2016 ANNUAL REPORT integrated annual review and summary 20 nancial statements

16 Investec integrated annual review and summary nancial statements Investec integrated annual review and summary

Specialist Banking Asset Management Wealth & Investment

ABOUT THIS abridged report

The integrated annual The summary annual financial statements have been approved by the board of review and summary directors of the group and were signed financial statements on its behalf by the chief executive officer, has been compiled in Mr S Koseff. This document provides a summary of the information contained accordance with the in the Investec’s 2016 integrated annual integrated reporting report (annual report). It it not the group’s principles contained in statutory accounts and does not contain sufficient information to allow for a complete the Code of Corporate understanding of the results and state of Practices and Conduct set affairs of the group as would be provided by the full annual report. For further out in the King Report on information consult the full annual financial Corporate Governance for statements, the unqualified auditor’s report South Africa (King Code). on those annual financial statements and the directors’ report. The auditors’ This report covers all our report did not contain a statement under operations across the section 498(2) or section 498( 2) of the UK various geographies in Companies Act 2006. which we operate and has been structured to provide stakeholders with relevant financial and non-financial information.

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Investec integrated annual review and summary financial statements 2016 1 Ongoing and statutory In order to present a more meaningful • The results of the businesses sold view of our performance, the results in the prior year, i.e. Investec Bank information are presented on an ongoing basis. (Australia) Limited, the UK Kensington This information is only set out on business and the Start (Irish) mortgage Statutory information is set out in pages 58 to 64. The additional information business; and section five of this report. The sale of presented on an ongoing basis excludes businesses during the previous financial items that, in management’s view, could • The remaining legacy business in the UK. year (as explained on page 26) has had distort the comparison of performance a significant effect on the comparability of A reconciliation between the statutory and between periods. Based on this principle, the group’s financial position and results. ongoing income statement is provided on the following items are excluded from Consequently, comparison on a statutory pages 59 and 60. All information in our underlying statutory profit to derive ongoing basis of these full year results with the prior abridged report is based on our statutory operating profit: year would be less meaningful. accounts unless otherwise indicated.

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CROSS REFERENCE TOOLS

1. Audited information 2. Page references 3. Website 4. Sustainability 5. Reporting standard Denotes information in the Refers readers to Indicates that additional Refers readers to further Denotes our consideration risk, corporate responsibility information elsewhere information is available on information in our of a reporting standard and remuneration reports in this report our website: sustainability report available that form part of the group’s www.investec.com on our website: audited annual financial www.investec.com statements

2 Investec integrated annual review and summary financial statements 2016 Contents

1 Investec in perspective Highlights 5 About the Investec group 11 Our strategic focus 13 Our operational structure 17 Our operational footprint 18 Operational and strategic report 22 Financial review 26

2 Divisional review Group divisional structure 67 Asset Management 68 Wealth & Investment 70 Specialist Banking 72

3 Risk management and corporate governance Risk management 75 Corporate governance 81 Directorate Investec plc and Investec Limited 87 Shareholder analysis 89 Corporate responsibility 94

4 Remuneration report Remuneration report 96

5 Summary annual financial statements Directors’ responsibility statement 139 Declaration by the company secretary 139 Directors’ report 140 Schedule A to the directors’ report 144 Independent auditors’ statement to the members of Investec plc 147 Income statement 148 Statement of comprehensive income 149 Balance sheet 150 Cash flow statement 151 Statement of changes in equity 152 Significant accounting policies 154 Notes to the summary annual financial statements 155 Definitions 193 Contact details 194 Corporate information IBC

Investec integrated annual review and summary financial statements 2016 3 One Investec in perspective INVESTEC IN PERSPECTIVE 5 2015 ONE 20.0p 2016 21.0p Highlights The legacy portfolio reduced The legacy portfolio reduced £695 million at 31 March from 2015 to £583 million through and write-offs. redemptions The legacy business a loss before reported taxation of £78.3 million (2015: £107.7 million) with impairments on the legacy 18.4% from portfolio reducing £83.5 million to £68.1 million. • • Dividends per share 5.0% increased client base and deepening its core its core client base and deepening franchise. Continued investment in infrastructure, digital platforms and increased supporting growth headcount are initiatives in the overall business. Geographical and operational diversity continues to support a stable recurring income base and earnings through varying market conditions. • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review The Asset Management and Wealth & & The Asset Management and Wealth solid Investment businesses reported net inflows of £5.3 billion. has successfully leveraged The group clients an its ability to provide its international increasing offering, Strong loan growth was supported was supported loan growth Strong the corporate by client activity in both and private banking businesses and the investment and debt securities good results. portfolios delivered • • to continued We actively manage down the UK legacy portfolio… • 2015 2015 2015 39.4p £339.5mn £493.2mn (increase of 15.7% (increase

2016 2016 2016

(increase of 13.5% on a (increase 41.3p

Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. of preference dividends. Before goodwill, acquired intangibles, non-operating items and after non-controlling interests and deduction £359.7mn Macro uncertainty and volatility in the in the uncertainty and volatility Macro key operating geographies group’s during the financial year impacted overall results. Net new fund inflows and reasonable levels of activity in the group’s banking businesses supported sound performance. The Specialist Banking business ahead of the prior year. results reported £505.6mn currency neutral basis) currency n a currency of 16.8% on a currency (increase neutral basis) Adjusted attributable earnings^ increased 6.0% Operating profit* increased increased Operating profit* 2.5% Adjusted earnings per share^ increased 4.8% on a currency neutral basis) on a currency STATUTORY STATUTORY FINANCIAL PERFORMANCE ^ * operating environments operating notwithstanding challenging challenging notwithstanding Sound performance Sound performance • • • 16 80 60 40 20 0 120 100 16 15 Percentage 16 14 15 13 15 Specialist Banking & Investment Wealth Asset Management 12 Loans and advances to customer deposits Other 0 80 60 40 20 14 Percentage 100 14 16 (excluding group costs)* S 15 13 Wealth & Investment & Wealth 13 14 Core loans and advances to customers Core 13 12 Funds under management decreased 2.0% to £121.7 billion – an increase 2.0% to £121.7 billion – an increase Funds under management decreased neutral basis of 3.8% on a currency 12 Customer accounts (deposits) increased 6.3% to £24.0 billion – an Customer accounts (deposits) increased neutral basis of 16.6% on a currency increase 6.3% to £17.5 billion – an increase loans and advances increased Core neutral basis of 17.3% on a currency UK and Other Southern Africa 12 Asset Management Customer accounts 0 0 5 0 90 60 30 80 60 40 20 25 20 15 10 £‘billion £‘billion CUSTOMER ACCOUNTS (DEPOSITS) AND LOANS ONGOING BUSINESS** FUNDS UNDER MANAGEMENT ONGOING BUSINESS** FUNDS UNDER MANAGEMENT ONGOING We continued to grow our key earnings drivers… continued to grow our We We have a diversified business model… have a We % CONTRIBUTION OF OPERATING PROFIT BEFORE TAXATION OF OPERATING PROFIT BEFORE % CONTRIBUTION BUSINES OF THE ONGOING Percentage 150 120 100 2015 2015 2015 2015 2015 47.5p 71.9% 0.22%

£580.7mn £409.9mn of 11.4%increase ( Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Highlights (continued)

2016 2016 2016 2016 2016 48.6p (increase of 9.9% on a (increase 71.8% 0.26% a currency neutral basis) a currency Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. of preference dividends. Before goodwill, acquired intangibles, non-operating items and after non-controlling interests and deduction at 31 March 2016. in these graphs are done on a currency neutral basis using the Rand: Pounds Sterling exchange rate applicable Trends ONE £423.1mn £583.9mn SATISFACTORY SATISFACTORY PERFORMANCE FROM THE ONGOING BUSINESS currency neutral basis) currency neutral on Recurring income as a % of total operating income Adjusted earnings per share^ increased 2.3% Adjusted attributable increased 3.2% earnings^ of 12.4% on a currency (increase neutral basis) Operating profit* increased increased Operating profit* 0.6% Credit loss charge as a % loss Credit loans core of average gross and advances 6 * ^ **

