2005 Results Presentation to the Investment Analysts Society

2005 Results Presentation to the Investment Analysts’ Society of Southern Africa 2 March 2006 www. liberty. co. za 1

Agenda What we said What we’ve done Financial and operating results Focus areas Questions 2

What we said … • Capital management continues • Compliance, IFRS … • Address PFA issues • . . . people. . . service … costs 3

What we said … • Operational restructuring and CAHL integration continues • Marketing and Distribution restructuring Products Channels Project Khula continues • Group professional services restructuring and integration • … Hug our customers! 4

What we’ve done … Capital management • Bought CAHL utilising some excess capital • First life company in SA to issue capital qualifying bond • Sold significant portion of SAB no remaining concentration risks • Sale of Prefsure and Hightree • Ermitage sale in progress • New dividend policy implemented • Capital reduction 5

What we’ve done … PFA issues • Statement of Intent signed with National Treasury • What the industry agreed to Minimum standards applied to early termination values Retrospective and prospective • Treasury’s promises New commission regulations Jurisdictional clarity (PFA, FSOS Ombudsman, LTI Ombudsman) Recognition of application of Long Term Insurance Act to RA policies Resolution of other regulatory matters 6

What we’ve done … PFA issues • All business with savings as the primary purpose, is included RA’s (with and without life cover) Endowments Whole of life (where savings is primary purpose) Reversionary bonus business • Policies intended primarily to provide risk benefits, are excluded Pure risk products (eg Lifestyle Protector) Whole life business not included • A number of outstanding practicalities still to be finalised • Full provision for Statement of Intent (SOI) made at 31 December 2005 7

What we’ve done … Operational restructuring • Overview of new structure given at the interim results • Updated restructuring and integration progress given in November 2005 Marketing and Distribution Operations Group Professional Services Asset Management (Stanlib and Properties) 8

What we’ve done … Operational restructuring • Choice of IT platform finalised and project started • Life licenses under review • Recap of numbers Restructuring and integration costs of R 500 m over 3 4 years Anticipated cost reduction of R 300 m pa by 2008 Estimated after tax net benefit of approximately R 1 bn • Restructuring and integration on track 9

What we’ve done … Products • New risk product (Lifestyle Protector) performing well • Sought more clarity on PFA rulings before launching new savings products • New long term savings product launch planned for later this month Policyholder value proposition Internal culture ‘we should only sell a product that we would be happy to sell to our mothers!’ • Increased advertising awareness of real benefits of RA’s 10

What we’ve done … Distribution • Agency restructured • Continued focus on broker relationships • Entry level market Khula performance CAHL Commercial/Khula agents consolidated (Liberty@Work) • Individual life bancassurance model still delivering • Awaiting finalisation of the commission proposal • SAFSIA Awards 11

Deon de Klerk 12

Operational features – 2005/2004 Rm 20051 20042 % 16 673 13 748 +21 4 870 4 336 +12 Value of new business pre SOI costs 882 815 +8 New business margin pre SOI costs 23% 24% 1 5 726 3 186 +80 Total new business Indexed new business Net cash inflows from insurance operations 3 1. Includes CAHL numbers for 9 months since acquisition 2. Includes CAHL numbers for 9 months for comparability where appropriate 3. Excludes STANLIB and Ermitage net cash inflows 13

Impact of SOI Rm Net asset value (406) Headline earnings (321) Goodwill impairment (85) Value of in force (193) Embedded value (599) • Value of new business margins reduced to 20% 14

Life insurance operations New business premiums • Total R 16 673 m (+21%) • Individual life R 13 721 m (+18%) • Corporate benefits R 2 952 m (+39%) Indexed new business premiums • Total R 4 870 m (+12%) • Individual life R 4 004 m (+10%) • Corporate benefits R 866 m (+26%) 15 000 12 500 4 000 10 000 3 000 7 500 2 000 5 000 2 500 1 000 0 Rm 2002 2003 2004 2005 Inc CAHL Individual 2002 2003 2004 2005 Inc CAHL Corporate 15

Life insurance operations Embedded value of new business* • Total R 882 m (+8%) • Individual life R 845 m (+3%) • Corporate benefits increased from R 4 m to +R 37 m 1 000 New business EV margins • Total = 23%* → 20% after SOI • Individual life = 25%* → 23% after SOI • Corporate benefits = 6%* → 6% unchanged 30% 25% 800 20% 600 15% 400 10% 5% 200 0 Rm 0% 5% 2002 2003 2004 2005 Inc CAHL Individual * Before SOI impact 2002 2003 2004 2005 Inc CAHL Corporate 16

