Interim results June 2000

Highlights New business Value of new business Bancassurance new business Claims & policyholder benefits Net cash flow from insurance operations New business Value of new business Bancassurance new business Claims & policyholder benefits Net cash flow from insurance operations + 22% + 23% +58% + 3% + 121% + 22% + 23% +58% + 3% + 121%

Highlights EPS and DPS Embedded value Sale of interest in Liberty International – premium EPS and DPS Embedded value Sale of interest in Liberty International – premium + 10% +3% + 22% + 10% +3% + 22%

Revenue earnings – Continuing operations Life fund operating surplus Revenue earnings – shareholders’ funds Headline earnings Headline EPS (cents) DPS (cents) Life fund operating surplus Revenue earnings – shareholders’ funds Headline earnings Headline EPS (cents) DPS (cents) (Rm) (Rm) (Rm) (Rm) % Change % Change * ,9 133, * ,9 133, ,7 120, ,7 120,9 (1) (1) * Includes interest R122m

Net cash inflows of insurance operations Single premiums Recurring premiums Total premiums Claims & policyholder benefits Net cash flow Single premiums Recurring premiums Total premiums Claims & policyholder benefits Net cash flow (Rm) (Rm) (Rm) (Rm) % Change % Change

New business Total Recurring Single Index Present value of profits Total Recurring Single Index Present value of profits % Change % Change Reasons: Product innovation Growth in sales force Bancassurance (no longer vulnerable) Reasons: Product innovation Growth in sales force Bancassurance (no longer vulnerable)

Agency headcount 1995 – June

Bancassurance New business premiums ex Stanbic 632 v Number of funeral policies in-force – (Rm) (Rm) (Rm) (Rm) % Change  Funeral policies* +100%  Loan protection policies* +41%  Improved penetration of banking customer base, but slower than we plan for * Period 1 January 2000 – 30 June 2000

Life fund operating surplus – Investment returns 1999 – first half 2000 – first half 1999 – second half 2000 – second half 1999 – first half 2000 – first half 1999 – second half 2000 – second half JSE All Share % JSE All Share % Liberty Equity % Liberty Equity % +31,6 -8,7 +22,6 ? +31,6 -8,7 +22,6 ? ,6 +26,7 ? ,6 +26,7 ? Note:Main portfolios in first quartile of performance

Taxation Life fund Corporate Secondary tax Life fund Corporate Secondary tax (Rm) (Rm) (Rm) (Rm)

Embedded value Shareholders’ funds Value of life business in force Adjustment to financial services subsidiaries Value per share (R) Shareholders’ funds Value of life business in force Adjustment to financial services subsidiaries Value per share (R) (Rm) (Rm) (Rm) (Rm) % Change % Change , , n/a , n/a ,25 (1,2) (7,6) 2,9 2,7 (1,2) (7,6) 2,9 2,7

Present value of new business profits Value of new business (Rm) (Rm) (Rm) (Rm) % Change % Change Notes : Calculated on new tax basis  Comparative figure not restated for increased LIBAM charges Margins maintained

Financial services subsidiaries v Libam operating profit up from R7 million to R29 million v Positive inflow to unit trusts up to R1 363 million from R227 million v Healthcare membership lower than target at principal members – costs managed accordingly v Libam operating profit up from R7 million to R29 million v Positive inflow to unit trusts up to R1 363 million from R227 million v Healthcare membership lower than target at principal members – costs managed accordingly

Shareholders’ funds Financial services activities Listed investments q SAB q Metro q Liberty International q Other Other investments q Cash q Due iro GNI q Proceeds of Liberty International q Convertible bond (net of cash) q Other TOTAL Financial services activities Listed investments q SAB q Metro q Liberty International q Other Other investments q Cash q Due iro GNI q Proceeds of Liberty International q Convertible bond (net of cash) q Other TOTAL (Rm) (Rm) (Rm) (Rm) – – (1 531) – – (1 531) – (1 557) – (1 557)

Sale of interest in Liberty International v In line with focus on financial services v Premium to market price achieved - 22% v Negative gearing on convertible bond eliminated q Bond payable September 2004 (Rm) q Cash held offshore v In line with focus on financial services v Premium to market price achieved - 22% v Negative gearing on convertible bond eliminated q Bond payable September 2004 (Rm) q Cash held offshore 1 811

Summary of cash position For shareholders v South Africa v Offshore q Security for convertible bond For policyholders – ex sale of Lib Int v Remitted to South Africa v Held offshore For shareholders v South Africa v Offshore q Security for convertible bond For policyholders – ex sale of Lib Int v Remitted to South Africa v Held offshore 2,79 1,81 4,60 1,50 0,87 2,37 2,79 1,81 4,60 1,50 0,87 2,37 R billion

Progress with strategies v Deployment of capital l Disposal of interest in Liberty International l Options for deployment of cash resources being evaluated “with discipline” l Focusing on core financial services v Focus on upper income market l Satisfactory new business volumes from this market segment v Deployment of capital l Disposal of interest in Liberty International l Options for deployment of cash resources being evaluated “with discipline” l Focusing on core financial services v Focus on upper income market l Satisfactory new business volumes from this market segment

Progress with strategies v Leverage LIBAM’s research l Innovative and successful products brought to the market and planned l Expanding product range for Liberty and Liberty Unit Trust v Expand corporate benefits l New business up 85% v Leverage LIBAM’s research l Innovative and successful products brought to the market and planned l Expanding product range for Liberty and Liberty Unit Trust v Expand corporate benefits l New business up 85%

Progress with strategies v Achieve critical mass in Liberty Healthcare l The healthcare environment has become restrictively regulated l Future profits dependant on regulatory certainty v Acquire distribution for emerging market l Strengthened bancassurance relationship will be prime channel for access to the emerging market v Achieve critical mass in Liberty Healthcare l The healthcare environment has become restrictively regulated l Future profits dependant on regulatory certainty v Acquire distribution for emerging market l Strengthened bancassurance relationship will be prime channel for access to the emerging market

Progress with strategies v Structures to deliver offshore products l New structures to enhance offshore products are being implemented v Develop an e-commerce offering l MyLife.co.za to be launched in September 2000 v Structures to deliver offshore products l New structures to enhance offshore products are being implemented v Develop an e-commerce offering l MyLife.co.za to be launched in September 2000

Prospects v FSV profits for the second half of the year are dependant upon the performance of the investment markets v Revenue earnings on shareholders’ funds are dependant upon deployment of cash v Embedded value is also geared to investment markets v FSV profits for the second half of the year are dependant upon the performance of the investment markets v Revenue earnings on shareholders’ funds are dependant upon deployment of cash v Embedded value is also geared to investment markets

Conclusion v Good progress on issues under management control l New business l Bancassurance l Management of in-force business l CRM and customer service l Relative investment performance l Recruitment v Good progress on issues under management control l New business l Bancassurance l Management of in-force business l CRM and customer service l Relative investment performance l Recruitment

Conclusion v Focus on financial services further improved v Employment of capital a priority v Ready for upturn in markets v Focus on financial services further improved v Employment of capital a priority v Ready for upturn in markets

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