Liberty Holdings Limited

Supplementary 2015 information For the year ended 31 December

CONTENTS GROUP Analysis of ordinary shareholders' funds 53 Analysis of group earnings core earnings 54 Summary of BEE transaction status 55 Reconciliation of business unit earnings to segment result 56 South African covered business embedded value 57 Bancassurance Benefit to Liberty 65 INSURANCE 90:10 Shareholder exposure 65 Long-term policyholder liabilities IFRS reconciliation 66 South African insurance distribution headcount 66 Total long-term insurance premiums 67 Long-term insurance New business by distribution channel 68 LibFin Shareholder Investment Portfolio exposure 69 LibFin Shareholder Investment Portfolio percentage allocation 69 LibFin Shareholder Investment Portfolio return 70 INDIVIDUAL ARRANGEMENTS Individual Arrangements Headline earnings 70 Individual Arrangements Key performance indicators 71 Individual Arrangements Indexed new business 71 Individual Arrangements Maintenance cost per policy 72 Individual Arrangements Negative rand reserves 72 GROUP ARRANGEMENTS Liberty Corporate Headline earnings 73 Liberty Corporate Key performance measures 73 Liberty Health Headline earnings 74 Liberty Health Lives serviced 74 Liberty Africa Insurance Headline earnings 75 Liberty Africa Insurance Key performance indicators 75 ASSET MANAGEMENT STANLIB South Africa Headline earnings 76 STANLIB South Africa Net cash flows and AUM by asset category 76 STANLIB South Africa AUM breakdown by source and asset type 77 STANLIB South Africa Retail investment performance 78 STANLIB South Africa Institutional investment performance 78 STANLIB South Africa Investment performance 79 STANLIB Other Africa AUM 79 STANLIB Other Africa AUM by geographical location 80

Financial results 3 Analysis of ordinary shareholders' funds Group funds invested Contribution to earnings 2015 2014 2015 2014 South African insurance 19 263 17 215 3 704 3 461 Insurance operating surplus 2 487 2 550 Present value of in-force business 30 74 (44) (76) Investment portfolios 14 427 10 958 1 144 729 Fixed assets and working capital (1) 8 306 9 683 326 438 Subordinated notes (excluding accrued interest) (3 500) (3 500) (209) (180) Other insurance 1 109 928 6 29 Liberty Africa Insurance 736 586 25 59 Liberty Health 373 342 (19) (30) Asset Management 805 649 629 662 STANLIB South Africa (2) 546 444 567 603 STANLIB Other Africa 259 205 62 59 Central overheads and sundry income (235) (235) Centre expenses and sundry income (278) (276) Liberty Properties (2) 43 41 562 695 Preference share dividend (2) (2) Headline earnings 4 102 3 915 Preference share dividend 2 2 Impairment of intangible assets (93) Liberty Holdings shareholders funds/total earnings 21 739 19 487 4 011 3 917 BEE normalised: Liberty Holdings shareholders funds/headline earnings 21 739 19 487 4 102 3 915 BEE preference shares 322 807 26 53 BEE normalised shareholders funds/headline earnings 22 061 20 294 4 128 3 968 (1) With effect from 1 July 2005 Liberty Group Limited established a working capital funding loan between insurance operations and shareholder assets, subsequently supported by the subordinated notes issue. Inter-divisional interest is charged at 8,77% nacm. (2) Liberty has entered into a strategic partnership with the retail division of JHI combining the collective property management service capabilities under a new joint venture entity, JHI Retail (Pty) Ltd. The transaction was effective 1 May 2015 with Liberty s interest in JHI Retail being 49%. Earnings from the 49% interest in JHI Retail are included in STANLIB South Africa's earnings. The results of operations to 30 April 2015 and the ongoing portfolio liquidity charge total of R43 million were reflected in central overheads and sundry income.

4 Financial results Analysis of group earnings core earnings 2015 2014 Individual Arrangements planned margin release including annual contribution increases 1 908 1 770 Individual Arrangements credit life 147 144 Individual Arrangements VIF amortisation (44) (76) LibFin Markets 260 220 Expected long-term rate of return on Shareholder Investment Portfolio (1) 1 379 1 177 Other businesses headline earnings and shareholder net expenses 572 677 Group Arrangements 225 199 Liberty Corporate 219 170 Liberty Africa Insurance 25 59 Liberty Health (19) (30) Asset Management 629 662 STANLIB South Africa (2) 567 603 STANLIB Other Africa 62 59 Central overheads and sundry income (282) (184) Centre overheads and sundry income (351) (278) Liberty Properties (2) 43 41 BEE preference share income 26 53 Core operating earnings 4 222 3 912 Individual Arrangements new business strain (392) (402) Individual Arrangements operating variances, assumption changes and other 250 253 Sundry income strategic investment return 71 Adjusted core operating earnings 4 151 3 763 Variance to long-term rate of return on Shareholder Investment Portfolio (23) 205 BEE normalised headline earnings 4 128 3 968 (1) The expected long term rate of return on the SIP portfolio is based on the long term view to avoid volatility in the core operating earnings. (2) Liberty has entered into a strategic partnership with the retail division of JHI combining the collective property management service capabilities under a new joint venture entity, JHI Retail (Pty) Ltd. The transaction was effective 1 May 2015 with Liberty s interest in JHI Retail being 49%. Earnings from the 49% interest in JHI Retail are included in STANLIB South Africa's earnings. The results of operations to 30 April 2015 and the ongoing portfolio liquidity charge total of R43 million were reflected in central overheads and sundry income.