New business EV margins – PV of premiums basis Rm Value of new business PV of future expected premiums Value of new business as a % of PV of future expected premiums After SOI 2005 Before SOI 2005 2004 777 882 815* 26 216 26 902 24 030 3, 0% 3, 3% 3, 4% * As reported 17

Life insurance operations Net cash flows from insurance operations (excluding Stanlib & Ermitage) • Total R 5 726 m (+80%) • Individual life R 4 948 m (+4%) • Corporate benefits R 778 m (+149%) 6 000 4 000 2 000 Rm 2002 2003 Individual Inc CAHL 2004 Inc CAHL 2005 Corporate 18

Life insurance operations New business market share 35% 30, 6% 30% 25% 20% 27, 2% 25, 3% 26, 0% 25, 4% 22, 8% 24, 5% 23, 6% 20, 3% 19, 6% 15, 5% 16, 5% 10% 5% 0% Recurring Individual Single Individual Year ended 31 December 2000 Year ended 31 December 2001 Year ended 31 December 2002 Year ended 31 December 2003 Year ended 31 December 2004 9 months ended 30 September 2005 Source: LOA 19

Other operations STANLIB: assets under management and funds under administration Rbn 2005 2004 % Life funds 90 72 +25 Segregated funds 83 66 +26 Unit trusts 53 51 +4 Structured products and other 50 34 +47 276 223 +24 12% 16% Total AUM and FUA Money market as % of total Net cash inflows of R 13, 3 bn (R 15, 3 bn in 2004) Earnings before tax of R 407 m up 46% 20

Financial results – 2005/2004 Rm 2005 Restated 2004 BEE normalised headline earnings per share before IFRS & SOI (cents) 665, 4 465, 3 +43 BEE normalised embedded value per share before SOI (Rand) 75, 56 63, 72 +19 2, 0 2, 5 Statutory capital adequacy requirement (times covered) % 21

BEE normalised headline earnings before IFRS and SOI Rm 2005 Restated 2004 Insurance operations 1 308 827 +58 942 841 +12 45 (14) >100 321 n/a 451 425 +6 899 409 >100 (448) 16 <100 88 31 >100 BEE normalised earnings before IFRS & SOI 1 847 1 283 +44 Per share (cents) 665, 4 465, 3 +43 Per financial statements IFRS adjustments SOI provisions Shareholders’ funds Per financial statements IFRS adjustments BEE funding % 22

Operating profit from life insurance operations – major influencing factors • Inclusion of CAHL for 9 months • Shareholders’ 10% participation and higher asset base • Risk profits • Investment guarantee reserve • Expenses Costs per policy Non recurring expenses 23

Gross investment returns 35% 30% 25% 20% 15% 10% 9, 7% 5% 0% Jan Feb Mar Apr Year to date return 2004 May Jun Jul Aug Year to date return 2005 Sep Oct Nov Dec Actuarial assumption 2005 24

Expenses Rm 2005* Restated 2004* Total Liberty Group expenses 3 612 3 370 +7 (40) (14) >100 (137) (116) +18 (27) (6) >100 VIF amortisation (120) (18) >100 Restructuring, integration and other non recurring costs (199) (137) +45 Normalised group expenses 3 089 3 079 0 IFRS 2 adjustments – share based payments Mutual funds on consolidation Project Khula costs * CAHL costs included for 9 months in 2004 and 2005 % 25

Restructuring, integration and other non recurring expenses Actual Rm Estimated 2005 2006 2007 Total Retrenchments and other staff costs 80 50 20 70 Systems and process costs 32 100 150 70 320 Infrastructure and office relocation costs 70 50 20 70 Consolidation of Marketing & Distribution integration 2 20 20 40 184 220 210 70 500 Total Incurred to date Expenses still to be incurred Other non-recurring expenses of R 36 m (184) 316 26

Maintenance costs per policy 2005 2004 % Assumption Individual annual maintenance costs per policy Liberty Life R 258 R 248 +4, 0 +4, 25 Liberty Active R 139 R 154 9, 7 +4, 25 CAHL Complex R 221 R 2171 +2, 52 +4, 25 CAHL Simple 3 R 98 R 801 +30, 02 +4, 25 1. For the year ended 31 March 2005 2. Annualised 3. Consolidation of 63 000 policies into 1 policy during 2005 impacted per policy statistics 27

