1. 1 2005 Results Presentation to the Investment Analysts’ Society of Southern Africa 2 March 2006 www.liberty.co.za

2. 2 Agenda What we said What we’ve done Financial and operating results Focus areas Questions

3. 3 What we said … Capital management continues Compliance, IFRS … Address PFA issues... people... service … costs

4. 4 What we said … Operational restructuring and CAHL integration continues Marketing and Distribution restructuring ­Products ­Channels ­Project Khula continues Group professional services restructuring and integration … Hug our customers!

5. 5 What we’ve done … Capital management Bought CAHL utilising some excess capital First life company in SA to issue capital qualifying bond Sold significant portion of SAB - no remaining concentration risks Sale of Prefsure and Hightree Ermitage sale in progress New dividend policy implemented Capital reduction

6. 6 What we’ve done … PFA issues Statement of Intent signed with National Treasury What the industry agreed to ­Minimum standards applied to early termination values ­Retrospective and prospective Treasury’s promises ­New commission regulations ­Jurisdictional clarity (PFA, FSOS Ombudsman, LTI Ombudsman) ­Recognition of application of Long-Term Insurance Act to RA policies ­Resolution of other regulatory matters

7. 7 What we’ve done … PFA issues All business with savings as the primary purpose, is included ­RA’s (with and without life cover) ­Endowments ­Whole of life (where savings is primary purpose) ­Reversionary bonus business Policies intended primarily to provide risk benefits, are excluded ­Pure risk products (eg Lifestyle Protector) ­Whole life business not included A number of outstanding practicalities still to be finalised Full provision for Statement of Intent (SOI) made at 31 December 2005

8. 8 What we’ve done … Operational restructuring Overview of new structure given at the interim results Updated restructuring and integration progress given in November 2005 ­Marketing and Distribution ­Operations ­Group Professional Services ­Asset Management (Stanlib and Properties)

9. 9 What we’ve done … Operational restructuring Choice of IT platform finalised and project started Life licenses under review Recap of numbers ­Restructuring and integration costs of R500m over 3-4 years ­Anticipated cost reduction of R300m pa by 2008 ­Estimated after tax net benefit of approximately R1bn Restructuring and integration on track

10. 10 What we’ve done … Products New risk product (Lifestyle Protector) performing well Sought more clarity on PFA rulings before launching new savings products New long term savings product launch planned for later this month ­Policyholder value proposition ­Internal culture ‘we should only sell a product that we would be happy to sell to our mothers!’ Increased advertising awareness of real benefits of RA’s

11. 11 What we’ve done … Distribution Agency restructured Continued focus on broker relationships Entry level market ­Khula performance ­CAHL Commercial/Khula agents consolidated (Liberty@Work) Individual life bancassurance model still delivering Awaiting finalisation of the commission proposal SAFSIA Awards

12. 12 Deon de Klerk

13. 13 Operational features – 2005/2004 Rm2005 1 2004 2 % Total new business16 67313 748+21 Indexed new business4 8704 336+12 Value of new business pre SOI costs882815+8 New business margin pre SOI costs23%24% Net cash inflows from insurance operations 3 5 7263 186+80 1. Includes CAHL numbers for 9 months since acquisition 2. Includes CAHL numbers for 9 months for comparability where appropriate 3. Excludes STANLIB and Ermitage net cash inflows

14. 14 Impact of SOI Value of new business margins reduced to 20% Rm Net asset value(406) Headline earnings(321) Goodwill impairment(85) Value of in-force(193) Embedded value(599)

15. 15 Life insurance operations New business premiums Total R16 673m (+21%) Individual life R13 721m (+18%) Corporate benefits R2 952m (+39%) Indexed new business premiums Total R4 870m (+12%) Individual life R4 004m (+10%) Corporate benefits R866m (+26%) CorporateIndividual 200220032004 Inc CAHL 2005 Inc CAHL 200220032004 Inc CAHL 2005 Inc CAHL Rm 0 2 500 5 000 7 500 10 000 12 500 15 000 0 1 000 2 000 3 000 4 000 5 000 Rm