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 7 16 16 ONE 15 15 (continued) (continued) 14 14 Highlights 13 13 12 12 Asset Management Investment & Wealth Specialist Banking Refers to the remaining UK legacy business and group assets Refers to the remaining UK legacy business and group that were sold in the 2015 financial year. Permanent headcount and includes acquisitions. UK legacy business and businesses sold** Southern Africa UK and Other ^^ ** 0 0 ’million HEADCOUNT^^ IMPAIRMENTS 400 300 200 9 000 8 000 7 000 4 000 3 000 2 000 1 000 100 6 000 5 000 Number £ Impairments continued to decline… Impairments 16 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 16 15 15 Annuity fees and commissions income Net interest operating income Total neutral basis* on a currency Operating costs up 1.4% to £1 272mn 14 14 13 13 Operating income up 2.5% to £1 935mn 12 Headcount increased across all businesses in line with growth aspirations all businesses in line with growth across Headcount increased Investec Import Solutions) as The acquisition of Blue Strata (rebranded added 176 to the Specialist Banking headcount 12 Operating income Operating costs Trends in this graph are done on a currency neutral basis using the Trends Rand: Pounds Sterling exchange rate applicable at 31 March 2016. The trend for this line is done on a currency neutral basis using the The trend for this line is done on a currency neutral basis March 2016. Rand: Pounds Sterling exchange rate applicable at 31 Trading income Trading Investment income Other fees and other operating income 0 0 ^ * 800 600 400 200 800 600 400 200 ’million ’million JAWS RATIO FOR THE GROUP^ 2 000 1 800 1 600 1 400 1 200 1 000 2 200 2 000 1 800 1 600 1 400 1 200 1 000 £ £ Fixed costs marginally up… TOTAL OPERATING INCOME ONGOING BUSINESS TOTAL OPERATING Supporting growth in operating in operating Supporting growth income… 2.0x 4.0% 10.6% 67.6% March 2015 March Statutory 2.0x 4.8% 11.5% 66.4% March 2016 March n/a 13.8% 10.2% 66.5% March 2015 March Ongoing n/a 2.3% 13.9% 65.8% 85.7 134.8 409.2 16 16 16 March 2016 March 15 15 15 14 14 14 13 13 13 Target 12% – 16% over a rolling five-year period 12% – 16% over a rolling Target: 10% > UKPRI Target: Target: < 65% Target: Target: 1.7x – 3.5x Target: Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Highlights (continued) 12 12 12 Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. of preference dividends. Before goodwill, acquired intangibles, non-operating items and after non-controlling interests and deduction ONE 0 0 0 50 60 80 70 50 40 30 20 10 90 80 60 40 20 ROE (post tax) Adjusted^ EPS growth Cost to income Dividend cover (times) £‘million £‘million £‘million 100 450 400 350 300 250 200 150 8 160 140 120 100 * ^ Progress made on our financial targets... OPERATING PROFIT* – WEALTH & INVESTMENT OPERATING PROFIT* – WEALTH & OPERATING PROFIT* – ASSET MANAGEMENT OPERATING PROFIT* Resulting in a satisfactory performance from our ongoing business… satisfactory performance Resulting in a OPERATING PROFIT* – SPECIALIST BANKING ONGOING BUSINESS OPERATING PROFIT* – SPECIALIST

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 9 9.7 ONE 10.7 plc plc 9.7 Investec Investec

12.2 12.2 Investec Investec Bank plc Bank plc 12.2 (continued) (continued) Highlights 9.6 10.7 As reported 9.6 Limited Limited Investec Investec 10.6 11.0 Investec Investec 10.6 Fully loaded As reported Bank Limited Bank Limited 4 0 8 8 4 0 16 12 16 12 COMMON EQUITY TIER 1 TIER 1 Percentage Percentage 7.0 15.1 plc plc Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 6.3 Investec Investec Investec Limited: 74.6% (2015: 78.6%) Investec plc: 72.2% (2015: 68.5%) 7.7 The intimate involvement of senior management ensures stringent management The intimate involvement of senior management ensures of risk and liquidity. in place. A well-established liquidity management philosophy remains as follows: loan to deposit ratios are The group’s • • with cash and near cash balances amounting to £11.0 billion strong Liquidity remains (2015: £10.0 billion). requirements. regulatory well in excess of current Capital remained comfortable with our common equity tier 1 ratio target at a 10% level as our leverage are We at 6.9% and 7.0% respectively. ratios for Investec Limited and Investec plc are 17.2 7.7 Investec Investec Bank plc Bank plc 6.9 14.0 As reported 6.3 Limited Limited Investec Investec Total capital adequacy: 14.0% – 17.0% capital adequacy: 14.0% Total ratio: > 10.0% Common equity tier 1 tier 1 ratio: > 11.0% Total Leverage ratio: > 6.0% 7.3 14.6 7.1 Investec Investec Fully loaded As reported Bank Limited Bank Limited Maintaining a high level available, of readily high-quality liquid assets targeting a minimum cash to customer deposit ratio of 25.0% Diversifying funding sources Maintaining an appropriate mix of term funding Limiting concentration risk. Target Continue to focus on: • • • • 4 0 0 8 9 6 3 12 12 18 15 16 Maintained a sound balance sheet… Maintained a Note: Refer to page 52 for detailed definitions and explanations. Sound capital and liquidity principles maintained LEVERAGE RATIOS Percentage CAPITAL ADEQUACY Percentage e) 2 2015 2015 2015 2015 1 986 31 111 36 548 £14.1mn 2016 2016 2016 2016 1 813 31 400 36 683 e) decreased 8.7% e) decreased e) remained flat e) remained £14.7mn 2 2 Investec conducts its commitment Investec conducts its key three to sustainability through focus areas: remained flatremained Scope 3 emissions (tonnes of CO arranged funding for theWe energy sector ofrenewable £884 million. Total spend on social investment Total of operating profit as a percentage is at 1.0% (2015: 1.1%) Scope 1 emissions (tonnes of CO Scope 2 emissions (tonnes of CO Our capital light activities contributed 55% to income and capital intensive activities group income. contributed 45% to group Investment in employee learning 3.9% and development increased Planet Profit People For further information download the For further information on our website. sustainability report available 2015 26 264 36 427 171 037 197 301 168 486 614 362 488 189 204 913 (422 829) 31 March 31 March 1 504 765 1 504 765 1 790 867 1 292 617 (1 155 890) 2016 22 745 26 130 179 723 180 009 202 468 588 759 507 341 206 139 (383 059) 31 March 31 March 1 504 707 1 504 707 1 705 640 1 313 997 (1 131 871) Investec is a finalist in the Business Charity Business the in finalist a is Investec UK the in community impact for 2016 Awards Bow by Bromley the partnership with our for incubator Business Beyond Investec has been voted third most attractive Universum the through Africa South in employer survey Investec in South Africa has been awarded a level 2 rating in terms of the Financial Sector Code, as independently verifiedby Empowerdex Our Gresham Street office won their ninth city of the in award platinum Scheme City Awards Clean Corporation’s The Gresham Street office retained14001 the ISO Verification Reduction Energy the and certification (ERV) Kitemark in December 2015 companies five of one was Limited Investec in South companies Africa and globally 113 to climatemake the CDP A list. 2015 This includes companies that received an A grade for their change climate mitigate to actions Investec Bank Limited has been voted the by members of the Investment Analyst Society as a leader in corporate reporting in the sector ServicesFinancial Investec is a finalist in the Lord DragonMayor’s for ourAwards project 2016 Beyond Business in the enterprise and employment award category. Awards Awards • • • • • • • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Highlights (continued) ONE RECOGNITION Retained income for the year Retention for future expansion and growth expansion and growth Retention for future Depreciation Dividends paid to preference shareholders shareholders Dividends paid to preference Distributed as follows: Employees Salaries, wages and other benefits Government and other taxes payroll Corporation, deferred Shareholders shareholders Dividends paid to ordinary Net income generated receivable Interest Other income payable Interest loans and impairments on Other operating expenditure £’000 10 VALUE ADDED STATEMENT VALUE For Investec, sustainability is about building our businesses to ensure we have a positive impact on the economic and social progress of and social progress we have a positive impact on the economic is about building our businesses to ensure For Investec, sustainability of trust. relationships wealth based on strong clients and stakeholders’ and preserving while growing environment, communities and on the operations. A key considerations into our day-to-day environmental means integrating social, ethical and This commitment to sustainability management with a long-term vision. sustainable corporate governanceelement of this is solid that ensures The value we’ve added The value we’ve AND THE ENVIRONMENT STABILITY MACRO-ECONOMIC SOCIETY, CONTRIBUTING TO

