Liberty Group Limited Interim Results Presentation 6 August Liberty. Lighting your way to financial prosperity.

A challenging six months at Liberty  Some changes in senior management  Restructure of business operations  Accounting and regulatory issues  Market update issued in May  Growth in market share and positive cash flow  Some changes in senior management  Restructure of business operations  Accounting and regulatory issues  Market update issued in May  Growth in market share and positive cash flow

A challenging six months at Liberty (continued)  STANLIB’s first birthday  Largest BEE asset management deal  New life product developed  Acquisition by Corporate Benefits of IEB  Reduced offshore emphasis  STANLIB’s first birthday  Largest BEE asset management deal  New life product developed  Acquisition by Corporate Benefits of IEB  Reduced offshore emphasis

Some changes in senior management  New Chief Executive Officer  Deon de Klerk (6 years’ service) replaces Mark Bloom  Andrew Lonmon-Davis (16 years’ service) becomes Chief Actuary  Mike Jackson moves on  146 years’ service on Exco  New Chief Executive Officer  Deon de Klerk (6 years’ service) replaces Mark Bloom  Andrew Lonmon-Davis (16 years’ service) becomes Chief Actuary  Mike Jackson moves on  146 years’ service on Exco

Restructure of business operations  Executive Committees integrated Insurance Operations Committee and Investment Operations Committee = Group Executive Committee Executive Management Committee = Executive Communications Forum  Executive Committees integrated Insurance Operations Committee and Investment Operations Committee = Group Executive Committee Executive Management Committee = Executive Communications Forum

Restructure of business operations (continued)  Subsidiary board meetings streamlined  Healthcare incorporated into Personal Benefits  STANLIB restructure – phase 2  Subsidiary board meetings streamlined  Healthcare incorporated into Personal Benefits  STANLIB restructure – phase 2 Duplication removed

Accounting and regulatory issues  AC133 implementation  Ongoing process to align PGN104 with AC133  No material impact on headline earnings yet  No international accounting standards for insurers as yet  Tighter control by regulators – FAIS and FICA  CISCA paves way for restructuring  AC133 implementation  Ongoing process to align PGN104 with AC133  No material impact on headline earnings yet  No international accounting standards for insurers as yet  Tighter control by regulators – FAIS and FICA  CISCA paves way for restructuring Not a simple process

Transformation A huge challenge  Financial Services Charter – work in progress  Employment equity – high priority receiving continuous focus  STANLIB BEE deal the beginning of the road  Financial Services Charter – work in progress  Employment equity – high priority receiving continuous focus  STANLIB BEE deal the beginning of the road

New CEO’s thoughts on the business  Sound business  Good products and distribution  Healthy margins  Strong capital position  Positive cash flows but  Volatile earnings  Service issues  Cost base  Sound business  Good products and distribution  Healthy margins  Strong capital position  Positive cash flows but  Volatile earnings  Service issues  Cost base

Financial results

Features /2002  Indexed new business Individual Corporate  Value of new business  New business margin  Headline earnings per share  Dividend maintained  Indexed new business Individual Corporate  Value of new business  New business margin  Headline earnings per share  Dividend maintained % 2% 30% 6% 18% 46% cents 6% 2% 30% 6% 18% 46% cents

Features /2002  Net cash inflow from insurance operations: R1,7 bn  Embedded value per share : R53,42  Capital adequacy cover  Net cash inflow from insurance operations: R1,7 bn  Embedded value per share : R53,42  Capital adequacy cover + - 2,6 x + - 2,6 x 6% 3% 6% 3% Continued gains in market share

Headline earnings Life fund operating surplus Revenue earnings – shareowners’ funds Preference dividend Headline earnings Headline EPS (cents) Life fund operating surplus Revenue earnings – shareowners’ funds Preference dividend Headline earnings Headline EPS (cents) ( , ( ,0 ) ) ( , ( ,5 ) ) ( (46 ( (46 ) ) ) ) ) ) ) ) 30 June 2003 Rm 30 June 2003 Rm 30 June 2002 Rm 30 June 2002 Rm Change % Change % (46 )

Life fund operating surplus  Significant reduction due to 10% shareowners’ participation in negative returns  Further reduction in fees due to lower levels of assets under management  1H02 included significant expense profits due to cost containment not repeated in 1H03  Significant reduction due to 10% shareowners’ participation in negative returns  Further reduction in fees due to lower levels of assets under management  1H02 included significant expense profits due to cost containment not repeated in 1H03

Investment returns (Weighted average of equity, managed and foreign assets portfolios) Markets continued to decline in 2003 New generation products earn management fees instead of 10% capital bonuses Year-to-date June 2002 : - 0,4% Year-to-date June 2003 : - 3,6% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Total insurance expenses (Rm) Net inflow of policies (number) Total insurance expenses (Rm) Net inflow of policies (number) (19 13 (19 ) ) 30 June June June June 2002 Change % Change % Renewal cost per policy increased/(decreased) by Acquisition cost per policy increased/(decreased) by +7,6% +9,3% +7,6% +9,3% 0,0% +2,1% 0,0% +2,1% Expenses Significant non-recurring expenses incurred in 1H03 Cost saving targets set throughout the Group

Financial services activities Listed investments Other income Tax Financial services activities Listed investments Other income Tax ( ( ( ( ( (29 17 ( ( June June June June 2002 Change % Change % Revenue earnings – shareowners’ funds ) ) ) ) )))) ))))

