2. Presentation to Investment Analysts’ Society
3rd/4th March 2004

3. Operating climate Increasing compliance and regulatory requirements
Low interest rate/low inflation environment
Strengthening of the Rand
Volatile investment markets
Risk averse investors
Perception of industry

4. Operations

5. Liberty Personal Benefits - market share
Strong Excelsior investment product sales
Property-backed products very popular
Risk product launched – Lifestyle Protector R120 million sales since launch

6. Liberty Personal Benefits – average recurring premiums
30 Sept
2003* Rm
31 Dec
2002 Rm %
Change
All offices
Large offices
Liberty Personal Benefits
LPB as % of all offices
LPB as % of large offices
2 141
2 843
6 796
316,2%
238,1%
2 298
2 754
6 443
280,4%
234,0% (7 3 5 )
* Source: LOA statistics

7. Liberty Personal Benefits
Represents 70% of total business based on value of liabilities (low percentage smoothed bonus business)
Focus on:
Integration of Healthcare operations
Restructuring of operations
Customer service and costs
Implementation of FAIS legislation
Partial commission uncapping
Further leveraging channel capabilities

8. Liberty Corporate Benefits
9% reduction in headcount
Building on packaged product model
Focusing on service delivery
Risk margins maintained (despite HIV/AIDS)
Standard Bank opportunity
Small pension fund audit exemption withdrawal

9. Liberty Corporate Benefits (continued)
IEB purchase price: R130 million
Smooth integration to date
2-3 years to rationalise fully
Efficiency opportunity
Current performance approximating expectations

10. Consultancy Agency Division Franchise Division
Introduction of graduated managers from the Academy
Additional branches created
Franchise Division
Elimination of non-producing franchises
Productivity enhanced

11. Consultancy (continued)
Broker Division
Expanded number of supporting brokers
Gauteng focus
Administration hubs provide a higher level of service
SBFC
Increased manpower – benefits in 2004
Consumer consultants strategy

12. Consultancy (continued)
Legislation
FAIS implementation
Commission de-regulation
FICA implemented

13. Properties % Change 2003 2002 Portfolio value (Rm) Comprising:
Office buildings (%)
Shopping malls (%)
Hotels (%)
Other (%)
10 449,8 20 65 12 3
100
9 601,8 22 64 11 3
100 9
5 year compound annual bonus rate to RA policy-
holders of 11,6% vs headline CPI of 5,2%

14. Properties (continued)
Property sales amounted to R150,1 million in 2003
Liberty Midlands Mall completed in valued at R325 million
50% of Greenacres Shopping Centre acquired for R150 million
Vacancies at 31 December 2003: 13,9% (2002 : 12,1%)

15. STANLIB Total assets under management (excluding common assets)
2003
Rbn
2002
Rbn %
Change
Life funds
Segregated funds
Unit trusts
Structured products and other
Money market as % of total 59 55 40 24
178
14% 53 48 29 19
149
11% 12 15 38 26 19

16. STANLIB (continued) Net inflows positive R12 billion
Investment performance mixed:
Good fixed interest performance
Balanced portfolios underperformed median by 1% to 2%
Returns generally acceptable in absolute terms
Normalised earnings up 4% to R136 million

17. STANLIB (continued)
Integration costs and other once-off costs higher than expected
Staff numbers reduced by 98 people (net)
Annualised cost saving of approximately R30 million
STANLIB brand now well-established in both retail and institutional markets
Looking for improved investment performance

18. Ermitage Assets under management
2003
US$m
2002
US$m %
Change
Hedge funds
Long-only funds
Money funds
Third party funds as
% of total funds
1 292,7
1 059,5
600,3
2 952,5
41%
806,8
791,6
667,3
2 265,7
44% 60 34
(10 30 )
Operating profit up 117% in Pounds Sterling

