External environment - South Africa Growth factors • Sovereign downgrade threat • Policy uncertainty • Low business, insurance and consumer confidence • Low new fixed investment • Drought Disposable income factors • Rising interest rates • Rising fiscal pressures • Rising inflation • Dip in real wages • Higher food prices • Weak exchange rate • Poor employment outlook • Challenges in the mining sector Growth-negative and pressure on disposable income
MMI Holdings | Semi-Annual December Interim Report Page 3 Page 5