1

Liberty Holdings LimitedUBS Conference

11 October 2012

2

Liberty has established capabilities to underpin sustainable

shareholder returns and create value

140 144 164 164 164 182 192

230266

291 291 291298

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 1H12

Final

Interim

Key highlights Jun 2011 – Jun 2012

● Normalised return on group equity, 16.7%

● The share price increased by 20.5% resulting in

a total shareholder return of 27.3%

● The discount to group equity value reduced from

23% to 17% as at the end of June 2012

● Strong balance sheet and capital position

Dividends paid

Returns since 2001

-

50

100

150

200

250

300

Total returns since 31 Jan 2001

Return on Price since 31 Jan 2001

60

80

100

120

Share price EV

3

Composition of group equity value

30 June 2012 (R29.6bn)

Assets backing capital (34.9%)

Growth (2.5%)

Asset management (16.5%)

Retail affluent (38.3%)

ECM (3.3%)

Corporate (4.3%)

30 June 2012 (R29.6bn)

Assets backing capital (34.9%)

Established capabilities (42.7%)

New investments (22.4%)

South Africa

Sub-Saharan

Africa

4

1. Tsunami of regulatory and reform changes

2. Large scale changes in the intermediary channel – RDR

3. Increased sales through mobile, direct and affinity channels increasing margin pressure

4. Rising mass middle class

5. Low interest rate environment

6. Increasing demand for alternative asset classes

Going forward, what is shaping the new world in

South Africa

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

LSM 1

LSM 2

LSM 3

LSM 4

LSM 5

LSM 6

LSM 7

LSM 8

LSM 9

LSM 10

2005

2010

2020

Source: 80twenty Source: McKinsey

Interest rate history and forecastPopulation growth by LSM group

5

Equity value created by assets backing capital is

managed by LibFin

• Libfin markets - Enhances returns from the credit portfolios backing annuities and GCB’s

• Libfin Investments - Gross return of 6.4% for the first six months of 2012

• Headline earnings 2011 : Markets – R155m; Investments – R969m; SIP return – 8.1%

• Market leading balance sheet management

Capability to price and risk manage guarantees

Capability to manufacture, price and manage illiquid debt for the balance sheet

Capability to construct appropriate investment portfolios for policyholders

Capability to construct optimised risk-adjusted returns for the Shareholders’ Investment Portfolio

Capability to manage liquidity risk

• These capabilities allow new innovative investment products in a low interest rate / low yield

environment

Retail has launched its new investment offering in September 2012

EvolveInvestment Range

6

Our life business has market leading distribution

capabilities supported by innovative products

• Dominant player in the affluent market

• Delivered additional R3.4 billion of group equity value over past 18 month

• 19% increase in new business with steadily rising margins

Liberty continues on its path of market first product innovations:

Liberty has successfully establish a multi-channel distribution network

Agency IFA Netco’s Entrepreneurs SBFC Bancassurance Direct Affinities

Retrenchment

Whole of Life

Capital

Disability

Whole of Life

Income

Protection

Rates Special

Offer

Differential

Pricing

Flexible

Annuity (RAS)

Performance

Cap Product

Finger Prick

HIV & Cotinine

1st Half 2011 2nd Half 2011 2nd Half 20121st Half 2012

Risk

Investments

Market firsts

Underpinned by enabling technology and production / sales support

7

Innovation in distribution and product

diversification is key

Direct

• Two major affinities – Standard Bank Life Direct and Vodacom – attracted

by the brand and culture of Frank.net

• Direct platform utilised across the group

• Creation of FMCG like skills fostering process and product innovation –

transforming the industry landscape and positions us strongly in the new

regulatory environment

• Launched “Own Your Life Rewards” programme – across all

Liberty product offerings

• Increased sales through Liberty’s intermediated distribution

channel

• Product innovation within the Liberty Medical Scheme space

(Platinum Prestige and three new select options);

Health

8Source: Morningstar, Alexander Forbes

Credible and leverageable investment capabilities

Significant investment capabilities which we can leverage to greater effect

80%

67%

40%

31%

100% 93%

67%

54%

3 months 1 year 3 years 5 years

67%

50%

25%

50%

100% 100%

92%

60%

3 months 1 year 3 years 5 years

• Strategic and tactical asset allocation

• Leading listed property fund in the market

• Leading fixed income fund

• Strong balanced and money market funds

• Unlisted property

• Pan African Equity

• Our priority areas :

› Unlisted credit

› Infrastructure

› Direct property

• We win third party confidence through

› Experienced individuals with a track record

› Having skin in the game – own seed capital

Institutional funds in first and second quartileCore Retail funds in first and second quartile

STANLIB performance Responding to the rise of alternatives

9

What is shaping the new world in Africa

• Low market penetration

• Demographic dividend

• Increasing middle class / Urbanisation

• Improved business environments

• Technology / mobile enabled

Key success factors:

• Creating markets

• Bank relationship

• Affinity and direct capability

10

Asset management

Property

Health – 14 countries

Life insurance

Standard Bank

How is Liberty positioned

CfC listed 1 April 2011

Kenya, Tanzania,Uganda

Capability: Life, Short-term

and Health, Asset

management, bancassurance

East Africa

Nambia, Botswana,

Swaziland, Lesotho

UFI acquisition in Namibia

Minorities out of STANLIB

Capability: life, funeral

Bancassurance, AM, health

Key investment region

Nigeria

Ghana

Southern Africa

45% of THT Nigeria

Capability: Health management

1 400 supporting doctors &

hospitalsWest Africa

Key investment region

Zambia

Key investment

Increase ownership

Establish wider footprint in

partnership with SBG

Angola, Zimbabwe,

Mozambique

11

Partnership with Standard Bank - Bancassurance

• Leverage customer base and branch networks

• SBG’s accelerated growth strategy for Africa

• Potential for distribution of selected short-term

products

Clear strategy for Insurance

• In country sales and service – local touch is

critical

• Focused product range and distribution

• Partner with strong brands

• Common operating platform

• Investment to create the markets

Leverage our unique capabilities for Africa

1

2

12

Opportunities across Africa in Health

• Provision of health solutions to corporates in Africa

• Liberty Blue is a first-to-market pan-African product

• Insured lives up by 23% from end 2011 to June 2012

Opportunities for asset management

• Regulatory reform driving the growth of privately

managed pension assets

• Steady growth of money market funds as an alternative

higher-yielding asset class to bank deposits

• Rapid emergence of an affluent middle class

• Investment fund business in specialist areas (sovereign

funds, infrastructure, property and pension reforms), and

opportunities to bring new asset classes to domestic and

international investors

• Global capital flows that are increasingly looking for

exposure to emerging African markets

Leverage our unique capabilities for Africa

Source: World Resource Institute International Finance Corp.

Pro

pert

y Val

ue

2010

Existing property

US$29B

US$12B

2010-2015

Growth

2015

Market Size

Kenya

Uganda

Zambia

Tanzania

Ghana

Nigeria US$41B

Growth of investment grad

commercial property in selected SSA markets

3

4

Growth of investment grade commercial

property in selected SSA markets

13

Liberty is well positioned for the brave new world

Market leading

distribution

capability

World class

products

Unique

Bancassurance

agreement

Leading risk &

balance sheet

management

capability

Credible &

leverageable

investment

capability

Compelling

growth

opportunities

Attractive

valuation

Established

African

operations

Questions?