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 11 ONE Since inception, we have Since inception, we have a expanded through combination of substantial and organic growth a series of strategic acquisitions. integrated we have an efficient Today, international business platform, offering activities in the UK and all our core South Africa. About the Investec group the Investec About Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Investec (comprising Investec plc and Investec Limited) is an internationalInvestec (comprising Investec plc and Investec range of financial a diverse specialist bank and asset manager that provides and services to a select client base. products In July 2002, we created In July 2002, we created a dual listed companies (DLC) structure listed in London and Johannesburg. we concluded a significant A year later, empowerment transaction in which our empowerment partners collectively a 25.1% stake in the issued acquired capital of Investec Limited. share we are

We acquired a banking licence in 1980 a banking licence in 1980 acquired We listed on the JSE Limited and were South Africa in 1986. Founded as a leasing Founded as a leasing company in Johannesburg in 1974.

WHO philosophies and values philosophies core driven by commitment to our to our commitment driven by specialist bank and asset manager, manager, bank and asset specialist to be a distinctive distinctive to be a WE STRIVE we do We are an international are We specialist bank and asset a manager that provides diverse range of financial and services to a products select client base in three principal markets, the UK South Africa and Europe, and Asia/Australia as well as certain other countries. Investec focuses on delivering distinctive solutions for its clients in three profitable Asset of activity namely, areas core & Investment and Management, Wealth Specialist Banking. Our strategic goals and objectives are based on the aspiration to be recognised as a distinctive specialist bank and asset This distinction is embodied manager. which is culture, in our entrepreneurial risk management balanced by a strong and an discipline, client-centric approach ability to be nimble, flexible and innovative. do not seek to be all things to all We people and aim to build well-defined, value-added businesses focused on serving the needs of select market niches we can compete effectively. where WHAT WHAT Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review value About the Investec group the Investec About Respect for others Embrace diversity Open and honest dialogue Unselfish contribution to colleagues, clients and society Moral strength Risk consciousness Highest ethical standards Distinctive offering Leverage resources china for the client Break Outstanding talent – empowered, enabled and inspired Outstanding talent – empowered, Meritocracy stamina, tenacity Passion, energy, spirit Entrepreneurial Single organisation Meritocracy Focused businesses yet integrated Differentiated, Material employee ownership that stimulates extraordinary an environment Creating performance. – – – – – – – – – – – – – – – – – – – – – – – – – – – PARTNERSHIP DEDICATED – – – INTEGRITY CAST-IRON – – – – CLIENT FOCUS DISTINCTIVE PERFORMANCE WE – – – – – – OUR PHILOSOPHIES ONE 12

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 13 ONE Strong Strong entrepreneurial that stimulates culture performance extraordinary Passionate and talented empowered people who are and committed Depth of leadership risk awareness Strong Material employee ownership. Strong Strong culture • • • • •

Our strategic focus Our strategic Contributing to society, Contributing to society, stability macro-economic and the environment brand Well-established Managing and positioning for the long term the group Balancing operational risk with financial risk value for while creating shareholders Cost and risk conscious. Sustainable business • • • • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Serving select market niches  Serving select market niches of as a focused provider solutions structured tailored Enhancing our existing position in principal businesses and geographies and organic growth through select bolt-on acquisitions. Specialised strategy • •

Clients are at the core of our of our at the core Clients are business strive to build business We depth by deepening existing new client and creating relationships  High level of service by being nimble, flexible and innovative. • • • Client focused approach DISTINCTION THE INVESTEC THE INVESTEC specialist bank and asset manager bank and asset specialist to be recognised as a distinctive as a distinctive to be recognised objectives are based on our aspiration our aspiration based on are objectives and GOALS and OUR STRATEGIC Comment and Mauritius managers Investment a 10-year period

currency neutral basis currency 90% outperformance over Strong growth in core drivers in core growth Strong Established a presence in Asia Established a presence Several new services launched Announced several management Ongoing operating profit up 9.9% on Ongoing operating profit Created Investec Equity Partners (IEP) Created appointments in the November results Maintain a balance between emerging emerging Maintain a balance between world income markets and developed business Continue to invest in the and add capacity to improve future. competitiveness in the private Build and leverage the office offering collaboration with the private Strong banking offering Digitisation of the offering. Continue to build the private client and corporate and institutional client franchise businesses Leverage the integration with the Investment business. Wealth & Global Client WEALTH & & WEALTH INVESTMENT Wealth management Wealth Portfolio management Stockbroking Management and Management and of wealth preservation (shared locally) (shared Support Centre Support Centre Asset Management • • & Investment Wealth • • • Specialist Banking • • Digital

(shared locally) (shared Private client businesses

Private bankers of wealth Growth and creation and creation Growth Banking finance Property Private capital Retail BANKING PRIVATE PRIVATE Gain domestic competence and critical and critical Gain domestic competence mass in our chosen geographies transactions Facilitate cross-border and flow. the best integrated solution to provide supported by our comprehensive digital offering. Follow our customer base client profile to leverage our unique • • • • and have a very deliberate We focused client strategy: • Our long-term Our long-term internationalisation strategy Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Our strategic focus focus Our strategic (continued) Focus on investment performance in the Asset Management business Focus on investment performance in the Asset & Investment business Building and leveraging our Wealth private client and the Specialist Banking business by building the Grow corporate and institutional client franchise businesses – – – – – – From a business perspective we focused on growth From Taking advantage of investment opportunities advantage Taking Positioning for a new generation of leadership Digitalisation strategy Businesses Channel of choice Strong links ONE Corporate clients (directors, Corporate clients (directors, employees) Private equity investments of funds Manufacturer savings products Retail structured CORPORATE Objective • • • • 14

Integrated client strategy businesses, which natural linkages within the private client businesses and between the private client and corporate banking are There the client. around all centred are Strategic review of 2016 – performance vs objectives Strategic review of 2016 – OUR STRATEGY years than 20 Our strategy for more has been to build a diversified and portfolio of businesses clients geographies to support varying markets and through economic cycles. Since inception a we have expanded through and growth combination of organic strategic acquisitions. a meaningful and to create In order balanced portfolio we need proper foundations in place which gain traction over time.

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 15 ONE (continued) 2016 which incorporates a Investments which incorporates a which includes Digital Briefcase which includes Launched (Visaself-service documents letters, stamped bank statements) of the the redesign Completed and launched platform The inclusion of Channel Islands, Mauritius and Switzerland is in progress Developing One Place for Independent Financial Advisers (IFAs) Launching consolidated view of all investments (not just investments with Investec) – complete digital Launching Click & Invest – complete digital advice online providing offering at public Targeted £10 000 minimum investment Our strategic focus focus Our strategic • • • • • • • • portfolio portfolio portfolio manager manager Personal Personal UK Online UK Online One Place – One Place – South African South African online portfolio online portfolio global platform Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review

