Material Pillars - Responsibility towards a prosperous society - Our economic value added

Sanlam Sustainability Report 2011

Our economic value added

Creating value for our shareholders and other stakeholders is fundamental to ensuring we are a sustainable company. The Sanlam Group Value Added Statement below summarises our primary economic impacts on our principal stakeholders, including policyholders, employees and directors, communities, suppliers, government and shareholders.

In 2011, the Group's operations resulted in substantial benefit to our principal stakeholder groups. In addition to the R 3 178 million generated for our shareholders and the R 3 545 million retained for future growth, we:

Awarded R 63 929 million to policyholders in the form of policyholder benefits, claims and increases in accumulated reserves
Paid R 5 421 million to employees in the form of fees and remuneration and other benefits
Contributed R 2 807 million to the South African government fiscus through various state taxes and levies
Paid R 3 224 million to our suppliers and business partners
Contributed R 57 million to local communities and other cause‐related programmes and donations

Sanlam Group Value Added Statement for the year ended 31 December 2011

2011 R million

2010 R million

% Change

Premium income	57 851	51 558	12%
Other operating income	3 848	3 145	22%
Investment return	25 616	34 404	-21%
Commission and other sales remuneration paid to agents and brokers	(5 154)	(5 006)	3%
Wealth accumulated	(82 161)	(82 101)	0%
Wealth distributed among stakeholders Policyholders
Policyholder benefits, claims and increase in reserves	63 929	64 642	-1%
Employees & directors	5 421	4 836	12%
Employee benefits	5 395	4 814	12%
Directors' remuneration	26	22	19%
Communities
CSI and cause related investment	57	57	6%
Suppliers
Procurement of goods and services	3 224	3 034	6%
Government	2 807	3 083	-9%
South African normal income tax	1 947	1 936	1%
South African capital gains tax	282	474	-41%
Foreign tax	281	347	-19%
Tax on retirement funds
Indirect taxes and levies	297	326	-9%
Shareholders	3 178	4 337	-27%
Ordinary dividends paid to Sanlam Limited shareholders	2 279	2 112	8%
Retained income distributed due to shares cancelled		1 233	100%
Income attributable to minority shareholders	899	992	-9%
Retained for future growth	3 545	2 115	68%
Retained earnings	3 251	1 855	75%
Depreciation and amortisation	294	260	13%

Wealth distributed	82 161	82 101	0%

Our approach to ensuring continued strong economic performance is for each business cluster to pursue comprehensive growth strategies, diversifying through developing new markets. The Sanlam for Sanlam initiative aims to facilitate collaboration across business units in order to explore synergies and optimise growth across the Group. Our indirect economic contribution is also channelled through our investments, as well as the funds under our management and employed in the economy; we are a significant institution in the process of mobilising savings, and then allocating these into the economy.

1. Sustainability Governance

2. Responsibility for Developing our people

3. Responsible products and services

4. Responsibility towards a prosperous society

5. Responsibility towards the natural environment

Our economic value added