Presentation to Investment Analysts

Society of Southern Africa6 March 2002

Roy AndersenGroup Chief Executive

Roy AndersenGroup Chief Executive

ContentContent

Building value in Financial Services Operations

Building value in Financial Services Operations

Mike JacksonMike JacksonRoy AndersenRoy AndersenThe future STANLIB and

bancassurance International

operations Human capital Goals for 2002 Conclusion

The future STANLIB and

bancassurance International

operations Human capital Goals for 2002 Conclusion

2001 achievements2001 achievements

Financial highlights 2001

Financial services environmentin 2001Financial services environmentin 2001

Good demand for Offshore products Guaranteed products Bancassurance products

Volatile investment markets Implementation of policyholder protection

rules Implementation of CGT

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

HighlightsHighlights

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%

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%

Headline earnings oncontinuing operationsHeadline earnings oncontinuing operations

Life fund operating surplus

Revenue earnings on shareholders’ funds

Preference dividend in subsidiary

Headline earnings

Headline earnings per share

Headline ROE

Life fund operating surplus

Revenue earnings on shareholders’ funds

Preference dividend in subsidiary

Headline earnings

Headline earnings per share

Headline ROE

2001Rm

2001Rm

2000Rm

2000Rm

% Change

% Change

))

1 320

222

(43

1 499

551

25%

1 320

222

(43

1 499

551

25%

))

1 153

202

(40

1 315

485

16%

1 153

202

(40

1 315

485

16%

14

10

7

14

14

14

10

7

14

14

**

* Total operations* Total operations

Investment return (Managed portfolio)Consistent first and second halves

Investment return (Managed portfolio)Consistent first and second halves

14,4%

7,2%

25,3%

10,6%

0%

5%

10%

15%

20%

25%

30%

First half Second half

Actuarial expectation Actual

Return

Bonus stabilisation reserves boosted

New business 2001 (excluding natural increases)New business 2001 (excluding natural increases)

Single premiums

Corporate Benefits

Individual business

Recurring premiums

Corporate Benefits

Individual business

Total on balance sheet

New business index

Value of new business

Single premiums

Corporate Benefits

Individual business

Recurring premiums

Corporate Benefits

Individual business

Total on balance sheet

New business index

Value of new business

2001Rm

2001Rm

2000Rm

2000Rm

% Change

% Change

1 225

6 415

225

1 475

9 340

2 465

455

1 225

6 415

225

1 475

9 340

2 465

455

2 167

5 589

190

1 251

9 197

2 217

391

2 167

5 589

190

1 251

9 197

2 217

391

(43

15

18

18

2

11

16

(43

15

18

18

2

11

16

)

)

