Sanlam Limited (OTCPK:SLLD.Y) 2025 Capital Markets Day Transcript

Summary of Sanlam Limited Capital Markets Day - October 16, 2025 Company Overview - Company: Sanlam Limited (OTCPK:SLLD.Y) - Event: 2025 Capital Markets Day - Date: October 16, 2025 - Location: Cape Town, South Africa Key Themes and Core Points Growth Strategy - Theme: Leveraging quality and accelerating growth [5][6] - Objective: To provide confidence in financial futures for clients and enhance shareholder returns through accelerated growth [7][8] - Market Position: Sanlam has built platforms across Africa and India, ready to drive performance and growth [8][9] Financial Performance and Metrics - New Metrics: Introduction of new metrics to track shareholder value creation and financial performance [12][13] - Dividend Growth Target: Increased to a minimum of 4% per annum real, reflecting a decline in cash conversion of profits over time [26][27] - Earnings Growth Target: Set at above 6% real, indicating faster growth expectations from India and Africa compared to South Africa [27][28] Market Dynamics - Underlying Growth: Strong market forces in South Africa, the rest of Africa, and India support organic growth [9][20] - Emerging Markets: Focus on providing a range of products across different lines of business to enhance distribution economics [19][20] Regional Focus - South Africa: Despite being seen as a mature market, Sanlam aims to enhance growth through partnerships and ecosystem development [23][24] - India: Significant growth potential due to a large, youthful population and increasing digital fluency [41][44] - Rural Market: Emphasis on the rural segment in India, which presents a unique opportunity for profitable operations [42][45] Partnerships and Ecosystem Development - Partnership with Shriram: A 20-year partnership that has evolved to include various financial services, enhancing market penetration and customer trust [36][40] - Ecosystem Model: Development of a comprehensive ecosystem in India, integrating credit, general insurance, life insurance, and asset management [50][56] Competitive Advantages - Market Leadership: Shriram Life is among the top five life insurers in India by policies sold in the rural market, showcasing strong performance metrics [46] - Technology Integration: Proprietary technology supports customer engagement and enhances service delivery through the Sriram ONE app [51][52] Additional Insights - Sustainability Index: A new sustainability index is being introduced, with targets to be published once data reliability is confirmed [28] - Management Incentives: Revised to align with new performance metrics, reflecting confidence in future returns [29][30] - Long-term Vision: Commitment to building a sustainable and profitable business model in emerging markets, with a focus on quality growth [66] Conclusion Sanlam Limited is positioned for significant growth through strategic partnerships, a focus on emerging markets, and a commitment to enhancing shareholder value. The company's emphasis on leveraging quality and developing a comprehensive ecosystem in India and Africa underpins its long-term growth strategy.