Financial results 5 Summary of BEE transaction status as at 31 December 2015 Safika Holdings Proprietary Limited Shanduka Group Proprietary Limited The Black Managers Trust The Liberty Community Trust Total Number of shares Balance at date of trading restrictions lifted 6 191 075 4 127 383 10 318 458 5 159 229 25 796 145 Shares traded or transferred to participant on settlement of proportional debt (6 191 075) (8 497 540) (14 688 615) Balance at 31 December 2015 4 127 383 1 820 918 5 159 229 11 107 530 Preference share debt () Balance at date of trading restrictions lifted 191 127 324 165 807 Shares traded or transferred to participant on settlement of proportional debt (191) (20) (274) (485) Balance at 31 December 2015 107 50 165 322 Liberty s 100% held subsidiary, Liberty Group Limited, entered into a series of transactions during 2004 whereby an investment in aggregate of R1 251 million was made in cumulative redeemable preference shares. The proceeds of this transaction were used by the BEE entities to purchase Liberty Group Limited shares. On 1 December 2008, in terms of a Companies Act section 311 transaction to remove Liberty Holdings Limited control structure, each BEE entity accepted an exchange of ordinary shares for Liberty Group Limited shares on a one for one basis. The cumulative redeemable preference shares attract dividends at 67% (with effect from 1 March 2008) of Standard Bank s prime lending rate. The preference dividends are payable on each date the company (which has issued the preference shares) receives an ordinary dividend from. The preference shares do not meet the definition of a financial asset in terms of International Financial Reporting Standards and therefore the investment value of the preference shares has reduced group equity and is stated in the analysis of group equity as a negative empowerment reserve. Receipt of preference share redemptions and dividends are credited directly to reserves. With effect from 1 January 2015 the trading restrictions on the underlying Liberty Holdings Shares securing the cumulative redeemable preference shares were lifted. If however, part or all these shares are traded, any related outstanding preference share liability would need to be settled from the proceeds.

6 Financial results Reconciliation of business unit earnings to segment result Business unit () Individual Arrangements Group Arrangements Asset Management Other Total Allocated recurring shareholder expenses (1) Adjusted total (1) 2015 Individual Arrangements 1 869 1 869 (119) 1 750 Group Arrangements 225 225 (26) 199 Liberty Corporate 219 219 (26) 193 Liberty Africa Insurance 25 25 25 Liberty Health (19) (19) (19) LibFin (Markets and Investments) 63 83 1 470 1 616 1 616 LibFin Markets credit portfolio 176 84 260 260 LibFin Markets asset/liability matching (4) 4 LibFin Investments SIP (109) (5) 1 470 1 356 1 356 Asset Management 629 629 629 STANLIB South Africa 567 567 567 STANLIB Other Africa 62 62 62 Central overheads and sundry income (191) (26) 6 (211) 145 (66) BEE normalised headline earnings 1 741 282 629 1 476 4 128 4 128 Preference share dividend 2 2 2 Impairment of intangible assets (51) (21) (21) (93) (93) Net income earned on BEE preference shares (26) (26) (26) Total earnings attributable to equity holders 1 690 261 629 1 431 4 011 4 011 2014 Individual Arrangements 1 689 1 689 Group Arrangements 199 199 Liberty Corporate 170 170 Liberty Africa Insurance 59 59 Liberty Health (30) (30) LibFin (Markets and Investments) 282 75 1 245 1 602 LibFin Markets credit portfolio 139 50 189 LibFin Markets asset/liability matching 29 2 31 LibFin Investments 114 23 1 245 1 382 Asset management 662 662 STANLIB South Africa 603 603 STANLIB Other Africa 59 59 Central overheads and sundry income (19) 41 (206) (184) BEE normalised headline earnings 1 952 274 703 1 039 3 968 Preference share dividend 2 2 Net income earned on BEE preference shares (53) (53) Total earnings attributable to equity holders 1 952 274 703 988 3 917 (1) With reference to note 2.1 to the group equity value report, the allocation of recurring shareholder expenses is provided to indicate what the business unit earnings would be for 2015, on this basis.

Financial results 7 South African covered business embedded value 1 Description of embedded value of South African covered business The current version of Actuarial Practice Note (APN) 107 came into effect for all financial years ending on or after 31 December 2012. APN 107 governs the way in which embedded values of life assurance companies are reported. The embedded value consists of: The net worth; plus The value of in-force covered business; less The cost of required capital. The net worth represents the excess of assets over liabilities on the statutory valuation method, adjusted for the elimination of the carrying value of covered business acquired and for the fair value of share options/rights granted to Liberty Group Limited employees. The value of in-force covered business is the discounted value of the projected stream of after-tax shareholder profits arising from existing in-force covered business. These shareholder profits arise from the release of margins under the statutory basis of valuing liabilities, which differs from the release of profits on the published accounting basis. Covered business is defined as business regulated by the FSB as longterm insurance business written in Liberty Group Limited and its subsidiaries. For reversionary and smoothed bonus business, the value of in-force covered business has been calculated assuming that bonuses are changed over time so that the full amount of the bonus stabilisation reserves is distributed to policyholders over the lifetime of the in-force policies. The required capital is defined as the level of capital that is restricted for distribution to shareholders. This comprises the statutory Capital Adequacy Requirement (CAR) calculated in accordance with Standard Actuarial Practice (SAP) 104 plus any additional capital considered appropriate by the board given the risks in the business. Required capital has been calculated at 1,5 x CAR, consistent with risk appetite. The cost of required capital is the difference between the amount of required capital and the present value, at the risk discount rate, of the projected release of the required capital allowing for investment returns on the assets supporting the projected required capital. The value of new business written is the present value at the point of sale of the projected stream of after-tax profits from that business, reduced by the cost of required capital. New business is defined as covered business arising from the sale of new policies and once-off premium increases in respect of in-force covered business during the reporting period. Risk policies with an inception date prior to the reporting date where no premium has been received are included in the embedded value and value of new business. The contractual terms of these policies state that Liberty Group Limited is on risk from the inception date, even though a premium may not have been received. This definition is consistent with that used in the group annual financial statements. The value of new business has been calculated on the closing non-economic assumptions. Investment yields at the point of sale have been used for new fixed annuities, guaranteed investment plans and embedded derivatives; for all other business the investment yields at the date of reporting have been used. No adjustment has been made for the discounting of tax provisions in the embedded value. Change in measurement bases These changes have been adopted with effect from 1 January 2015 and amounted to an increase in the embedded value of SA covered business by R2 191 million. The change in measurement basis of LibFin Credit and certain shareholder recurring costs is explained in section 2 of the group equity value report.