Unit trust salesUnit trust sales

0

1000

2000

3000

4000

5000

6000

1999 2000 2001

Money market Other Total

+25%

+91%

+61%

Three Raging Bull awards

Rm

+99%

+142%

+120%

Net insurance cash flowNet insurance cash flow

102

2 930

3 378

1 622

-633-1000

-500

0

500

1000

1500

2000

2500

3000

3500

4000

1997 1998 1999 2000 2001

Claims and benefits up 10%

Rm

8 346

5 112

1 310

14 768

R54,21

26,4%

8 346

5 112

1 310

14 768

R54,21

26,4%

6 123

4 822

996

11 941

R43,95

11,3%

6 123

4 822

996

11 941

R43,95

11,3%

Embedded valueEmbedded value

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

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

2001Rm

2001Rm

2000Rm

2000Rm

% Change

% Change

36

6

32

24

23

36

6

32

24

23

Capital adequacy coverCapital adequacy cover

3,53,6

7,3

12,2

18,6

0

4

8

12

16

20

1997 1998 1999 2000 2001

Overweight deployment of capital in SAB significantly reduced

DividendDividend

FinalContinuing operationsIn respect of capital reduction

Interim

FinalContinuing operationsIn respect of capital reduction

Interim

2001cents per

share

2001cents per

share

2000cents per

share

2000cents per

share

% Change

% Change

150

150128278

150

150128278

131

19150133283

131

19150133283

+ 15+ 15

**

* Pre capital reduction* Pre capital reduction

Cover 2x earnings

Headline return on equityHeadline return on equity

11%

16%

25%

13%13%

0%

5%

10%

15%

20%

25%

30%

1997 1998 1999 2000 2001

ScorecardScorecard

Goals set for 2001 financial year

1. Redeploy shareholder investments into financial services

2. Individual business – leverage the strong position in the upper income market

3. Implement customer value management

Goals set for 2001 financial year

1. Redeploy shareholder investments into financial services

2. Individual business – leverage the strong position in the upper income market

3. Implement customer value management

½½

ScorecardScorecard

Goals set for 2001 financial year

4. Expand Liberty Corporate Benefits’ business

5. Drive continued growth in bancassurance

6. Provide private banking services to clients

Goals set for 2001 financial year

4. Expand Liberty Corporate Benefits’ business

5. Drive continued growth in bancassurance

6. Provide private banking services to clients

ScorecardScorecard

Goals set for 2001 financial year

7. Achieve further synergies with Stanbic

8. Establish an empowerment partnership

9. Leverage Liberty Ermitage for international expansion

Goals set for 2001 financial year

7. Achieve further synergies with Stanbic

8. Establish an empowerment partnership

9. Leverage Liberty Ermitage for international expansion

The future

a new Wealth Management Groupand an enhanced Bancassurance

Structure

a new Wealth Management Groupand an enhanced Bancassurance

Structure

StandardBankStandardBank

STANLIBOrganisational structureSTANLIBOrganisational structure

Stanbic Liberty

STANLIBLimited

50%50%

Executive ChairmanRoy Andersen

CEO - Roy AndersenCEO-Jacko Maree

STANLIB

Asset ManagementSTANLIB

Wealth Management

100%

100%

Alan Miller John Liackman

“The factory” “Product / marketing /distribution arm”

Asset management components introducedAsset management components introduced

SCMBAM

Best investment processes retained

Libam

STANLIB AssetManagement

STANLIB wealth managementcomponents introducedSTANLIB wealth managementcomponents introduced

STANLIB WealthManagement

Simeka

100% 100%100% 52%

StandardBank

Unit Trusts

Unit Trusts Lisps

StandardBank

InvestmentServices

LibertyCollective

Investments

LibertySpecialise

dInvestmen

ts

LodestoneLodestone

Summary of the benefits 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

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

Mike JacksonExecutive Director: FSO

Mike JacksonExecutive Director: FSO

Building value inFinancial ServicesOperations

Building value inFinancial ServicesOperations

783 715 642 669 738

187 420 668994

1 197

0

300

600

900

1200

1500

1800

2100

1997 1998 1999 2000 End Feb2002

Agency Franchise

9701 135

1 310

1 663

1 935

Building distributionBuilding distribution

Intermediaries

Consultancy new business up 18%

Rm

Growing bancassurance productionGrowing bancassurance production

1 6611 556

1 155

757680

0

200

400

600

800

1000

1200

1400

1600

1800

1997 1998 1999 2000 2001

Complex Simple

• R12,7 million loss in 2001• R12,7 million loss in 2001

Liberty HealthcareApproaching critical massLiberty HealthcareApproaching critical mass

Principal membersTotal lives

Principal membersTotal lives

36 34386 50036 34386 500

18 87045 16118 87045 161

February

2002

February

2002

Focusing on quality growth and profitability

December

2000

December

2000

Liberty Corporate BenefitsEnhancing new business profitability

Liberty Corporate BenefitsEnhancing new business profitability

Single premiums

Recurring premiums

Total

Embedded value of in-force

Single premiums

Recurring premiums

Total

Embedded value of in-force

26

21

47

674

26

21

47

674

2001Rm

2001Rm

2000Rm

2000Rm

%Change

%Change

38

4

42

588

38

4

42

588

))(32

425

12

15

(32

425

12

15

Focusing on expense control and margins

Liberty Personal BenefitsNew business – average policy size

Liberty Personal BenefitsNew business – average policy size

Recurring premiumsRAsRisk and

investment

Single premiums

Recurring premiumsRAsRisk and

investment

Single premiums

Industry(Values for

first half 2001)

R

Industry(Values for

first half 2001)