2015 towards the the clients towards Banking Analysis tools in 2014 2014 The past two years were focused on collaborating, merging and aligning to create one digital solution for clients one digital solution for focused on collaborating, merging and aligning to create The past two years were launching in 2016 have a number of new initiatives we are We and High Tech of a High Touch With delivering on our promise over 1.4 million touch points every month, we are engagement model a consistently providing we are This is a journey to ensure in which we continually transform the way we engage with clients the channel they choose seamless, integrated service experience through needs. continue to look for opportunities to build new digitally led businesses in line with our client We South Africa and UK transactional banking banking South Africa and UK transactional same platform capability off Bank, Wealth Consolidated view of Private Asset Management, & Investment, Investec Corporate accounts 1 million logins per month on online platform – up 20% year on year 400 000 logins to Investec App every month – up 50% year on year Incorporated the ability to add services from any any Incorporated the ability to add services from other institution Launched Made available to UK clients in 2015 24 000 clients actively using the personal portfolio Launched in 2014 with a minimum of R250 000 & at Private Banking and Wealth Targeted Investment clients to a further 90 000 Promoted end of 2015 Summary: • • • • • • • • • • • • • • • • Integrated client strategy Integrated client SERVICES ACROSS BUSINESS AND GEOGRAPHY INTEGRATES STRATEGY THE DIGITALISATION

and trading income Net interest, investment investment Net interest, Independent financial planning Independent financial planning advice Investment management services client flows balance sheet management – – WEALTH & WEALTH INVESTMENT – – Lending portfolios Investment portfolios income Trading – – charities/trusts • • • Private client (high net worth/high income)/ Private client (high 45% Contributed to Contributed to income group CAPITAL INTENSIVE ACTIVITIES CAPITAL Types of income Types Lending banking Transactional and trading Treasury Advisory Investment activities – – – – – SPECIALIST SPECIALIST BANKING – – – – – Asset management management Wealth Advisory services banking services Transactional and other funds Property • • • • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Our strategic focus focus Our strategic (continued)

between revenue earned from operational risk activities and revenue earned operational risk activities and revenue earned from balance between revenue aim to maintain an appropriate We financial risk activities. from our activities and that we have a on any one part of our businesses to sustain not over reliant that we are This ensures cycles and supports our long-term strategy. varying base that enables us to navigate through revenue large recurring Corporate/institutional/government Fee and commission income Investment management Investment management services to external clients 55% – ASSET MANAGEMENT – Operating completely independently ONE 16 CAPITAL LIGHT ACTIVITIES CAPITAL Our diversified and balanced business model supports our long-term strategy model supports our long-term and balanced business Our diversified focused on well-defined target clients: of specialisation areas three across defined, we operate Broadly Contributed to Contributed to income group

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 17 ONE Import (Pty) Ltd Investec Investec Holdings Solutions (Pty) Ltd^ Property Group Group Property 45%** (Pty) Ltd (Pty) Ltd Investec Partners Securities Investec Equity operations Southern African Investec Limited JSE primary listing BSE secondary listing NSX secondary listing 85%* (Pty) Ltd (Pty) Ltd Holdings Holdings Reichmans Management Investec Asset Bank Limited Limited Investec 15% held by senior management in the company. 55% held by third party investors in the company together with senior management of the business. (Pty) Ltd. Previously Blue Strata Trading (Mauritius) Our operational structure Our operational Investec Bank All shareholdings in the ordinary share capital of the subsidiaries are 100%, unless otherwise stated. * ** ^ Sharing agreement Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review A circular on the establishment of our DLC structure was issued on of our DLC structure was issued A circular on the establishment on our website. 20 June 2002 and is available  During July 2002 Investec Group Limited (since renamed Investec Limited) implemented Investec Limited) implemented Limited (since renamed Group During July 2002 Investec business on the London and listed its offshore (DLC) structure a dual listed companies Stock Exchange. In terms of our DLC structure, Investec Limited is the controlling company of our businesses company Investec Limited is the controlling In terms of our DLC structure, company of our in Southerncontrolling Africa and Mauritius, and Investec plc is the non‑Southern businesses. African 85%* Limited Limited Investec Holdings (Australia) Management Investec Asset

operations Investec plc Non-Southern African Limited Investec LSE primary listing Bank plc JSE secondary listing & Investment Investec Wealth Investec Wealth Investec plc and Investec Limited are separate legal entities and listings, but are bound separate legal entities and listings, but are Investec plc and Investec Limited are and mechanisms together by contractual agreements Investec operates as if it is a single unified economic enterprise as if Investec plc and have common economic and voting interests Shareholders a single company Investec Limited were ring-fenced to either Investec plc or Investec Limited as there are however, Creditors, between the companies. no cross-guarantees are Salient features of the DLC structure • • • • OUR DLC STRUCTURE AND MAIN OPERATING SUBSIDIARIES AS AT 31 MARCH 2016 AS AT SUBSIDIARIES OPERATING OUR DLC STRUCTURE AND MAIN Operating structure houses Investec Limited, which our Southern African and Mauritius listed in operations, has been South Africa since 1986.

^ COI ROE^ Permanent employees core core Total loans £10.3bn 56.1% 52.2% 16.6% funds under Total management

Actual Assets NAV** Operating profit* Founded as a leasing company in 1974 a banking licence in 1980 Acquired Listed on the JSE Limited South Africa in 1986 In 2003 we implemented a 25.1% empowerment shareholding transaction Market leading position in all three activities of our core Fifth largest bank in the country supporting the Southern Offices African businesses include Durban; Botswana; Cape Town; East London; Johannesburg; Knysna; Mauritius; Namibia; Pietermaritzburg; Port Elizabeth; and Stellenbosch. Pretoria; SOUTHERN AFRICA • • • • • • • 63.8% 59.2% 51.4% 8.0% in Rands Operating profit* Operating profit* of the Southern African 7.5% operations decreased to £323 million, but was up £13.2bn deposit Total book £40.5bn As a % of the group ROE^ Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Our operational footprint Our operational

Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. is tangible shareholders’ equity as calculated on page 51. NAV on pages 53 and 54. COI is cost to income ratio. ROE is the post-tax return on adjusted average shareholders’ equity as calculated ** ONE 18 COI^ 66.4% 11.5% Permanent employees 8 421 £45 352mn NAV £2 556mn £505.6mn Assets Operating profit* INVESTEC IN TOTAL ** ^ * geographic diversity streams and and streams diversified revenue revenue diversified platform, with platform, with solid international solid international We have built a built a have We

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 19 ONE (continued) (continued) Our operational footprint Our operational Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review

^ Permanent employees COI ROE^ ROE^ ongoing core core Total loans (ongoing business) £7.8bn 76.7% 11.7% 7.6% 43.9% funds under Total management Actual Operating profit* Assets NAV** In 1992 we made our first international acquisition, acquiring Allied Trust Bank Bank In 1992 we made our first international acquisition, acquiring Allied Trust in London a number of and through Since that date, we have expanded organically strategic acquisitions activities of our core Solid positioning in all three of a dual listed the implementation Listed in London in July 2002 through companies structure Australia; Beijing; supporting the UK and Other businesses include Offices North America; London; Channel Islands; Hong Kong; India; Ireland; Switzerland; and Taiwan. Singapore; UK AND OTHER • • • • • 48.6% 36.2% 40.8% £81.2bn deposit Total book £10.8bn As a % of the group Operating profit* (ongoing) of the UK operations Operating profit* 12.8% to £261.2 million increased Operating profit* (statutory) of the UK operations Operating profit* 26.9% to £182.9 million increased

2016: 2016: Corporate and other clients: £7.8 billion Global core loan portfolio: Global core £18.1 billion^^ –  – Private clients: £10.3 billion^^ Global deposit book: £24.0 billion Market positioning under management funds Total 1997: £0.04 billion Market positioning Market positioning Funds under management 1991: £0.4 billion £45.5 billion UK: One of the top five players SA: Largest player £75.7 billion Net inflows of £3.2 billion Good long-term performance with traction in our distribution growing channels We offer a broad range of services from range of services from a broad offer We lending, transactional banking, treasury and trading, advisory and investment aimed at activities. These services are government, institutional, corporate and high net worth and high-income clients Provides investment management Provides services and independent financial planning advice to private clients, charities and trusts base and client Core what we do Operates independently from Investec’s Investec’s Operates independently from other businesses and its sole focus is of investment management the provision global services to its predominantly institutional client base client base and Core what we do Core client base and Core what we do well-defined target clients target well-defined Our three distinct business distinct business Our three focused on are activities Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Our operational footprint Our operational (continued) Transactional banking Transactional and trading Treasury Investment activities Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. is tangible shareholders’ equity as calculated on page 51. NAV on page 55. COI is cost to income ratio. ROE is the pre-tax return on adjusted average shareholders’ equity as calculated Including legacy assets of £0.6 billion as explained on page 65. operating profit. Contributions are larger than 100% due to group costs amounting to £45.8 million which are included in ONE WEALTH & WEALTH INVESTMENT 20 SPECIALIST BANKING ** ^ ^^ ° * – Lending – – – Advisory – Provides a broad range a broad Provides of services: Provides investment Provides management services and independent financial planning advice ASSET MANAGEMENT Provides investment Provides management services to institutions, clients third party and intermediated savers

