Nedbank Group 2018 ESG INVESTOR BRIEFING JSE November 2018 Agenda - PowerPoint PPT Presentation

Nedbank Group 2018 ESG INVESTOR BRIEFING JSE November 2018

Agenda  Nedbank’s high-level ESG journey  Delivering our purpose & delivering on the SDGs (Environment & Social)  Through our businesses  Through our own operations  Through partnerships  Governance  Board profile – ensuring good governance  Worldclass disclosure  Engaging our shareholders 2 NEDBANK GROUP LIMITED

Nedbank’s high-level ESG journey… 259 2002/3 2009 Nedcor King rights Code Nedbank share price 2017 issue 171 1990 2014 2006 62 2015 Governance roadshows 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 3 NEDBANK GROUP LIMITED

Agenda  Nedbank’s high-level ESG journey  Delivering our purpose & delivering on the SDGs (Environment & Social)  Through our businesses  Through our own operations  Through partnerships  Governance  Board profile – ensuring good governance  Worldclass disclosure  Engaging our shareholders 4 NEDBANK GROUP LIMITED

Our purpose To use our financial expertise to do good for individuals, families, businesses and society. 5 NEDBANK GROUP LIMITED

Delivering our purpose through the SDGs Partnerships Our businesses (products & services) Our own operations 6 NEDBANK GROUP LIMITED

We have invested significantly in the CIB franchise over the past few years – CIB integration, acquired key skills, invested in technology CIB integration Client centric approach Investing in technology & innovation Client Value Management underpinned by sector expertise & informed by enhanced analytics Holistic client experience & improved Consumer Goods Financial Institutions Retail ICT efficiencies (run-rate savings of R200m p.a.), driving improved returns Acquired key skills Automotives TFL Healthcare Travel & Leisure Investment banking  Head: Private Equity  Head: Principle & Alternative Public Sector PE/BEE Portfolio TFL (SOEs) Energy & Water Investments Markets  Head: Interest Rate Trading Client data analytics  Senior Bond Sales Trader Construction Mining & Chemicals Real Estate Diversified Industrials  Head: Interest Rate Derivatives  Head: Structured Rates Client Diversified, efficient & good credit quality  Senior Equity Option trader Intelligence  Head: xVA  Platform ROE: #2 (2 nd highest, 20%)  Markets COO   Efficiency ratio: #1 (lowest, 41%) Head: Equities Executive Property Finance EySight TM  Credit loss ratio: #1 (lowest, 1bps)  Executive: Property Finance   NIR to GOI contribution: 52% (49% in ‘13) Head: Property Finance Africa 7 NEDBANK GROUP LIMITED

… we are using our skills, expertise & technology to make a difference Renewable-energy disbursements Sustainable development (Rbn) financing (in 2017) 35.0  Invested R3,8bn in empowerment financing (R68bn since 2012). Round 1 - 3  Total investment in green buildings: 18.4 R8,7bn (well over 400 000 m² of floor 15.2 space) 11.6  7.1 Student accommodation construction 3.8 loans > R1bn (~5 700 beds)  R10,1bn invested by clients in the 2013 2014 2015 2016 2017 Total Nedbank Green Savings Bond (R25,2bn since inception). As from 2018, excluding our existing commitments, we have undertaken not to provide project financing or other forms of asset-specific financing where the proceeds will be used to develop a new coal-fired power plant , regardless of country or technology. 8 NEDBANK GROUP LIMITED

Share performance 9 NEDBANK GROUP LIMITED

Our investment into Retail & Business Banking has been successful & is building momentum RBB interim financial results (6 months) RBB retail client base (million) +4.4% 18.6% 7.7 +5.8% 6.2 6.1 ROE: 11.0% 2581 Target: 15% 4.6 by 2020 +13.0% +4.9% 12.7% 2.8 1403 2.2 8.8% Headline earnings (Rm): Total Transactional Main-banked Primary bank Jun 2013 Jun 2018 market share 1 clients clients clients Jun 2013 Jun 2018 CAGR Note 1: 2013: AMPS; 2017: Consulta: Same question asked: ‘Which ONE bank do you regard as your main bank for personal banking?’ 10 NEDBANK GROUP LIMITED

