Liberty Group Limited Interim Results Presentation 6 August 2003 liberty.co.za

2. Liberty Group Limited Interim Results Presentation 6 August 2003 www.liberty.co.za Liberty. Lighting your way to financial prosperity.

3. A challenging six months at Liberty • Some changes in senior management • Restructure of business operations • Accounting and regulatory issues • Market update issued in May • Growth in market share and positive cash flow

4. A challenging six months at Liberty (continued) • STANLIB’s first birthday • Largest BEE asset management deal • New life product developed • Acquisition by Corporate Benefits of IEB • Reduced offshore emphasis

5. Some changes in senior management • New Chief Executive Officer • Deon de Klerk (6 years’ service) replaces Mark Bloom • Andrew Lonmon-Davis (16 years’ service) becomes Chief Actuary • Mike Jackson moves on • 146 years’ service on Exco

6. Restructure of business operations • Executive Committees integrated • Insurance Operations Committee and Investment Operations Committee= Group Executive Committee • Executive Management Committee = Executive Communications Forum

7. Restructure of business operations(continued) • Subsidiary board meetings streamlined • Healthcare incorporated into Personal Benefits • STANLIB restructure – phase 2 Duplication removed

8. Accounting and regulatory issues • AC133 implementation • Ongoing process to align PGN104 with AC133 • No material impact on headline earnings yet • No international accounting standards for insurers as yet • Tighter control by regulators – FAIS and FICA • CISCA paves way for restructuring Not a simple process

9. Transformation • Financial Services Charter – work in progress • Employment equity – high priority receiving continuous focus • STANLIB BEE deal the beginning of the road A huge challenge

10. New CEO’s thoughts on the business • Sound business • Good products and distribution • Healthy margins • Strong capital position • Positive cash flows but • Volatile earnings • Service issues • Cost base

11. Financial results

12. Indexed new business Individual Corporate Value of new business New business margin Headline earnings per share Dividend maintained Features - 2003/2002 + + + + - 162 6% 2% 30% • 6% 18% 46% cents

13. Net cash inflow from insurance operations: R1,7 bn Embedded value per share: R53,42 Capital adequacy cover Features - 2003/2002 6% 3% + - 2,6 x Continued gains in market share

14. 253 148 (45 356 130,0 563 127 (28 662 242,5 (55 17 61 (46 ) ) ) ) Headline earnings Life fund operating surplus Revenue earnings – shareowners’ funds Preference dividend Headline earnings Headline EPS (cents) 30 June 2003 Rm 30 June 2002 Rm Change % ) (46

15. Life fund operating surplus • Significant reduction due to 10% shareowners’ participation in negative returns • Further reduction in fees due to lower levels of assets under management • 1H02 included significant expense profits due to cost containment not repeated in 1H03

16. Investment returns(Weighted average of equity, managedand foreign assets portfolios) Jul Apr Jun Jan Dec Aug Oct Sep Feb Mar Nov May Year-to-date June 2002 : - 0,4% Year-to-date June 2003 : - 3,6% Markets continued to decline in 2003 New generation products earn management feesinstead of 10% capital bonuses

17. Expenses 30 June 2003 30 June 2002 Change % Total insurance expenses (Rm) Net inflow of policies (number) 663 16 560 587 20 417 13 (19 ) Renewal cost per policy increased/(decreased) by Acquisition cost per policy increased/(decreased) by 0,0% +2,1% +7,6% +9,3% Significant non-recurring expenses incurred in 1H03 Cost saving targets set throughout the Group

18. Revenue earnings – shareowners’ funds 30 June 2003 30 June 2002 Change % ) ) ) ) Financial services activities Listed investments Other income Tax 72 25 90 (39 148 97 25 60 (55 127 (26 - 50 (29 17