R

5 6506 179

136 104

5 6506 179

136 104

LibertyFull year

2001

R

LibertyFull year

2001

R

4 0432 429

56 699

4 0432 429

56 699

%Differenc

e

%Differenc

e

Focused on the profitable segment

40

154

140

40

154

140

Liberty Personal BenefitsBuilding market share – New recurring individual

Liberty Personal BenefitsBuilding market share – New recurring individual

17,2%

15,7%15,5%16,4%

14,1%14,9%

16,2%

17,7%18,2%

8%

12%

16%

20%

June 2000 December 2000 June 2001

All offices Brokers Agents

14,8%

11,5%

10,7%

13,3%

9,5%9,1%

13,4%

17,0% 16,7%

8%

12%

16%

20%

June 2000 December 2000 June 2001

All offices Brokers Agents

Liberty Personal BenefitsBuilding market share –New single individual

Liberty Personal BenefitsBuilding market share –New single individual

Liberty Managed

Variable

Equity Performance

Global Managed

Liberty Managed

Variable

Equity Performance

Global Managed

20,0

20,2

21,0

35,8

20,0

20,2

21,0

35,8

Liberty Personal Benefits Policyholder returnsLiberty Personal Benefits Policyholder returns

PortfolioPortfolio

Fund returns(after tax)

%

Fund returns(after tax)

%

Dollar MoneyAlpha ClassAsset SelectionGlobal EquityNorth American EquityPan European EquityAsia Pacific Equity

Dollar MoneyAlpha ClassAsset SelectionGlobal EquityNorth American EquityPan European EquityAsia Pacific Equity

51,550,853,047,452,246,431,7

51,550,853,047,452,246,431,7

Fund returns(after tax)

%

Fund returns(after tax)

%

Runner-up to Goldman Sachs – Global Investor Award for Excellence 2001

Liberty Personal BenefitsLiberty Ermitage returns in RandLiberty Personal BenefitsLiberty Ermitage returns in Rand

Liberty Personal Benefits Leveraging existing clientsLiberty 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

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

Rm

Liberty Personal Benefits Individual surrenders and maturities

Liberty Personal Benefits Individual surrenders and maturities

0

200

400

600

800

1000

1200

1400

1600

1800

10%

11%

12%

13%

14%

15%

16%

19971997 19981998 19991999 20002000

Trend line

20012001

% of in-force book

Higher retention of in-force book

Product innovationProduct 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

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

Product developmentProduct development

Risk products launched 2001 Optimum/Optimum Plus LivAbility, FemAbility,

CareAbility,EnAbility Procure

Risk products launched 2001 Optimum/Optimum Plus LivAbility, FemAbility,

CareAbility,EnAbility Procure

An exciting futureAn 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

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

Roy AndersenGroup Chief Executive

Roy AndersenGroup Chief Executive

Goals for 2002Goals for 2002

Liberty PropertiesDeveloping value through property

Liberty PropertiesDeveloping 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

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

International growthInternational growth

Liberty Ermitage AUM up 69% in Rands Hedge funds doubled – sales force

doubled Capital uplift in 2001 + R146 million Effect on earnings of depreciated Rand to

be felt in 2002 Offshore acquisition

Discerning approach

Liberty Ermitage AUM up 69% in Rands Hedge funds doubled – sales force

doubled Capital uplift in 2001 + R146 million Effect on earnings of depreciated Rand to

be felt in 2002 Offshore acquisition

Discerning approach

Human capitalCreating value through peopleHuman capitalCreating value through people

“The best people,doing the best things,

best!”

“The best people,doing the best things,

best!”

B3 VisionB3 Vision

Human capitalCreating value through peopleHuman capitalCreating 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

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

Human capitalCreating value through peopleHuman capitalCreating value through people

The best things Clear and open strategies

A wide understanding of what drives value

Incentivisation aligned with value creation

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

Human capitalCreating value through peopleHuman capitalCreating value through people

Best Use of international benchmarks

Integrity, trust and honesty core values

Best Use of international benchmarks

Integrity, trust and honesty core values

Goals for 2002Goals for 2002

1. Launch and grow STANLIB Limited

2. Develop SBFC (Stanfin) and increase bancassurance sales

3. Reposition Charter in mass and niche markets

4. Focus on profitability in Employee Benefits

1. Launch and grow STANLIB Limited

2. Develop SBFC (Stanfin) and increase bancassurance sales

3. Reposition Charter in mass and niche markets

4. Focus on profitability in Employee Benefits

Goals for 2002Goals for 2002

5. Leverage CVM initiative for new businessand retention

5. Leverage CVM initiative for new businessand retention

6. Grow Liberty Ermitage sales

7. Focus on productivity of Agency and Franchise

6. Grow Liberty Ermitage sales

7. Focus on productivity of Agency and Franchise

Conclusion