1. Presentation to Investment Analysts Society of Southern Africa
23/11/ :01
Presentation to Investment Analysts
Society of Southern Africa
6 March 2002
IAS Analysts Show-Final-5March2002

2. Roy Andersen
Group Chief Executive

3. Content Roy Andersen Mike Jackson 2001 achievements The future
STANLIB and bancassurance
International operations
Human capital
Goals for 2002
Conclusion
Building value in Financial Services Operations

4. Financial highlights 2001

5. Financial services environment in 2001
Good demand for
Offshore products
Guaranteed products
Bancassurance products
Volatile investment markets
Implementation of policyholder protection rules
Implementation of CGT
Environment anticipated and
addressed well by Liberty

6. Highlights Embedded value per share + 23%
Headline ROE continuing operations 25%
Return on embedded value 26%
Headline earnings per share – continuing operations + 14%
Indexed new business premiums + 11%
Recurring new business premiums + 17%
Value of new business + 16%
New business margin 18%

7. Headline earnings on continuing operations
2001 Rm
2000 Rm
% Change
Life fund operating surplus
Revenue earnings on shareholders’ funds
Preference dividend in subsidiary
Headline earnings
Headline earnings per share
Headline ROE
1 320
222
(43
1 499
551
25%
1 153
202
(40
1 315
485
16% 14 10 7 ) ) *
* Total operations

8. Bonus stabilisation reserves boosted
Investment return (Managed portfolio) Consistent first and second halves
Return
Bonus stabilisation reserves boosted

9. New business 2001 (excluding natural increases)
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New business (excluding natural increases)
2001 Rm
2000 Rm
% Change
Single premiums
Corporate Benefits
Individual business
Recurring premiums
Total on balance sheet
New business index
Value of new business
1 225
6 415
225
1 475
9 340
2 465
455
2 167
5 589
190
1 251
9 197
2 217
391
(43 15 18 2 11 16 )
IAS Analysts Show-Final-5March2002

10. Three Raging Bull awards
Unit trust sales Rm
+61%
+120%
+91%
+142%
+25%
+99%
Three Raging Bull awards

11. Net insurance cash flowRm
Claims and benefits up 10%

12. Embedded value Shareholders’ funds Net value of life business in force
2001 Rm
2000 Rm
% Change
Shareholders’ funds
Net value of life business in force
Financial services subsidiaries fair value adjustment
Total embedded value
Embedded value per share
Return on embedded value
8 346
5 112
1 310
14 768
R54,21
26,4%
6 123
4 822
996
11 941
R43,95
11,3% 36 6 32 24 23

13. Capital adequacy cover
Overweight deployment of capital in SAB significantly reduced

14. Dividend Final Continuing operations In respect of capital reduction
2001 cents per share
2000 cents per share
% Change
Final
Continuing operations
In respect of capital reduction
Interim
150
128
278
131 19
150
133
283
+ 15 *
* Pre capital reduction
Cover 2x earnings

15. Headline return on equity

16. Scorecard Goals set for 2001 financial year
Redeploy shareholder investments into financial services
Individual business – leverage the strong position in the upper income market
Implement customer value management

17. Scorecard Goals set for 2001 financial year
Expand Liberty Corporate Benefits’ business
Drive continued growth in bancassurance
Provide private banking services to clients

18. Scorecard Goals set for 2001 financial year
Achieve further synergies with Stanbic
Establish an empowerment partnership
Leverage Liberty Ermitage for international expansion

19. The future

20. a new Wealth Management Group and an enhanced Bancassurance Structure
Standard
Bank

21. STANLIB Organisational structure
Stanbic
Liberty
CEO-Jacko Maree
CEO - Roy Andersen
50%
50%
STANLIB
Limited
Executive Chairman
Roy Andersen
100%
100%
STANLIB
Asset Management
STANLIB
Wealth Management
Alan Miller
John Liackman
“Product / marketing /
distribution arm”
“The factory”

22. Asset management components introduced
STANLIB Asset
Management
Libam
SCMBAM
Best investment processes retained

23. STANLIB wealth management components introduced
100%
100%
100%
52%
Unit Trusts
Lisps
Liberty
Collective
Investments
Liberty
Specialised
Investments
Lodestone
Simeka
Standard
Bank
Investment
Services
Standard
Bank
Unit Trusts

24. Summary of the benefits
Plays to each company’s undisputed strengths
Powerful and far reaching distribution = client convenience
Leverages the power of two blue chip brands
Combines asset management, banking and actuarial skills for product development
Pools and leverages intellectual capital
Economies of scale achieved
New Stanfin and bancassurance contract attractive

