

page | 51

R million 2018 2017

New business volumes 26 224 21 903 20%

Namibia 6 802 5 593 22%

Botswana 5 833 7 137 -18%

Rest of Africa 10 655 6 360 68%

Saham Finance 7 569 3 385 124%

Ghana - 130 -100%

Other 3 086 2 845 8%

India 2 329 2 224 5%

Malaysia 605 589 3%

Net fund flows 8 607 2 140

Namibia 354 (3 105)

Botswana 1 538 1 399

Rest of Africa 5 636 2 928

India/Malaysia 1 079 918

Sanlam Emerging Markets

page | 52

R million 2018 2017

Net value of new life business 338 347 -3%

Namibia 87 75 16%

Botswana 108 111 -3%

Rest of Africa 67 105 -26% Saham Finances 38 20 90%

Ghana - 34 -100%

Other 29 51 -43%

India/Malaysia 76 56 36%

Net new business margin 4,04% 4,86%

Namibia 4,66% 4,98%

Botswana 6,46% 6,34%

Rest of Africa 2,39% 4,96%

India/Malaysia 3,76% 3,16%

Sanlam Emerging Markets

page | 53

Sanlam Emerging Markets

R million 2018 2017

Net operating profit 2 038 1 793 14%

Namibia 294 344 -15%

Botswana 315 356 -12%

Rest of Africa 595 377 58%

Saham Finances 511 243 110%

Ghana - 28 -100%

Other 84 106 -21%

India 793 759 4%

Malaysia 29 24 21%

Corporate expenses 12 (67) >100%

Group equity value 44 659 27 621

RoGEV 14,8% 11,5%

Financial reviewSanlam Investments

page | 55

Sanlam Investment Group

R million 2018 2017

Net investment business flows 7 602 19 035

Investment management SA 4 133 13 247

Wealth management 785 3 052

International 2 684 2 736

New life business 3 219 3 137 3%

Net life business (388) (357)

page | 56

Sanlam Investment Group

R million 2018 2017

Net operating profit 1 152 1 227 -6%

Investment management SA 258 256 1%

Wealth management 125 140 -11%

International 405 351 15%

Specialised finance 364 480 -24%

Group Equity Value 18 703 18 331

Covered business 2 797 2 768

Other 15 906 15 563

RoGEV 3,7% 14,2%

page | 57

Sanlam Investment GroupInvestment performance

Percentage of SIM’s benchmark-managed funds exceeding hurdle

72%65%

79%

57%

FY17 3yr FY18 3yr FY17 5yr FY18 5yr

Third party portfolios

39%

23%

100%

10%

FY17 3yr FY18 3yr FY17 5yr FY18 5yr

Sanlam capital and policyholder portfolios

Under-

performance

of +/- 30bps

Under-

performance

of less than

10bps

Financial reviewSantam

page | 59

Santam

R million 2018 2017

Net earned premiums 22 812 21 435 6%

Gross operating profit 2 978 2 173 37%

Underwriting surplus 2 097 1 281 64%

Working capital & other 881 892 -1%

Net operating profit 1 196 851 41%

Excl 2017 abnormal catastrophe claims 1 196 1 007 19%

Underwriting margin 9,2% 6,0%

Group Equity Value 20 102 18 108

RoGEV 14,7% 18,0%

Financial reviewSanlam Corporate

page | 61

Sanlam Corporate

R million 2018 2017

New business volumes 13 326 4 828 176%

Risk 379 344 10%

Investment & retirement - life 9 695 4 484 116%

Investment – non-life 3 252 - -

Net fund flows 6 438 606

Value of new life business 143 87 64%

New business margin 1,03% 1,05%

page | 62

Sanlam Corporate

R million 2018 2017

Net operating profit 580 558 4%

Employee Benefits 467 443 5%

Healthcare 136 120 13%

Integrated solutions and corporate (23) (5) >-100%

Group Equity Value 6 009 6 368

RoGEV 12,8% 21,0%

page | 63

Sanlam ADR programmeSponsored level 1 ADR

Ticker symbol: SLLDY

CUSIP: 80104Q208

Ratio: 1 ADR : 2 Ordinary Shares

Depositary bank: Deutsche Bank Trust Company Americas

Depositary bank contact: Begonia Roberts

ADR broker helpline: +1 212 250 9100 (New York)

+44 207 547 6500 (London)

e-mail: adr@db.com

ADR website: www.adr.db.com

Depositary bank’s local custodian: Standard Bank of South Africa