BIHL Group: Full-Year Results 2022 Overview

Explore BIHL Group's full-year results for 2022 covering operational performance, financial highlights, diverse portfolio of companies, headwinds faced, and strong operating performance despite challenges.

• financial performance
• diverse portfolio
• operational overview
• challenges

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1. FULL YEAR RESULTS 31 DECEMBER 2022 March 8, 2023

2. AGENDA Welcome Remarks BIHL Group Acting Chairman Operational Overview BIHL Group Chief Executive Officer Financial Performance BIHL Group Chief Financial Officer

3. OPERATIONAL OVERVIEW

4. DIVERSE PORTFOLIO OF COMPANIES SUBSIDIARIES ASSOCIATES 100% BIHL ownership BIHL 74.9% Bifm CEE 25.1% Letshego 27.91% Aflife Zambia 49.0% Khumo PAM 50% BIC 50.00% BIHL top shareholders Owned via Teledimo Sanlam BPOPF MVA 58.43% 12.05% 4.04% Grand Re Tanzania 33.00% FSG* 37.62% NICO 25.10% Other 25.49% * FSG sale completed in February 2023 4

5. HEADWINDS Global uncertainties Rising cost of living and inflationary pressures on households Earnings strength Core earnings P481m Final dividend net of tax (285m) 55% increase from Dec 2021 Special dividend of P257 million net of tax Growing competition in some segments 2022 ROGEV 16.9% Capital strength Regulatory shifts Capital cover above regulatory prescription at 7.7 times cover Changing client needs 5

6. STRONG OPERATING PERFORMANCE Portfolio delivered strong return ROGEV 16.9% Claims normalised to pre pandemic levels, positively affecting 2022 performance Positive AUM and operating profit in the asset management business Strong operating profit result from the life business Strong operating profit results from Nico Holdings and BIC Disposal of 37.62% in FSG limited concluded Balanced sheet remained strong BIHL Trust donation spend P2m Attractive Dividend policy maintained over the years 6

7. THOUGH WITH CHALLENGES BLIL muted top line growth with lower new business productvity 6.5k net decline in BLIL file size with above expectation lapses and cancellations Sluggish unit trust growth Letshego growth declining 7

8. GROUP PERFORMANCE HIGHLIGHTS The Group remains well positioned in terms of capital management and solvency Net insurance premium income Value of new business Fee revenue Share of profits of associates Operating profit P3.01 billion P 160 million P139 million P237 million P408 million (2%) (9%) 9% (22%) 132% Core earnings ROGEV (Target 14.5%. Dec 2021 11.3%) Assets under management Required capital cover (Dec 2021: 6.8 times) Embedded value (Dec 2021 5.29 billion) P481 million 16.9% P38.5 billion 7.7 times P5.76 billion 138% 7% 9% 49% 14% 8

9. OPERATIONAL EFFICIENCIES PROGRESS BUSINESS EFFECTIVENESS AND WORKFORCE DEVELOPMENT ALTERNATIVE SERVICING 5 minute onboarding Mosako clients now onboarded within 5 minutes of capturing and with immediate sms confirmation KYC solution rolled out to Bifm and BIHL and rolling out to BLIL soon Online access to policies WhatsApp feature enhancement. Enabling better client interaction with their policies Leads opportunities within book including lapses for possible reinstatement Proactive lapse prediction model launched improving lapse avoidance Zero data charges Client can now access digital platforms for free without data charges Convenient payment options MNO and prepaid vendor collection partnerships. New premium collection options for clients Coursera average of 2.5 courses completed per employee since launching in July 2022 Affluent proposition repositioning 9

10. LOOKING AHEAD

11. COMMITTED TO OPTIMISING STAKEHOLDER VALUE Optimum capital allocation and maximisation of returns Strong governance and prudent risk management Social responsibility in our communities Profitable growth; all segments Leverage off technology for efficiencies Retaining clients and ensuring value add to their lives Client centric high-performance culture 11

12. FINANCIAL PERFORMANCE

13. REVENUE BWP million 2,000 1,787 1,766 1,800 1,600 1,373 1,400 1,307 1,200 1,000 800 600 400 139 128 200 72 26 0 Recurring premium Single premium Fee revenue Shareholder investment return Dec 2022 Dec 2021 13