19. Embedded value 30 June 2003 Rm 31 Dec 2002 Rm Change % Shareowners’ funds Value of life businessin-force Financial services subsidiaries fair value adjustment Total Embedded value per share (Rand) 8 266 5 646 711 14 623 53,42 8 588 5 700 838 15 126 55,28 (4) (1) (15) (3) (3)

20. Financial services subsidiariesfair value adjustment • STANLIB impaired : R54 million • Liberty Ermitage multiple revised down to 12 x and stronger Rand : R70 million • Liberty Properties multiple maintained at 10 x

21. Shareowners’ funds • Impairments: • Hightree goodwill : R62 million • Unlisted investments : R39 million

22. Capital adequacy cover CAR multiple Capital adequacy cover on new statutory basis: 2,6 x

23. Dividend 2002Cents per share 2003Cents per share Interim Final 162 162 116 278 Positive cash flows Confident about our future

24. Operations

25. New business – percentage increase Individual business % Corporate business % Total % Recurring Single Total Index 10 (20 (14 2 22 51 45 30 12 (9 (5 6 ) ) ) ) • Continuing market share gains • Focus on productivity of sales force • Investment performance competitive over longer periods • Strong property backed sales

26. Market share individual business (including Charter) % Source: LOA market sharestatistics for all life offices

27. Value of new business 30 June 2003 30 June 2002 Change % Value of new business (Rm) New business margin (%) 262 18,4 248 17,6 6 1 All margins slightly up vs June 2002

28. Net cash inflows from insuranceoperations 30 June 2003 Rm 30 June 2002 Rm Change % Total premiums and inflows under investment contracts Claims, policy-owner benefits and payments under investment contracts Net cash inflows ( 7 552 5 915) 1 637 6 6 6 8 004 6 274) 1 730 (

29. Total net cash inflow from insurance operations Rm

30. Charter new business 30 June 2002 Rm 30 June 2003 Rm Change % ) ) ) ) Recurring premiums Single premiums Total Index (6 (12 (11 (7 221 548 769 276 235 626 861 298 • Charter’s share of SBFC 23% (38%) • Liberty’s share of SBFC 59% (45%) • Simple products + 23%

31. Launch of Lifestyle Protector product • New generation risk protection product • Cover for multiple lives • Number of unique benefits • Settles the disability/impairment debate • Further leverages our Blueprint software • Retained the very successful Universal Lifestyle product

32. STANLIB Liberty Ermitage

33. STANLIB • Weak and volatile investment markets adversely impacted results • Headline earnings of R47,1 million down 26% • Normalised headline earnings of R65,1 million up 6% • Disappointing short-term investment performance • Longer term investment performance (3 years) remains satisfactory - upper quartile

34. STANLIB • Most portfolios positioned for expected re-rating of equities relative to bonds • Merger and systems integration activities continue (R25,7 million spent this half year) • Merger costs cease end 2003 • Cost saving initiative in progress • Empowerment transaction announced in June

35. STANLIB • Asset Managementnet inflows for the six months of R4 billion • Wealth Management net inflows for the six months of R4 billion • Asset Management assets under management of R131,8 billion up 3% • Wealth Managementfunds under administration of R55,1 billion up 6%

36. STANLIBAsset Management - assets Life funds Segregated funds Unit trusts Total 30 June 2003 Rm 31 December 2002 Rm Increase % 53 107 48 414 30 259 131 780 52 633 48 334 27 464 128 431 1 - 10 3

37. Liberty ErmitageAssets under management Hedge funds Long only funds Money funds Total 30 June 2003 US$m 31 December 2002 US$m Increase % ) 807 792 667 2 266 31 12 (3 15 1 059 889 646 2 594 57% external third party funds

38. Conclusion

39. Focus areas for next six months • Improve service levels • Emphasis on cost reduction • Focus on domestic operations • Renewed emphasis on people • Explore other market segments and Africa • Address capital situation Building and changing on a solid platform

40. Panel • Myles Ruck Chief Executive • Deon de Klerk Chief Financial Officer • Andrew Lonmon-Davis Chief Actuary