Dr. Anna Mokgokong Chairperson

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2 Dr. Anna Mokgokong Chairperson

3 To relentlessly innovate a new integrated model of sustainable healthcare that measurably improves access to quality care Empowering greater access to sustainable quality healthcare

4 Antoine van Buuren Group CEO

5 Health Market Inflation Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 CPI vs Medical inflation CPI (country) Medical Insurance Health (incl MI)

6 Health market spend GDP 8.8%* Health expenditure* USD per capita * Latest % from the World Health Organisation(2014) WHO Recommends 5% 4.5% Private Sector 4.3% Public Sector

7 Growth in hospital beds 11,000 Hospital Beds Comparison 10,500 10,000 9,500 9,000 8,500 8,000 7,500 MediClinic Life Healthcare Netcare NHN 7,000 6,500 6,

8 Growth in hospital beds Increase in hospital beds vs. Medical Scheme Beneficiaries Private Hospital Beds Medical scheme beneficiaries (millions) : 6% increase in beneficiaries 9% increase in private beds : No beneficiary growth 9% increase in private beds

9 Medscheme initiatives to decrease healthcare costs Co-ordination of care

10 Medscheme initiatives to decrease healthcare costs Fraud waste and abuse

11 Medscheme initiatives to decrease healthcare costs In-hospital Case Management 15% 10% % Change in Admission Rate 5% 0% Big 2 Big 4 Big 14 Other IHCM Non IHCM -5% -10% -15% 2015/ / / %

12 Medscheme initiatives to decrease healthcare costs

13 Supply Chain Optimisation Activo, Curasana and Pharmacy Direct Reducing pharma costs Increasing access to care Klinikka Reducing pain, increasing mobility Reducing back and neck surgery Wellness Odyssey Lifestyle interventions for non-communicable diseases Opticlear Addressing high margins in optometry Ensuring clinical care

14 Fee comparison Average Total Fees Ranked

15 Hannes Boonzaaier Group CFO

16 Results in a Nutshell 3, Total Revenue 3, ,770 1,958 2,098 R million Column1

17 Results in a Nutshell Operating Profit R million Column1

18 Results in a Nutshell Profit after tax 2015 R m 2016 R m Profit after tax Acquisition-related Expenditure Sanlam Contingent Put Obligation Interest (IAS 32) WAD Tranche 2 (market to market) 60 Sanlam Indemnity 15 Normalised Comprehensive Income Non Controlling Interest (25) (53) (102) Normalised Basic Earnings Normalised Earnings per Share (Cents) Weighted Average Shares (Millions) R m 38% Average Annual Growth

19 Results in a Nutshell Subsequent to year end, the WAD tranche 2 acquisition payment was settled in cash of R140m (R195m less Sanlam s contribution to the acquisition). Other highlights Conditional Put Option Liability of R728m removed after Sanlam profit targets were achieved Cash balances stable at R770m after significant investment in IT development Overall strengthening of current assets and liabilities Financially healthy to grow!

20 Revenue Drill-Down Marketing, 2% Forensic Recoveries, 1% IT, 6% Managed Care, 25% Admin Health, 38% Retail, 28%

21 Client Revenue Drill-Down Private Dispensing, 6% Dept of Health, 6% 30% Inventory Sales, 88% RETAIL 28% 11% OTHER (RAF, MARKETING) 2% AFRICA & INTERNATIONAL 6% 7% 8% 8%

22 Expenditure Drill-Down General Expenses Indirect 5% Premises, Furniture Equipment 5% IT Costs 4% Depreciation 4% Communication 3% Consulting Fees 2% Retail Cost of Sales 25% Personnel Costs 52%

23 IT Spend Infrastructure Support - Software Licences and Maintenance support 17% Connectivity Services 6% IT Desktop Support Services 3% Communication Services 15% Digital Innovation 5% Quality Assurance & Other 5% Information Security 4% Enhancements to Admin & Managed care platform 30% Maintenance & Support for Admin and Managed Care platform 15%

24 Cash Flow Management Cash Efficiency 50% 40% 30% week1 week2 week3 week4 week5 40% 20% 10% 14% 17% 14% 15% 0% -10% -11% -15% -7% -20% -30% -40% -29% -38% -50% Inflows Outflows

25 Capital Expenditure Spend R234m R244m R243m R301m 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 10% 6% 13% 22% 20% 15% 17% 16% 28% 26% 55% 31% 27% 27% 20% 13% 13% 16% 10% 11% Hardware Software Development Facilities/Land & Buildings Fusion Development

26 In a year 7.4 million Phone Calls Customer Surveys 65.6 million Member/Provider s sent 43.5 million SMS s sent 61.9 million Claims Processed R30.8 billion Value of claims processed R56.9 billion Contributions Collected 5 million MobiStatements sent out 3.6 million Lives Managed Member Cards Distributed Hospital Authorisations 6 million Chronic Scripts processed and delivered

27 Why Invest? Numerous government and public health contracts already secured Large and healthy medical schemes Ungeared Balance Sheet Biggest Healthcare Administrator in South Africa (volume based) Consolidation-ready: Schemes & administrators Track Record of EBITDA growth since 2010 Cashflow Generation Level 2 BBBEE Diversifying service offerings to reduce healthcare spend Track Record of EBITDA growth since 2010 Significant Cash for Growth Steady Dividend Growth and Payment Largest Black-Owned Healthcare Company Well-positioned for NHI Participation

28 Thank you for your time