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LGL
LIBU
LGL - Liberty Group Limited - Financial Performance Indicators For The Six
Months Ended 30 June 2008
Liberty Group Limited
Incorporated in the Republic of South Africa
(Registration number: 1957/002788/06)
Alpha code: LGL
Issuer code: LIBU
ISIN code: ZAE000057360
FINANCIAL PERFORMANCE INDICATORS FOR THE SIX MONTHS ENDED 30 JUNE 2008
June June
2008 2007
Group
BEE normalised headline earnings per share (cents) 321,8 583,1
BEE normalised headline earnings per share before
net capital gains\(losses) on shareholder investment
portfolios (cents) 431,5 481,1
BEE normalised embedded value per share (R) 94,08 89,68
BEE normalised return on embedded value (%) 5,0 24,7
Dividends per share/capital reduction in lieu
of dividends (cents)(1) 164 144
Net cash (outflows)/inflows (Rm) (2 031) 9 754
Capital adequacy requirement cover (times covered) 2,49 2,13
Insurance operations(2)
Indexed new business (excluding contractual
increases) (Rm) 2 172 1 937(3)
New business margin (%) 1,7 2,6
Net cash (outflows)/inflows (Rm) (1 486) 4 513
Asset management(4)
Assets under management (Rbn) 334 322
Net cash (outflows)/inflows excluding
money market (Rm)(5) (7 422) 1 999
Net cash (outflows)/inflows (Rm) (545) 5 241
December
% change 2007
Group
BEE normalised headline earnings per share (cents) (44,8) 1 100,4
BEE normalised headline earnings per share before
net capital gains\(losses) on shareholder investment
portfolios (cents) (10,3) 1 002,4
BEE normalised embedded value per share (R) 4,9 94,44
BEE normalised return on embedded value (%) (79,7) 19,5
Dividends per share/capital reduction in lieu
of dividends (cents)(1) 13,9 410
Net cash (outflows)/inflows (Rm) (>100) 17 387
Capital adequacy requirement cover (times covered) 2,07
Insurance operations(2)
Indexed new business (excluding contractual
increases) (Rm) 12,1 4 351
New business margin (%) 2,5
Net cash (outflows)/inflows (Rm) (>100) 4 280
Asset management(4)
Assets under management (Rbn) 3,7 340
Net cash (outflows)/inflows excluding
money market (Rm)(5) (>100) 8 714
Net cash (outflows)/inflows (Rm) (>100) 13 107
(1) Represents total declarations in relation to the financial period
(2) Includes insurance business written under any of the group`s life licences
(3) Restated in accordance with new definitions applied to December 2007
(4) Includes STANLIB and Liberty Africa asset management operations
(5) Excludes intergroup life fund cash flows
Relevant Definitions
BEE normalised headline earnings per share, embedded value per share and return
on embedded value
These measures reflect the economic reality of the Black Economic Empowerment
(BEE) transaction as opposed to the required technical accounting treatment
that reflects the BEE transaction as a share buy back. Dividends received on
the group`s BEE preference shares (which are recognised as an asset for this
purpose) are included in income. Shares in issue relating to the transaction
are reinstated.
Indexed new business
Is a measure of new business in insurance operations representing annualised
recurring premium business (at the first full year`s premium value) and one
tenth of a single premium deposit.
New business margin
Embedded value of new business as a percentage of the present value of future
expected premiums.
Commentary on Results
In the commentary that follows, Liberty Group Limited and its subsidiaries is
referred to as "Liberty" or "group".
Good progress on strategic growth path
Against a backdrop of significant turbulence in global financial markets,
Liberty has continued to drive its strategic vision - to become the leading
broad-based wealth management company in Africa and other select emerging
markets.
Although the group`s short-term earnings performance is correlated to
market conditions, Liberty`s commitment to sound business and risk policies
has seen an already strong capital position at the 2007 year-end improve
further by 30 June 2008, in spite of the volatile markets.
Key advantages for shareholders from the broadening of Liberty`s strategic
approach over the last two years include:
A fundamental shift in Liberty`s strategic direction onto a clear growth
path, with progress evident across the group on operational, geographic and
cultural levels.
Liberty`s strategic partnership with Standard Bank has been significantly
strengthened by Standard Bank`s offer to buy out minority shareholders in
Liberty Holdings - a strong vote of confidence.
Subject to market conditions, we expect to be in a position to finance our
growth strategy from internal resources and alternative non-equity funded
structures.
Liberty`s growth strategy is essentially driven through a three-pronged
approach:
Optimising existing operations - "Business as Usual" - Focusing core
businesses on superior customer service, product and operational excellence
and cost management.
Developing current opportunities - "Leverage and Build" - Taking Liberty`s
business to new levels, building on existing competencies and operations.
Exploring new horizons - "Extend and Grow" - Expanding the group`s product
manufacturing, distribution capabilities and geographic footprint, both
organically and by acquisition.
2008 highlights of Liberty`s growth path towards becoming a broader wealth
company included:
new injections of proven business acumen at senior executive level;
establishing Liberty Financial Solutions (Libfin), a new business unit that
will manage the group`s balance sheet from an investment and market risk
perspective - enhancing our existing sound risk management principles by
introducing investment banking skills;
the acquisition of 50% of Fountainhead`s asset management business - further
broadening the ambit of property services offered by the group;
moving the implementation of the new joint venture with kulula.com forward,
through the acquisition of an experienced management team;
implementation of the group`s technology-driven healthcare strategy and the
announcement of the acquisition of Neil Harvey and Associates (subject to
Competition Commission approval);
significant progress in the take-on of new health scheme members - both in
South Africa and elsewhere on the continent - with volumes estimated to grow
from 45 000 to 250 000 lives by end-2008;
extensive preparatory work ahead of Liberty`s expansion into the rest of
Africa, and the announcement of operational start-ups in Botswana and
Namibia; and
STANLIB continued to deliver strong relative equity market returns, cementing
its reputation as South Africa`s leading fund manager of 2007.
Period to 30 June in brief
After a four-year period of strong equity market performance, the first half
of 2008 has been characterised by volatility in the financial and industrial
sectors of the equity market, significant imported price pressures,
particularly the food and oil prices and consumer inflation increasing
substantially to levels in excess of 10%. These circumstances led to the
Reserve Bank increasing short-term interest rates. In addition concerns over
the financial turmoil flowing from the sub prime lending issues has added to
the negative sentiment over emerging markets.