8 Financial results South African covered business embedded value (continued) 2 BEE normalised embedded value 2015 2014 Risk discount rate % (a) 12,77 10,84 Net worth 12 761 11 838 Ordinary shareholders funds on published basis 19 263 17 215 BEE preference share funding 322 807 Adjustment of ordinary shareholders funds from published basis (b) (6 633) (5 874) Adjustment for carrying value of in-force business acquired (c) (30) (74) Allowance for fair value of share rights (61) (136) Frank Financial Services allowance for future expenses (100) (100) Net value of life business in-force 22 507 19 533 Value of life business in-force (d) 24 025 20 989 Cost of required capital (1 518) (1 456) BEE normalised embedded value 35 268 31 371 3 BEE normalised embedded value earnings Embedded value at the end of the year 35 268 31 371 Less change in measurement basis: LibFin Credit (876) Less change in measurement basis: recurring shareholder expenses (1 315) Funding of restricted share plan 112 117 Intergroup dividends 2 250 1 290 Less embedded value at the beginning of the year (31 371) (27 959) Embedded value earnings 4 068 4 819 Return on embedded value (%) 12,2 17,3

Financial results 9 4 Analysis of BEE normalised embedded value earnings Net worth Value of in-force covered business 2015 2014 Cost of required Embedded capital value Net worth Value of in-force covered business Cost of required Embedded capital value Embedded value at the end of the year 12 761 24 025 (1 518) 35 268 11 838 20 989 (1 456) 31 371 Plus dividends paid 2 250 2 250 1 290 1 290 Plus funding of restricted share plan 112 112 117 117 Less change in measurement basis: LibFin Credit 170 (1 046) (876) Less change in measurement basis: recurring shareholder expenses 251 (1 566) (1 315) Embedded value at the beginning of the year (11 838) (20 989) 1 456 (31 371) (9 858) (19 667) 1 566 (27 959) Embedded value earnings 3 706 424 (62) 4 068 3 387 1 322 110 4 819 Components of embedded value earnings Value of new business written in the year (1 521) 2 300 (95) 684 (1 498) 2 513 (101) 914 Expected return on value of in-force business (e) 2 523 15 2 538 2 121 10 2 131 Expected net of tax profit transfer to net worth 3 825 (3 825) 3 266 (3 266) Operating experience variances (h) 180 239 2 421 480 31 198 709 Credit portfolio variance 161 161 189 189 Development expenses (52) (52) Property portfolio liquidity fee (d) 14 168 182 Operating assumption changes (i) 40 (151) (111) (19) (43) (62) One period replacement of shareholder expenses (122) (122) Transfer of shareholder expense reserve 69 69 Changes in modelling methodology (j) (19) 118 4 103 2 (56) (54) Embedded value earnings from operations 2 680 1 372 (74) 3 978 2 368 1 247 107 3 722 Economic adjustments 951 (948) 12 15 919 75 3 997 Investment return on net worth (k) 856 856 1 018 1 018 Investment variances (l) 67 (30) 37 (93) 14 (79) Changes in economic assumptions (m) 28 (918) 12 (878) (6) 61 3 58 Change in allowance for fair value of share rights (n) 75 75 100 100 BEE normalised embedded value earnings 3 706 424 (62) 4 068 3 387 1 322 110 4 819 Note: 2014 comparative figures are in many cases not directly comparable to 2015 actuals, due to the change in measurement bases for LibFin Credit and certain recurring shareholder expenses. Refer to section 2 of the group equity value report.

10 Financial results South African covered business embedded value (continued) Notes to embedded value a) Future investment returns on major asset classes and other economic assumptions have been set with reference to the market yield on medium-term South African government stock. Investment return p.a. % 2015 2014 Government stock 9,97 8,04 Equities 13,47 11,54 Property 10,97 9,04 Cash 8,47 6,54 The risk discount rate has been set equal to the risk free rate plus 80% of the equity risk premium 12,77 10,84 Maintenance expense inflation rate 6,97 5,06 b) Adjustment of ordinary shareholders funds from the published basis The amount represents the change in the amount of shareholder funds as a result of moving from a published valuation basis to the statutory valuation basis. This is largely due to the elimination of certain negative rand reserves on the statutory valuation basis. The reduction in net worth results in a corresponding increase in the value of in-force. c) Adjustment for carrying value of in-force business acquired The carrying value of business acquired by Liberty has been deducted from shareholders funds in order to avoid double counting. For embedded value purposes, the value in respect of this acquired business is included in the value of life business in-force. 2015 2014 Capital Alliance Holdings Limited (CAHL) (30) (73) Business previously acquired by CAHL (1) (30) (74) d) Following the property management transaction with JHI, the ongoing liquidity fee component charge to the property portfolio is valued at R168 million within the value of in-force covered business. This was previously earned by a fellow subsidiary of Liberty Holdings Limited, namely Liberty Properties (Pty) Limited. Going forward, the fee will be earned in Liberty Group Limited. e) The expected return on the value of life business is obtained by applying the previous year s risk discount rate to the value of life business in-force at the beginning of the year and the current year s risk discount rate from the point of sale to the valuation date in respect of the value of new business. f) Taxation has been allowed for at rates and on bases applicable to Section 29A of the Income Tax Act. Full taxation relief on expenses to the extent permitted was assumed. Capital gains taxation has been taken into account in the embedded value. g) Other bases, bonus rates and assumptions Parameters reflect best estimates of future experience, consistent with the valuation bases used by the statutory actuaries, excluding any compulsory or discretionary margins. However, in contrast to the assumptions in the valuation basis, the embedded value makes allowance for non-compulsory automatic premium and benefit increases.

Financial results 11 Notes to embedded value (continued) h) Operating experience variances (including incentive outperformance) consist of the combined effect on net worth and value of in-force of operating experience being different to that anticipated at the prior year end. The net 31 December 2015 operating experience variance of R421 million (2014: R709 million) comprised: Value of Net worth in-force covered business Cost of required capital Embedded value Operating experience variances 2015 Individual Arrangements (24) 213 189 Mortality and morbidity 60 70 130 Policyholder behaviour (41) 184 143 Other, including tax variances (43) (41) (84) Group Arrangements 67 26 93 Short-term incentives outperformance (60) (60) Cash settled incentives linked to share price (4) (4) Other, mainly release of tax over-provisions 201 2 203 Total 180 239 2 421 2014 Individual Arrangements 381 67 448 Mortality and morbidity 182 3 185 Policyholder behaviour 22 97 119 Other, including tax variances 177 (33) 144 Group Arrangements 152 (36) 116 Short-term incentives outperformance (103) (103) Cash settled incentives linked to share price (22) (22) Other (non Individual Arrangements) 72 198 270 Total 480 31 198 709