Embedded value Rm 2005 Restated 2004 Shareholders’ funds – statutory basis 8 198 8 200 0 326 766 57 (245) (191) 28 Net value of in force business 10 874 7 544 +44 Embedded value 19 153 16 319 +17 Embedded value per share (Rand) 75, 96 65, 07 +17 BEE normalised embedded value per share before SOI (Rand) 75, 56 63, 72 +19 Fair value adjustments Fair value of share options % 28

Capital adequacy cover 2005 Restated 2004 Statutory capital adequacy requirement (Rm) 3 782 3 013 Statutory capital (Rm) 7 734 7 417 Times covered 2, 0 2, 5 Times covered without BEE impairment 2, 4 2, 9 29

Capital reduction • Target CAR cover of 1, 7 times • Excess capital of approximately R 1 bn • Capital reduction of R 1 bn or 360 cents per share • Subject to shareholder and regulatory approval 30

Dividend Cents per share 2005 2004 % Interim 126 162 22 Final 224 153 +46 Total 350 315 +11 Annual 350 Base for future dividend declarations Capital reduction impact 325 25 • At 2004 year end new dividend policy established • Dividend growth in line with current estimated medium term growth in embedded value (after normal dividends) 31

Bruce Hemphill 32

Addressing market concerns … • Insurance skills • Integration and restructuring Good progress made in 2005 CAHL staff relocated to Liberty One team, good mix of CAHL and Liberty • Continuity Group Executive Rex Tomlinson/Bruce Hemphill on Exco for 24 months 33

Liberty priorities for the next 12 months Customers • Customer service • Moral high ground • Leading product innovators • Real value to policyholders 34

Liberty priorities for the next 12 months Systems and processes • Single IT platform • Efficient business model • Scalable 35

Liberty priorities for the next 12 months People • Our people are the critical ingredient • Positive energy • Team environment • Enjoyable workplace 36

Questions Panel Myles Ruck Chief Executive Bruce Hemphill Chief Executive Designate Andrew Lonmon Davis Statutory Actuary Deon de Klerk Chief Financial Officer 37

Appendices 38

Operating profit from shareholders’ funds Rm 2005 Restated 2004 % 149 172 13 Listed investments 62 94 34 Disposal groups held for sale 77 46 +67 319 0 (163) (128) +27 Shareholders’ tax (36) (94) 62 Investment gains net of CGT 491 n/a Operating profit post IFRS adjustments 899 409 +120 Financial services operations Other investments Shareholders’ management expenses 39

Embedded value (EV) reconciliation and ROEV build up 2005 Yr Rm 2005 ROEV Build Up (%) 1 416 8, 9 938 5, 9 1 292 8, 2 (23) 0, 1 60 0, 4 Changes in economic assumptions 457 2, 9 Value of in force acquired 167 1, 1 (603) 3, 8 882 5, 6 46 0, 3 4 632 29, 4 Implementation of minimum values for savings products (599) 3, 8 Future non recurring costs (216) 1, 4 118 +0, 8 (397) 2, 5 3 538 22, 5 Investment return on shareholders funds* Expected return on life business Investment experience Other experience Operating assumption changes Change in modeling New business Exchange rate movements EV Profit before Abnormal items Less Abnormal Change in company tax rate Write off of CAHL goodwill EV Profit * Net of allowance for fair value of options of -R 54 m 40

Embedded value (EV) reconciliation – 1 H 05 vs 2 H 05 Rm 1 H 05 Rm 2005 Yr Rm Investment return on shareholders funds* 729 687 1 416 Expected return on life business 502 436 938 Investment experience 906 386 1 292 Other experience 126 (149) (23) Operating assumption changes 311 (251) 60 Changes in economic assumptions 448 9 457 Value of in force acquired 167 (587) (16) (603) 512 370 882 46 46 3 160 1 472 4 632 Implementation of minimum values for savings products (599) Future non recurring expenses (216) - 118 (85) (312) (397) 2 260 1 278 3 538 Change in modeling New business Exchange rate movements EV Profit before Abnormal items Less Abnormal Change in company tax rate Write off of CAHL goodwill EV Profit * Net of allowance for fair value of options of –R 101 m in 2 H 05 (1 H 05 R 47 m) • Annualised ROEV for 2 H 05 is 28% (1 H 05 16%) 41

IFRS NAV vs Statutory NAV Rm 2005 Restated 2004 Shareholders’ funds – published basis 9 434 8 526 (1 212) (376) 2 200 (1 429) (430) - (32) (1 259) (271) 7 734 7 417 CAR requirements of subsidiaries Debt and preference shares Differences between statutory and published valuation methodologies IFRS adjustments Inadmissible assets Shareholders’ funds – statutory basis 42