25. Building value in Financial Services Operations
Mike Jackson
Executive Director: FSO

26. Building distribution
Intermediaries
1 935
1 663
1 310
1 135
970
Consultancy new business up 18%

27. Growing bancassurance productionRm

28. Liberty Healthcare Approaching critical mass
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Liberty Healthcare Approaching critical mass
February
2002
December
2000
Principal members
Total lives
36 343
86 500
18 870
45 161
R12,7 million loss in 2001
Focusing on quality growth and profitability
IAS Analysts Show-Final-5March2002

29. Liberty Corporate Benefits Enhancing new business profitability
2001 Rm
2000 Rm
% Change
Single premiums
Recurring premiums
Total
Embedded value of in-force 26 21 47
674 38 4 42
588
(32
425 12 15 )
Focusing on expense control and margins

30. Liberty Personal Benefits New business – average policy size
Liberty Full year 2001 R
Industry (Values for first half 2001) R
% Difference
Recurring premiums
RAs
Risk and investment
Single premiums
56 699
40 154
140
Focused on the profitable segment

31. Liberty Personal Benefits Building market share – New recurring individual

32. Liberty Personal Benefits Building market share – New single individual

33. Liberty Personal Benefits Policyholder returns
Fund returns
(after tax) %
Portfolio
Liberty Managed
Variable
Equity Performance
Global Managed
20,0
20,2
21,0
35,8

34. Liberty Personal Benefits Liberty Ermitage returns in Rand
Fund returns
(after tax) %
Dollar Money
Alpha Class
Asset Selection
Global Equity
North American Equity
Pan European Equity
Asia Pacific Equity
51,5
50,8
53,0
47,4
52,2
46,4
31,7
Runner-up to Goldman Sachs – Global Investor Award for Excellence 2001

35. Liberty Personal Benefits Leveraging existing clients
Cross-selling and retention are key objectives
Intermediary productivity tools implemented successfully
Client data mart, data analysis tools and campaign management capabilities established
Enterprise data warehouse infrastructure implementation due April 2002

36. Liberty Personal Benefits Individual surrenders and maturitiesRm
Trend line
% of in-force book
1997
1998
1999
2000
2001
Higher retention of in-force book

37. Product innovation Investment products launched 2001
Global bond – UK Properties
Guaranteed Hedge Fund 100
Liberty CPI Plus Investment
Liberty Secured RA
Guaranteed Global Equity Index
Sandton Properties
Liberty Ermitage portfolio range
LSI Symphony wrap funds

38. Product development Risk products launched 2001 Optimum/Optimum Plus
LivAbility, FemAbility, CareAbility,EnAbility
Procure

39. An exciting future
Reaping benefits of an expanding distribution force
Bancassurance – growing SBFC (Stanfin) sales
Ongoing market share growth
Full pipeline of products for 2002
Managing and leveraging in-force business

40. Goals for 2002
Roy Andersen
Group Chief Executive

41. Liberty Properties Developing value through property
Portfolio continually upgraded
Disciplined programme of improvements
Revaluations
Continued conservatism
5,3% uplift of R466 million to R9,2 billion
Disposals of R141 million confirmed valuations
The Earth Summit will boost Sandton

42. International growth Liberty Ermitage Offshore acquisition
AUM up 69% in Rands
Hedge funds doubled – sales force doubled
Capital uplift in R146 million
Effect on earnings of depreciated Rand to be felt in 2002
Offshore acquisition
Discerning approach

43. Human capital Creating value through people
B3 Vision
“The best people, doing the best things, best!”

44. Human capital Creating value through people
The best people
Attitude towards the client – key
Energy and enthusiasm – a requirement
Correct cultural diversity – on track
Measure progress through growth in Human Capital Index
Liberty a top ten employer for the second year

45. Human capital Creating value through people
The best things
Clear and open strategies
A wide understanding of what drives value
Incentivisation aligned with value creation
Top 200 people on incentive scheme linked to growth in appraisal value

46. Human capital Creating value through people
Best
Use of international benchmarks
Integrity, trust and honesty core values

47. Goals for 2002 Launch and grow STANLIB Limited
Develop SBFC (Stanfin) and increase bancassurance sales
Reposition Charter in mass and niche markets
Focus on profitability in Employee Benefits

48. Goals for 2002 Leverage CVM initiative for new business and retention
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Goals for 2002
Leverage CVM initiative for new business and retention
Grow Liberty Ermitage sales
Focus on productivity of Agency and Franchise
IAS Analysts Show-Final-5March2002

49. Conclusion

50. 23/11/ :01
IAS Analysts Show-Final-5March2002