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Annual Results 2018 Annual Results 2018

2018 Annual Results

7 March 2019

We made major progress in executing on our strategic pillars during 2018.

Our federal model and diversified profile are major contributors, enabling a dual focus on growing our existing operations while also concluding new corporate transactions to drive enhanced future growth. This diligent focus on strategic execution enabled us to achieve solid growth in 2018 and double-digit average growth rates in most key performance indicators over the last 10 years.

Return on Group Equity Value per share

11,6%

Net result from financial services

+ 4%

New business volumes

R223bn + 1%

Net value of new covered business (VNB)

R1985bn + 8%

Net VNB margin

2,67% 2,94% in 2017

Operating conditions in South Africa remained challenging, with pedestrian economic growth, negative returns on the local equity market and currency volatility. The negative return of 9% for the JSE/FTSE All Share index compared to a positive return of 21% in 2017 had a pronounced impact on Return on Group Equity Value and earnings growth in 2018.

Highlights

Highlights for the year include two major transformative transactions that positions us well for sustainable future growth: the acquisition of the remaining stake in Saham Finances in October 2018 and the approval of a package of Broad-based Black Economic Empowerment (BBBEE) transactions by shareholders in December 2018.

Growth of 14% in the value of new covered business (VNB) on a consistent economic basis and more than R2 billion in positive experience variance is testimony to Sanlam’s resilience in difficult times.

Ian Kirk

Key Features

Earnings

  • Net result from financial services increased by 4%
  • Dividend per share of 312 cents, up 7.6%

Business Volumes

  • Net value of new covered business up 7.8% to R2 billion (up 14% on consistent economic basis)
  • Net new covered business margin of 2.67% on consistent economic basis (2.94% in 2017)
  • New business volumes increased by 0.8% to R223 billion
  • Net fund inflows of R42 billion compared to R37 billion in 2017

Group Equity Value

  • Group Equity Value per share of R63.41
  • Return on Group Equity Value per share of 11.6%
  • Adjusted Return on Group Equity Value per share of 19.4%; exceeding target of 13.0%

Capital Management

  • R7.9 billion of capital raised and released; R13.5 billion deployed in strategic investments
  • Acquisition of remaining 53% stake in Saham Finances finalised
  • Package of BBBEE transactions approved by shareholders; planned implementation 1H2019
  • Sanlam Group SAM cover ratio of 215%; Sanlam Life Insurance Limited SAM cover ratio for covered business of 221%

Webcasting

Interested parties can view the live video webcast of the results presentation on the Internet via a link on the Sanlam Investor Relations website or by the following URL : http://www.corpcam.com/Sanlam07032019.

This webcast can also be accessed and viewed on Android and Apple tablets and mobile devices. A delayed version of the webcast will be available shortly afterwards at the same address.

Audio dial-in facility

A toll free dial-in facility will be available. We kindly advise callers to dial in 5 - 10 minutes before the presentation starts at 09:00.

Access numbers for participants dialing live from their country

South Africa Toll-free 0 800 200 648
South Africa (Johannesburg) +27 10 201 6800
South Africa (Johannesburg Alternate) +27 11 535 3600
South Africa (Cape Town) +27 21 819 0900
South Africa (Durban) +27 31 812 7600
Australia Toll-free 1 800 350 100
United Kingdom Toll-free 0 333 300 1418
USA and Canada Toll-free 1 508 924 4326
Other Countries +27 10 201 6800
Other Countries (Alternate) +27 11 535 3600

Recorded playback will be available for three days after the conference

South Africa +27 10 500 4108
Australia 739 111 378
United Kingdom 0 203 608 8021
USA & Canada 14 123 170 088
Other Countries +27 10 500 4108

Access code for recorded playback : 21354

BusinessDay TV*

The presentation will be broadcast at 09:00 on the South African DStv network channel 412 (BusinessDay TV).

Enquiries
Adri Hofmeyr
Investor Relations:Sanlam Limited
Tel: +27 21 947 8455
Email: adri.hofmeyr@sanlam.co.za

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