Due mainly to lower investment returns, the group`s BEE normalised headline
earnings per share is 44,8% lower than the same period in 2007. The return on
the BEE normalised embedded value has reduced from 19,5% to 5,0%, reflecting the
difficult trading and economic environment. BEE normalised embedded value per
share declined slightly to R94,08 at 30 June 2008 compared to the R94,44
reported at 31 December 2007. Group new business production increased by 27,8%
to R78,7 billion due to significant inflows in the retail asset management
sector. However, this has been offset by similar increases in withdrawals and
group net investment cash flows were negative at R2,0 billion (2007: R9,8
billion positive).
In this environment, the weighted average investment return, used as a proxy in
relation to policyholder bonuses on portfolios where shareholders have a 10%
participation, ended the half year at 2,7%, compared to 10,4% for the 2007 half
year. The shareholder equity portfolios are strongly biased towards financial
and industrial stocks where performance was negative. The FINDI index, which is
a broadly representative benchmark for these portfolios, showed an 11,9%
decline for the six months to 30 June 2008. Consequently, the group`s first half
earnings were negatively impacted to the extent of R311 million capital losses
(net of capital gains taxation) on the shareholder investment portfolios (2007:
R289 million profit).
The increasingly difficult consumer conditions have resulted in higher lapses
and surrenders in the Individual Life business unit and consequently actuarial
assumptions used in the valuation of the policyholder liabilities have had to
be strengthened. This has been offset by above-expectation risk profits.
Profits from the group`s asset management operations (STANLIB, Liberty Africa,
Liberty Properties and Fountainhead Property Trust Management
Limited(Fountainhead)) are in line with expectations and holding up well
despite the volatile investment market.
The government proposed Social Security and Retirement Reform continues to be
debated, although no significant developments have emerged from the
policymaker. The group remains an active participant in the reform process
through various industry bodies.
We expect the implementation of the revised commission regulations will be
completed during the second half of 2008, and have plans in place to manage any
potential impact on the group`s new business volumes.
Contribution to BEE normalised headline earnings
June June
2008 2007
Rm Rm
Insurance operations 753 984
- Individual 705 893
- Corporate 48 91
Asset management operations 237 201
Shareholders` funds (23) 492
Shareholder expenses (94) (71)
Growth initiatives (17)
Net income on BEE preference shares accounted
for in equity 57 48
Defined benefit pension fund employer surplus
Total 913 1 654
December
% change 2007
Rm
Insurance operations (23,5) 1 798
- Individual (21,1) 1 569
- Corporate (47,3) 229
Asset management operations 17,9 453
Shareholders` funds (>100) 818
Shareholder expenses (32,4) (155)
Growth initiatives (>100)
Net income on BEE preference shares accounted
for in equity 18,8 100
Defined benefit pension fund employer surplus 115
Total (44,8) 3 129
Individual Life (including Liberty Africa insurance operations)
Indexed new business (excluding contractual increases) increased by 11,1% to R1
901 million. Whilst good growth was recorded in risk and annuity products,
individual investment products are only marginally up on 2007. It would appear
that decreases to individual disposable income have impacted investment
volumes, particularly single premium investment products.
The new business embedded value profit margin has reduced from 2,8% for full
year 2007 to 2,0%, mainly as a consequence of the impact of the higher risk
discount rates. The value of new business amounted to R203 million.
Net cash outflows for the half year have been impacted by lower sales of single
premium business and amounted to R331 million (2007: inflow of R1 117 million).
The higher lapse rates have resulted in a slightly lower policy count to that
at 31 December 2007 and consequently the maintenance cost per policy has
increased by 9,5%.
As part of the ongoing improvements in half year reporting, the maintenance
cost reserving at the half year was done on the same basis as a typical year
end reserve calculation. The negative effect on earnings arising from this was
R148 million after taxation.
Due to the increase in long-term interest rates the valuation of the embedded
investment guarantees, contained in certain investment and risk products,
gave rise to positive mark-to-market earnings of R590 million (after
taxation). However, this was offset by the negative economic assumption change
of the 250bps increase in the risk discount rate.
Corporate
The corporate market, which represents 12,7% of total new insurance business,
grew indexed new business (excluding contractual increases) by 19,4%.
Recurring and single premiums showed strong growth for the period, increasing by
19,6% and 20,1% respectively.
Net cash outflows for the half year are however negative at R1 155 million and
were impacted by higher scheme member withdrawals. The comparative net positive
cash flow of R3 396 million includes a single premium transfer of the Investec
Employee Benefit closed book of R4 487 million.
Total insurance earnings
Total insurance operations headline earnings decreased by 23,5% to R753 million
compared to June 2007, representing 82,5% of the group`s headline earnings for
the period. The decrease in the earnings reflects mainly the reduced 10%
participation in certain policyholder investment portfolios and the
strengthening of persistency and related maintenance cost assumptions.
Asset management operations
This includes earnings from STANLIB, Liberty Africa, Liberty Properties and the
newly acquired 50% interest in Fountainhead.
STANLIB contributed R206 million to the group`s headline earnings. Operating
profit before interest and taxation was R309 million which is 18,4% higher than
the R261 million achieved for half year 2007. This results mainly from a
combination of higher assets under management and higher performance fees.
Assets under management increased by 1,6% to R318 billion. Net cash outflows
for the period were R3 054 million. Given the high interest rate environment
and weaker equity markets, the cash flows into money market were strong, while
there has been a net outflow from retail and institutional funds. Sales,
excluding money market, decreased by 4,5% to R21 280 million.
Liberty Properties, which earns development and management fees from managing
the group`s property portfolio, performed well, and earnings after taxation
increased by 40% to R35 million. Liberty Properties is managing a number of
property developments and consequently development fees are higher.
As announced to shareholders on 27 March 2008, a 50% interest in Fountainhead
was acquired with effect from 1 April 2008. Fountainhead manage the listed
Fountainhead Property Trust. Net earnings to 30 June 2008 attributable to the
group are R3 million.
The newly formed Liberty Africa business unit incurred a loss of R7 million to
30 June 2008. Liberty Africa is currently in the process of seeking
opportunities and building capacity.
