Operational Update for the nine month period ended 30 September 2019 Liberty Holdings Limited Registration number 1968/002095/06 Incorporated in the Republic of South Africa Share code: LBH ISIN code: ZAE000127148 ("Liberty Holdings" or "the Group") LIBERTY HOLDINGS LIMITED OPERATIONAL UPDATE FOR THE NINE MONTH PERIOD ENDED 30 SEPTEMBER 2019 SUBDUED LONG-TERM INSURANCE INDEXED NEW BUSINESS SALES GROWTH AND STRONG ASSET MANAGEMENT EXTERNAL CLIENT CASH INFLOWS IN A TOUGH CONSUMER ENVIRONMENT. Group long-term insurance indexed new business sales increased by 4% compared to the nine months to 30 September 2018 (the comparative period). Group net external third-party client cash inflows of R16.8 billion reflected a significant increase over comparative period inflows of R6 billion. Group total assets under management of R765 billion has grown by 7% since 31 December 2018. The SA Retail business continued to be constrained by the prevailing tough consumer environment in South Africa. The Liberty Corporate and Liberty Africa Insurance businesses have however seen an improvement in new business inflows. Focus on sales efforts and addressing the mix of new business volumes and margin across all business lines is continuing, together with strict discipline in managing the expense base. Improved STANLIB South Africa investment performance has continued to support increased external third-party client cash inflows. The Group remains well capitalised. The Solvency Capital Requirement cover of Liberty Group Limited, the Group’s main long-term insurance licence, remained at a level similar to 30 June 2019, at the upper end of the target range of 1.5 to 2.0 times at 30 September 2019. South African Insurance Operations SA Retail Indexed new business sales of R4 806 million were 2% above the comparative period. Recurring premium and single premium new business sales increased relative to the comparative period by 2% and 3% respectively. Net customer cash outflows amounted to R392 million, compared to inflows of R484 million in the nine months to 30 September 2018. The decrease was predominantly attributable to higher outflows in respect of investment business. Liberty Corporate Liberty Corporate indexed new business of R820 million was 6% above the comparative period, with recurring premium new business up 7%. Single premium new business was up 3% on the comparative period. Net cash outflows of R980 million were above comparative period outflows of R909 million due mainly to increased umbrella scheme member withdrawals aligned to economic trends in South Africa. South African Asset Management STANLIB South Africa In the STANLIB South Africa business, assets under management amounted to R567 billion compared to R549 billion at 31 December 2018. Net external third-party client cash inflows increased to R20.5 billion from R14.1 billion in the comparative period, supported by increased flows from retail and institutional clients. Non money market net cash inflows grew to R16.8 billion from R8.2 billion in the comparative period. Money market net cash inflows of R3.7 billion were below comparative period inflows of R5.9 billion. Africa regions Liberty Africa Insurance Indexed new business increased to R355 million from R256 million in the comparative period, reflecting positive new business growth with a shift in mix towards recurring premium business. STANLIB Africa Assets under management in the STANLIB Africa business amounted to R53 billion compared to R51 billion at 31 December 2018, with net external third-party client cash outflows of R3.2 billion, reflecting an improvement compared to outflows of R8.6 billion in the comparative period. The comparative period included the loss of a large mandate in the Southern African region. Operations under ownership review Subsequent to the financial results for the six months ended 30 June 2019, further progress has been made with the disposal of operations under ownership review, with sale agreements being concluded (subject to conditions precedent being met) for both the STANLIB Botswana and STANLIB Kenya operations. These disposals will not have a material impact on the financial results of the Group for the year ending 31 December 2019. Conclusion We expect the South African economic environment to remain subdued for the remainder of 2019, however we are confident that we are focusing on the right areas of the business to create sustainable longer-term value for all stakeholders. This operational update for the nine month period ended 30 September 2019 has not been audited or reviewed by the Group's auditors. Queries: Investor Relations Sharon Steyn 011 408 3063 www.libertyholdings.co.za 21 November 2019 Sponsor Merrill Lynch South Africa (Pty) Limited Date: 21/11/2019 05:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.