Middle market main-banked client growth momentum accelerating, while growth in Youth & ELB improving Main-banked, # 000 Professional 2 Kids & youth (3%) +17% +4% +3% 383 371 72 69 67 328 Small Business +3% +4% +23% Entry level +22% Services 2 116 112 1 374 1 378 91 1 123 +2% 0% +12% +21% Business Banking 1 20.6 20.9 20.6 853 Middle 761 629 H1 ‘13 H1 ‘17 Sep ‘18 H1 ’13 H1 ’17 Sep ‘18 11 NEDBANK GROUP LIMITED

Delivering great client experiences – digitised 61 services on the web & 53 on the app (target of >180 by 2020) 1.4 million downloads & > 500k active users Client app ratings – Android in under 11 months since launch Money app launched in Nov 2017 with - 12 additional services added in April 2018 4.4 4.3 4.2 4.2 And a further - 3.6 3.6 3.4 3.4 9 services added in May 2018 An additional – 21 services landed between June & July 2018 Latest– Nedbank Capitec Nedbank FNB Nedbank Standard Absa Investec Wealth Money App 11 services landed Suite Aug, Sept 2018 12 NEDBANK GROUP LIMITED

We are making a difference in the communities we operate Remote solar powered branch SME network centre School ecosystem  CVP solution for students, parents, schools  Solar powered  SIMPLYBIZ is resources, support & & their suppliers providing digital payment network centre for small business  WIFI-enabled solutions (Karri), insurance products, owners  Low cost banking products, advice differentiated pricing & procurement  GAP Access – innovative working capital & services platforms solution  M ore than 208 schools have signed up since inception 13 NEDBANK GROUP LIMITED

Rest of Africa business we developed a low cost cross-border transfer solution with Ecobank Differentiation 1 Opportunity Access & distribution Cheap 2.7m Lowest cost to client in the African migrants industry (no third parties) R 14−19 bn Quick Market size: Remittance Instant cross border transfer value SA – Rest of Africa – subject to regulatory & compliance checks (other 25% solutions 10 min to 2 days) Through mobile/digital channels internationally Easy 60% Usage across all channels – initially account to account, Through international cash mobile app & website. transfers Moving to wallet, USSD, ATM, branches, etc 5% Through traditional banking Available in 33 countries channels internationally 24 hours – initially business operating hours, moving to 24/7 1 Key competing products include Mukuru, hello (PAISA), Western Union (BGA), MoneyGram (FNB & Standard Bank) 14 NEDBANK GROUP LIMITED

Delivering our purpose through the SDGs Partnerships Our businesses (products & services) Our own operations 15 NEDBANK GROUP LIMITED

Making a difference through our own operations – remaining relevant in society Transforming our workforce 79% 62% 62% 62% 47% 30% 26% 16% AIC staff Black staff Female staff Black female staff 2007 2017 Progress on BBBEE 16 NEDBANK GROUP LIMITED

Making a difference through our own operations – experiment, learn, lead & advocate Seven green-star rated buildings Reducing our own carbon footprint 17 NEDBANK GROUP LIMITED

Delivering our purpose through the SDGs Partnerships Our businesses (products & services) Our own operations 18 NEDBANK GROUP LIMITED

Partnerships – shared responsibility & collaborative action Partnerships An active corporate citizen   Investing in our communities Active participant in the CEO initiative − R168m SED spend in 2017  Committed R20m to R1,5bn SME fund − Nedbank Foundation: >50% spend on  Participant in the Youth Employment education Service – aim to provide jobs to 1m South Africans (cost of c1.5% of NPAT p.a.)  Partnering with NGOs  Parliamentary presentations – Transformation − WWF water balancing & sustainable & Land Reform agriculture programmes  Nedbank affinity programme − More than R250m donations since inception  Suppliers − More than R9bn sourced from local suppliers (75% of R12bn) 19 NEDBANK GROUP LIMITED

Agenda  Nedbank’s high-level ESG journey  Delivering our purpose & delivering on the SDGs (Environment & Social)  Through our businesses  Through our own operations  Through partnerships  Governance  Board profile – ensuring good governance  Worldclass disclosure  Engaging our shareholders 20 NEDBANK GROUP LIMITED