Liberty Financial Solutions (Libfin)
A new business unit, Liberty Financial Solutions, has been established To
specifically focus on strategic shareholder balance sheet management. This
includes the management of policyholder assets (at the strategic level) as well
as the maximisation of risk adjusted returns on shareholder investments and
potential mismatch positions.
Shareholders` funds
Assets, not specifically held to match policyholder liabilities or utilised in
asset management operations, are held to meet the need to back regulatory
capital and minimise liquidity risk. Currently, the capital assets are balanced
between long-term equity holdings and interest related investments to achieve
an investment portfolio designed to maximise long-term returns for
shareholders. Equity portfolios are currently biased towards financial and
industrial sectors but may change over time. Unfortunately, the recent world
wide economic concerns have negatively affected these equity portfolios in the
first half of the year. Interest revenue has, however, benefited from the
higher rates.
South African equity markets returned 6,4% (ALSI) in first half 2008, well
below the 19,2% returned in full year 2007. However the returns are distorted
by the relatively good performance in the resource sector. Returns for
industrial and financial stocks were 11,9% lower at 30 June 2008 against
31 December 2007.
Despite having a higher interest rate environment, shareholders` funds headline
loss of R23 million was R515 million lower than the R492 million profit
reported in 2007, due to the capital losses experienced on the equity
portfolios. Realised and unrealised capital losses, (net of capital gains
taxation), on the shareholder portfolios were R311 million compared to a R289
million profit in first half 2007.
Shareholder expenses
Shareholder expenses relate to shareholder corporate activity including costs
associated with developing a risk based capital methodology.
Growth initiatives
Growth initiatives include Liberty Africa, Liberty Health and other
start up initiatives. Most of the first half activity in these operations has
been to build capacity, develop business models and identify possible markets.
The results therefore mainly reflect net costs associated with these
activities. It is anticipated that in 2009 meaningful contributions to the
group`s revenue will begin to flow from these operations.
Group embedded value
The group`s BEE normalised embedded value per share is R94,08, comparable to
the R94,44 reported at 31 December 2007.
Lower value of new insurance business, reduced shareholder fund returns and the
effects of the 250bps increase in the risk discount rate are the main negative
contributors to the reported lower annualised BEE normalised return on embedded
value of 5,0%.
Capital adequacy requirement (CAR)
The statutory capital adequacy requirement of Liberty Group Limited was covered
2,49 times at 30 June 2008 compared to the 2,07 times at 31 December 2007.
After taking into account the group`s interim dividend and the expected
strategic spend, the CAR cover is above the group`s target of 1,7 times.
Proposed changes to group structure
As announced on the securities exchange news service on 21 July 2008, Liberty
is considering the merits of implementing a holding company structure which
would facilitate its strategic intent of forming a wealth management group.
The restructure would result in Liberty and other group operating companies
being held by a listed holding company.
Standard Bank Group Limited has been approached by Liberty to consider
facilitating this structure by allowing Liberty Holdings Limited (Liberty
Holdings) to become such a listed holding company. If such a holding company
structure were implemented, this would entail existing Liberty shareholders,
other than Liberty Holdings, exchanging their Liberty shares for an
economically equivalent shareholding in Liberty Holdings via a scheme of
arrangement. Standard Bank, Liberty Holdings, Liberty and their advisers are
considering this proposal as well as other alternatives in relation to Liberty
Holdings and a further announcement will be made in due course.
Dividend
In terms of the authority granted to the directors at the 2008 annual general
meeting and in accordance with the group`s dividend policy, the directors have
approved an interim dividend of 164 cents per ordinary share.
The important dates pertaining to the interim dividend of 164 cents per
ordinary share are as follows:
Last date to trade cum dividend on the JSE Friday, 29 August 2008
First trading day ex dividend on the JSE Monday, 1 September 2008
Record date Friday, 5 September 2008
Payment date Monday, 8 September 2008
Prospects
Markets have continued to see significant volatility in the first half of 2008,
reflecting increased uncertainties in the global and South African economic
outlook. Liberty`s earnings and embedded value remain correlated to the
performance of local capital markets, whereas the group`s new business and
persistency are broadly influenced by such factors as disposable income,
inflation, debt servicing costs and employment.
We, however, remain confident of the long-term prospects for South Africa and
Africa and are confident that the group will achieve actuarial assumptions over
the medium term, leading to real returns on BEE normalised embedded value in
line with our stated return targets.
Bruce Hemphill Saki Macozoma
Chief Executive Chairman
5 August 2008
Accounting policies and presentation
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS) including full compliance with IAS34 Interim
Financial Reporting. There have been no changes to accounting policies
from those applied for the year ended 31 December 2007. The group has chosen
to early adopt the amendments to IAS 1 Presentation of Financial Statements.
This amendment requires a statement of comprehensive income which is more
relevant to Liberty as it helps eliminate current mismatches in the income
statement between the measurement of policyholder attributable assets and
liabilities.
Comprehensive income for a period includes profit or loss for that period plus
other income or expense items that are not recognised in profit or loss as
required or permitted by other standards. The standard does not change the
recognition or measurement of specific transactions, but only where they are
presented in the primary statements. All owner changes in equity remain
recognised in the statement of changes in equity.
Accordingly, the statement of comprehensive income now includes the foreign
currency translation of subsidiaries, the revaluation of owner-occupied
properties and the related taxation expenses with the profit or loss for the
period.
The balance sheet is now referred to as the statement of financial position.
Restatement of comparatives
The June and December 2007 statements have been restated to reflect the above
change.
There are no required prior year restatements to the group`s assets,
liabilities or equity as a consequence of the amendment.
Key estimates
An actuarial valuation of policyholder liabilities is completed at the group`s
half year end. The group completes annual comprehensive policyholder experience
investigations in the second half of each year. Consequently the valuation of
policyholder liabilities at half year reflects a higher level of estimation.
Audit opinion
These results have not been audited or reviewed by the group`s auditors,
PricewaterhouseCoopers Inc. Consequently no opinion has been issued.