14. REVENUE CONTRIBUTION Dec 2022 Dec 2021 4%2% 4%1% 40% 42% 53% 54% Recurring premium Single premium Fee revenue Shareholder investment return Recurring premium Single premium Fee revenue Shareholder investment return 14

15. EXPENSES BWP million 3,000 2,462 2,500 2,057 2,000 1,500 1,000 569 517 449 420 500 0 Claims and benefits Sales remuneration Administration expenses Dec 2022 Dec 2021 15

16. SUSTAINABILITY BWP million 3,000 2,462 2,500 2,057 2,000 1,689 1,499 1,382 1,500 1,000 449 420 357 500 324 316 0 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Claims and benefits Admnistration expenses Linear (Claims and benefits) Linear (Admnistration expenses) 16

17. PROFITABILITY BWP million 700 615 600 500 408 393 400 305 300 237 176 176 200 160 100 0 Operating profit Profit attributable to shareholders Associate share of profit Value of new business Dec 2022 Dec 2021 17

18. SOURCES OF PROFITS Dec 2022 Dec 2021 6% 11% 26% 54% 35% 68% Subsidiaries PAT Associate share of profit Investment returns Subsidiaries PAT Associate share of profit Investment returns 18

19. SUBSIDIARIES CONTRIBUTION TO OP Dec 2022 Dec 2021 14% 31% 69% 86% BLIL BIFM BLIL BIFM 19

20. ASSOCIATES CONTRIBUTION TO OP Dec 2022 Dec 2021 3%5% 5% 8% 10% 7% 18% 27% 53% 64% Aflife Zambia BIC Nico Holdings Letshego FSG Aflife Zambia BIC Nico Holdings Letshego FSG *FSG is being accounted for 6 months 20

21. PROFIT AFTERTAX BWP million 400 358 350 300 250 188 200 150 103 103 99 100 57 44 42 38 50 25 23 9 0 BLIL Bifm Holdings NICO Holdings BIC LHL FSG Dec 2022 Dec 2021 *FSG is being accounted for 6 months 21

22. High dividend payout ratio Healthy dividend per share Unwinding of excess capital through special dividend DIVIDENDS Delivering on our promises Thebe per share 300 250 89 200 150 16 101 11 100 67 65 59 50 71 65 60 57 44 0 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Interim Final Special 22

23. VALUE OF NEW BUSINESS BWP million 200 176 180 160 158 160 147 140 129 120 100 80 60 40 20 0 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 23

24. EMBEDDED VALUE EV/share P20.40 (Dec 2021 P18.74) Market price/share P17.71 (Dec 2021 17.50) BWP million 7,000 6,000 5,000 2,295 2,045 4,000 1,871 1,811 1,664 3,000 2,000 3,465 3,281 2,911 2,841 2,756 1,000 0 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Value of inforce business Shareholders net assets 24

25. FINANCIAL POSITION BWP million 45 38.5 40 36.0 35 30.3 29.2 30 27.5 25 18.5 20 18.1 17.1 16.5 15.8 15 10 5.76 5.3 4.8 4.7 4.4 5 0 AUM Total assets EV Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 25

26. EMBEDDED VALUE EARNINGS GEV movement Pm Opening embedded value Expected return New business Operating variances Assumption changes Economic assumption changes Investment variances Retutn on SH assets Change in FV adjustments Movement in treasury shares 5 292 209 178 137 -77 -18 83 280 144 -1 Dividends -402 Closing embedded value 5 759 5,000 5,500 6,000 6,500 26

27. RETURN ON EMBEDDED VALUE 80% 68.1% 70% 60% 50% 40% 29.7% 30% 20.9% 19.5% 25.2% 16.9% 20% 10.5% 17.7% 16.0% 15.5% 10% 14.5% 14.0% 16.0% 6.5% 0% BIHL Group BLIL BIFM Letshego FSG BIC Nico ROEV Target The Group has disinvested in FSG 27

28. QUESTIONS Thank you