1. Liberty Group Inaugural subordinated unsecured callable bond Presentation to investors May 2005

2. 1 Roadshow team Liberty Myles Ruck, Chief Executive Officer Deon de Klerk, Chief Financial Officer Stewart Rider, Group Executive – Finance and Investor relations Samuel Sathekge, Financial Accountant – Group Finance JPMorgan – Joint Lead Arranger and Bookrunner Marc Hussey, Head of Debt Capital Markets Standard Bank – Joint Lead Arranger and Bookrunner Andrew Pamphilon, Debt Origination Andisa Securities – Co-arranger Chris Clarkson, Head of Debt & Capital Markets Group

3. 2 Agenda Overview Operating review Financial review Capital management strategy The proposed bond instrument Summary and Questions Appendix

4. 3 Liberty Holdings Limited Liberty Group Limited Rated AA(zaf) - Insurer Financial Strength Rated AA-(zaf) – Long Term Issuer Corporate Structure (as at 31-12-2004) Standard Bank Rated AA+(zaf) – Long Term Issuer (54,65%) (50,17%) Life AssuranceAsset Management Liberty Personal Benefits Liberty Corporate Benefits Liberty Active STANLIB (37,4%) Liberty Ermitage Liberty Properties

5. 4 Industry issues Increasing compliance and regulatory requirements Volatile investment markets Risk averse investors Perception of industry AIDS (not as much an issue for Liberty Life)

6. 5 Industry positives Industry has started recognising its shortcomings Emerging middle class - a reality, but net spenders South African economy - a success story Investors becoming more bullish Good local investment returns Cash being accumulated by investors = opportunity

7. 6 Nature of the business Liberty’s business is conceptually simple and generic We develop products We sell products We receive money We invest the money according to product specification We administer according to product specification We pay benefits

8. 7 Key strengths Strong business franchise –Pure SA life insurance play, revised management team –Very high investment-grade credit ratings from Fitch (AA Insurer Financial Strength Rating and AA- Long Term Issuer Rating) –Strong parent in Standard Bank Group (AA+/F1+) –Limited exposure to smoothed bonus business –Market positioning (trend of increasing market share) and solid brand recognition Competitive advantages –Diversification of business mix and breadth of product range –Distribution channels and resources

9. 8 Key strengths (cont’d) Solid financial indicators –Increasing market share –Positive net cash flows from insurance operations –Strong capital base with good CAR cover –Inroads being made on expense base –Proven resilience in times of tough operating environments Potential for growth - Upper income market (traditional Liberty) - Emerging market (Liberty Active) - Bancassurance (Standard Bank)

10. 9 Agenda Overview Operating review Financial review Capital management strategy The proposed bond instrument Summary and Questions Appendix

11. 10 Overview of the Group’s embedded value (proxy for cash flow drivers) 20042003

12. 11 Business units Individual insurance and investment products Life, disability, local investments, offshore investments, retirement savings, preservation schemes and annuities Middle and upper income, and high net worth clients Targeting lower income group through Liberty Active Uses four channels of distribution (viz. Agents, Franchises, Brokers and Standard Bank Financial Consultants) Individual Life (LPB and Liberty Active) Liberty Corporate Benefits (LCB) Markets and administers flexible, comprehensive and packaged solutions to the retirement funding and insured needs of small-to-medium size companies (staff of between 10 and 300) Also manages larger corporate funds Client funds spread across geographic regions and industries Rm20042003 % change Indexed new business3,5443,184+11 New single premiums8,7006,808+25 New recurring premiums 2,6742,504+8 Net cash flows5,4923,120+76 Claims and benefits10,86710,436+4 Value of new business819571+43 Key performance indicators Rm20042003 % change Indexed new business643624+3 New single premiums1,5821,924-18 New recurring premiums 484431+12 Net cash flows 1 (1,852)1,377235 Claims and benefits6,0483,189+90 Value of new business(4)37-111 Key performance indicators 1 One client maturity of R2.1 billion in a property-backed portfolio (2004)

13. 12 Business units (cont’d) Jersey-based fund management company, specialising in hedge funds 41% third party funds Representative offices in London, Luxembourg, Bermuda and New York Liberty Ermitage (Jersey) Key performance indicators Rm20042003 % change Net cash flows3,6811,653123 Assets under mgmt 1 20,53318,513+11 Headline earnings4643+7 Established in 2002, combining the asset and wealth management businesses of Liberty and Standard Bank Liberty Group and Standard Bank each hold 37.5%, with BEE partners holding 25% Focus on asset management of retail and institutional investments STANLIB Rm20042003 % change Net cash flows15,30012,10026 Assets under mgmt 1 137,926113,978+21 Headline earnings11980+49 Key performance indicators 1 Excluding common assets

14. 13 Agenda Overview Operating review Financial review Capital management strategy The proposed bond instrument Summary and Questions Appendix

15. 14 Financial summary – 4 year history Income statement (Rm) 1 The sum of new recurring premiums plus 10% of new single premiums 2 The present value, at the time of sale, of the projected stream of after-tax profits from that business 3 Expresses the embedded value of new business as a percentage of indexed new business (net of natural increases) 4 The excess of total premiums over total policyholder claims and benefits

16. 15 Headline earnings Headline earnings (Rm) 10% shareholders’ participation Higher average asset base Investment guarantee reserves Management expenses Strong underlying Stanlib, Ermitage growth Key features