Share certificates
Share certificates may not be dematerialised or rematerialised between Monday,
1 September 2008 and Friday, 5 September 2008, 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, 8 September 2008.
Liberty Group Limited
Incorporated in the Republic of South Africa
(Registration number: 1957/002788/06)
Alpha code: LGL
Issuer code: LIBU
ISIN code: ZAE000057360
Transfer Secretaries
Computershare Investor Services (Pty) Limited
(Registration number: 2004/003647/07)
Ground Floor, 70 Marshall Street, Johannesburg,
2001
PO Box 61051, Marshalltown, 2107
Telephone +27 11 370 5000
Sponsor
Merrill Lynch
Group Statement of Financial Position
as at 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Assets
Equipment and properties under
development 538 675 519
Owner-occupied properties 1 272 875 1 276
Investment properties 15 405 13 506 14 937
Intangible assets 1 047 1 234 1 137
Defined benefit pension fund
employer surplus 165 162
Deferred acquisition costs 347 322 325
Interests in joint ventures 493 286 295
Reinsurance assets 742 851 820
Operating leases - accrued income 1 080 1 206 1 180
Pledged assets 5 448 3 528 5 209
Interests in associates - mutual
funds 10 121 8 883 10 297
Financial instruments 171 398 179 332 176 860
Deferred taxation 24 75 51
Prepayments, insurance and other
receivables 3 941 4 741 3 528
Cash and cash equivalents 3 729 2 060 4 659
Total assets 215 750 217 574 221 255
Liabilities
Policyholders` liabilities 180 493 182 817 186 137
Insurance contracts 126 846 129 655 131 552
Investment contracts with DPF 3 233 2 883 3 353
Financial liabilities under
investment contracts 50 414 50 279 51 232
Financial liabilities at
amortised cost 2 267 2 610 2 418
Third party financial liabilities
arising on
consolidation of mutual funds 8 326 8 560 8 040
Employee benefits 468 437 524
Deferred revenue 105 87 95
Deferred taxation 3 210 3 366 3 447
Provisions 37 60 60
Operating leases - accrued expense 227 246 238
Derivative financial instruments 113 108 66
Insurance and other payables 6 146 6 163 5 970
Current taxation 890 897 1 100
Total liabilities 202 282 205 351 208 095
Equity
Ordinary shareholders` interests 11 263 10 350 11 029
Share capital 29 29 29
Share premium 1 022 2 206 1 790
Retained surplus 11 147 8 721 10 205
Other reserves (935) (606) (995)
Minority interests 2 205 1 873 2 131
Total equity 13 468 12 223 13 160
Total equity and liabilities 215 750 217 574 221 255
Group Statement of Comprehensive Income
for the six months ended 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Revenue
Insurance premiums 11 015 11 970 23 709
Reinsurance premiums (362) (329) (693)
Net insurance premiums 10 653 11 641 23 016
Service fee income from
policyholder investment
contracts 403 453 837
Investment income 5 549 5 063 10 396
Hotel operation sales 346 273 597
Investment (losses)/gains (4 670) 10 486 14 390
Management fees on assets under
management 552 442 1 005
Defined benefit pension fund
employer surplus 162
Total revenue 12 833 28 358 50 403
Claims and policyholders` benefits
under insurance
contracts (11 757) (9 662) (20 739)
Insurance claims recovered from
reinsurers 240 243 610
Change in policyholders`
liabilities under
insurance contracts 4 748 (8 158) (10 554)
Insurance contracts 4 706 (6 942) (8 838)
Investment contracts with DPF 120 (1 164) (1 634)
Reinsurance assets (78) (52) (82)
Fair value adjustment to
policyholders`
liabilities under investment
contracts (218) (4 217) (6 281)
Fair value adjustment on third
party mutual
fund interests (286) (1) (189)
Acquisition costs (1 263) (1 355) (2 894)
General marketing and
administration expenses (2 428) (1 976) (4 293)
Finance costs (161) (175) (392)
Preference dividend in subsidiary (172) (136) (274)
Profit on sale of subsidiaries 2 6
Equity accounted earnings from
joint ventures 16 17 51
Profit before taxation 1 552 2 940 5 454
Taxation (574) (1 225) (2 049)
Total earnings 978 1 715 3 405
Other comprehensive income 32 31 102
Owner occupied properties - fair
value adjustment 22 21 127
Foreign currency translation 17 16 16
Income tax relating to components
of other
comprehensive income (7) (6) (41)
Total comprehensive income 1 010 1 746 3 507
Total earnings attributable to:
Equity holders 856 1 606 3 035
Minority interests 122 109 370
978 1 715 3 405
Total comprehensive income
attributable to:
Equity holders 887 1 637 3 137
Minority interests 123 109 370
1 010 1 746 3 507
Earnings per share
Total (cents) 332,0 623,6 1 173,5
Diluted (cents) 319,8 594,3 1 119,1
Dividends per share (cents)(1) 230 230
Capital reduction per share
(cents)(1) 266 144
(1) Represents the cash payments in the period.
Headline Earnings
for the six months ended 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Reconciliation of total earnings to
headline earnings attributable
to equity holders
Total earnings attributable to
equity holders 856 1 606 3 035
Profit on sale of subsidiaries (2) (6)
Headline earnings(1) 856 1 604 3 029
Net income on BEE preference shares
accounted
for in equity 57 48 100
BEE normalised headline earnings 913 1 652 3 129
BEE normalised weighted average
number of
shares in issue (`000) 283 641 283 336 284 409
Headline earnings per share Cents Cents Cents
Basic 332,0 622,8 1 171,3
Fully diluted 319,8 593,4 1 116,9
BEE normalised 321,8 583,1 1 100,4
(1) Liberty elected to early adopt the long-term insurance industry exemption
contained in the addition to circular 8 of 2007 dated 22 February 2008 which
allows for no headline earnings adjustment in respect of realised or unrealised
remeasurements of investment properties.