Stanlib detailed earnings analysis Rm 2005 2004 % Change 753 630 +20 67 67 Total income 820 697 +18 Operating expenses 413 419 1 Income before tax 407 278 +46 Normal tax 142 97 +46 Income after tax 265 181 +46 62 65 5 203 116 +75 55% 64% Net fee income Investment and other income Preference dividends Earnings Cost to income ratio 43

Ermitage assets under management US$m 2005 2004 % Hedge funds 1 789 1 500 +19 Long only funds 1 329 1 382 4 646 762 15 3 764 3 644 +3 41% Money funds Total AUM Third party funds as % of total funds • Net cash inflows of US$69 m • Headline earnings of £ 6, 67 m (R 77 m) up 138% 44

Financial services and subsidiaries Rm Fair Value Adjustment December 2005 Tangible NAV December 2004** Goodwill Total net of Fair Value Carrying % Change Uplift value in EV amortisation excl VIF Tangible NAV Goodwill net of amortis ation Total Fair Value Carrying Uplift value in EV excl VIF Liberty Group Properties 11 0 300 311 +27 4 0 244 Liberty Ermitage Jersey 546 81 305 932 +14 456 69 290 815 Stanlib 406 0 710 1 116 +48 407 0 345 752 Prefsure 400 0 30 430 Carrying value of VIF business acquired from IEB 96 0 (96) 0* n/a 109 0 (109) 0* Carrying value of VIF business acquired from CAHL 923 (923) 0* n/a 326 2 789 +54 976 69 766 1 811 2 382 * 81 The value of the IEB & CAHL business is included in the group's estimates of the VIF ** Restated for IFRS 45

New business excluding contractual increases ex CAHL Recurring Premiums Single Premiums Total Premiums Rm 2005 2004 % Change Individual 2 142 2 064 10 485 8 700 12 627 10 764 +17 Corporate 288 248 2 311 1 582 2 599 1 830 +42 2 430 2 312 12 796 10 282 15 226 12 594 +21 Total new business % Change +5 +24 +21 Indexed new business 3 710 3 340 +11 Indexed Individual new business 3 191 2 934 +9 Indexed Corporate new business 519 406 +28 46

Total premiums Recurring Premiums Single Premiums Total Premiums Inc CAHL 2005 Inc CAHL 2004 % Change Individual 9 762 8 746 11 030 8 918 20 792 17 664 +18 Corporate 4 134 2 941 2 365 1 759 6 499 4 700 +39 13 896 11 687 13 395 10 677 27 291 22 364 +22 Rm Total premiums % Change +19 +25 +22 Indexed total business 15 236 12 755 +19 Indexed Individual total business 10 865 9 652 +13 Indexed Corporate total business 4 371 3 103 +41 47

New business EV analysis ex CAHL Rm 2005 (After SOI) 2005 (Before SOI) 2004 % Change 3 191 2 934 +9 519 406 +28 3 710 3 340 +12 701 806 819 2 7 7 4 >100 708 813 815 -0, 2 22% 25% 28% 3 1% 1% +2 19% 22% 24% -2 Indexed Individual new business Indexed Group new business Indexed new business Individual NB EV Group NB EV Total NB EV NB Individual Margin NB Group Margin Total Margin • Indexed new business of CAHL for EV purposes R 201 m (Recurring R 170 m, single R 31 m) • CAHL NB embedded value of R 69 m • CAHL NB embedded value and volumes for 9 months only 48

Effect of the BEE transaction on headline earnings Rm 2005 2004 % Change Earnings before IFRS 1 438 1 252 +15 - 18 88 13 Headline earnings including preference dividends before IFRS 1 526 1 283 Weighted average number of shares in issue (millions) 251, 8 271, 9 25, 8 3, 78 Weighted average number of shares after reinstatement of the transaction shares (millions) 277, 6 275, 7 BEE normalised headline earnings per share (cents) 549, 8 465, 3 Costs of transaction included in headline earnings net of tax Preference shares accrued 1 Reinstatement of weighted average number of shares reduced for BEE transaction (millions)2 +19 +18 1. As a consequence of utilising Liberty Life’s own cash flows (in the form of ordinary dividends paid) to service the empowerment transaction financing structure (in the form of dividends on preference shares), the dividends received on the empowerment preference shares will be accounted for directly in reserves, thereby offsetting the dividends so received against the ordinary dividends paid by the company 2. Due to the fact that the Black Economic Empowerment transaction is effectively accounted for as a share buy back (until such time that all funding is repaid), the weighted average number of shares in issue for 2004 has been reduced by 25, 8 million shares. The transaction was implemented on 8 November 2004 49