12 Financial results South African covered business embedded value (continued) Notes to embedded value (continued) i) The amount of negative R111 million (2014: negative R62 million) arises mainly due to the strengthening of the basis for policyholder behaviour on investment products. j) The amount of R103 million (2014: negative R54 million) comprises a number of minor modelling and data refinements. k) Reconciliation of embedded value investment return on net worth to LibFin Investments earnings: 2015 2014 LibFin Investments 1 356 1 382 Adjustments for differences between the statutory and published bases (327) (124) 90:10 book (275) (328) Frank Financial Services, including deferred tax asset impairment (119) (47) Bancassurance obligations relating to Liberty Africa and STANLIB (21) (32) Software asset impairment (reversal in 2014) (44) 53 Frank Financial Services allowance for future expenses (100) BEE preference share scheme 35 55 Central treasury investments 121 Other, including positive tax variances 130 159 Investment return on net worth 856 1 018 l) Includes effect of negative R133 million (2014: negative R93 million) in respect of the change in fair value of cash flow hedges supporting the LibFin Credit business. m) The amount of negative R878 million (2014: positive R58 million) relates to changes in economic assumptions as described in note a. n) The amount of R75 million (2014: R100 million) in respect of the change in the fair value of share rights arises from the change in the number of share rights for staff employed by Liberty Group Limited and the change in the market value of the share price over the reporting year. o) The assets backing the required capital are consistent with the long-term strategic mix of shareholder funds approved by the Liberty Holdings Limited board.

Financial results 13 5 Comparative showing 2015 on previous basis The change in the measurement basis of LibFin Credit and certain shareholder recurring costs, explained in section 2 of the group equity value report, affects the analysis of BEE normalised embedded value earnings. In order to facilitate the analysis of the 2015 embedded value, as well as comparison with prior periods, the 2015 analysis of BEE normalised embedded value earnings has been produced on the previous basis and reported below. 31 December 2015 as reported 31 December 2015 on previous basis Embedded value Embedded value (1) Analysis of BEE normalised embedded value earnings Embedded value at the end of the year 35 268 32 700 Plus dividends paid 2 250 2 250 Plus funding of restricted share plan 112 112 Less change in measurement basis: LibFin Credit (876) Less change in measurement basis: recurring shareholder expenses (1 315) Embedded value at the beginning of the year (31 371) (31 371) Embedded value earnings 4 068 3 691 Components of embedded value earnings Value of new business written in the year 684 702 Expected return on value of life business 2 538 2 259 Expected net of tax profit transfer to net worth Operating experience variances 421 329 Credit portfolio variance 161 260 Development expenses (47) Property portfolio liquidity fee 182 182 Operating assumption changes (111) (65) One period replacement of shareholder expenses (123) Changes in modelling methodology 103 103 Embedded value earnings from operations 3 978 3 600 Investment return on net worth 856 857 Investment variances 37 (44) Changes in economic assumptions (878) (797) Change in allowance for fair value of share rights 75 75 BEE normalised embedded value earnings 4 068 3 691 (1) The previous basis of embedded value is not audited. Note: The expected net of tax profit transfer to net worth changes from R3 825 million in the reported analysis to R3 454 million on the previous basis.

14 Financial results South African covered business embedded value (continued) 6 Sensitivity to risk discount rate and other assumptions In order to indicate sensitivity to varying assumptions, the value of the in-force life business less cost of required capital and the value of the new business written for Liberty Group Limited are shown below for various changes in assumptions. The reserving basis has been kept constant and only future experience assumptions have been varied. Each value is shown with only the indicated parameter being changed. Value of in-force life business less cost of required capital at 31 December 2015 Value of new business written in 2015 Value of in-force life business less cost of required capital at 31 December 2014 Value of new business written in 2014 Base value 22 507 684 19 533 914 Value of in-force/new business 24 025 779 20 989 1 015 Cost of required capital (1 518) (95) (1 456) (101) 100 basis point increase in risk discount rate 21 012 533 18 058 747 Value of in-force/new business 22 873 649 19 886 875 Cost of required capital (1 861) (116) (1 828) (128) 100 basis point decrease in interest rate environment 22 722 760 19 810 1 043 Value of in-force/new business 24 242 856 21 270 1 145 Cost of required capital (1 520) (96) (1 460) (102) 10% fall in equity and property market values 21 986 19 008 Value of in-force 23 504 20 464 Cost of required capital (1 518) (1 456) 100 basis point increase in equity and property returns 23 451 712 20 571 952 Value of in-force/new business 24 724 792 21 760 1 035 Cost of required capital (1 273) (80) (1 189) (83) 10% decrease in maintenance expenses 23 264 737 20 401 971 Value of in-force/new business 24 782 832 21 857 1 072 Cost of required capital (1 518) (95) (1 456) (101) 10% decrease in new business acquisition expenses (other than commissions) 797 1 011 Value of new business 892 1 112 Cost of required capital (95) (101) 10% decrease in withdrawal rates 23 890 849 20 978 1 106 Value of in-force/new business 25 408 944 22 434 1 207 Cost of required capital (1 518) (95) (1 456) (101) 5% improvement in mortality and morbidity for assurances 23 755 797 20 778 1 051 Value of in-force/new business 25 273 892 22 234 1 152 Cost of required capital (1 518) (95) (1 456) (101) 5% improvement in mortality for annuities 22 307 670 19 281 894 Value of in-force/new business 23 825 765 20 737 995 Cost of required capital (1 518) (95) (1 456) (101)

Financial results 15 Bancassurance Benefit to Liberty Liberty share () 2015 2014 Credit Life IFRS headline earnings 147 144 Embedded value of in-force contracts 413 430 Other insurance products Embedded value of new business 69 95 Embedded value of in-force contracts 1 048 1 023 STANLIB Net service fees on assets under management sourced from Standard Bank distribution 351 469 90:10 Shareholder exposure as at 31 December 2015 The 90:10 exposure refers to the shareholders exposure to certain policyholder portfolios on which a fee arrangement exists whereby the investment return on the portfolios is shared between the policyholders and shareholders in a 90:10 ratio. As a result of the market risk that arises for shareholders on this exposure it is managed as part of the Shareholders Investment Portfolio (SIP) and consequently the earnings form part of the SIP returns and are included in the LibFin Investments revenue account. Because of its nature as a management fee the present value of these 90:10 fees are included in the Value of In Force of the business and the annual expected amount forms part of the expected transfer to Net Worth in the AoEV. There is therefore an inconsistency between the IFRS revenue account (shown as LibFin Investments revenue) and the AoEV (shown as expected Life Fund Operating earnings). 2015 2014 Exposure as at the beginning of the year 4 757 4 671 Expected earnings 309 306 Variance (34) 22 Total net earnings 275 328