16. 16 Life insurance operations Embedded value of new business* Total R882m (+8%) Individual life R845m (+3%) Corporate benefits increased from -R4m to +R37m New business EV margins Total = 23%* → 20% after SOI Individual life = 25%* → 23% after SOI Corporate benefits = 6%* → 6% unchanged *Before SOI impact CorporateIndividual 600 800 1 000 Rm 400 200 0 2002200320042005 Inc CAHL 2002200320042005 Inc CAHL -5% 0% 5% 10% 15% 20% 25% 30%

17. 17 New business EV margins – PV of premiums basis Rm After SOI 2005 Before SOI 20052004 Value of new business777882815* PV of future expected premiums26 21626 90224 030 Value of new business as a % of PV of future expected premiums 3,0%3,3%3,4% * As reported

18. 18 Life insurance operations Net cash flows from insurance operations (excluding Stanlib & Ermitage) Total R5 726m (+80%) Individual life R4 948m (+4%) Corporate benefits R778m (+149%) 20022003Inc CAHL 2004Inc CAHL 2005 -2 000 0 2 000 4 000 6 000 Rm CorporateIndividual

19. 19 Source: LOA Life insurance operations New business market share Year ended 31 December 2003 Year ended 31 December 2000 Year ended 31 December 2002 Year ended 31 December 2004 Year ended 31 December 2001 9 months ended 30 September 2005 Recurring IndividualSingle Individual 0% 5% 10% 15% 20% 25% 30% 35% 19,6% 22,8% 23,6% 25,3% 26,0% 25,4% 15,5% 16,5% 20,3% 24,5% 27,2% 30,6%

20. 20 Net cash inflows of R13,3bn (R15,3bn in 2004) Earnings before tax of R407m up 46% Other operations STANLIB: assets under management and funds under administration Rbn20052004% Life funds9072+25 Segregated funds8366+26 Unit trusts5351+4 Structured products and other5034+47 Total AUM and FUA276223+24 Money market as % of total12%16%

21. 21 Financial results – 2005/2004 Rm2005 Restated 2004% BEE normalised headline earnings per share before IFRS & SOI (cents) 665,4465,3+43 BEE normalised embedded value per share before SOI (Rand) 75,5663,72+19 Statutory capital adequacy requirement (times covered) 2,02,5

22. 22 BEE normalised headline earnings before IFRS and SOI Rm2005 Restated 2004% Insurance operations1 308827+58 Per financial statements942841+12 IFRS adjustments45(14)>100 SOI provisions321-n/a Shareholders’ funds451425+6 Per financial statements899409>100 IFRS adjustments(448)16<100 BEE funding8831>100 BEE normalised earnings before IFRS & SOI 1 8471 283+44 Per share (cents)665,4465,3+43

23. 23 Operating profit from life insurance operations – major influencing factors Inclusion of CAHL for 9 months Shareholders’ 10% participation and higher asset base Risk profits Investment guarantee reserve Expenses ­Costs per policy ­Non-recurring expenses

24. 24 Year-to-date return 2004 Gross investment returns Year-to-date return 2005Actuarial assumption 2005 JanFebMarAprMayJunJulAugSepOctNovDec 0% 5% 10% 15% 20% 25% 30% 35% 9,7%

25. 25 Expenses Rm2005* Restated 2004*% Total Liberty Group expenses3 6123 370+7 IFRS 2 adjustments – share based payments (40)(14)>100 Mutual funds on consolidation(137)(116)+18 Project Khula costs(27)(6)>100 VIF amortisation(120)(18)>100 Restructuring, integration and other non- recurring costs (199)(137)+45 Normalised group expenses3 0893 0790 * CAHL costs included for 9 months in 2004 and 2005

26. 26 Restructuring, integration and other non-recurring expenses Rm ActualEstimated 2005 20062007Total Retrenchments and other staff costs805020-70 Systems and process costs3210015070320 Infrastructure and office relocation costs705020-70 Consolidation of Marketing & Distribution integration 220 -40 Total18422021070500 Incurred to date(184) Expenses still to be incurred316 Other non-recurring expenses of R36m

27. 27 Maintenance costs per policy 20052004%Assumption Individual annual maintenance costs per policy Liberty LifeR258R248+4,0+4,25 Liberty ActiveR139R154-9,7+4,25 CAHL ComplexR221R217 1 +2,5 2 +4,25 CAHL Simple 3 R98R80 1 +30,0 2 +4,25 1. For the year ended 31 March 2005 2. Annualised 3. Consolidation of 63 000 policies into 1 policy during 2005 impacted per policy statistics

