Liberty Holdings Limited

Liberty Holdings Limited AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 December 2006

Commentary on results Liberty Holdings Limited (Liberty Holdings) is the holding company of Liberty Group Limited. Liberty Holdings carries on no business other than that related to its investment in Liberty Group Limited. At 31 December 2006 Liberty Holdings held a 52,0% interest in Liberty Group Limited (31 December 2005: 52,2%). Shareholders are consequently referred to the announcement published by Liberty Group Limited on 2 March 2007 (available at www.liberty.co.za), for further details and a review of their operations and prospects, the results of which are consolidated into Liberty Holdings. On 12 June 2006 Liberty Group Limited paid a capital reduction of R3,60 per share. The proceeds received were R523 million. Consequently a special dividend of R464 million (946 cents per share) was declared on 23 May 2006 and paid on 19 June 2006. Secondary tax on companies amounted to R57 million. As a consequence of adopting International Financial Reporting Standards, the company s issued ordinary shares that are held by its subsidiary companies for the benefit of their policyholders are accounted for as treasury shares in the Group consolidated financial statements. Non-related party shareholders of the company s subsidiary Liberty Group Limited on the 29 January 2007 approved the acquisition of the remaining ordinary shares in STANLIB Limited for a consideration in the order of R1,6 billion. Dividend Notice is hereby given that the 2006 final dividend of 670 cents per share (2005: 650 cents per share) has been declared. The important dates pertaining to this dividend are: Last day to trade cum dividend on the JSE Friday, 23 March 2007 First trading day ex dividend on the JSE Monday, 26 March 2007 Record date Friday, 30 March 2007 Payment date Monday, 2 April 2007 Share certificates may not be dematerialised or rematerialised between Monday, 26 March 2007 and Friday, 30 March 2007 both days inclusive. Where applicable, dividends in respect of certificated shareholders will be transferred electronically to shareholders bank accounts on payment date. In the absence of specific mandates, dividend cheques will be posted to shareholders. Shareholders who have dematerialised their shares will have their accounts with their CSDP or broker credited on Monday, 2 April 2007. Accounting policies and presentation The results have been prepared in accordance with International Financial Reporting Standards. There have been no changes to accounting policies from those applied for the year ended 31 December 2005. 2 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

Commentary on results (continued) Segment information and restatement of comparatives Shareholders are referred to the announcement published by Liberty Group Limited on 2 March 2007 for details regarding segment information and changes to comparative figures for the years ended 31 December 2005 and 2006. Derek Cooper Chairman 5 March 2007 Audit opinion The auditors, PricewaterhouseCoopers Inc., have issued their opinion on the Group s financial statements for the year ended 31 December 2006. They have issued an unmodified audit opinion. A copy of their audit opinion is available for inspection at the company s registered office. Liberty Holdings Limited Transfer Secretaries (the Company) Computershare Investor Services 2004 (Pty) Limited Incorporated in the Republic (Registration number: 2004/003647/07) of South Africa Ground Floor, 70 Marshall Street, Johannesburg 2001 (Registration number: 1968/002095/06) PO Box 61051, Marshalltown, 2107 Alpha code: LBH Telephone +27 11 370 5000 ISIN code: ZAE000004032 Sponsor These results are available at www.libertyholdings.co.za LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 3

Condensed group balance sheet as at 31 December 2006 Assets Investments 188 691 148 648 Intangible assets 1 640 1 843 Reinsurance assets 1 065 946 Deferred taxation 40 88 Disposal groups held for sale 2 380 Prepayments, insurance and other receivables 3 189 2 839 Cash and cash equivalents 5 242 12 455 Other assets 872 723 Total assets 200 739 169 922 Liabilities Policyholders liabilities 168 898 140 835 Financial liabilities 2 357 2 295 Third party liabilities arising on consolidation of mutual funds 8 559 7 079 Deferred taxation 3 262 2 454 Disposal groups held for sale 1 267 Insurance and other payables 4 247 3 671 Other liabilities 1 186 1 189 Total liabilities 188 509 158 790 Equity Ordinary shareholders funds 5 556 4 967 Minority interests 6 674 6 165 Total equity 12 230 11 132 Total equity and liabilities 200 739 169 922 4 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