16 Financial results Long-term policyholder liabilities IFRS reconciliation as at 31 December 2015 2015 2014 Policyholder liabilities at beginning of the year net of reinsurance 286 214 262 783 Transfers to policyholder liabilities 10 238 23 318 Net premium income from insurance contracts 36 323 39 687 Net inflows from investment contracts 16 348 14 729 Net premium income from insurance contracts and inflows from investment contracts 52 671 54 416 Investment returns 21 677 28 949 Claims, policyholder benefits and payments (47 269) (44 546) Acquisition costs (4 208) (4 169) Management expenses, finance costs and profit share allocations (8 583) (7 011) Taxation (1 779) (1 825) Operating profit from insurance operations (2 271) (2 496) Foreign currency translation reserve 463 113 Policyholder liabilities at end of year net of reinsurance 296 915 286 214 Reinsurance assets 1 317 1 302 Policyholders liabilities at end of year as published 298 232 287 516 South African insurance distribution headcount five year history 1500 1 353 1200 982 900 812 712 600 300 187 0 1 Tied agents. Agency 1 Liberty entrepreneurs 1 Liberty@work 1 Standard Bank Financial Consultants Broker Consultants December 2011 December 2012 December 2013 December 2014 December 2015

Financial results 17 Total long-term insurance premiums Recurring premiums Single premiums Total premiums 2015 2014 2015 2014 2015 2014 Individual Arrangements 18 944 18 547 21 075 20 458 40 019 39 005 Liberty Corporate 7 810 7 270 3 707 7 000 11 517 14 270 Liberty Africa Insurance 856 793 139 67 995 860 STANLIB Multi-manager 140 281 140 281 Total premiums 27 610 26 610 25 061 27 806 52 671 54 416 % change Individual Arrangements 2 3 3 % change Liberty Corporate 7 (47) (19) % change Liberty Africa Insurance 8 107 16 % change STANLIB Multi-manager (50) (50) Indexed premiums 30 117 29 391 Individual Arrangements 21 052 20 593 Liberty Corporate 8 181 7 970 Liberty Africa Insurance 870 800 STANLIB Multi-manager 14 28 The difference between the single premiums reported under total long-term insurance premiums and single premiums reported under longterm insurance new business by distribution channel arises mainly from different treatment for extensions of matured policies, reinvestment of fund withdrawals, conversions of standalone funds to umbrella funds and fund member movements within Liberty administered funds.

18 Financial results Long-term insurance New business by distribution channel (1) Recurring premiums Single premiums Total premiums Indexed premiums 2015 2014 2015 2014 2015 2014 2015 2014 Retail 5 603 5 420 21 392 20 987 26 995 26 407 7 743 7 519 Broker 1 328 1 334 5 852 6 147 7 180 7 481 1 913 1 949 Bancassurance 2 344 2 244 5 243 5 812 7 587 8 056 2 869 2 825 Tied channels (2) 1 701 1 662 9 928 8 757 11 629 10 419 2 694 2 538 Other 230 180 369 271 599 451 267 207 Institutional 852 822 1 262 5 207 2 114 6 029 978 1 343 Broker 438 447 602 1 738 1 040 2 185 499 621 Bancassurance 19 29 2 21 29 19 29 Tied channels (2) 360 283 494 356 854 639 409 319 Other 35 63 164 3 113 199 3 176 51 374 Total new business 6 455 6 242 22 654 26 194 29 109 32 436 8 721 8 862 Split between: South Africa (1) Individual Arrangements 5 493 5 355 21 334 20 935 26 827 26 290 7 627 7 449 Broker 1 328 1 333 5 852 6 147 7 180 7 480 1 913 1 948 Bancassurance 2 260 2 183 5 216 5 780 7 476 7 963 2 782 2 761 Tied channels (2) 1 701 1 662 9 928 8 757 11 629 10 419 2 694 2 538 Other 204 177 338 251 542 428 238 202 Liberty Corporate 669 676 1 214 5 192 1 883 5 868 790 1 195 Broker 398 435 556 1 723 954 2 158 454 607 Bancassurance 13 28 13 28 13 28 Tied channels (2) 258 204 494 356 752 560 307 240 Other 9 164 3 113 164 3 122 16 320 Total new business 6 162 6 031 22 548 26 127 28 710 32 158 8 417 8 644 Liberty Africa Insurance Retail 110 66 58 52 168 118 116 71 Broker 1 1 1 Bancassurance 84 61 27 32 111 93 87 64 Other 26 4 31 20 57 24 29 6 Institutional 183 146 48 15 231 161 188 148 Broker 40 12 46 15 86 27 45 14 Bancassurance 6 1 2 8 1 6 1 Tied channels (2) 102 79 102 79 102 79 Other 35 54 35 54 35 54 Total new business 293 212 106 67 399 279 304 219 (1) Includes premium escalations for Individual Arrangements; excludes STANLIB Multi-manager. (2) Tied channels include Agency, Liberty entrepreneurs and Liberty@work.

