Liberty Group Limited International Presentation October 200 2

Contents • Market positioning What makes Liberty different? Standard Bank relationship Bancassurance Capital management Corporate governance Black Economic Empowerment HIV/AIDS Sources of future growth • Additional information • •

Market positioning Corp/Commercial HNW STANLIB • Asset Management • Unit Trusts Liberty Corporate Benefits Liberty Personal Benefits SBFC/IFAs/Agency/Franchise Mass affluent Middle Mass market Liberty Corporate Benefits Charter Life Bancassurance

What makes Liberty different? • • • Multiple distribution channels * Agency, franchise, broker, Standard Bank Financial Consultants (SBFC), Charter Life, call centres * Bancassurance – successful model Quality of business * average case size 260% of industry average * profitability * focused on HNW and mass affluent market Quality of sales force – education and training Product innovation Blueprint technology (sales and servicing)

What makes Liberty different? • • Current superior relative investment performance * STANLIB * Liberty Ermitage Focused business units Preferred employer status Top team incentivisation Capital strength High ROE – greater than 20% Insurance cash flow

Standard Bank – the ideal bancassurance partner Corp/Commercial 15 000 businesses Small/Medium 250 000 businesses Affluent 35 000 customers Middle 1 m customers R 33 000 p. m. R 3 300 p. m. Mass market 3 m customers 35% of South Africa’s banking Strongest financial services brand Penetration by Liberty/Charter 20% ±

Standard Bank relationship • • • Developments during the year * Improved and extended bancassurance agreement - to 2012 * Bancassurance distribution now managed by Liberty – sales up 18% * Creation of STANLIB by merging asset management, mutual fund and linked product operations Liberty achieving increased share of growing market No anticipated change to shareholding structure

Advantages • Creates scale and economies – * assets under management R 135 billion * largest mutual fund in South Africa • Leverages off all distribution channels • Pools intellectual capital • Creates ability to design products using banking and insurance licenses Major benefits without the risks of a full bank on insurer merger

Dedicated investment marketing for: • STANLIB Asset Management – in-house active management • • Simeka – empowerment quants asset manager STANLIB – multi-manager Liberty Ermitage – international hedge fund and long equities Third party funds Full asset management offering available through STANLIB

Capital management Current level 3. 4 x statutory requirement • Ongoing review of capital management • Expected regulatory increase in local CAR requirement - approximately 20% Dividend cover: * Dividend cover reduced from 2. 0 x to 1. 5 x * Dividend per share increased by 27% * Policy dependent on level of capital • Well positioned in volatile markets

CAR cover multiple (Capital and reserves divided by statutory CAR) 16 14. 4 14 12 10. 6 10 8. 9 7. 3 8 6. 2 6 5. 6 3. 8 4 3. 5 3. 4 1 0 un 2 0 8 J 9 un 8 9 ec D J 9 n 9 u 9 D 9 ec 0 0 J 0 un D 0 ec 1 J 0 un D 0 ec 2 J

Total net cash inflow from insurance operations Rm

Value extracted for shareholders Shareholders’ interests distributed: 1999 * Liberty International PLC * Standard Bank April 2001 * Capital reduction R 10. 50 per share August 2002 * Dividend cover reduced from 2. 0 to 1. 5 Total assets and capital distributed R 17. 0 billion

Corporate governance • • • Committed to King II Code High ratings for corporate governance South Africa follows International Accounting Standards Appropriate number of independent non-executive directors Strong audit and remuneration committees Share options - 3. 5% of shares outstanding Embedded value calculations audited by Pw. C

Black Economic Empowerment • • • Engaging government on Financial Services Charter – co-operative not confrontational Government recognises need for sound business principles Empowerment partnerships * Asset management – Simeka * Corporate Benefits - being developed Employment equity targets achievable Affirmative procurement in place

HIV/AIDS Liberty’s positioning • • Most new business investment only High value policies in upper income market – reduced exposure HIV screening on policies greater than R 100 000 sum assured Ongoing repricing in Corporate Benefits markets Rates reviewable Minimal effect on mortality experienced Industry initiative to cover lower end of market (mortgage cover) Risks well managed

Sources of future growth • • • Bancassurance Development consultants – accessing the black consumer market Growth in tied sales force and productivity Corporate benefits (group/pension business) Product development Growth in market share – currently growing share by 1% to 3% per annum South Africa has minimum social security underpin

Growing bancassurance production Rm 1 661 Bancassurance business up 81% at 30 June 2002

Building distribution Tied Intermediaries 1 663 1 135 1 935 1 310 Focus on productivity 1887