28. 28 Embedded value Rm2005 Restated 2004% Shareholders’ funds – statutory basis8 1988 2000 Fair value adjustments326766-57 Fair value of share options(245)(191)-28 Net value of in-force business10 8747 544+44 Embedded value19 15316 319+17 Embedded value per share (Rand)75,9665,07+17 BEE normalised embedded value per share before SOI (Rand) 75,5663,72+19

29. 29 Capital adequacy cover 2005 Restated 2004 Statutory capital adequacy requirement (Rm)3 7823 013 Statutory capital (Rm)7 7347 417 Times covered2,02,5 Times covered without BEE impairment2,42,9

30. 30 Capital reduction Target CAR cover of 1,7 times Excess capital of approximately R1bn Capital reduction of R1bn or 360 cents per share Subject to shareholder and regulatory approval

31. 31 At 2004 year end new dividend policy established Dividend growth in line with current estimated medium term growth in embedded value (after normal dividends) Dividend Cents per share20052004% Interim126162-22 Final224153+46 Total350315+11 Annual350 Base for future dividend declarations325 Capital reduction impact25

32. 32 Bruce Hemphill

33. 33 Addressing market concerns … Insurance skills Integration and restructuring ­Good progress made in 2005 ­CAHL staff relocated to Liberty ­One team, good mix of CAHL and Liberty Continuity ­Group Executive ­Rex Tomlinson/Bruce Hemphill on Exco for 24 months

34. 34 Liberty priorities for the next 12 months Customers Customer service Moral high ground Leading product innovators Real value to policyholders

35. 35 Liberty priorities for the next 12 months Systems and processes Single IT platform Efficient business model Scalable

36. 36 Liberty priorities for the next 12 months People Our people are the critical ingredient Positive energy Team environment Enjoyable workplace

37. 37 Questions Panel Myles RuckChief Executive Bruce HemphillChief Executive Designate Andrew Lonmon-DavisStatutory Actuary Deon de KlerkChief Financial Officer

38. 38 Appendices

39. 39 Operating profit from shareholders’ funds Rm2005Restated 2004% Financial services operations149172-13 Listed investments6294-34 Disposal groups held for sale7746+67 Other investments319 0 Shareholders’ management expenses(163)(128)+27 Shareholders’ tax(36)(94)-62 Investment gains net of CGT491-n/a Operating profit post IFRS adjustments899409+120

40. 40 Embedded value (EV) reconciliation and ROEV build up 2005 Yr Rm 2005 ROEV Build Up (%) Investment return on shareholders funds*1 4168,9 Expected return on life business9385,9 Investment experience1 2928,2 Other experience(23)-0,1 Operating assumption changes600,4 Changes in economic assumptions4572,9 Value of in-force acquired1671,1 Change in modeling(603)-3,8 New business8825,6 Exchange rate movements460,3 EV Profit before Abnormal items4 63229,4 Less Abnormal Implementation of minimum values for savings products(599)-3,8 Future non-recurring costs(216)-1,4 Change in company tax rate118+0,8 Write off of CAHL goodwill(397)-2,5 EV Profit3 53822,5 *Net of allowance for fair value of options of -R54m

41. 41 Embedded value (EV) reconciliation – 1H05 vs 2H05 2H05 Rm 1H05 Rm 2005 Yr Rm Investment return on shareholders funds*7296871 416 Expected return on life business502436938 Investment experience9063861 292 Other experience126(149)(23) Operating assumption changes311(251)60 Changes in economic assumptions4489457 Value of in-force acquired167- Change in modeling(587)(16)(603) New business512370882 Exchange rate movements46- EV Profit before Abnormal items3 1601 4724 632 Less Abnormal Implementation of minimum values for savings products(599)- Future non-recurring expenses(216)- Change in company tax rate-118 Write off of CAHL goodwill(85)(312)(397) EV Profit2 2601 2783 538 *Net of allowance for fair value of options of –R101m in 2H05 (1H05 R47m) Annualised ROEV for 2H05 is 28% (1H05 16%)

42. 42 IFRS NAV vs Statutory NAV Rm2005Restated 2004 Shareholders’ funds – published basis9 4348 526 CAR requirements of subsidiaries(1 212)(376) Debt and preference shares2 200- Differences between statutory and published valuation methodologies(1 429)(430) IFRS adjustments-(32) Inadmissible assets(1 259)(271) Shareholders’ funds – statutory basis7 7347 417