Financial results 19 LibFin Shareholder Investment Portfolio exposure as at 31 December 2015 2015 2014 Local Foreign Total Local Foreign Total Exposure category % % Equities 2 416 3 865 6 281 24 3 823 4 034 7 857 31 Bonds 5 775 242 6 017 23 5 630 157 5 787 23 Cash 5 560 966 6 526 25 5 483 949 6 432 25 Preference shares 604 604 2 662 662 3 Property 3 986 3 986 16 3 427 3 427 13 Other 2 417 204 2 621 10 998 396 1 394 5 Total 20 758 5 277 26 035 100 20 023 5 536 25 559 100 Assets backing capital 14 427 55 10 958 43 Assets backing life funds 6 986 27 9 844 38 90:10 exposure 4 622 18 4 757 19 LibFin Shareholder Investment Portfolio percentage allocation as at 31 December 2015 2015 2014 % Assets backing capital Assets backing life funds 90:10 exposure Total Assets backing capital Assets backing life funds 90:10 exposure Total Local assets Equities 5 4 9 7 3 5 15 Bonds, cash and property 23 27 9 59 15 32 9 56 Preference shares 2 2 3 3 Other 9 9 4 4 Foreign assets Equities 12 3 15 10 2 4 16 Bonds, cash and property 3 2 5 3 1 1 5 Other 1 1 1 1 Total 55 27 18 100 43 38 19 100

20 Financial results LibFin Shareholder Investment Portfolio return as at 31 December 2015 2015 2014 Realised gross result 2 287 2 288 Taxation (565) (581) Bond cost (290) (248) Expenses (including asset management fees) (76) (77) Net profit 1 356 1 382 Gross return (%) 9,6 10,3 Taxation note: The taxation treatment of income derived from assets backing capital is the normal taxation rules applicable to life investment portfolios. The taxation applicable to income derived from assets backing life funds and the 90:10 exposure is determined by the tax rates pertaining to each life tax fund to which the assets are allocated (I-E tax). In addition there is transfer tax at 28% on the net surplus, after the applicable I-E tax. Individual Arrangements Headline earnings 2015 2014 Expected profit and premium escalations 2 080 1 904 Variances, modelling and assumption changes 237 357 New business strain (392) (402) Project, outperformance incentive and non cost per policy expenses (112) (179) Direct Financial Services (49) (47) Other 114 (158) Tax variances and release of tax provisions (33) 158 Earnings before bancassurance 1 845 1 633 Liberty share of credit life bancassurance (net of all taxes) 147 144 Complex bancassurance preference dividend (123) (88) Headline earnings 1 869 1 689

Financial results 21 Individual Arrangements Key performance indicators (unless stated otherwise) 2015 2014 Net customer cash flows 7 790 7 880 Insurance products 6 288 5 921 LISP 1 502 1 959 Gross sales (excluding LISP) 25 622 25 216 Indexed new business (excluding LISP) 6 421 6 375 Value of new business 654 793 Retail margin excluding STANLIB (%) 2,3 2,5 Retail new business margin including STANLIB (%) 2,0 2,3 Individual Arrangements Indexed new business Indexed premium () 2015 2014 Individual Arrangements Insurance (excluding emerging consumer market) 5 594 5 670 Emerging consumer market 265 262 Total Individual Arrangements Insurance 5 859 5 932 Direct Financial Services 115 127 STANLIB on balance sheet sales 447 316 Total on balance sheet sales 6 421 6 375 STANLIB off balance sheet sales 1 947 1 859 GateWay LISP off balance sheet sales 240 242 Total Individual Arrangements distribution 8 608 8 476

22 Financial results Individual Arrangements Maintenance cost per policy as at 31 December 2015 Post revision Pre revision R 2015 (1) 2015 (1) 2014 Valuation basis Complex 559 498 481 Simplex 280 249 240 Annuities 280 249 240 (1) The maintenance cost per policy has been revised at 31 December 2015 to allow for the inclusion of further shareholder and non-recurring expenses. Individual Arrangements Negative rand reserves (1) as at 31 December 2015 2015 2014 Published IFRS basis 18 522 19 423 Statutory basis 9 889 11 175 (1) Gross of taxation By their nature negative rand reserves includes offsets between policies with positive and negative reserves. The Directive 145 adjustment is applied only to policies with negative reserves.

Financial results 23 Liberty Corporate Headline earnings 2015 2014 Gross contribution 1 107 1 025 Underwriting margin 530 553 Fee income 561 541 Pension businesses and other income 16 (69) Expenses and other items (802) (789) Profit before tax 305 236 Taxation (86) (66) Headline earnings 219 170 Liberty Corporate Key performance measures (unless stated otherwise) 2015 2014 Gross sales 1 883 5 868 Indexed new business 790 1 195 Value of new business 30 121 New business margin (%) 0,5 1,1 Net customer cash flows (891) 3 438

24 Financial results Liberty Health Headline earnings 2015 2014 Earnings before depreciation and amortisation 27 Amortisation and depreciation (35) (50) Loss before taxation (8) (50) Taxation (14) 7 Headline loss (22) (43) Headline loss attributable to Liberty (19) (30) Liberty Health Lives serviced Thousands 2015 2014 Risk lives Liberty Health Cover 105 90 Risk lives THT (1) 254 236 Administration lives 465 441 South Africa 128 133 Other Africa (including THT) 337 308 IT Lives 953 914 South Africa 402 410 Other Africa (including THT) 551 504 (1) Total Health Trust (THT) offers capitation medical insurance with limited risk.

Financial results 25 Liberty Africa Insurance Headline earnings 2015 2014 Headline earnings (before head office expenses) (1) 152 179 Long-term insurance operations 101 95 Short-term insurance operations 51 84 Headline earnings Liberty share (before head office expenses) 88 102 Less head office expenses (63) (43) Attributable to Liberty 25 59 (1) The headline earnings result is shown at 100% of the earnings of certain of the entities that make up Liberty Africa Insurance. Liberty Africa Insurance Key performance indicators (unless stated otherwise) 2015 2014 Embedded value of new business written in year 45 27 New business margin (%) 6,6 6,5 Long term: Indexed new business 304 219 Net customer cash flows 395 437 Short term: Net customer cash flows 254 202 Claims loss ratio (%) 46 41

26 Financial results STANLIB South Africa Headline earnings (unless stated otherwise) 2015 2014 Net fee income 1 717 1 731 Base fees 1 704 1 711 Performance fees 13 20 Operating expenses (1 042) (972) Profit before investment income 675 759 Other income 53 45 Profit before taxation 728 804 Taxation (161) (201) Total headline earnings 567 603 Average margin (bps) 33 31 Average assets under management (Rbn) 519 510 STANLIB South Africa Net cash flows and AUM by asset category as at 31 December 2015 Net cash flows AUM 2015 2014 2015 2014 Retail 7 098 1 960 246 990 227 920 Fixed interest 498 (2 770) 39 201 39 118 Equity (310) (656) 14 589 14 923 Property 740 (1 196) 12 804 11 741 Money Market (1 413) (3 359) 25 108 26 454 Other 7 583 9 941 155 288 135 684 Institutional (1 404) (7 102) 93 226 94 645 Fixed interest (1 222) 4 742 16 486 20 602 Equity 411 (591) 2 904 2 429 Property (780) (2 280) 7 901 8 209 Money Market 741 (7 994) 46 938 46 003 Other (554) (979) 18 997 17 402 Liberty intergroup (9 256) (14 158) 188 920 187 125 Total (3 562) (19 300) 529 136 509 690