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 21

ONE COI^ ROE^ ROE COI^ ROE^ COI^ ROE^ ongoing^ 60.1% 12.5% 16.1% 73.6% 30.7% 68.0% 79.1% Actual Actual Actual (continued) (continued)

Operating profit*° NAV** Permanent employees Operating profit*° NAV** Permanent employees Operating profit*° NAV** Permanent employees As a % of group As a % of group As a % of group 1.7% 3.3% 18.2% 17.4% 17.0% 26.7% 64.4% 65.4% 95.0% Our operational footprint Our operational Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review £45.5bn Total funds under Total management Total core loans^^ core Total Non-discretionary Non-discretionary and other funds under management £18.1bn £18.8bn Operating profit* (ongoing) of Specialist Banking (ongoing) of Specialist Operating profit* 4.3% to £409.2 million increased Operating profit* (statutory) of Specialist Banking (statutory) of Specialist Operating profit* 8.6% to £330.9 million increased Operating profit* of Wealth & Investment Wealth & Investment of Operating profit* 8.8% to £85.7 million increased £75.7bn funds under Total management Operating profit* of Asset Management Operating profit* 9.5% to £134.8 million decreased £24.0bn £26.7bn Total deposit Total book Discretionary and Discretionary annuity funds under management

How did the operating support environment performance? During the period, we experienced a and volatile operating environment difficult of operation which, all areas across of the Pounds together with the strength against the Rand, negatively affected the optimism that Further, overall results. with characterised the start of the year, buoyant equity markets, was lived and it turned out to be a challenging year as a whole for financial markets. continued but at The global recovery a temperate pace and the elevated risks dampened the outlook. Advanced economies experienced low productivity the global and the legacies from growth financial crisis continue to hinder recovery with weak demand and low potential The US economy continued to see growth. advances up 6.3% to £17.5 billion advances up 6.3% to £17.5 billion (2015: £16.5 billion) and customer deposits up 6.3% to £24.0 billion (2015: £22.6 billion). in total ongoing This supported growth impairment operating income before losses of 2.5% to £1 935 million (2015: £1 887 million with the percentage income stable at 71.8% of of recurring total operating income (2015: 71.9%). Impairments continued their downward and ongoing operating costs were trend with the cost to income well controlled to 65.8% (2015: 66.5%) ratio improving in headcount and despite the increase expense to support business infrastructure of our businesses. growth the future

resulted in a loss before taxation on the taxation on the in a loss before resulted legacy business of £78.3 million (2015: £107.7 million). a sound The ongoing business delivered up 0.6% performance with operating profit to £583.9 million (2015: £580.7 million). on a currency This is a 9.9% increase neutral basis. The geographical and operational diversity of our business model continued to support the sound balance of earnings businesses light capital between generated and capital intensive businesses. There in key earnings’ was continued growth party assets under drivers with third management down 2.0% to £121.7 billion (2015: £124.1 billion) but up 3.8% on a neutral basis. The key banking currency earnings’ drivers also enjoyed positive loans and with ongoing core growth from £695 million to £583 million through £695 million to £583 million through from This and write-offs. redemptions Can you give us an overview of the group’s performance for the financial year? in achieved an increase The group of 2.5% to statutory operating profit £505.6 million (2015: £493.2 million), (2015: 2.0 times). The total legacy portfolio reduced The group delivered a a delivered The group despite sound performance global the challenging This reinforces environment. building our strategy of a diversified and growing business model neutral on a currency a 13.5% increase 4.8% basis. Adjusted EPS increased 39.4 pence to 41.3 pence, a 15.7% from neutral basis. on a currency increase increased Distributions to shareholders to 21 pence (2015: 20 pence) resulting in a dividend cover of 2.0 times Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Operational and strategic report report and strategic and strategic Operational Operational ONE 22 Performance was supported by reasonable levels of activity and solid We enhanced net inflows. by our client offering deepening our core franchise and growing our client base. we made Internally, on a number progress particularly of fronts, to bringing with regards in the next generation of leadership to position for success the group into the future.

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 23 ONE (continued) (continued) SPECIALIST BANKING SPECIALIST BANKING The ongoing business of Specialist 4.3% to operating profit Banking increased £409.2 million (2015: £392.3 million). The South African business reported in Rands up 12.7% operating profit in the loan book growth driven by strong corporate and private banking businesses. Good client activity supported the strong positive business momentum. The unlisted investment portfolio also performed well continue to benefit during the period. We the collaboration between the from & Investment Private Bank and Wealth businesses, with international recognition the Financial Times from as the Best Manager in South Private Bank and Wealth have year running. We Africa for the third with our digitisation made good progress strategy which focuses on ensuring that a client experience that is ‘Out we create ‘high tech’ and ‘high of the Ordinary’, touch’. This is part of our strategy to with our relationships deepen our strong them a broad client base, and offer core spectrum of services and products. It was particularly pleasing to see the hard of the past few years come through efforts the ongoing performance from in a strong UK and Other business which was up The operating profit for the South African African for the South The operating profit in Rands as we business was up 19.2% leverage off continued to successfully platform global investment the division’s integrated private client and the group’s out of In South Africa, the roll offering. investment platform, the self-directed to all our private Online Portfolio Manager, was completed clients in South Africa on partnered We and is gaining traction. Africa with an exclusive basis in South private equity to offer The Carlyle Group, to our high net worth private clients to enhance and diversify their offshore we identified an assets. Furthermore, opportunity to help our clients with and launched strategic philanthropy Services. Investec Philanthropy Our primary purpose is to service our focused on clients and, hence, we remain our strategy to invest for the long-term continue sustainability of the business. We to internationalise the investment offering and leverage our international capabilities the particularly in jurisdictions where has an established already group also continue to invest business. We and management in our online offering confident in our strategy to invest remain success of the wealth for the future management business.