Effect of the BEE transaction on EV per share Rm 2005 2004 % Change 19 153 16 319 +17 - 40 1 251 - 13 20 404 17 623 252, 1 250, 8 Reinstatement of number of shares reduced for BEE transaction (millions)1 25, 8 Total number of shares after reinstatement of the transaction shares (millions) 277, 9 276, 6 BEE normalised EV per share (Rand) 73, 41 63, 72 EV per EV statement Costs of transaction included in headline earnings net of tax & debited against reserves 1 Reinstatement of impaired empowerment preference shares Preference dividends accrued Embedded value before impairment Total number of shares in issue (millions) +16 +15 1. Due to the fact that the Black Economic Empowerment transaction is effectively accounted for as a share buy back (until such time that all funding is repaid), the total number of shares has been reduced by 25 796 143 shares at 31 December 2005 and 31 December 2004 50

Claims & policyholder benefits Liberty ex CAHL Group Rm 2005 2004 % Change 13 240 10 867 +22 Death & disability 2 165 1 895 +14 Policy maturity claims 3 548 3 427 +4 Policy surrender claims 5 873 4 005 +47 Annuity payments 1 654 1 540 +7 Group 4 921 6 047 -19 Death & disability 543 489 +11 Scheme terminations 258 276 7 1 884 1 448 +30 269 251 +7 1 967 3 583 45 18 161 16 914 +7 Individual Scheme member withdrawals Annuity payments Investment only terminations and withdrawals Total claims & policyholder benefits 51

New business detailed analysis Rm New Business Recurring Premiums Single Premiums Total % Change 2005 2004 2005 Inc CAHL Inc CAHL Ex CAHL Individual 2 924 2 759 10 797 8 870 13 721 11 629 18% 17% Corporate 635 531 2 317 1 588 2 952 2 119 39% 38% 3 559 3 290 13 114 10 458 16 673 13 748 21% 20% Total % Change Ex CAHL Indexed new business • Includes premium escalations 8% 25% 21% 13% 28% 24% 4 870 4 336 52

Net cash flows detailed analysis Rm Net cash flows Individual business Corporate business 2005 2004 2005 Inc CAHL Inc CAHL Ex CAHL Net Premiums 20 792 17 664 6 499 4 700 27 291 22 364 22% 20% Net claims and benefits 15 844 12 892 5 721 6 286 21 565 19 178 12% 7% 4 948 4 772 778 (1 586) 5 726 3 186 80% 77% Net cash flows % Change Ex CAHL Total Premiums 11% 149% 80% 9% 125% Total % Change 77% 53

New business by distribution channel Recurring Premiums Single Premiums Rm 2005 2004 Individual 2 924 2 759 10 797 8 870 13 721 11 629 Broker 1 025 979 4 234 3 365 5 259 4 344 Bancassurance 927 862 3 545 2 694 4 472 3 557 Agency 578 556 1 856 1 760 2 434 2 316 Franchise & other 394 362 1 162 1 061 1 556 1 413 Corporate 635 531 2 317 1 588 2 952 2 119 Broker 341 255 847 407 1 188 662 29 16 12 36 41 52 Agency 149 171 254 224 403 395 Franchise & other 116 89 1 204 921 1 320 1 010 3 559 3 290 13 114 10 458 16 673 13 748 Bancassurance Total new business 2005 2004 Total Premiums 54

CAR Cover Historical analysis 4, 0 3, 5 3, 0 2, 5 2, 0 1, 5 1, 0 0, 5 0 2001 2002 2003 Times covered • Since December 2004, CAR cover is shown as statutory CAR cover 2004 2005 Times covered Incl BEE 55

EV Historical analysis 100 90 80 70 60 50 40 30 20 10 0 Dec 2001 Dec 2002 Dec 2003 NAV Dec 2004 Dec 2005 (ACR) VIF • After the capital reduction (ACR) 60% of the group’s EV will be represented by the value of in-force 56

Headcount analysis • 61 administration staff at project Khula at 30 March 2005 • CAHL administration staff of 636 included at 30 June 2005 4 000 3 800 3 600 3 400 IEB 3 200 3 000 2 800 Dec 2003 Mar 2004 Jun 20004 Sep 2004 Dec 2004 Liberty excl CAHL Mar 2005 Jun 2005 Sep 2005 Dec 2005 Liberty Incl CAHL 57

2005 Results Presentation to the Investment Analysts’ Society of Southern Africa 2 March 2006 www. liberty. co. za 58