43. 43 Stanlib detailed earnings analysis Rm20052004% Change Net fee income753630+20 Investment and other income67 - Total income820697+18 Operating expenses413419 Income before tax407278+46 Normal tax14297+46 Income after tax265181+46 Preference dividends6265-5 Earnings203116+75 Cost to income ratio55%64%

44. 44 Net cash inflows of US$69m Headline earnings of £6,67m (R77m) up 138% Ermitage - assets under management US$m20052004% Hedge funds1 7891 500+19 Long-only funds1 3291 382-4 Money funds646762-15 Total AUM3 7643 644+3 Third party funds as % of total funds41%

45. 45 Financial services and subsidiaries *The value of the IEB & CAHL business is included in the group's estimates of the VIF **Restated for IFRS RmDecember 2005December 2004** Fair Value Adjustment Tangible NAV Goodwill net of amortis- ation Fair Value Uplift Total Carrying value in EV excl VIF % Change Tangible NAV Goodwill net of amortis- ation Fair Value Uplift Total Carrying value in EV excl VIF Liberty Group Properties110300311+2740240244 Liberty Ermitage Jersey54681305932+1445669290815 Stanlib40607101 116+484070345752 Prefsure400030430----- Carrying value of VIF business acquired from IEB 960(96)0*n/a1090(109)0* Carrying value of VIF business acquired from CAHL 923(923)0*n/a---- 2 382813262 789+54976697661 811

46. 46 New business excluding contractual increases - ex CAHL Recurring PremiumsSingle PremiumsTotal Premiums Rm200520042005200420052004% Change Individual2 1422 06410 4858 70012 62710 764+17 Corporate2882482 3111 5822 5991 830+42 Total new business2 4302 31212 79610 28215 22612 594+21 % Change+5+24+21 Indexed new business3 7103 340+11 Indexed Individual new business3 1912 934+9 Indexed Corporate new business519406+28

47. 47 Total premiums Recurring PremiumsSingle PremiumsTotal Premiums Rm Inc CAHL 2005 Inc CAHL 2004 Inc CAHL 2005 Inc CAHL 2004 Inc CAHL 2005 Inc CAHL 2004 % Change Individual9 7628 74611 0308 91820 79217 664+18 Corporate4 1342 9412 3651 7596 4994 700+39 Total premiums13 89611 68713 39510 67727 29122 364+22 % Change+19+25+22 Indexed total business15 23612 755+19 Indexed Individual total business10 8659 652+13 Indexed Corporate total business4 3713 103+41

48. 48 New business EV analysis - ex CAHL Indexed new business of CAHL for EV purposes R201m (Recurring R170m, single R31m) CAHL NB embedded value of R69m CAHL NB embedded value and volumes for 9 months only Rm2005 (After SOI)2005 (Before SOI)2004% Change Indexed Individual new business3 191 2 934+9 Indexed Group new business519 406+28 Indexed new business3 710 3 340+12 Individual NB EV701806819-2 Group NB EV77-4>100 Total NB EV708813815-0,2 NB Individual Margin22%25%28%-3 NB Group Margin1% -1%+2 Total Margin19%22%24%-2

49. 49 Effect of the BEE transaction on headline earnings Rm20052004% Change Earnings before IFRS1 4381 252+15 Costs of transaction included in headline earnings net of tax-18 Preference shares accrued 1 8813 Headline earnings including preference dividends before IFRS1 5261 283+19 Weighted average number of shares in issue (millions)251,8271,9 Reinstatement of weighted average number of shares reduced for BEE transaction (millions) 2 25,83,78 Weighted average number of shares after reinstatement of the transaction shares (millions) 277,6275,7 BEE normalised headline earnings per share (cents)549,8465,3+18 1. As a consequence of utilising Liberty Life’s own cash flows (in the form of ordinary dividends paid) to service the empowerment transaction financing structure (in the form of dividends on preference shares), the dividends received on the empowerment preference shares will be accounted for directly in reserves, thereby offsetting the dividends so received against the ordinary dividends paid by the company 2. Due to the fact that the Black Economic Empowerment transaction is effectively accounted for as a share buy back (until such time that all funding is repaid), the weighted average number of shares in issue for 2004 has been reduced by 25,8million shares. The transaction was implemented on 8 November 2004