Operational and strategic report report and strategic and strategic Operational Operational Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review WEALTH & INVESTMENT & INVESTMENT WEALTH & Investment experienced a Wealth solid overall performance with operating 8.8% to £85.7 million increasing profit (2015: £78.8 million). This performance was supported by higher average funds under management and solid funds net inflows of £2.1 billion. Total down slightly under management were to £45.5 billion (2015: £46.1 billion) due to negative sentiment in the UK equity markets and the weaker Rand. business performed The UK and European up 11.0%, well, with operating profit positive net organic benefiting from and investment gains. Our drive to growth enhance the digital aspects of our offering as we focused a key feature remained on the substantial task of building our digital channel (Investec Click & Invest). investment a discretionary This will provide management service based on simplified advice and is expected to be launched the end of 2016. towards (2015: £149.0 million) as earnings impacted by market declines and were weaknesses, emerging market currency particularly the Rand. The business solid net inflows of benefited from ratio of 4.1%. £3.2 billion with a torque under management amounted Total funds to £75.7 billion (2015: £77.5 billion). Operating margin was slightly down with both operating income and operating costs declining although investment in new initiatives continued. strategically The business remains exposed to emerging markets and cautious on the outlook management are for financial asset prices. Increased requiring initiatives globally are regulatory attention and investment. Nevertheless, clear are momentum is positive and there and strategic priorities in place to capture confident and we are manage growth of the business. about the long-term future There was a consistent contribution from from was a consistent contribution There the period all business activities during with Asset Management under review a & Investment contributing and Wealth profit operating combined 38% to group on an ongoing basis. ASSET MANAGEMENT in Asset Management Operating profit declined by 9.5% to £134.8 million How did the three core core How did the three of activity perform areas basis? on an ongoing growth, driven by household consumption, driven by household consumption, growth, low record but after seven years of rates, the Federal Reserve interest in December began tightening policy of policy easing, 2015. Following a year Central Bank provided the European stimulus, driven even further monetary deflationary by weak inflation and rising its third recorded area risks and the Euro consecutive year of expansion. the economy, Despite the sluggish global its path of recovery UK economy continued with quarter one 2016 seeing its thirteenth consecutive quarter of expansion driven largely by household consumption and investment. Inflation has been subdued but back to the 2% target is expected to trend over the medium term. As the financial year ended, the biggest point of uncertainty is membership on EU referendum the UK’s the primary risk to the which represents is UK outlook. By the time this report published, the vote will be over which should hopefully bring some certainty to the market. Emerging market and developing slow trade economies endured declining investment levels growth, depreciation. and continuing currency inflationary pressures This affected tight and further exacerbated already financial conditions. of the cannot underrate the difficulty We South African economic and political during 2015. The slump in environment the cycle intensified and the of key trading partners, slower growth like China, dampened economic growth. The country also experienced the in 25 years which drought most severe through added inflationary pressures fiscal rising food prices and increased The financial market upheaval pressures. in mid-December 2015, known as ‘Nenegate’, significantly weakened the and equity markets. domestic currency in fears that the credit This resulted rating agencies would downgrade the to non- credit-worthiness country’s investment grade although fortunately this did not materialise. The positive commitment outcome was a greater between government and business to closely together to ensure work more and a more structural improvements social of upward rapid progression In addition, it is encouraging mobility. a strong that South Africa has retained an independent financial sector, and a disciplined national treasury most it from central bank differentiating developing economies. Customer and market conduct committees conduct committees Customer and market and the established in South Africa were of ensuring that UK, with the objective and Investec maintains a client-focused Financial fair outcomes-based culture. high priorities also remain and cybercrime continually strengthening and we are to meet our systems and controls regulatory obligations. enhance its stress Investec continued to a number testing framework to incorporate the scenarios such as of new stress events that unfolded in South Africa in December 2015 (Nenegate), a sovereign rating downgrade of South Africa to below Despite investment grade, and ‘Brexit’. pleased to these looming risks, we were rating upgrades a number of credit receive of the progress a reflection which are made in simplifying and derisking our business, maintaining sound capital and high liquidity ratios, and managing credit risk metrics at tolerable levels. What have been the key of focus for the areas of directors? board a Succession planning has remained and the of focus for the board key area Investec has always leadership. group’s talent from maintained a policy of growing s within, and the majority of the group’ leaders have an extensive history with the valued for their institutional and are group knowledge and expertise. At our interim in November 2015, we announced results of certain operating the restructure The changes included the responsibilities. appointment of Ciaran Whelan and David as joint global heads of the van der Walt Specialist Bank, and the appointment of as chief executive Wainwright Richard of Investec Bank Limited in South officer Africa. The changes implemented have positioned Investec for sustained growth with an enhanced operational focus. experience that diversity, In recognition of vital to the effectiveness and gender are the nominations and directors’ the board, committee (NOMDAC) continued affairs refreshment to implement its structured which was started in 2014. programme It has been challenging for this committee new and diverse perspectives to ensure while retaining onto the board, brought are the knowledge and experience necessary During the for the success of the group. both Haruko Fukuda course of the year, and Bradley Fried stepped down from thank them both for their We the board. they valuable contributions and the role

culture and is reviewed at least annually at least annually and is reviewed culture budget on the business strategy, to reflect and economic and the regulatory process operates. in which the group environment the environment, Despite the challenging risk was able to maintain sound group remaining the year, metrics throughout risk appetite limits/ within the majority of its disciplines. the various risk targets across steadily loan book has grown Our core reflecting currencies, over the year in home Africa, and of 19.7% in South an increase in our books 10.5% in the UK. Growth our business has been diversified across lines, with loan to values at conservative in line with the levels and margins broadly prior year. to a select target are exposures Our credit market comprising high income and high net worth individuals, established corporates, and medium sized enterprises. These target clients have remained and have active during the financial year, seeking out displayed a level of resilience, opportunities, despite the market volatility. well diversified. loan book remains Our core the shift in asset classes on our This reflects and balance sheet as we have realigned our portfolios in line with our rebalanced increased risk appetite framework. We have private client and corporate and other lending collateralised lending and reduced of our book. as a proportion by property The legacy portfolio in the UK has been actively managed down and we expect the legacy portfolio to take a further remaining two to four years to wind down. continue to maintain healthy We capital and leverage ratios and have a have always We liquidity profile. robust held capital in excess of regulatory and all our banking requirements internal targets subsidiaries meet current did not meet We for total capital adequacy. our internal target for our common equity tier 1 ratio to be in excess of 10%, in credit of solid growth as a result risk-weighted assets during the year. and we are Capital continued to grow is in line growth comfortable that credit with our risk appetite framework supported by sound risk metrics. The strategy in the UK to normalise balance sheet liquidity levels, following the strategic sales in financial the last quarter of the previous was achieved by mid-year through year, and a combination of asset growth liability management. continue to spend much time and We focusing on operational, reputational, effort risks. and resolution conduct, recovery Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Operational and strategic report and strategic Operational (continued) ONE 24 A strong and vigorous risk culture is is risk culture and vigorous A strong essential for success in the current highly complex operating environment. risk management processes Our robust foundation a strong and systems provide to manage and mitigate risks. Our risk tolerance framework combines all the important elements of our risk conscious Can you give us a summary of the year a risk from in review perspective? 20.9%. The business benefited from high high from 20.9%. The business benefited solid performance levels of activity and a Although M&A activity all areas. across were basis, we was down on a relative the mid-cap market ranked number one in done, and number for the number of deals a number also received four by value. We our performance recognising of awards asset products, structured in the forex, lending businesses. finance and corporate continued The Private Banking division in building its franchise to make progress have and developing its client base. We our focus to include high narrowed net worth and high income earners general focus on rather than a more our direct We strengthened professionals. and intermediary business channels, which levels of new mortgage in record resulted originations and acquisition of high net worth private clients. The structured finance business continued to property support selected high net worth seasoned investors. property we continue with our Looking forward, existing strategy in the UK of building and developing our client franchises while ensuring continued high levels of service to We will our offering. existing clients across continue investing in the infrastructure our technology and to ensure required matches the high standards digital offering targeting. of service we are In Southern Africa, our strategic focus is a diversified to build sustainability through continue to portfolio of businesses. We the transactional banking, organically grow and private capital businesses property in streams and diversify our revenue the corporate and institutional market. structural challenges Despite the current corporate in the South African economy, opportunities. activity continues to present financial sector and have a strong We which continue an active private sector, to support momentum in the specialist banking businesses.