17. 16 Financial summary (cont’d) Balance Sheet (Rm) Policyholder liabilities and total assets (Rbn) BEE technical impairment of R1,251m in FY2004 Only 40% of shareholders’ funds in equities – equity concentration now largely resolved

18. 17 Embedded value Embedded value (Rm) 14,767 11,941 15,127 15,817 16,867

19. 18 Agenda Overview Operating review Financial review Capital management strategy The proposed bond instrument Summary and Questions Appendix

20. 19 Capital management strategy Liberty’s capital covers potential additional charges, fraud, errors, uninsured risks, etc. Stochastic modelling of embedded guarantees results in volatility (pricing policyholder put) New risk product requires more capital International accounting standards could influence ratios Liberty endeavours to find a balance between ROE/ROEV and security, and our capital takes into account our lower risk business mix Medium term CAR target levels are 1.5x – 1.7x Dividend policy introduced in line with medium term EV growth Liberty Life’s capital adequacy (prior to Capital Alliance acquisition) Comments on level of capital Pre the proposed takeover of Capital Alliance Limited (CAL) and allowing for full impairment for the BEE capital, CAR cover was 2.1x. - In line with what was communicated to the market after the BEE transaction - More than adequate allowing for the CAL deal to follow Estimated CAR post the CAL deal and dividend payments due to Liberty and CAL shareholders, would be in the range of 1.60x—1.70x by December 2005. - This assumes no additional benefits from pooling the CAR levels of the two integrated companies Impact of the BEE and CAL transactions on CAR

21. 20 Agenda Overview Operating review Financial review Capital management strategy The proposed bond instrument Summary and Questions Appendix

22. 21 The subordinated, unsecured secondary capital issue We believe Liberty is the first South African insurance company to be granted FSB approval to issue regulatory capital in the form of a bond - Approval was given early in May 2005 The benefits of the instrument to Liberty include: - Enhancing regulatory capital adequacy ratios - Diversifying funding sources - Reducing the cost of capital and - This evolution is similar to the bank market where all of South Africa ’ s major banks have successfully raised regulatory capital in the form of bonds The proposed form of debt instrument is virtually identical to the secondary capital issued by all of the four major banks in South Africa

23. 22 Summary terms Issuer:Liberty Group Limited Insurer Financial Strength RatingAA (zaf) Long-term Issuer Rating:AA- (zaf) Amount: Up to ZAR [2]bn, subject to market conditions Status: Subordinated, unsecured secondary capital Legal Maturity: [12 years, due 2017] Step-up/call date:[7 years, 2012] Coupon[ ]% semi-annual fixed rate, stepping up to 3M Jibar + [100bps and the initial swap rate] after the Step-up/call date Pricing:R153 + spread Listing:BESA Governing Law:South African law

24. 23 Comparison between the new LG01 bond and the SBK5 bond SBK5LG01 Maturity12 non-call 7 Pricing at launchR153 + 95TBD Subordinated to senior credits Callable after 7 years Step-up +100bps Call subject to regulatory approval Qualifying regulatory capital

25. 24 Impact of the bond on key ratios (pro forma 2004) Pre-bondPost-bond Weighted average cost of capital12.8%11.9% CAR cover2.1x2.7x Debt/EquityN/A23.5% Debt/Total CapitalN/A19.1% Interest cover ratioN/A8.6x Source: Company estimates. Based on December 31, 2004 financials

26. 25 Why Liberty paper Strong cash flows High interest cover and low debt ratios Conservative regulator Sustainable growing business Track record of delivery

27. 26 Agenda Overview Operating review Financial review Capital management strategy The proposed bond instrument Issue process and deal contacts Appendix

28. 27 Issue process Roadshow: [May 25 - 27] Bookbuild, launch and price: June [6] (begin 9am) All bonds will be allocated at the same clearing spread Early, firm and aggressive bids to be rewarded during allocations

29. 28 Contacts Issuer contacts Deon de Klerk Tel: (011) 408 2572 E-mail: deon.deklerk@liberty.co.za John Sturgeon Tel: (011) 408 2872 E-mail: john.sturgeon@liberty.co.za Stewart Rider Tel: (011) 408 3260 E-mail: stewart.rider@liberty.co.za Samuel Sathekge Tel: (011) 408 3063 E-mail: samuel.sathekge@liberty.co.za Arranger contacts Andrew Pamphilon Tel: (011) 378 7003 E-mail: andrew.pamphilon@standardbank.co.za Marc Hussey Tel: (011) 507 0730 E-mail: marc.j.hussey@jpmorgan.com Chris Clarkson Tel (011) 374 1291 E-mail: clarksonc@standardbank.co.za

30. 29 Agenda Overview Operating review Financial review Capital management strategy The proposed bond instrument Issue process and deal contacts Appendix

31. 30 Comparison of debt-to-capital ratio with European peers Source: JPMorgan estimates

32. 31 2002 Peer comparison - total new business 20032004 I = Individual; G = Group; Source: company financial statements Rm

33. 32 200220032004 Peer comparison - indexed new life business* *Indexed new business as per embedded value statement; Source: company financial statements Rm

34. 33 Peer comparison - net flow of funds from life insurance operations 200220032004 LibertySanlamOld MutualMomentumDiscovery (Life) Rm Source: company financial statements

35. 34 Peer comparison - embedded value NAV and subs VIF LGLSLMOMLMOMDSY Rm Source: company financial statements

36. 35 Gross investment returns 12.5% 22.7% Actuarial assumption