50. 50 Effect of the BEE transaction on EV per share 1. Due to the fact that the Black Economic Empowerment transaction is effectively accounted for as a share buy back (until such time that all funding is repaid), the total number of shares has been reduced by 25 796 143 shares at 31 December 2005 and 31 December 2004 Rm20052004% Change EV per EV statement19 15316 319+17 Costs of transaction included in headline earnings net of tax & debited against reserves 1 -40 Reinstatement of impaired empowerment preference shares1 251 Preference dividends accrued-13 Embedded value before impairment20 40417 623+16 Total number of shares in issue (millions)252,1250,8 Reinstatement of number of shares reduced for BEE transaction (millions) 1 25,8 Total number of shares after reinstatement of the transaction shares (millions) 277,9276,6 BEE normalised EV per share (Rand)73,4163,72+15

51. 51 Claims & policyholder benefits - Liberty ex CAHL Group Rm20052004% Change Individual13 24010 867+22 Death & disability2 1651 895+14 Policy maturity claims3 5483 427+4 Policy surrender claims5 8734 005+47 Annuity payments1 6541 540+7 Group4 9216 047-19 Death & disability543489+11 Scheme terminations258276-7 Scheme member withdrawals1 8841 448+30 Annuity payments269251+7 Investment only terminations and withdrawals1 9673 583-45 Total claims & policyholder benefits18 16116 914+7

52. 52 New business detailed analysis - Rm New BusinessRecurring PremiumsSingle PremiumsTotal PremiumsTotal % Change 2005200420052004200520042005 Inc CAHL Ex CAHL Individual2 9242 75910 7978 87013 72111 62918%17% Corporate6355312 3171 5882 9522 11939%38% Total3 5593 29013 11410 45816 67313 74821%20% % Change8%25%21% % Change Ex CAHL13%28%24% Indexed new business4 8704 336 Includes premium escalations

53. 53 Net cash flows detailed analysis - Rm Net cash flowsIndividual businessCorporate businessTotal PremiumsTotal % Change 2005200420052004200520042005 Inc CAHL Ex CAHL Net Premiums20 79217 6646 4994 70027 29122 36422%20% Net claims and benefits15 84412 8925 7216 28621 56519 17812%7% Net cash flows4 9484 772778(1 586)5 7263 18680%77% % Change11%149%80% % Change Ex CAHL9%125%77%

54. 54 New business by distribution channel Recurring PremiumsSingle PremiumsTotal Premiums Rm200520042005200420052004 Individual 2 924 2 759 10 797 8 870 13 721 11 629 Broker 1 025 979 4 234 3 365 5 259 4 344 Bancassurance 927 862 3 545 2 694 4 472 3 557 Agency 578 556 1 856 1 760 2 434 2 316 Franchise & other 394 362 1 162 1 061 1 556 1 413 Corporate635 531 2 317 1 588 2 952 2 119 Broker 341 255 847 407 1 188 662 Bancassurance 29 16 12 36 41 52 Agency 149 171 254 224 403 395 Franchise & other 116 89 1 204 921 1 320 1 010 Total new business 3 559 3 290 13 114 10 458 16 673 13 748

55. 55 CAR Cover - Historical analysis 20012002200320042005 0 1,0 2,0 3,0 4,0 0,5 1,5 2,5 3,5 Since December 2004, CAR cover is shown as statutory CAR cover Times covered Incl BEETimes covered

56. 56 After the capital reduction (ACR) 60% of the group’s EV will be represented by the value of in-force EV - Historical analysis VIFNAV Dec 2001Dec 2002Dec 2003Dec 2004Dec 2005Dec 2005 (ACR) 0 10 20 30 40 50 60 70 80 90 100

57. 57 Headcount analysis 61 administration staff at project Khula at 30 March 2005 CAHL administration staff of 636 included at 30 June 2005 Liberty Incl CAHLLiberty excl CAHL IEB Dec 2003Mar 2004Jun 20004Sep 2004Dec 2004Mar 2005Jun 2005Sep 2005Dec 2005 2 800 3 000 3 200 3 400 3 600 3 800 4 000

58. 58 2005 Results Presentation to the Investment Analysts’ Society of Southern Africa 2 March 2006 www.liberty.co.za