19. The year in numbers

20. Features – 2003/2002 2003 Rm 2002 Rm % Change Indexed new business
Individual
Corporate
Value of new business
Net cash inflows from insurance operations
New business margin
3 807,8
3 184,3
623,6
608,9
4 497,0
20%
3 634,2
3 090,2
544,1
604,6
4 501,3
20% 5 3 15 1 -

21. Features – 2003/2002 (continued)%
Change
2003
2002
Headline earnings per share (cents)
Headline earnings per share pre AC 133 (cents)
Final dividend per share
Embedded value per share: (Rand)
Capital adequacy requirement (times covered)
346,4
359,6
116,0
57,58
2,6
391,5
116,0
55,28
3,0
(11 (8 - 4 )

22. Headline earnings 2003 Rm 2002 Rm % Change
Operating profit from insurance operations net of tax
Revenue earnings – shareholders’ funds
Preference dividend
Headline earnings
Headline earnings pre-AC 133
719,5
324,8
(95,2
949,1
985,5
889,1
261,6
(81,9
1 068,8
(19 24 16
(11 (8 ) ) )

23. Operating profit from insurance operations
2003 Rm
2002 Rm %
Change
Operating profit from insurance operations Before AC 133 adjustment AC 133 adjustment
719,5
755,9
(36,4
889,1
(19
(15 ) ) )
2002 includes releases from the life fund of approximately R350 million after tax
Improvement in weighted policyholder investment portfolio in 2003
Implementation of AC 133

24. Investment returns (Weighted average of equity, managed and foreign assets portfolios)

25. *Includes IEB costs of R33 million
Expenses %
Change
2003
2002
Total group expenses
Subsidiaries
Company expenses
Insurance expenses
Individual
Corporate Benefits
1 860,9
(381,8
1 479,1
1 281,8
935,1
346,7
1 690,9
(462,6
1 228,3
1 150,6
864,4
286,2 10
(17 20 11 8 21 ) ) ) *
*Includes IEB costs of R33 million

26. Expenses – cost per policy
2003 %
2002 %
Renewal cost per policy increased/(decreased) by
Acquisition cost per policy increased/(decreased) by
6,5
7,2
(1,6
(1,3 ) )
Significant non-recurring expenses
incurred in 2003

27. Non-recurring expenses
Non-recurring expenses of R111,3 million in 2003
Retrenchment and discontinued salary costs
Previously incurred corporate activity costs
Pension fund provision
Post-retirement medical liability increase
Retention bonuses
Non-capitalised renovation costs
Impairments and other provisions

28. Revenue earnings – shareholders’ funds
2003 Rm
2002 Rm %
Change
Financial services operations
Listed investments
Other
199,9
32,9
92,0
324,8
159,6
39,9
62,1
261,6 25
(18 48 24 )
Electric Liberty investment portfolio trading profit of R47 million in 2003
Liberty Ermitage headline earnings of R43 million up 54%
Higher cash balances and preference shares increased other earnings

29. Future earnings International Accounting Standards
Stochastic modelling of investment guarantees
Investment returns impact 10% entitlements

30. Embedded value 2003 Rm 2002 Rm % Change Shareholders’ funds
Net value of life business in-force
Fair value adjustment
Total
Embedded value per share (Rand)
8 782,2
6 493,8
540,9
15 816,9
57,58
8 588,1
5 700,4
838,1
15 126,6
55,28 2 14
(36 5 4 )

31. Fair value adjustment 2003 Rm 2002 Rm Liberty Group Properties
Liberty Ermitage Jersey
STANLIB
Carrying value of in-force business acquired from Investec Employee Benefits
216,0
140,0
306,9
(122,0
540,9 )
240,0
190,4
407,7
838,1
Liberty Ermitage multiple reduced from 15 to 10
STANLIB valued at approximately R1,4 billion

32. New business – percentage increase
Individual
Business %
Corporate
Business* %
Total %
Recurring
Single
Total
Index 6 (7 (4 3 ) 1 63 47 15 6 3 5
*Excludes IEB business acquired

