An introduction to Investec The information in this presentation - PowerPoint PPT Presentation

An introduction to Investec The information in this presentation relates to the year ending 31 Mar 2017, unless otherwise indicated.

An overview of the Investec Group

Investec: a distinctive specialist bank and asset manager Facilitating the creation of wealth and management of wealth Established in 1974 • Today, efficient integrated international business platform employing approximately 9 700 people • Listed on the JSE and LSE (a FTSE 250 company) • Total assets of £53.5bn^; total equity*^ £4.8bn; total FUM £150.7bn^ • Core infrastructure Distribution channels Origination channels Since 1992 Assets: £18.7bn Since 1974 Assets: £38.8bn *Including preference shares and non-controlling interests. 3 ^At 31 March 2017.

Balanced business model supporting our long-term strategy Three distinct business activities focused on well defined target clients Private client (high net worth / high income) / Corporate / Institutional / Government charities / trusts Specialist Banking Wealth & Investment Asset Management Specialist Banking Wealth & Investment (operating completely independently) Provides a broad range of services: Provides investment Provides investment Provides a broad range of services: Provides investment management services and • Lending management services management services and • Lending independent financial independent financial planning • Transactional banking • Transactional banking planning advice advice • Deposit raising activities • Treasury and trading • Treasury and trading • Advisory • Advisory • Investment activities • Investment activities Maintaining an appropriate balance between revenue streams Capital light activities Capital intensive activities • Asset management • Lending portfolios • Wealth management • Investment portfolios 56% 44% • Advisory services • Trading income  • Transactional banking services client flows Contributed to Contributed to  • Property and other funds balance sheet management group income * group income * Fee and commission income Types of income Net interest, investment and trading income 4 *At 31 March 2017..

We have a distinctive investment offering Clients are at the core of our Serving select market niches • • business as a focused provider of tailored structured solutions Building business depth by • deepening existing client Enhancing our existing • relationships position in principal Specialised businesses and geographies High level of service by strategy and • Client through organic growth and being nimble, flexible and uniquely select bolt-on acquisitions innovative focused positioned business model Contributing to society, Strong, entrepreneurial • Sustainable • macro-economic stability culture that stimulates Strong business and and the environment extraordinary performance long-term culture Well established brand Passionate and talented • • strategy people who are empowered Managing and positioning the • and committed group for the long term Depth of leadership • Balancing operational risk • with financial risk while Stable management team • creating value for Strong risk awareness • shareholders Employee ownership • Cost and risk conscious • Resulting in a quality scalable global business … a quality scalable global business 5

We continue to have a sound balance sheet Key operating fundamentals Cash and near cash Senior management “hands-on” culture • A high level of readily available, high quality liquid assets – • representing approx 25% - 35% of our liability base. Balance as at 31 March 2017 was £12.0bn Average No reliance on wholesale funding • Healthy capital ratios - always held capital in excess of • regulatory requirements and the group intends to perpetuate this philosophy. Target common equity tier 1 ratio of above 10% and total capital ratios of 14%-17% Low gearing ratio – approx. 10 times; with leverage ratios in • excess of 7% Geographical and operational diversity with a high level of • recurring income continues to support sustainability of Low gearing ratios operating profit times 16 13.8 13.0 14 12.5 11.6 11.3 11.3 12 10.3 10.2 10.1 9.4 10 8 6.2 5.8 5.4 6 4.7 4.7 4.7 4.7 4.5 4.3 4.3 4 2 0 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar 16 Mar 17 Gearing ratio (assets excluding assurance assets to total equity) Core loans to equity ratio 6

We have a sound track record Recurring income Revenue versus expenses £’mn £’mn 2500 80% 2,500 2000 2,000 60% 1500 1,500 40% 1000 1,000 20% 500 500 0 0% - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Trading income Investment income Total revenue Expenses Other fees and other operating income Annuity fees and commissions Net interest income Annuity income* as a % of total income Adjusted EPS^ Operating profit before tax** and impairments £’mn pence 800 60 700 50 600 40 500 30 400 300 20 200 10 100 0 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Operating profit before tax and impairments** Operating profit before tax** *Where annuity income is net interest income and annuity fees. 7 **Before goodwill, acquired intangibles, non-operating items and after other non-controlling interests. ^Where Adjusted EPS is earnings per share before goodwill, acquired intangibles and non-operating items.

We have a sound track record Third party assets under management Core loans and advances and deposits £’bn £’bn Net inflows of £0.7bn for the year to March 2017 Deposits: an increase of 5.5% on a currency neutral basis 160 35 Core loans: an increase of 7.6% on a currency neutral basis 120% 140 30 100% 120 25 80% 100 20 80 60% 15 60 40% 10 40 20% 5 20 - - 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Customer accounts (LHS) Asset Management Wealth & Investment Other Core loans and advances to customers (LHS) Loans and advances to customer deposits (RHS) Total shareholders’ equity and capital resources Net tangible asset value £’mn pence £’mn 7,000 600 4,000 6,000 3,500 500 5,000 3,000 400 2,500 4,000 300 2,000 3,000 1,500 200 2,000 1,000 100 1,000 500 - - - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total shareholders’ equity (including preference shares and non-controlling Net tangible asset value (excluding goodwill) (£'mn) (RHS) interests) Net tangible asset value per share (excluding goodwill) (pence) (LHS) Total capital resources (including subordinated liabilities) Share price (pence) (LHS) 8 Results are shown for the year-ended 31 March, unless otherwise indicated. Currency neutral basis: calculation assumes that the closing exchange rates of the group’s relevant exchange rates remain the same as at 31 March 2017 when compared to 31 March 2016 .

We have invested in our Brand …our Communities …our People … and the Planet 9