Sanlam Allianz Holdings (kenya) Plc · NSEKE:SLAM
Sanlam Allianz Holdings (kenya) — Sanlam — UBS Financial Services Conference 2013
27 slides from Sanlam Allianz Holdings (kenya)'s conference presentation, October 2013
Slide 1: UBS Financial Services Conference
UBS Financial Services Conference (YSanlam Cape Town — October 2013 Group
Slide 2: Growth option in the Sanlam share
Growth option in the Sanlam share ...an investment opportunity in Testing Times 2 Sanlam
Slide 3: Agenda
Agenda e Overview of Group strategy e Diversification — key driver of growth e Strategic focus in South Africa e Strategic focus in ex-SA emerging markets e Results emanating from strategy 3 Sanlam
Slide 4: Strategic positioning
Strategic positioning {YsSanlam Geared for sustainable growth dy ee
Slide 5: Target Themes Focus Areas
Target Themes Focus Areas Net Business Flows Growth/ Operational Diversification Efficiency Operational Efficiency Returns (ROGEV) Optimal Application Capital Strategic Investments Efficiency Return of Excess 5
Slide 6: South Africa: Delivery of sustainable growth
SOUTH AFRICA: Delivery of sustainable growth Maximising return on Efficient & effective investment in existing management businesses Effective capital manage- Identification of ment Sourcing new growth core markets for opportunities growth and expansion INTERNATIONAL: Creating a platform for future
Slide 7: pice
pice —_ = fe) — o>) aS fe) — o a — xe) oa © NE
Slide 8: Indirect presence via associate companies
Indirect presence via associate companies 8
Slide 9: Sanlam geographic and business presence 2003 vs 2013
2013 Country Life Short-term Asset Credit Other* Assurance Insurance Management South Africa Botswana Ghana India Kenya 2003 Malawi Country Life Short-term Asset Other* Malaysia Assurance Insurance Management Mozambique South Africa Namibia
Slide 10: Group Equity Value (30-Jun-13)
Group Equity Value (30-Jun-13) Admin, health & other Credit & 8% banking 8% Investment management 13% Life business Short-term 52% insurance* 19% * General insurance 10
Slide 11: Contribution to group net operating profit
Contribution to group net operating profit 1H03 – R756m 1H12 – R1 946m 1H13 – R2 409m Other India/ inter- Rest of Malaysia national Other inter- Rest of Africa national Africa 7% 6% Other inter- 1% 2% Namibia national Botswana 7% 5% Botswana 1% 1% Namibia 4% 5% Namibia 5% SA Entry- level 7% SA Entry
Slide 12: Net VNB – 1H03 vs 1H13
Net VNB – 1H03 (R100m) Net VNB – 1H13 (R587m) Other inter- Rest of Africa national Botswana 7% 4% 3% Namibia 2% Namibia 4% SA Entry- level 25% SA Traditional 98% SA Traditional 57% 12
Slide 13: Sanlam South Africa
Sanlam South Niters| Group
Slide 14: South Africa
South Africa Optimisation and efficiencies in low growth environment e Quality of new business & client centricity = value through persistency e Operational efficiencies e@ Capital optimisation 14 Sanlam
Slide 15: Margins and business volumes by region
700 3.20% 600 2.70% 500 2.20% 400 1.70% 300 1.20% 200 0.70% 100 0.20% 0 -0.30% 1H06 1H07 1H08 1H09 1H10 1H11 1H12 1H13 South Africa Africa Other International Margins - rhs 15
Slide 16: SA middle-income market
SA middle-income market Lapses, surrenders & fully paid-ups as % of in-force per half year 4.8% 4.2% 4.2% 3.9%4.0% 3.9% 3.8% 3.8% 3.9% 3.6%3.7% 3.6% 3.4% 3.4% 3.0%2.9% 2.9%2.8% 2.9% 2.7% 2.8% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 H2 16
Slide 17: SA lower income market
SA lower income market Number of NTUs, lapses and surrenders as % of in-force 27.6% 17.5% 16.8% 15.2% 14.1% 14.5% 12.7% 12.7% 11.4% 11.1% 11.1% 10.4% 10.0% 2007 2008 2009 2010 2011 2012 2013 H1 H2 17
Slide 18: Focus on quality, costs + prudence = consistent positive experience
Focus on quality, costs + prudence = consistent positive experience 800 700 681 636 600 555 500 468 471 400 298 277 288 278 300 241 200 142 138 96 100 45 32 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H13 R'million Average 18
Slide 19: R28bn excess capital released
R28bn excess capital released Unproductive capital, excess investment return, sale of businesses etc R13bn share buy back / R1bn special dividend 28% of market cap R11bn invested R6bn Rest of Africa, India & SE Asia R3bn South Africa R2bn Developed markets R3bn discretionary capita
Slide 20: Capital efficiency
Capital efficiency Composition of Group equity value 29 26 37 37 33 43 40 47 46 55 32 32 30 32 29 27 30 28 26 24 39 42 30 34 34 35 25 28 30 21 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Non Life VIF Capital 20
Slide 21: Emerging markets outside of South Africa
(Y¥Sanlam Emerging markets outside of South Africa Perouse ls cro
Slide 22: Target
Target Doubling the contribution of ex-SA emerging markets to Group profit over next 3 — 5 years 22 Sanlam
Slide 23: Sanlam Emerging Markets
Strategic approach Holistic country approach Strong country partners with similar values Brand and distribution capability of partner Strong local board and management Support local skills development Majority control is preferred whilst a minority stake is acceptable RoGEV must be higher than bench
Slide 24: Sanlam Emerging Markets
Sanlam Sanlam Emerging Partners Group Markets 24
Slide 25: Results 1H2013
results YW) == =) ap) oO we = x?) a) ps oO is co) x2) << ~ = Oo Se O 1H2013
Slide 26: Top-line earnings growth
Top-line earnings growth Financial performance in 1H13 e Earnings per share o Net operating profit per share increased by 23% o Normalised headline earnings per share up 35% e Business volumes o New business volumes increased by 37% to R83bn o Net fund inflows of R13bn o Net life VNB up 20% to R587m
Slide 27: Sanlam
Sanlam | Group