33. Market share individual business (including Charter)
30 Sept
2003 %
31 Dec
2002 %
Individual recurring
Individual singles
23,5
22,4
23,6
20,2
Sales force productivity
Independent broker support
Investment performance
Property portfolio
Lifestyle protector
Source: LOA stats
plus Charter Life

34. Value of new business 2003 2002 Value of new business (Rm)
New business margin (%)
Individual (%)
Corporate (%)
608,9 20 22 8
604,6 20 22 11

35. Net fund inflows 2003 Rm 2002 Rm % Change
Total premiums and inflows under investment contracts
Claims, policyholder benefits and payments under investment contracts
Net fund inflows
18 121,8
13 624,8
4 497,0
16 415,1
11 913,8
4 501,3 10 14 -
Two investment only funds to STANLIB of
approximately R700 million

36. Capital adequacy cover
2003
2002
Capital adequacy
requirement (Rm)
Times covered
3 402,7
2,6
2 856,6
3,0
Charter Life investment guarantees

37. Dividend 2003 cents per share 2002 cents per share Interim Final 162
116
278
162
116
278

38. When we last spoke…

39. Focus areas for second half 2003
Improve service levels
Emphasis on cost reduction
Domestic operations/other market segments and Africa
Renewed emphasis on people
Address capital situation

40. Since we last spoke…

41. Improve service levels
Appointed MD Group Customer Service – Alan Woolfson
Appointed internal ombudsman
Launching staff initiative
Tracking system for complaints

42. Cost reduction Cost reduction initiated – second half 2003
Cost savings of approximately R75 million for Liberty
Reduced net headcount
Liberty:
STANLIB: 98
General staff incentive scheme introduced based on cost reduction targets
No real cost growth budgeted for 2004

43. Domestic operations/other market segments and Africa
Some internal issues –
LPB restructure
IT centralised (again)
Finalised Healthcare integration into LPB
Charter explores new opportunities (see next slide)
Namibia life license
Stanbic Africa footprint offers future opportunity
Canned future offshore expansion for now
Western Cape?

44. Charter Life – eventually doing something
Business as usual
New business
initiatives
(Long-term repositioning
strategy)
- LSM 5-8
- Products
- Administration
- Marketing
- Distribution
- Grow CC’s aggressively
- Continue IFA’s,
networking and Liberty
Agency/Franchise
Charter Life
2004
Customer
service
Cost
management
Right people
- right jobs

45. People Four new board appointments
Appointed MD Charter Life – Bobby Malabie
Appointed CEO STANLIB – Bruce Hemphill
Looking for marketing head
IEB staff integrated well
Employment equity remains an issue
Restructured STANLIB

46. Capital management More proactive capital management
Capital committee formed
Sold 2 million Edcon and 1 million GoldFields
Restructured and cleaned up portfolios
Overcapitalised – but
BEE contingency
stochastic modeling
be patient!

47. In addition… Market uptick – thank heavens!
Financial Sector Charter signed
Dedicated Exco member heading initiative
Implementation committee set up
STANLIB BEE deal finalised
AC 133 implemented
Life product launched

48. Liberty Foundation – focus on education
Mindset Network began broadcasting
Pilot programme initiated for Health Channel and we continued with –
Liberty Learning Channel on SABC
Learn.co.za website
Liberty/Sunday Times ReadRight project
Working closely with Standard Bank

49. Focus areas for next six months – nothing complicated
Continue -
to improve service levels
emphasis on cost reduction
focus on domestic operations/other market segments and Africa
emphasis on people

50. Focus areas for next six months – nothing complicated
Continue –
monitoring capital position
Financial Sector Charter implementation
and in addition we will –
reposition brand
focus on product development

51. Focus areas for next six months – nothing complicated
Everything we do must focus on adding value for our customer

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