Condensed Statement of Changes in Group Ordinary Shareholders` Funds
for the six months ended 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Balance at 1 January 11 029 10 665 10 665
Total comprehensive income 887 1 637 3 137
Excess purchase price over net
asset value of STANLIB (2 194) (2 198)
Ordinary dividends (642) (642)
Capital reduction (754) (416)
Subscriptions for shares 846 846
Black Economic Empowerment
transaction 60 54 98
Share-based payments 33 26 54
Treasury shares 8 (42) (515)
Ordinary shareholders` funds 11 263 10 350 11 029
Condensed Statement of Cash Flows
for the six months ended 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Operating activities (233) 5 503 8 189
Investing activities 167 (9 556) (7 726)
Financing activities (864) 751 (1 166)
Net decrease in cash and cash
equivalents (930) (3 302) (703)
Cash and cash equivalents at
beginning of year 4 659 5 237 5 237
Cash acquired on acquisition of
STANLIB Limited 166 166
Cash disposed of on sale of Saambou
Life Assurers Limited (41) (41)
Cash and cash equivalents at end of
period 3 729 2 060 4 659
Condensed Segment Information
for the six months ended 30 June 2008
Corporate
Risk Non-risk
Rm Rm
Unaudited segment results
for the six months ended
30 June 2008
Segment revenue 778 814
Segment expenses (731) (798)
Segment result 47 16
Profit before taxation 47 15
Taxation (9) (5)
Total earnings 38 10
Attributable to:
Equity holders 38 10
Minorities
Unaudited segment results
for the six months ended
30 June 2007
Segment revenue 836 4 125
Segment expenses (797) (4 033)
Segment result 39 92
Profit before taxation 39 91
Taxation (10) (29)
Total earnings 29 62
Attributable to:
Equity holders 29 62
Minorities
Audited segment results
for the year ended 31
December 2007
Segment revenue 1 787 6 794
Segment expenses (1 561) (6 700)
Segment result 226 94
Profit before taxation 226 92
Taxation (62) (27)
Total earnings 164 65
Attributable to:
Equity holders 164 65
Minorities
Individual
Partici- Non-partici-
pating pating Prudential
Rm Rm Rm
Unaudited segment results
for the six months ended
30 June 2008
Segment revenue 7 916 1 698 201
Segment expenses (7 062) (1 242) (151)
Segment result 854 456 50
Profit before taxation 860 284 50
Taxation (352) (124) (13)
Total earnings 508 160 37
Attributable to:
Equity holders 508 160 37
Minorities
Unaudited segment results
for the six months ended
30 June 2007
Segment revenue 17 709 2 335 1 283
Segment expenses (16 200) (1 931) (1 186)
Segment result 1 509 404 97
Profit before taxation 1 509 250 97
Taxation (789) (106) (68)
Total earnings 720 144 29
Attributable to:
Equity holders 720 144 29
Minorities
Audited segment results
for the year ended 31
December 2007
Segment revenue 31 031 5 607 1 830
Segment expenses (28 561) (4 694) (1 663)
Segment result 2 470 913 167
Profit before taxation 2 460 632 167
Taxation (1 359) (219) (112)
Total earnings 1 101 413 55
Attributable to:
Equity holders 1 101 413 55
Minorities
Other
Asset
manage- Shareholder Mutual
ment operations funds Total
Rm Rm Rm Rm
Unaudited segment results
for the six months ended
30 June 2008
Segment revenue 786 153 487 12 833
Segment expenses (380) (113) (487) (10 964)
Segment result 406 40 - 1 869
Profit before taxation 344 (48) 1 552
Taxation (103) 32 (574)
Total earnings 241 (16) 978
Attributable to:
Equity holders 237 (134) 856
Minorities 4 118 122
Unaudited segment results
for the six months ended
30 June 2007
Segment revenue 1 231 773 66 28 358
Segment expenses (883) (30) (66) (25 126)
Segment result 348 743 - 3 232
Profit before taxation 304 650 2 940
Taxation (103) (120) (1 225)
Total earnings 201 530 1 715
Attributable to:
Equity holders 201 421 1 606
Minorities 109 109
Audited segment results
for the year ended 31
December 2007
Segment revenue 1 417 1 390 385 50 241
Segment expenses (666) (110) (385) (44 340)
Segment result 751 1 280 - 5 901
Profit before taxation 658 1 219 5 454
Taxation (205) (65) (2 049)
Total earnings 453 1 154 3 405
Attributable to:
Equity holders 447 790 3 035
Minorities 6 364 370
Embedded Value and Value of New Business
as at 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Group embedded value
Risk discount rate 13,5% 11,0% 11,0%
Net worth 12 390 11 276 11 867
Ordinary shareholders` funds on
published basis 11 263 10 350 11 029
Adjustment of ordinary
shareholders` funds from
published basis(1) (2 297) (1 584) (2 197)
Financial services subsidiaries
fair value
adjustment(2) 4 336 3 678 4 124
Adjustment for carrying value of
in-force
business acquired(3) (741) (847) (789)
Allowance for fair value of share
options/rights (171) (321) (300)
Net value of life business in-force 13 147 13 467 13 755
Value of life business in-force 13 984 14 230 14 655
Cost of solvency capital (837) (763) (900)
Embedded value 25 537 24 743 25 622
Embedded value per share information
Number of shares in issue less
shares in
respect of the BEE
transaction (`000) 257 965 263 024 257 773
Embedded value per ordinary share (R) 98,99 94,07 99,40
Embedded value before BEE
impairment (Rm) 26 696 25 902 26 781
Number of shares including shares
in respect
of the BEE transaction (`000) 283 761 288 820 283 569
BEE normalised embedded value per
share (R) 94,08 89,68 94,44
Value of new business and new
business margins Rm Rm Rm
Gross value of new business 255 352 749
Cost of solvency capital (32) (23) (49)
Net value of new business written
in the period 223 329 700
Individual 203 310 671
Corporate 20 19 29
Present value of future expected
premiums 12 964 12 662 28 337
New business margin 1,7% 2,6% 2,5%
Indexed new business excluding
contractual increases 2 172 1 937 4 351
Embedded Value Profits
for the six months ended 30 June 2008
Embedded value
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Embedded value at end of period 25 537 24 743 25 622
Less capital raised (846) (846)
Plus impact of share buy backs 583
Less share options/rights exercised (8) (68)
Plus net capital reduction paid 694 372
Plus dividends paid 588 588
Less embedded value
at beginning of period (25 622) (21 857) (21 857)
Embedded value profits 601 2 628 4 394
Return on embedded value
(annualised) 4,7% 25,5% 20,1%
BEE normalised
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Embedded value at end of period 26 696 25 902 26 781
Less capital raised (846) (846)
Plus impact of share buy backs 583
Less share options/rights exercised (8) (68)
Plus net capital reduction paid 754 416
Plus dividends paid 642 642
Less embedded value
at beginning of period (26 781) (23 017) (23 016)
Embedded value profits 661 2 681 4 492