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 25 ONE Bernard Kantor Managing director (continued) (continued) What is your strategic What is your strategic for the focus and outlook coming year? well businesses and are have strong We Our growth. positioned for sustained us with provides unique client profile the best and most opportunities to deliver is supported by a integrated solution which developing and continually comprehensive have domestically We digital offering. businesses in our key geographies relevant also internationally that are networked. The balance between our client franchise and our specialist niches enables offering us to switch between markets and take advantage of opportunities as they arise. that Investec has a distinctive culture naturally attracts diverse talent and allows have built up a innovation to thrive. We depth of leadership who have a strong Their history of working in the group. diligently management teams are strong while maintaining a strong driving growth client and operational focus. the At the time of writing this report, volatile due remains environment macro to uncertainty in global markets and the in pending EU membership referendum the UK. Political and social challenges with the fear of in South Africa remain, rating downgrades continuing to credit levels of weigh on sentiment. Current nevertheless, supporting group activity are, committed performance and we remain value and shareholder to providing exceptional client experience. Stephen Koseff Chief executive officer Operational and strategic report and strategic Operational Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review particularly in renewable energy. During the During the energy. particularly in renewable of £844 million year we arranged funding and we are energy sector in the renewable a clean energy of creating in the process to launch by the fund which we expect end of 2016. corporate An integral part of our for is how we care responsibility have a strong our communities. We of activities in South programme education and Africa which focus on as the most effective entrepreneurship opportunities for ways of creating employment and supporting long-term Our flagship ProMaths economic growth. has been running for 11 years programme across and we now support eight centres to In the UK, we continue the country. for our contribution to recognition receive a finalist in the Business were We society. 2016 for our partnership Charity Awards by Bow Beyond Business with Bromley incubator which launched 60 new social 330 new enterprise businesses, creating also shortlisted in the Lord are jobs. We the same for Dragon Awards Mayor’s in the enterprise and employment project Something that is particularly category. for us to see is how staff rewarding every year across volunteerism increases Not only have the of the group. all regions increased projects number of staff-initiated that give of but also the number of staff the their time, money or goods to improve them. lives of those less fortunate around of Investec plc and Investec Limited On behalf of the boards Fani Titi Chairman before to operating profit in the text above relates to ‘operating profit’ (References intangibles, non-operating items and after other non- taxation, goodwill, acquired interests.) controlling an overview of our strategic position, performance provides The operating financial review during the financial year and outlook for the business. We have had a number of non-financial have had a number of non-financial We Our successes over the past year. to society starts with the responsibility Investec family and during the year we invested £14.7 million on the learning and development of our people. Our staff crucial in delivering on our promise remain exceptional client experiences to provide and hence we continue to focus on and developing talent. attracting, retaining as Investec was recognised In this regard, most attractive employer in South the third Africa in the Universum Most Attractive Employer Awards. continue to be Our sustainability efforts with Investec Limited now recognised industry leaders ranked as one of three on the DJSI Emerging Markets index, and Investec plc one of 12 industry leaders and DJSI Europe on the DJSI World indices. Investec Limited was also one of the five companies in South Africa, to make the and 113 companies globally, 2015 Climate Project’s Carbon Disclosure to mitigate efforts A List which recognises climate change. for our recognition also received We in the UK with the efforts environmental winning head office Street Gresham for our waste our ninth platinum award management in the City of London Scheme. Clean City Awards Corporation’s In South Africa we continue to build and to manage the enhance our infrastructure active electricity supply crisis and remain participants in finding industry solutions, How do you balance with driving profits corporate responsibility? played to ensure the effective steering and steering and the effective played to ensure supervision of the group. that effective recognises The board in building communication is integral continues to stakeholder value and of stakeholders dialogue with a variety course of basis. During the on a regular of the board’s 2015, the primary focus was the revised stakeholder consultations put to executive incentive arrangements general at the 2015 annual shareholders an opportunity meeting. This provided to discuss governance broadly more the and, specifically, with shareholders remuneration, composition of the board, between pay relation and the appropriate and performance. 1.85 1.28 1.62 17.82 Average 1.95 1.38 1.49 17.97 31 March 2015 31 March Year end Year 2.04 1.50 1.37 20.72 The results of the businesses sold as of the businesses sold as The results mentioned above legacy business in the The remaining UK (as set out on page 65). Average Average Impact of these sales on our on our Impact of these sales operational performance have had The sales of these businesses of on the comparability a significant effect position and results. our financial statutory comparison on a statutory As a result, with results basis of the 2016 year-end be less would results the 2015 year-end meaningful. meaningful a more to present In order additional view of our performance, on is presented management information our ongoing businesses. The additional on an ongoing basis information presented excludes items that, in management’s could distort the comparison of view, performance between periods. Based on this principle, the following items are to underlying statutory profit excluded from derive ongoing operating profit: • • is consistent This basis of presentation adopted for the year with the approach 2015. ended 31 March between the statutory and A reconciliation on ongoing income statement is provided page 59. 1.87 1.26 1.44 21.13 31 March 2016 31 March Year end end Year On 9 September 2014 we announced we announced On 9 September 2014 the sale of our UK intermediated Group plc mortgage business Kensington with certain (Kensington) together assets to other Investec mortgage Tactical funds managed by Blackstone L.L.C. and Opportunities Advisors Partners for TPG Special Situations on a tangible £180 million in cash based of £165 of the business This transaction million at 31 March 2014. on 30 January 2015. became effective On 15 September 2014 we announced the sale of our Irish intermediated mortgage business Start Mortgage Holdings Limited (Start) together with certain other Irish of Lone Star mortgage assets to an affiliate Funds. This transaction became effective on 4 December 2014. of in the derecognition This resulted £4.1 billion of assets and approximately £2 billion of external liabilities approximately associated with these businesses sold. As part of the sale of Kensington, a final net settlement amount was paid after the of 2015 year end. As a result 31 March tax of this payment, a further loss before during the £4.8 million was recognised period. current Sales of Kensington Group plc and plc and Group Sales of Kensington Limited Start Mortgage Holdings Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial ONE South African Rand South African Rand Australian Dollar Euro Currency per £1.00 per £1.00 Currency US Dollar the The most significant impact arises from and Pounds Sterling have fluctuated over the year. Exchange rates between local currencies by 16.3% and the closing rate depreciated volatility of the Rand. The average Rand: Pounds Sterling exchange rate over the year has 2015. by 17.6% since 31 March has depreciated 26 The following table sets out the movements in certain relevant exchange rates against Pounds Sterling over the year. exchange rates against Pounds Sterling The following table sets out the movements in certain relevant Our reporting currency is Pounds Sterling. Certain of our operations are conducted by entities outside the UK. The results of operations operations of conducted by entities outside the UK. The results is Pounds Sterling. Certain of our operations are currency Our reporting domiciled, are of the countries in which they in the local currencies reported and the financial position of our individual companies are then translated into Pounds Sterling at are and US Dollars. These results including South African Rands, Australian Dollars, Euros of the income In the case exchange rates for inclusion in our combined consolidated financial results. currency the applicable foreign closing rate sheet, the relevant period is applied and, in the case of the balance statement, the weighted average rate for the relevant is used. Exchange rates The sale of Investec Bank (Australia) The sale of Investec Bank (Australia) Finance and Asset Professional Limited’s Finance and Leasing businesses and its deposit book to Bank of Queensland 31 July 2014 for Limited was effective of £122 million. This cash proceeds of in the derecognition resulted £1.7 billion of assets and approximately £1.7 billion of liabilities approximately associated with the businesses sold. We in Australia, continue to have a presence activities of focusing on our core Specialised Finance, Corporate Advisory, Fund Management and Asset Property business Management. The remaining operates as a non-banking subsidiary of we no As a result, the Investec group. the activities of our Australian longer report activities with these businesses separately, under the ‘UK and Other’ reported geographical segment and the ‘UK and Other’ Specialist Banking segment. Sale of Investec Bank (Australia) Sale of Investec Bank (Australia) Limited During the 2015 financial year the group year the group During the 2015 financial namely, sold a number of businesses Limited, Investec Bank (Australia) Mortgage plc and Start Kensington Group below. Holdings Limited as set out SALE OF BUSINESSES Introduction – Introduction our understanding results

