IMDP About Sanlam V1

About Sanlam

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Sanlam is a diversified financial services company headquartered in South Africa, with a strong presence in 31 countries, covering 28 countries across the African continent and a niche presence in Asia. About us | Strategy | Sanlam

Who are we?

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WE ARE DRIVEN BY OUR PURPOSE TO EMPOWER GENERATIONS TO BE FINANCIALLY CONFIDENT, SECURE AND PROSPEROUS.

Sanlam has a 105-year history of empowering South Africans and is a trusted adviser to retail and institutional clients across the country. We are focused on protecting our clients’ wealth and peace of mind while enabling them to live with confidence. While our business is founded in South Africa, we have extended our footprint across Africa and have a leading niche presence in India.

Why Sanlam

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Sanlam's global footprint

BUILDING SCALE WHERE IT MATTERS

While our business is founded in South Africa, we have extended our footprint across Africa and have a leading niche presence in India and Malaysia. As a leading financial services company, we recognise the critical role we can play in building a better tomorrow by creating an enabling environment for sustainable, inclusive economic growth that makes a difference to society and improves lives in the communities where we operate.

1. Introduction to the Sanlam Group “The Big Picture” Sanlam is a South African based financial services group, operating worldwide. The company was established in 1918 as a mutual life insurance company, but demutualised and listed on the JSE and NSX in 1998, at a share price of R5.99. Our areas of expertise include life insurance, financial planning, retirement, trust & wills, general insurance, risk management, capital market activities, tax advice, local and worldwide investment and wealth management. At Sanlam our purpose is to build a world where people can live their best possible lives through financial resilience and lasting financial prosperity. We contribute to our clients’ financial resilience by offering solutions to protect them against the adverse financial consequences of unforeseen events. We are helping to build a world for generations to come – so they can live their best possible lives within empowered communities and a protected and supportive environment.

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At Sanlam we have a proud legacy to build on:

Our role within the financial system also contributes to the resilience of society in general through responsible capital allocation and providing stability when the system experiences internal or external shocks.

2. At Sanlam we have a proud legacy to build on:

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Our role within the financial system also contributes to the resilience of society in general through responsible capital allocation and providing stability when the system experiences internal or external shocks.

3. Sanlam acquisitions: SanlamAllianz, Assupol, and Multichoice In September 2023, Sanlam, the largest non-banking financial services company in Africa, and Allianz, one of the world’s leading insurers and asset managers with more than a century of history in Africa, joined forces to create the largest pan-African non-banking financial services entity on the continent. As SanlamAllianz, we operate among the Top-3 insurance companies in most of our chosen markets through a shared-value approach with our staff, clients, the markets, communities and economies we do business in, as well as our business partners and shareholders. Our ambition is to maintain this position in all our operating markets and to continue to provide our clients with world-class products and services. • Drive financial inclusion by providing greater access to our products and services through digital innovation, as well as leveraging our telecommunication and bancassurance partnerships across our markets to create new opportunities in Africa • Provide the best of two leading international brands with improved multinational offerings in both P&C and life insurance through innovation and the additional capabilities enabled thanks to greater economies of scale • Improve and optimise our reinsurance offering • Grow our life and general insurance business through product and service innovation • Be the reference insurer for clients due to our strong commitment to client satisfaction and through pursuing opportunities in terms of our asset management business, based on market maturity. Our key focus areas are to:

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Our purpose is to empower generations to be financially confident, secure and prosperous. This is powered by our vision to distinguish ourselves as the most admired financial service group in Africa, and an attitude of excellence in delivery as we implement our strategy of building scale and achieving sustainable growth. At SanlamAllianz, we are part of a company that demonstrates lasting commitment to all stakeholders – internally and externally – by making a long-term investment in the African market.

4. Sanlam to Acquire 60% of MultiChoice’s

Insurance Business, NMS Insurance Services, 18 June 2024 Sanlam Limited (Sanlam) and MultiChoice Group Limited (MultiChoice) today announced that they have entered into an agreement for Sanlam to acquire 60% of MultiChoice’s insurance business, NMS Insurance Services (NMSIS), as well as a long-term commercial arrangement to expand insurance and related financial service offerings into MultiChoice’s extensive African subscriber base. Sanlam will pay an upfront cash consideration of R1.2 billion to MultiChoice for its 60% stake and a potential performance-based cash earn-out of up to a maximum consideration of R1.5 billion that is contingent upon the amount of gross written premium generated (GWP) by NMSIS for the financial year ending 31 December 2026. MultiChoice will utilise the cash proceeds received from this transaction for working capital purposes. Also, through this agreement, MultiChoice retains a substantial 40% interest in NMSIS and will have the same participation in the Africa-wide venture, allowing it to continue benefiting from the high-growth potential of this segment, while maximising value for its shareholders. Through this commercial arrangement, Sanlam and its affiliates have the opportunity to cross- sell financial services products to MultiChoice’s extensive and engaged subscriber base of 21 million households across 50 countries in Africa. Sanlam will leverage MultiChoice’s engagement channels and int egrated payment collection capabilities to deliver these broader offerings to MultiChoice’s subscribers. Opportunities outside of South Africa will be facilitated through SanlamAllianz. Sanlam Group CEO, Mr Paul Hanratty, said: “We are pleased to announce the coming together of Sanlam and MultiChoice to enhance insurance access in Africa. It affords us the opportunity to leverage our respective market footprints and technological capabilities that will support growth and market penetration, as well as provide opportunities to realise synergies for the benefit of all stakeholders.” For MultiChoice, the transaction represents an opportunity to expand its value-enhancing services such as insurance to its subscribers across Africa, leveraging the expertise and technology of Sanlam. MultiChoice CEO, Mr Calvo Mawela, said: “This collaboration with Sanlam is a strategic milestone for MultiChoice. It not only allows us to increase the value we provide to our subscribers, but also enables us to leverage Sanlam’s exper tise to drive growth and

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innovation in our insurance offerings across the continent. It is a nod to the incredible work done by our teams.” NMSIS, a registered South African composite micro-insurer and authorised financial services provider, is licensed to underwrite both non-life and life insurance products. It has been writing insurance for the past 20 years under the DStv brand of MultiChoice focusing on device, installation, funeral, subscription waiver and debt waiver insurance products. The business has demonstrated robust growth in recent years, increasing its in-force policies by 19% to 3.3 million for the financial year ended 31 March 2024. The Life products, introduced three years ago as NMSIS diversified beyond device insurance, experienced rapid growth and now account for 30% of in-force policies. NMSIS’s key financials for the year ended 31 March 2024, audited and prepared in terms of IFRS, were as follows:

• GWP increased 36% year-on-year to R970 million • Profit after tax increased 51% to R296 million • The net asset value of NMSIS was R277 million

NMSIS has enjoyed substantial traction and profitability in South Africa, as shown by these numbers. Its growth ambitions, such as expanding its local product offering and geographic presence across Africa, require a step up in resources, expertise and technology, which the acquisition by Sanlam will help unlock. Sanlam will oversee the NMSIS operations through its Sanlam Fintech cluster, ensuring seamless integration into the Sanlam Group and positioning NMSIS to meet its growth objectives.

The transaction is subject to the necessary regulatory approvals from the South African competition and regulatory authorities.

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