Return on embedded value
(annualised) 5,0% 24,7% 19,5%
Analysis of Embedded Value Profits
for the six months ended 30 June 2008
Net value of
life business
Net worth in-force
Rm Rm
Embedded value profits for period
Embedded value at end of period 12 390 13 984
Less share options/rights exercised (8)
Plus net capital reduction paid 694
Less embedded value at beginning of period (11 867) (14 655)
Embedded value profits 1 209 (671)
Components of embedded value profits
Value of new business written in the period (532) 787
Expected return on value of life business(7) 768
Expected net of tax profit transfer to net worth 1 084 (1 090)
Operating experience variances(10) 46 (304)
Operating assumption changes(11) (120) (207)
Embedded value profits from operations 478 (46)
Investment return on net worth 429
Exchange rate movements 16
Investment variances(12) 705 (328)
Changes in economic assumptions(13) (547) (272)
Changes in modelling methodology (25)
Change in allowance for fair value of
share option/rights(14) 128
Total embedded value profits 1 209 (671)
Cost of
solvency Embedded
capital value
Rm Rm
Embedded value profits for period
Embedded value at end of period (837) 25 537
Less share options/rights exercised (8)
Plus net capital reduction paid 694
Less embedded value at beginning of period 900 (25 622)
Embedded value profits 63 601
Components of embedded value profits
Value of new business written in the period (32) 223
Expected return on value of life business(7) (54) 714
Expected net of tax profit transfer to net worth 6 -
Operating experience variances(10) (24) (282)
Operating assumption changes(11) (72) (399)
Embedded value profits from operations (176) 256
Investment return on net worth 429
Exchange rate movements 16
Investment variances(12) 182 559
Changes in economic assumptions(13) 57 (762)
Changes in modelling methodology (25)
Change in allowance for fair value of
share option/rights(14) 128
Total embedded value profits 63 601
Bases, Assumptions and Additional Information
for the six months ended 30 June 2008
1. The amount of R2 297 million (2007: 30 June R1 584 million, 31 December
R2 197 million), reflected as the adjustment of shareholders` funds from the
published basis, represents the change in these assets as a result of moving
from a published valuation basis to the statutory valuation method.
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.
2. The published value of financial services subsidiaries is enhanced for
embedded value purposes to hold these subsidiaries at a multiple of net after
tax earnings. This adjustment is shown as the `financial services subsidiaries
fair value adjustment`.
This adjustment consists of the following:
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Liberty Group Properties
(Proprietary) Limited 500 400 400
STANLIB Limited 3 836 3 278 3 724
4 336 3 678 4 124
For STANLIB Limited a multiple of 10 was used, less the embedded value of its
life business which has been included in the value of life business in-force.
Liberty Jersey are asset managers of certain group offshore investment
portfolios arising from the sale of Liberty Ermitage Jersey Limited and is
included in the value of STANLIB Limited.
For Liberty Group Properties (Proprietary) Limited a multiple of 10 was used.
3. The carrying value of business acquired by Liberty Life (analysed below)
has been deducted from shareholders` funds in order to avoid double counting.
For embedded value purposes, the value in respect of this amount is included in
the net value of life business in-force.
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Investec Employee Benefits (65) (77) (71)
Capital Alliance Holdings Limited
(CAHL) (639) (727) (679)
Business previously acquired by CAHL (37) (43) (39)
(741) (847) (789)
4. Future investment returns on the major asset classes were set with
reference to the market yield on medium-term South African government stock.
The investment returns used are:
Investment return p.a.
30 June 30 June 31 December
2008 2007 2007
Government stock 11,0% 8,5% 8,5%
Equities 13,0% 10,5% 10,5%
Property 12,0% 9,5% 9,5%
Cash 9,5% 7,0% 7,0%
5. The risk discount rate has been set
equal to 0,5% in excess of the
investment return on equity assets 13,5% 11,0% 11,0%
6. Maintenance expense inflation rate 7,5% 5,0% 5,0%
7. The expected return on the value of life business is obtained by applying
the previous year`s discount rate to the value of life business in-force at the
beginning of the year and the current year`s discount rate for a quarter of a
year to the value of new business.
8. 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. Allowance has been made for future secondary taxation on
companies at 10%. No allowance has been made for the likely replacement of STC
with a withholding tax on shareholders.
9. Other bases, bonus rates and assumptions:
Parameters reflect best estimates of future experience, excluding any
compulsory or discretionary margins. However, in contrast to the assumptions in
the valuation bases, the embedded value does make allowance for automatic
premium and benefit increases.
10. The amount of R282 million shown for operating experience variances
arises from worse than expected persistency experience on the individual life
business, offset by actual risk experience being better than expected.
11. Included in the R399 million shown for operating assumption changes
is allowance for the strengthening of the withdrawal basis (R300 million) and
the transfer of a discretionary AIDS margin into the best estimate assumptions
(R295 million). These are offset by the effect of the reduction in company tax
rate (R195 million) and an allowance for improved future mortality (R132
million).
12. The amount of R559 million shown for investment variances includes
an amount of R604 million in respect of investment guarantees, the impact of
lower than expected investment returns on the value of in-force business and
an increase in the allowance for STC.
13. The amount of R762 million shown for changes in economic assumptions
arises from the change to a higher level of economic assumptions.
14. The amount of R128 million in respect of the change in the fair value
of share options arises from the change in the number of shares under option
and the decrease in the market value of the Liberty Group Limited share price
over the reporting period.
15. The assets backing the capital adequacy requirement (CAR) are assumed
to be 60% equities, 10% cash, 25% preference shares and 5% gilts (unchanged
from December 2007).
