SBN HOLDINGS LIMITED Annual Report 2022

OUR VALUE CREATION STORY 14 Our delivery model Our business model enables us to manage our resources and relationships responsibly to deliver the best outcomes for our stakeholders. Our inputs Capital inputs Financial capital Our large, well-balanced portfolio is underpinned by an appropriate risk appetite mandate, a robust capital structure, and a future-focused resource allocation framework that provides the resilience and flexibility to manage change, uncertainty, innovation and growth. LLLLL Our trade-offs and constraints Client focus ■The stability of our digital platforms and cyber security remains a top priority ■ Growing scale in selected markets, particularly as competition from non-traditional financial services providers continues to intensify. + Employee engagement ■Competition for skills in financial services continues to increase ■ Accelerating our people's ability to grow and adapt, as we evolve the way we operate ■ Supporting the wellbeing of our people by nurturing healthy relationships and creating a safe work environment. + Intellectual capital Our recognised brand strength and legitimacy enables us to leverage our future-ready capabilities to offer relevant, competitive and innovative banking, insurance, and asset management solutions through our digital platforms. Human capital Our strong executive and leadership teams, deeply skilled and experienced people, and high-performance, client centric and ethical culture are rooted in our purpose. We are investing in strategies to equip our people with the mindset and skills needed for the future in support of our 2025 Ambition. Our business activities and outputs Our solutions We deliver solutions that help our clients to transact, earn, grow, insure, save and leave lasting legacies for future generations. Risk and conduct ■ Managing the natural tension between client convenience, the speed at which we can fulfil their needs, and the parameters of our mature and continually evolving regulatory, supervisory and control environment. Manufactured capital Our physical branch network and access points are complemented by our modernised digital backbone and increasingly simplified systems architecture, allowing us to deliver better client and employee experiences and higher levels of efficiency. Banking We lend money to our clients, provide transactional banking facilities and knowledge-based services as well as market access and risk mitigation solutions Operational excellence ■ Delivering digital capabilities that improve client experience and efficiency while solving the correct client needs requires accelerated investment in digitisation to achieve a lower cost to serve over time. Our outcomes Strong relationships with diverse and growing client base ■Recognised brand strength and legitimacy ■ Strong strategic partnerships support excellent client experience Physical and digital presence supports distribution capability. SBN HOLDINGS LIMITED Annual report 2022 15 ■Strong executive and leadership teams Deeply skilled and experienced people High-performance, ethical culture connected to our purpose. Distributing value Inflows from clients N$2.73 billion (2021: N$2.44 billion) ■Trusted relationships with stakeholders ■ Mature governance and control systems ■Well-developed financial risk and capital management framework Invested in our people N$812.6 million (2021: N$838.9 million) + ■ Strategic partnerships and future-ready capabilities support developing innovative solutions ■ Digital capabilities focused on providing 'always on, always secure' services ■Increasingly simplified systems architecture. Direct and indirect taxes to governments and regulators N$263.7 million (2021: N$196.4 million) Invested in our operations, suppliers and third parties N$866.1 million (2021: N$747.9 million) Social and relationship capital Our trust-based relationships with all our stakeholders underpin our ability to deliver our purpose and strategy. We are deepening our strategic partnerships to support our engagements with our clients, lower our cost to serve and develop innovative solutions. Our social and economic impacts are embedded into our business strategy and decision-making processes, enabling us to deliver positive impacts in the communities in which we operate. Natural capital We are driving sustainable investment by embedding SEE as a commercial approach, aligned to Africa's wellbeing. We partner with clients and other stakeholders to create and implement climate smart solutions. Investment and Insurance ■We provide long- and short-term insurance, investment products and advisory services Beyond ■We derive revenue from non-financial services and solutions and strategic investments Financial outcome ■ To continue to attract the capital needed to fund growth, we must provide an appropriate rate of return to our providers of capital, while still creating value for our other stakeholders. This requires we balance our ability to generate revenue with the costs incurred to do so. ■Large and well-balanced portfolio ■Robust capital structure and strong balance sheet ■Future-focused resource allocation. Returns to shareholders N$182.9 million (2021: N$156.7 million) Reinvesting in the business N$464.8 million (2021: N$133.8 million) SEE impact ■ Embedding SEE impact areas into our business strategy to deliver positive social and economic outcomes. ■ Well-developed SEE strategy ■ Focused positive impact in seven areas ■Develop a climate policy that supports a just energy transition.

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