Financial results 27 STANLIB South Africa AUM breakdown by source and asset type as at 31 December 2015 Money market (incl cash) Fixed interest Equity Property Other Absolute return Balanced International Structured Retail life LISP Total 31 December 2015 Retail Collective Investments 37 017 12 126 9 108 3 015 24 586 14 372 100 224 Linked Investment and Structured Products 108 353 108 353 Money market 25 108 25 108 Multi-manager Collective Investments 2 184 2 463 3 696 916 4 047 13 306 Institutional Segregated funds 16 486 2 904 7 901 793 1 376 14 074 2 753 46 287 Money market 46 938 46 938 Liberty intergroup 9 521 31 466 52 958 30 393 2 226 9 315 13 113 35 458 1 633 2 837 188 920 STANLIB total 81 567 87 153 70 451 51 098 3 019 14 622 55 820 52 583 1 633 2 837 108 353 529 136 31 December 2014 Retail Collective Investments 38 161 12 819 8 080 2 957 22 116 8 551 92 684 Linked Investment and Structured Products 97 752 97 752 Money market 26 454 26 454 Multi-manager Collective Investments 957 2 104 3 661 890 3 418 11 030 Institutional Segregated funds 605 20 602 2 429 8 209 818 13 887 2 697 49 247 Money market 45 398 45 398 Liberty intergroup 4 319 32 427 58 743 29 152 822 9 498 13 878 32 572 1 673 4 041 187 125 STANLIB total 76 776 92 147 76 095 49 102 1 712 16 691 49 881 43 820 1 673 4 041 97 752 509 690

28 Financial results STANLIB South Africa Retail investment performance Rolling period 1 Year 3 Year 5 Year Core retail funds quartile performance Fund name 2015 2014 2015 2014 2015 2014 STANLIB SA Equity 3 3 3 2 2 1 STANLIB Equity 1 3 1 1 1 1 STANLIB Growth 4 4 4 3 4 3 STANLIB Value 3 4 4 4 4 4 STANLIB Balanced 3 4 3 1 2 1 STANLIB Balanced Cautious 2 3 3 3 2 2 STANLIB Inflation Plus 5% 3 4 4 4 4 4 STANLIB Inflation Plus 3% 4 4 4 4 4 4 STANLIB Absolute Plus 3 3 4 4 4 4 STANLIB Bond 2 4 3 2 2 1 STANLIB Income 1 3 2 2 1 1 STANLIB Money Market 2 4 3 3 2 2 STANLIB Flexible Income 4 3 4 2 3 1 STANLIB Aggressive Income 2 2 3 3 3 3 STANLIB Property Income 3 1 3 3 4 2 STANLIB South Africa Institutional investment performance Rolling period Survey funds (Alexander Forbes Surveys quartile performance) 1 Year 3 Year 5 Year 2015 2014 2015 2014 2015 2014 Large Manager Global 3 4 3 2 2 2 Full Global Mandate 3 4 3 2 2 1 Domestic Only Mandate 3 4 4 2 3 2 STANLIB Core Equity 4 3 4 2 3 1 STANLIB Growth Equity 4 3 4 3 4 3 STANLIB Research (1) 2 2 2 STANLIB Value 2 4 4 4 3 4 STANLIB Enhanced Index 2 2 1 1 1 1 Absolute Return 4 4 4 4 4 4 Domestic Absolute Return 2 4 4 3 3 4 STANLIB Core Bond 3 4 4 2 2 2 Money Market 4 3 4 3 4 3 STANLIB Institutional Property 4 3 4 3 2 2 (1) Discontinued in survey.

13% 8% 42% 47% Financial results 29 STANLIB South Africa Investment performance as at 31 December 2015, four year history % of Core Retail Products in 1st and 2nd quartile 100 80 60 40 40% 20 0 1 Year 3 Year 5 Year 2012 2013 2014 2015 % of Institutional Funds in 1st and 2nd quartile 100 80 60 40 20 17% 0 1 Year 3 Year 5 year 2012 2013 2014 2015 STANLIB Other Africa AUM as at 31 December 2015 Assets under management () 2015 2014 Opening market value 41 257 37 676 Net cash inflows/(outflows) 2 398 (2 090) Capital appreciation 6 662 5 671 Closing market value 50 317 41 257 Segregated funds 29 433 21 922 Unit trusts 8 412 6 446 Money market 12 472 12 889 Total AUM 50 317 41 257

30 Financial results STANLIB Other Africa AUM by geographical location as at 31 December 2015 Assets under management () 2015 2014 Southern region (1) 28 140 23 915 Fixed interest 8 879 7 983 Equity 9 448 7 150 Property 61 48 Money Market 9 291 8 319 Other 461 415 Eastern region (2) 19 983 16 276 Fixed interest 9 377 6 194 Equity 5 119 3 719 Property 2 548 1 793 Money Market 2 939 4 570 Western region (3) 2 194 1 066 Fixed interest 396 162 Money Market 116 38 Other 1 682 866 Total AUM 50 317 41 257 Combined Fixed interest 18 652 14 339 Equity 14 567 10 869 Property 2 609 1 841 Money Market 12 346 12 927 Other 2 143 1 281 (1) Southern region includes Botswana, Swaziland, Lesotho and Namibia. (2) Eastern region includes Kenya, Tanzania and Uganda. (3) Western region is Ghana. 50 317 41 257