Condensed group income statement for the year ended 31 December 2006 Total revenue 59 180 52 858 Net insurance benefits and claims (38 140) (32 816) Fair value adjustment to policyholder liabilities under investment contracts (8 276) (6 834) Fair value adjustment on third party mutual fund liabilities (1 480) (1 879) Acquisition costs associated with insurance and investment contracts (2 413) (3 594) Expenses (3 903) (3 969) Preference dividend in subsidiaries (184) (138) Goodwill impairment (397) Profit on dilution of subsidiary shareholding 4 Profit/(loss) on sale of subsidiaries 374 (2) Equity accounted earnings from joint ventures 150 91 Profit before taxation 5 312 3 320 Taxation (2 307) (1 634) Total earnings 3 005 1 686 Attributable to: Equity holders 1 390 719 Minority interest 1 615 967 3 005 1 686 Weighted average number of shares in issue 46 608 000 46 660 000 Earnings per share Cents Cents Basic earnings 2 978,5 1 536,6 Fully diluted 2 977,6 1 536,2 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 5

Headline earnings for the year ended 31 December 2006 Rm Rm Reconciliation of headline earnings Total earnings attributable to equity holders 1 390 719 Goodwill impairment 199 (Profit)/loss on sale of subsidiaries (194) 1 Headline earnings 1 196 919 Headline earnings per share Cents Cents Basic earnings 2 561,7 1 965,3 Fully diluted 2 561,6 1 964,7 6 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

Condensed statement of changes in group ordinary shareholders funds for the year ended 31 December 2006 Balance at 1 January 4 967 4 591 Total earnings 1 390 719 Ordinary dividends (959) (383) Preference dividend (2) (2) Treasury shares (5) (14) Subscriptions for shares 1 3 Black Economic Empowerment transaction 95 38 Share based payments 26 24 Owner-occupied properties net fair value adjustments 18 49 Reversal of fair value adjustment on Capital Alliance Holdings Limited existing shares (8) Foreign currency translation movement on subsidiaries 25 (1) Share buy-back transaction (49) Ordinary shareholders funds 5 556 4 967 Minority interests 6 674 6 165 Total shareholders funds at 31 December 12 230 11 132 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 7

Condensed group cash flow statement for the year ended 31 December 2006 Operating activities 4 521 7 881 Investing activities (11 341) (5 411) Financing activities (393) 2 024 Net (decrease)/increase in cash and cash equivalents (7 213) 4 494 Cash and cash equivalents at beginning of year 12 455 6 654 Net cash acquired on business acquisition and disposals 1 444 Reclassified to disposal groups held for sale (137) Cash and cash equivalents at end of year 5 242 12 455 8 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

Commitments summary as at 31 December 2006 Operating leases properties and equipment 632 755 Within 1 year 95 110 1 to 5 years 374 377 6 to 10 years 163 268 Capital commitments 1 987 288 Stanlib Limited acquisition 1 575 Investment and owner-occupied property 311 Equipment 101 288 Related parties as at 31 December 2006 The approved STANLIB acquisition by Liberty Group Limited is a significant related party transaction that will occur in 2007 as 37,4% of the shares acquired are held by the group s ultimate holding company, Standard Bank Group Limited. There have been no further significant changes to the nature of the related party transactions as described in note 42 to the 31 December 2005 annual financial statements. Summary of movement in investments in ordinary shares held by the group and its subsidiaries in the group s ultimate holding company is as follows: Market Number value Ownership 000 Rm % Standard Bank Group Limited Balance at 31 December 2005 46 489 3 525 3,44 Purchases 3 346 281 Sales (11 247) (906) Fair value adjustments 747 Balance at 31 December 2006 38 588 3 647 2,83 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 9