People 000 s Growth in black adult consumer market (Financial services products purchased) Based on a sample of 29. 5 million black adults with personal income of R 5 000+ (Liberty’s target market) Source AMPS 1998 and 2002

The Liberty story • • Strongest diversified distribution New business growth 16% per annum for past five years Successful bancassurance model Well capitalised – high ROE Strong governance Proven track record of achieving objectives Historic dividend yield 7% - trading at close to embedded value

Additional information

Group structure Subsidiaries - Charter Life (100%) Liberty Group Properties (100%) Liberty Healthcare (100%) Electric Liberty (100%) Liberty Ermitage (100%) Joint Ventures - Astute Financial Services Exchange (33%) -Simeka Financial Services (18%) -Medscheme

Financial highlights six months to 30 June 2002 • • Indexed new business New business margin Bancassurance new business Headline earnings per share Net cash inflow from insurance operations: R 1. 6 billion Embedded value per share: R 56. 68 Dividend cover amended: reduced from 2. 0 x to 1. 5 x Dividend per share of 162 cents +22% 18% +81% -5% +60% +5% +27% Significant gain in market share

Headline earnings – continuing operations 30 June 2002 Rm 30 June 2001 Rm Life fund operating surplus 563 594 (5 ) Revenue earnings – shareholders’ funds 171 120 42 STC on ordinary dividends (44 ) Preference dividend (28 ) (20 ) 41 Headline earnings 662 694 (5 ) 242. 5 255. 7 (5 ) 162 128 Headline EPS (cents) Dividend per share (cents) Change % 27

Life fund earnings · Reduced by 5. 1% from R 594 million to R 563 million · Geared to investment returns earned for policyholders’ portfolios 30 June 2002 % Portfolio weighted average Mainly due to: Offshore portfolio 30 June 2001 % (0. 4) 10. 2 (16. 2) 0. 8 · Significant reduction in this component of life fund earnings · Offset by benefits from expense management Local equity and bond portfolios outperformed benchmarks

Embedded value 30 June 2002 2001 Rm Rm Change % Shareholders’ funds 9 136 8 346 9 Value of life business in-force 5 507 5 112 8 835 1 309 (36 ) 15 478 14 767 5 56. 68 54. 21 5 Financial services subsidiaries fair value adjustment Total Embedded value per share (Rand)

Key issues for second half 2002 • • • Profitability will be influenced by investment market performance Higher Secondary Tax on Companies on higher dividend – R 42 million (total for 2002 - R 82 million, 2001 - R 32 million) Merger costs – STANLIB – R 44 million

Market share New recurring individual Brokers Agents Individual single premiums Brokers Agents 1 st Quarter Full years 2001 2000 2002 % % % 18. 56 17. 86 15. 72 19. 10 16. 96 14. 11 17. 93 18. 94 17. 68 17. 01 16. 43 17. 87 14. 76 13. 25 14. 95 11. 49 9. 46 17. 00

Average recurring premiums 1 st Quarter 2002 Full year Change 2001 % Liberty average premiums 6 626 6 086 8. 9 Industry average 2 465 2 519 (2. 1) 269 242 Liberty % average

STANLIB Asset Management Assets under management at 31. 12. 01 SCMBAM Rbn STANLIB Rbn 4. 7 * 20. 6 17. 9 ** 2. 0 2. 2 47. 0 29. 0 7. 8 – 1. 0 51. 7 49. 6 25. 7 2. 0 3. 2 47. 4 Life fund Segregated funds Unit trusts Africa Multi-manager Libam Rbn 84. 8 132. 2 * Charter Life funds ** Includes money market funds of R 10 billion

International strategy • • • Grow Liberty Ermitage distribution Follow Stanbank into emerging markets Build distribution in Europe

Liberty Ermitage • • • Assets under management increased from US$2 152 million to US$2 258 million at 30 June Investment marketing sales force now in place Strong support from Standard Bank and STANLIB Alternative asset management strategy Focusing primarily on wholesale market

Liberty Ermitage • Hedge funds standing up well to turmoil in world markets as at 30 June: * Alpha – 0. 03% in US dollars * Asset Selection +0. 94% in US dollars Three out of four equity funds achieved Micropal 4 -Star ratings placing them in the top 30% of their categories in the world over three years

Scorecard Goals set for 2002 1. Launch and grow STANLIB 2. Develop SBFC and bancassurance sales 3. Reposition Charter Life in mass and niche markets 4. Focus on profitability of Liberty Corporate Benefits 4 4 8 4½

Scorecard Goals set for 2002 5. Leverage CRM initiative for new business and retention 4 6. Grow Liberty Ermitage sales 4 7. Focus on productivity of agency and franchise 4 By half year 5½ out of 7 achieved