AB_4-W Financial results 31 Appendix: Fair value measurement disclosures Financial instruments measurement analysis as at 31 December 2015 Audited Measurement basis Fair value hierarchy Designation per Financial Position Statement Amortised Equity cost (1) accounted Financial soundness value (2) Fair value Total Provided below Not provided (3) Assets Pledged assets 19 225 19 225 19 225 Derivative assets 11 890 11 890 5 337 6 553 Interests in associates measured at fair value 16 967 16 967 16 967 Interest in joint ventures 20 959 979 959 20 Financial instruments 1 210 307 608 308 818 307 608 1 210 Prepayments, insurance and other receivables 4 360 4 360 4 360 Cash and cash equivalents 19 305 19 305 19 305 Properties (investment and owneroccupied) 33 321 33 321 33 321 Total financial instrument and property assets 1 210 20 413 635 414 865 383 417 31 448 Fair value of amortised cost assets 1 106 Liabilities Investment contracts with discretionary participation features 11 250 11 250 11 250 Financial liabilities under investment contracts 88 459 88 459 88 459 Financial liabilities 3 579 335 3 914 335 3 579 Third party financial liabilities arising on consolidation of mutual funds 46 329 46 329 46 329 Derivative liabilities 11 125 11 125 11 125 Repurchase agreements liabilities and collateral received 16 159 16 159 16 159 Insurance and other payables 10 041 10 041 10 041 Total financial instrument liabilities 3 579 11 250 172 727 187 277 146 248 41 029 Fair value of amortised cost liabilities 3 300 (1) Amortised cost The R1 210 million financial instrument asset relates to policyholder loans. The fair value has been determined by utilising a discounted cash flow model utilising discount rates ranging between 11,8% and 13,5%. The financial liabilities comprise subordinated bonds of R3 574 million and redeemable preference shares of R5 million. The fair value of these liabilities is R3 295 million and R5 million respectively. The fair value of the subordinated bonds is determined by discounting the cash flows using the government bond curve and a credit spread. The credit spread ranges from 2,66% to 3,05%. (2) Financial soundness value The financial soundness valuation methodology is described in SAP 104 issued by the Actuarial Society of South Africa. With regards to investment contracts with discretionary participation features, the group cannot reliably measure the fair value of the investment contracts with discretionary participation features (DPF). The DPF is a contractual right that gives investors in these contracts the rights to receive supplementary discretionary returns through participation in the surplus arising from the assets held in the investment DPF fund. These supplementary returns are subject to the discretion of the group. Given the discretionary nature of these investments returns and the absence of an exchange market in these contracts, there is no generally recognised methodology available to determine fair value. These instruments are issued by the group and the intention is to hold the instruments to full contract term. (3) Fair value hierarchy not provided The fair value of prepayments, insurance and other receivables, collateral deposits, cash and cash equivalents, equity accounted joint ventures, insurance and other payables and repurchase agreement liabilities and collateral received approximate their carrying value and are not included in the hierarchy table. In most cases their settlement terms are short-term and therefore, from a materiality perspective, fair values are not required to be modelled.

AB_4-W Financial results 32 Appendix: Fair value measurement disclosures (continued) Financial instruments measurement analysis (continued) as at 31 December 2014 Audited Measurement basis Fair value hierarchy Designation per Financial Position Statement Amortised cost (1) Financial soundness value (2) Fair value Total Provided below Not provided (3) Assets Pledged assets 6 991 6 991 6 991 Derivative assets 7 777 7 777 4 978 2 799 Interests in associates measured at fair value 16 497 16 497 16 497 Financial instruments 1 327 291 517 292 844 291 517 Prepayments, insurance and other receivables 3 668 3 668 3 668 Cash and cash equivalents 13 985 13 985 13 985 Properties (investment and owner-occupied) 29 747 29 747 29 747 Total financial instrument and property assets 1 327 370 182 371 509 349 730 20 452 Fair value of amortised cost assets 1 194 Liabilities Investment contracts with discretionary participation features 10 177 10 177 Financial liabilities under investment contracts 81 983 81 983 81 983 Financial liabilities 3 575 3 575 Third party financial liabilities arising on consolidation of mutual funds 34 501 34 501 34 501 Derivative liabilities 5 148 5 148 5 148 Repurchase agreements liabilities and collateral received 5 191 5 191 5 191 Insurance and other payables 9 060 9 060 9 060 Total financial instrument liabilities 3 575 10 177 135 883 149 635 121 632 14 251 Fair value of amortised cost liabilities 3 506 (1) Amortised cost The R1 327 million financial instrument asset relates to policyholder loans. The fair value has been determined by utilising a discounted cash flow model utilising discount rates ranging between 11,3% and 18,0%. The financial liabilities comprise subordinated bonds of R3 570 million and redeemable preference shares of R5 million. The fair value of these liabilities is R3 501 million and R5 million respectively, using discount rates ranging between 8,3% and 9,8%. (2) Financial soundness value The financial soundness valuation methodology is described in SAP 104 issued by the Actuarial Society of South Africa. With regards to investment contracts with discretionary participation features, the group cannot reliably measure the fair value of the investment contracts with discretionary participation features (DPF). The DPF is a contractual right that gives investors in these contracts the rights to receive supplementary discretionary returns through participation in the surplus arising from the assets held in the investment DPF fund. These supplementary returns are subject to the discretion of the group. Given the discretionary nature of these investments returns and the absence of an exchange market in these contracts, there is no generally recognised methodology available to determine fair value. These instruments are issued by the group and the intention is to hold the instruments to full contract term. (3) Fair value hierarchy not provided The fair value of prepayments, insurance and other receivables, collateral deposits, cash and cash equivalents and insurance and other payables, and repurchase agreements and collateral received approximate their carrying value and are not included in the hierarchy table as their settlement terms are short-term and therefore, from a materiality perspective, fair values are not required to be modelled. Fair value hierarchy of instruments measured at fair value The table below analyses the fair value measurement of applicable assets by level: Level 1 Values are determined using readily and regularly available quoted prices in an active market for identical assets or liabilities. These prices would primarily originate from the Johannesburg Stock Exchange, the Bond Exchange of South Africa or an international stock or bond exchange. Level 2 Values are determined using valuation techniques or models, based on assumptions supported by observable market prices or rates either directly (that is, as prices) or indirectly (that is, derived from prices) prevailing at the financial position date. The valuation techniques or models are periodically reviewed and the outputs validated. Level 3 Values are estimated indirectly using valuation techniques or models for which one or more of the significant inputs are reasonable assumptions (that is unobservable inputs), based on market conditions.