Shareowners’ funds Value of life business in-force Financial services subsidiaries fair value adjustment Total Embedded value per share (Rand) Shareowners’ funds Value of life business in-force Financial services subsidiaries fair value adjustment Total Embedded value per share (Rand) , , , ,28 (4) (1) (15) (3) (4) (1) (15) (3) 30 June 2003 Rm 30 June 2003 Rm 31 Dec 2002 Rm 31 Dec 2002 Rm Change % Change % Embedded value

Financial services subsidiaries fair value adjustment  STANLIB impaired : R54 million  Liberty Ermitage multiple revised down to 12 x and stronger Rand : R70 million  Liberty Properties multiple maintained at 10 x  STANLIB impaired : R54 million  Liberty Ermitage multiple revised down to 12 x and stronger Rand : R70 million  Liberty Properties multiple maintained at 10 x

Shareowners’ funds  Impairments: Hightree goodwill : R62 million Unlisted investments : R39 million  Impairments: Hightree goodwill : R62 million Unlisted investments : R39 million

Capital adequacy cover Capital adequacy cover on new statutory basis: 2,6 x CAR multiple

Interim Final Interim Final 2003 Cents per share 2002 Cents per share Positive cash flows Confident about our future Dividend

Operations

Recurring Single Total Index Recurring Single Total Index 10 (20 ( (20 ( (9 ( (9 (5 6 Individual business % Individual business % Corporate business % Corporate business % Total % Total % Continuing market share gains Focus on productivity of sales force Investment performance competitive over longer periods Strong property backed sales New business – percentage increase )))) ))))

Source: LOA market share statistics for all life offices Market share individual business (including Charter) %

Value of new business (Rm) New business margin (%) Value of new business (Rm) New business margin (%) , , , , June June June June 2002 Change % Change % Value of new business All margins slightly up vs June 2002

Net cash inflows from insurance operations Total premiums and inflows under investment contracts Claims, policy-owner benefits and payments under investment contracts Net cash inflows ) ) ( ( 30 June 2003 Rm 30 June 2002 Rm Change %

Total net cash inflow from insurance operations Rm

Charter new business 30 June 2003 Rm 30 June 2002 Rm Change % Recurring premiums Single premiums Total Index (6 (12 (11 (7 )))))))) Charter’s share of SBFC 23% (38%) Liberty’s share of SBFC 59% (45%) Simple products + 23%

Launch of Lifestyle Protector product  New generation risk protection product  Cover for multiple lives  Number of unique benefits Settles the disability/impairment debate  Further leverages our Blueprint software  Retained the very successful Universal Lifestyle product  New generation risk protection product  Cover for multiple lives  Number of unique benefits Settles the disability/impairment debate  Further leverages our Blueprint software  Retained the very successful Universal Lifestyle product

STANLIB Liberty Ermitage

STANLIB  Weak and volatile investment markets adversely impacted results  Headline earnings of R47,1 million down 26%  Normalised headline earnings of R65,1 million up 6%  Disappointing short-term investment performance  Longer term investment performance (3 years) remains satisfactory - upper quartile  Weak and volatile investment markets adversely impacted results  Headline earnings of R47,1 million down 26%  Normalised headline earnings of R65,1 million up 6%  Disappointing short-term investment performance  Longer term investment performance (3 years) remains satisfactory - upper quartile

STANLIB  Most portfolios positioned for expected re-rating of equities relative to bonds  Merger and systems integration activities continue (R25,7 million spent this half year)  Merger costs cease end 2003  Cost saving initiative in progress  Empowerment transaction announced in June  Most portfolios positioned for expected re-rating of equities relative to bonds  Merger and systems integration activities continue (R25,7 million spent this half year)  Merger costs cease end 2003  Cost saving initiative in progress  Empowerment transaction announced in June

STANLIB  Asset Management net inflows for the six months of R4 billion  Wealth Management net inflows for the six months of R4 billion  Asset Management assets under management of R131,8 billion up 3%  Wealth Management funds under administration of R55,1 billion up 6%  Asset Management net inflows for the six months of R4 billion  Wealth Management net inflows for the six months of R4 billion  Asset Management assets under management of R131,8 billion up 3%  Wealth Management funds under administration of R55,1 billion up 6%

STANLIB Asset Management - assets Life funds Segregated funds Unit trusts Total Life funds Segregated funds Unit trusts Total 30 June 2003 Rm 30 June 2003 Rm 31 December 2002 Rm 31 December 2002 Rm Increase % Increase %

Liberty Ermitage Assets under management Hedge funds Long only funds Money funds Total Hedge funds Long only funds Money funds Total 30 June 2003 US$m 30 June 2003 US$m 31 December 2002 US$m 31 December 2002 US$m Increase % Increase % ( ( % external third party funds ) )

Conclusion

Focus areas for next six months  Improve service levels  Emphasis on cost reduction  Focus on domestic operations  Renewed emphasis on people  Explore other market segments and Africa  Address capital situation  Improve service levels  Emphasis on cost reduction  Focus on domestic operations  Renewed emphasis on people  Explore other market segments and Africa  Address capital situation Building and changing on a solid platform

Panel  Myles Ruck Chief Executive  Deon de KlerkChief Financial Officer  Andrew Lonmon-DavisChief Actuary  Myles Ruck Chief Executive  Deon de KlerkChief Financial Officer  Andrew Lonmon-DavisChief Actuary