New Business
for the six months ended 30 June 2008
30 June 30 June 31 December
2008 2007 2007
Unaudited Rm Rm Rm
Insurance operations - excluding
contractual increases
Individual 6 956 7 032(2) 14 902
Single 5 616 5 913 12 294
Recurring 1 340 1 119 2 608
Corporate 1 013 844 1 727
Single 824 686 1 348
Recurring 189 158 379
Total new business 7 969 7 876 16 629
Single 6 440 6 599 13 642
Recurring 1 529 1 277 2 987
Indexed new business 2 172 1 937(2) 4 351
Asset management operations
Total STANLIB sales excluding money
market(1) 21 280 22 285 40 331
Retail sales excluding money market 18 245 15 657 32 269
Institutional sales excluding money
market 3 035 6 628 8 062
Money market 40 781 28 009 65 902
Total STANLIB sales 62 061 50 294 106 233
Total Liberty Africa sales excluding
money market(1) 5 473 685 5 797
Retail sales excluding money market 2 177 184 927
Institutional sales excluding money
market 3 296 501 4 870
Money market 2 125 1 737 4 267
Total Liberty Africa sales(3) 7 598 2 422 10 064
Total asset management sales 69 659 52 716 116 297
(1) Excludes intercompany life fund sales
(2) Restated in accordance with new definitions applied to December 2007
(3) The Liberty group owns less than 100% of the various entities that make up
Liberty Africa. Sales information is recorded at 100% and is not
adjusted for proportional legal ownership.
Net Cash (Outflows)/Inflows
for the six months ended 30 June 2008
30 June 30 June 31 December
2008 2007 2007
Unaudited Rm Rm Rm
Insurance operations
Individual (331) 1 117 1 908
Inflows and premiums 11 665 11 469 23 812
Claims and benefits (11 996) (10 352) (21 904)
Corporate (1 155) 3 396 2 372
Inflow on IEB transfer(1) 4 487 4 487
Inflows and premiums 3 038 2 770 5 907
Claims and benefits (3 744) (3 384) (7 387)
Net outflow relating to IEB book(1) (449) (477) (635)
Net cash (outflows)/inflows from
insurance operations (1 486) 4 513 4 280
Asset management
STANLIB before money market (10 137) 1 603 5 290
Retail net cash inflows (3 872) 3 115 11 110
Institutional net cash outflows (6 265) (1 512) ( 5 820)
Money market inflows 7 083 2 992 3 598
Net STANLIB cash (outflows)/inflows (3 054) 4 595 8 888
Liberty Africa before money market 2 715 396 3 424
Retail net cash inflows 1 962 98 710
Institutional net cash outflows 753 298 2 714
Money market (outflows)/inflows (206) 250 795
Net Liberty Africa inflows(2) 2 509 646 4 219
Net cash (outflows)/inflows from
asset management (545) 5 241 13 107
Total net cash (outflows)/inflows (2 031) 9 754 17 387
(1)The inflow represents a single premium transfer of the IEB closed book
purchased in 2003, the net outflows refer to the movement on that book for the
six months ended 30 June 2008.
(2)Liberty group owns less than 100% of the various entities that make up
Liberty Africa. The cash flow information is recorded at 100% and is not
adjusted for proportional legal ownership.
Assets Under Management (AUM)
as at 30 June 2008
30 June 30 June 31 December
2008 2007 2007
Unaudited Rbn Rbn Rbn
Life funds 142 135 129
Segregated funds 69 67 69
Unit trusts (including money market) 83 72 100
Linked investment and structured
products 40 48 42
Total AUM(1) 334 322 340
(1) Includes funds under administration
Liberty Africa 16 9 12
STANLIB 318 313 328
Analysis of Investment of Ordinary Shareholders` Funds
for the six months ended 30 June 2008
Group funds invested
30 June 30 June
2008 2007
Rm Rm
Insurance operations 740 847
Operating surplus
Present value of in-force business
acquired 740 847
Liberty Active preference dividend
Working capital charge(1)
Financing of insurance operations (1 152) (518)
Fixed assets and working capital 848 1 682
Callable capital bonds and preference
share liabilities (2 000) (2 200)
Asset management 397 230
Liberty Group Properties 23 29
STANLIB 170 201
Liberty Jersey
Fountainhead 189
Liberty Africa 15
Growth initiatives 9
Other operations 1 31
Investments 11 268 9 760
Listed equity investments 2 314 2 780
Interest bearing deposits 4 844 3 101
Preference shares 1 151 1 569
Mutual funds 1 952 923
Share of pooled portfolios 701 1 002
Unlisted investments 306 385
Administration expenses - shareholder
allocation
Normal taxation excluding insurance
operations
Secondary tax on companies
Capital gains taxation on specific
shareholder assets
Net investment (losses)/gains
Profit on sale of subsidiaries
Total shareholders` funds 11 263 10 350
Contribution to earnings
30 June 30 June
2008 2007
Rm Rm
Insurance operations 753 984
Operating surplus 1 094 1 218
Present value of in-force business
acquired (47) (61)
Liberty Active preference dividend (172) (136)
Working capital charge(1) (122) (37)
Financing of insurance operations 33 (61)
Fixed assets and working capital 122 37
Callable capital bonds and preference
share liabilities (89) (98)
Asset management 237 201
Liberty Group Properties 35 25
STANLIB 206 160
Liberty Jersey 16
Fountainhead 3
Liberty Africa (7)
Growth initiatives (17)
Other operations (1) 4
Investments 332 365
Listed equity investments 49 42
Interest bearing deposits 191 164
Preference shares 53 66
Mutual funds 16 40
Share of pooled portfolios 20 39
Unlisted investments 3 14
Administration expenses - shareholder
allocation (133) (92)
Normal taxation excluding insurance
operations (20) (16)
Secondary tax on companies (17) (70)
Capital gains taxation on specific
shareholder assets
Net investment (losses)/gains (311) 289
Profit on sale of subsidiaries 2
Total shareholders` funds 856 1 606
Capital investment gains/(losses)
30 June 30 June
2008 2007
Rm Rm
Insurance operations
Operating surplus
Present value of in-force business
acquired
Liberty Active preference dividend
Working capital charge(1)
Financing of insurance operations
Fixed assets and working capital
Callable capital bonds and preference
share liabilities
Asset management
Liberty Group Properties
STANLIB
Liberty Jersey
Fountainhead
Liberty Africa
Growth initiatives
Other operations
Investments (382) 322
Listed equity investments (419) 222
Interest bearing deposits 65 -
Preference shares (51) (28)
Mutual funds (42) 48
Share of pooled portfolios (1) 26
Unlisted investments 66 54
Administration expenses - shareholder
allocation
Normal taxation excluding insurance
operations
Secondary tax on companies
Capital gains taxation on specific
shareholder assets 71 (33)
Net investment (losses)/gains 311 (289)
Profit on sale of subsidiaries
Total shareholders` funds - -
(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 callable capital bonds issue. Inter-divisional
interest is charged at 8,77% nacm which is equivalent to the callable capital
bond`s interest rate.
Capital Commitments
as at 30 June 2008
Unaudited Unaudited Audited
30 June 30 June 31 December
2008 2007 2007
Rm Rm Rm
Capital commitments 1 228 288 1 090
Business acquisitions(1) 263 386
Equipment 302 89 216
Investment and owner-occupied
property 663 199 488
Under contracts 566 33 -
Authorised by the directors but not
contracted 662 255 1 090
1 228 288 1 090
Funding for the 30 June 2008 commitments will be from shareholders` funds and
where applicable with proportionate recovery from minority interests. Capital
commitments in respect of investment and owner-occupied property and a
portion of equipment (R78 million)is intended to be used to match policyholder
liabilities.
(1) The board of directors has approved the following transactions consistent
with its stated intent to transform the group into a broader wealth services
organisation.
As announced at the 2007 year end results presentation the group has acquired
a 51% interest in the operations of Neil Harvey and Associates (Pty) Limited
(NHA) for an initial cash amount of R120 million and potentially for a further
R80 million dependent on earnings performance over two years. NHA are
recognised as a leading technology solutions provider to the health care
administration sector. The transaction is agreed between the respective
parties, and is awaiting Competition Commission approval. NHA will be
recognised as a subsidiary of the group when the approval is received.
The board has approved the acquisition of the administration capability of a
large privately administered medical aid for R63 million. It is likely the
transaction will be completed during the third quarter of 2008.
The acquisition prices payable are largely attributable to intangible assets,
in the nature of intellectual property, key-man contracts and customer
contracts and related customer relationships.
The transactions are not likely to have a material impact on the group`s
earnings or net asset value.
Related Parties
as at 30 June 2008
In addition to the nature of the related party transactions as described in
note 42 to the 31 December 2007 annual financial statements, the following
related party transactions have subsequently occurred:
1) As announced on the securities exchange news service on 27 March 2008,
Liberty Group Limited, with effect from 31 March 2008, acquired from Standard
Bank South Africa Limited, a wholly-owned subsidiary of Standard Bank Group
Limited, 50% of the issued share capital of Fountainhead Property Trust
Management Limited and Evening Star Trading 768 (Pty) Limited for a
consideration of R46,7 million.
Liberty Group Limited also acquired from Standard Bank Properties (Pty)
Limited, a wholly-owned subsidiary of Standard Bank Group Limited, loan claims
of R139,5 million against Evening Star Trading 768 (Pty) Limited.
Standard Bank Group Limited is the ultimate holding company of Liberty Group
Limited.
2) On 27 May 2008, Standard Bank Group Limited announced their intention to
acquire the remaining issued ordinary share capital of Liberty Holdings
Limited, the direct holding company of Liberty Group Limited.
The consideration offered was 21 925 cents per ordinary share. Full details of
the offer were contained in the circular issued to Liberty Holdings Limited`s
ordinary shareholders on 26 June 2008. The offer closed on 18 July 2008.
As detailed below, Liberty Group Limited at 30 June 2008, owned 2 717 247 shares
in Liberty Holdings Limited. These shares are managed by the respective fund
managers at STANLIB Limited, a wholly-owned subsidiary of Liberty Group
Limited, and are held to match policyholder liabilities.
The fund managers have accepted the offer in full.
Summary of movement in investments in ordinary shares held by the group in the
group`s holding companies is as follows:
Number Market value Ownership
`000 Rm %
Liberty Holdings Limited
Balance at 31 December 2007 2 819 637 5,74%
Purchases 14 3
Sales (116) (22)
Fair value adjustments (26)
Balance at 30 June 2008 2 717 592 5,54%
Standard Bank Group Limited
Balance at 31 December 2007 41 182 4 122 3,00%
Purchases 5 820 525
Sales (8 145) (947)
Fair value adjustments (735)
Balance at 30 June 2008 38 857 2 965 2,54%
Retirement Benefit Obligations
as at 30 June 2008
Post-retirement medical benefit
The group operates an unfunded post-retirement medical aid benefit for
employees who joined the group prior to 1 July 1998. Medical aid costs are
included in the income statement within general marketing and administration
expenses in the period during which the employees render services to the group.
For past service the group recognises and provides for the actuarially
determined present value of post-retirement medical aid employer contributions
on an accrual basis using the projected unit credit method.
As at 30 June 2008, the Liberty Group post-retirement medical aid benefit
liability was R292 million (31 December 2007: R293 million).
Defined benefit retirement funds
The group operates a number of defined benefit pension schemes on behalf of
employees. All these funds are closed to new membership and are well funded
with no deficits reported.
Contact Details
Chief Financial Officer
Russell Harte
Tel: +27 (11) 408 2053
russell.harte@liberty.co.za
Investor Relations
Stewart Rider
Tel: +27 (11) 408 3260
Helen Lubamba
Tel: +27 (11) 408 3063
investorrelations@liberty.co.za
Statutory Actuary
Paul Lancaster
Tel: +27 (11) 408 3484
paul.lancaster@liberty.co.za
Company Secretary
Jill Parratt
Tel: +27 (11) 408 4101
jill.parratt@liberty.co.za
Head Office and Registered Address
Liberty Centre, 1 Ameshoff Street, Braamfontein
Johannesburg, 2001
Postal address: PO Box 10499, Johannesburg, 2000
Tel: +27 (11) 408 3911
Transfer Secretaries
Computershare Investor Services (Proprietary) Limited
(Reg. No. 2004/003647/07)
70 Marshall Street, Johannesburg, 2000
Tel: +27 (11) 370 5000
Auditors
PricewaterhouseCoopers Inc.
2 Eglin Road, Sunninghill, 2157
Postal address: Private Bag X36, Sunninghill, 2157
Tel: +27 (11) 797 4000
Website: www.liberty.co.za
Customer Call Centre
Tel: 0860 456 789
Date: 06/08/2008 07:30:14 Produced by the JSE SENS Department.
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