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 27 % % % % n/a 1.6% 1.3% 4.4% 3.8% 13.6% 66.3% 16.8% 15.7% 75.4% 12.9% 15.9% 20.6% 16.6% 19.0% 13.5% 92.3% 12.3% 22.8% 12.3% 21.7% 20.2% 23.9% 24.4% 29.6% 30.7% 25.0% 15.3% Neutral change change change change Neutral ONE currency currency > 100.0% At At n/a 2015 2015 704c 387c 640c 362c £560 £409 £397 2016 6 559c 5 538c R8 817 R3 970 Year to Year R6 076 45.6p 42.8p 2016 R72 625 Year to to Year Neutral £4 217 370.6p 312.1p 31 March 31 March R797 218 R308 957 R179 242 R406 485 Neutral £50 066 £19 929 £12 033 £26 369 currency^ 31 March 31 March R2 230 197 (continued) (continued) £128 791 currency^^ 31 March 31 March Results in Rands At 2016 2016 857c 798c 796c 473c % % 7 444c 6 218c R7 635 Year to Year R7 459 2.5% 6.0% 4.8% 5.0% 2.3% 5.4% 6.3% R10 494 R81 543 (3.5%) (4.5%) (4.5%) (2.0%) 50.0% 57.8% 10.2% 31 March 31 March R958 221 R382 826 R232 290 R508 024 change change R2 571 141 reported reported Actual as Actual as Financial review Financial % % 2.5% 6.0% 4.8% 2.3% 5.4% 7.5% 5.0% 6.3% (3.5%) (4.5%) (4.5%) (2.0%) 50.0% 57.8% 10.2% At change change Results in Pounds Sterling Results in Pounds Sterling 2015 £493 £246 £340 2015 39.4p 24.4p 20.0p £4 040 £9 975 364.9p 308.1p Year to to Year £44 353 £17 189 £22 615 reported reported £124 106 Actual as Actual as 31 March 31 March 31 March At 2015 2015 £493 £246 £340 39.4p 24.4p 35.8p 20.0p £4 040 £9 975 364.9p 308.1p Year to Year £44 353 £17 189 £22 615 At £124 106 31 March 31 March 2016 £506 £368 £360 2016 41.3p 38.5p 21.0p £3 859 352.3p 294.3p Year to to Year £45 352 £18 119 £10 994 £24 044 reported reported £121 683 Actual as Actual as 31 March 31 March At Results in Pounds Sterling 2016 2016 £506 £368 £360 41.3p 38.5p 38.5p 21.0p £3 859 352.3p 294.3p Year to Year Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review £45 352 £18 119 £10 994 £24 044 £121 683 31 March 31 March Before goodwill, acquired intangibles, non-operating items and after other non-controlling interests. Before goodwill, acquired intangibles, non-operating items and after non-controlling interests. 17.82. i.e. applied in the prior year, For income statement items we have used the average Rand: Pounds Sterling exchange rate that was remained neutral since 31 March 2015. For balance sheet items we have assumed that the Rand: Pounds Sterling closing exchange rate has * ** ^ ^^ Operating profit before taxation* (million) before Operating profit (million) Earnings to shareholders attributable (million) Adjusted earnings attributable to shareholders** Adjusted earnings per share** Basic earnings per share Dividends per share Operating profit before taxation* (million) before Operating profit Net asset value per share Net asset value per share Net tangible asset value per share Earnings (million) attributable to shareholders Net tangible asset value per share Total equity (million) equity Total Total assets (million) assets Total Adjusted earnings attributable to shareholders** Adjusted earnings attributable to shareholders** (million) Total equity (million) Total Core loans and advances (million) Core Cash and near cash balances (million) Adjusted earnings** per share Total assets (million) Total Customer deposits (million) Third party (million) Third Basic earnings per share Core loans and advances (million) Core Headline earnings per share Cash and near cash balances (million) Dividends per share Customer deposits (million) Third party assets under management (million) Third The following tables provide an analysis of the impact of the Rand depreciation on our reported numbers. our reported on analysis of the impact of the Rand depreciation an The following tables provide The following table provides a comparison of the group’s results as reported in Pounds Sterling and the group’s results as translated into Rands. results in Pounds Sterling and the group’s as reported results a comparison of the group’s The following table provides ^ ^ 2.3 658 5.5x 53.3 52.3 54.7 50.4 23.0 92.3 2007 12.2x 2 665 1 820 1 542 216.0 178.6 563.8 609.3 4 009 5 430 14.20 13.38 89.1% 57.6% 42.4% 59.0% 40.9% 26.1% 31.7% 1.46% 29.2% 70.8% 58.7% 26.3% 38.4% 24.7% 14.8% 14.7% 10.4% 0.17% 0.92% 26 300 10 095 10 650 56 121 466 585 300 704 294 881 ^ 2.3 339 5.8x 56.9 49.7 57.7 54.0 25.0 84.4 2008 9.2% 13.8x 3 275 2 210 1 911 5 028 260.6 215.0 606.2 657.6 2 229 6 333 16.17 14.31 98.4% 66.7% 33.3% 56.1% 37.2% 23.6% 28.6% 1.31% 39.3% 60.7% 65.1% 22.6% 37.7% 15.3% 13.9% 10.0% 0.51% 1.29% 34 224 12 854 12 133 52 749 508 717 344 695 301 499 3.3 292 6.2x 42.4 41.2 38.5 36.1 13.0 62.6 2009 13.0x 308.8 266.3 634.6 713.2 2 083 5 951 13.58 14.83 3 762 2 621 2 297 4 866 1.08% 3.28% 74.0% 26.0% 55.9% 34.9% 14.8% 17.4% 1.36% 0.84% 46.6% 53.4% 70.0% 21.1% 43.4% 16.2% 10.1% 14.2% 10.8% 37 365 16 227 14 573 48 828 103.6% 396 766 269 215 261 627 2.8 539 5.4x 45.1 40.1 44.0 41.5 16.0 69.7 2010 12.5x 364.0 324.1 686.3 741.0 3 993 6 123 11.11 12.38 4 362 3 292 2 955 9 117 1.16% 3.98% 76.2% 67.2% 32.8% 57.8% 36.1% 13.5% 15.4% 1.33% 0.83% 37.0% 63.0% 60.4% 20.6% 38.4% 15.9% 11.3% 15.6% 12.0% 46 572 17 891 21 934 74 081 432 258 309 710 275 131 2.5 478 4.7x 43.2 37.7 49.7 46.7 17.0 64.4 2011 11.3x 416.0 343.8 759.8 810.0 3 872 7 237 10.88 11.16 5 249 3 961 3 648 9 319 1.27% 4.66% 72.4% 69.1% 30.9% 61.7% 40.7% 11.2% 13.2% 1.23% 0.76% 34.9% 65.1% 62.3% 15.5% 36.8% 16.8% 11.6% 15.9% 11.9% 50 941 18 758 24 441 88 878 434 406 327 897 286 659 1.9 382 4.5x 31.8 26.8 25.7 24.3 17.0 47.8 2012 7.8% 9.6% 9.3% 9.3% 11.3x 67.8x 392.0 317.0 809.6 874.0 3 340 7 781 12.27 11.85 5 505 4 013 3 716 1.12% 3.31% 80.7% 19.3% 64.7% 43.0% 0.91% 0.57% 36.2% 63.8% 67.7% 18.1% 35.4% 17.5% 11.6% 16.1% 11.6% 51 550 18 226 10 251 25 344 96 776 358 625 257 579 217 253 2.0 459 4.7x 36.1 31.0 31.7 29.8 18.0 53.5 2013 9.4% 8.8% 8.9% 11.6x 384.2 310.9 856.0 884.8 4 061 8 151 13.96 13.44 5 693 3 942 3 661 9 828 0.84% 2.73% 71.5% 67.5% 32.5% 65.7% 43.9% 11.7% 1.06% 0.67% 35.2% 64.8% 68.6% 18.4% 35.4% 16.7% 11.0% 15.5% 10.8% 52 010 18 415 24 461 426 278 309 310 265 227 110 678 2.0 485 4.3x 37.9 33.8 34.3 32.3 19.0 54.9 2014 8.8% 7.4% 9.4% 7.8% 10.3x 376.0 309.0 862.6 891.7 4 325 8 258 17.56 16.12 5 355 4 016 3 572 9 136 0.68% 2.30% 72.0% 66.0% 34.0% 67.6% 46.3% 10.0% 12.3% 1.14% 0.75% 33.6% 66.4% 70.7% 17.1% 36.4% 15.3% 10.5% 14.9% 11.0% 47 142 17 157 22 610 450 676 326 923 291 561 109 189 – 2.3% 5.4% 6.3% 8.6% 6.0% 8.4% 4.8% 7.5% 5.0% 0.9% 1.0% 2.5% (7.6%) (1.7%) (4.3%) (4.5%) (4.0%) (2.0%) (3.5%) (4.5%) (8.6%) 10.2% 17.6% 16.3% 57.8% 58.9% % change 2016 vs 2015 2.0 561 9.4x 4.3x 59.7 39.4 35.8 24.4 23.1 20.0 2015 7.7% 9.6% 8.1% 9 975 5 045 8 254 17.97 17.82 5 219 4 040 3 501 308.1 862.7 899.4 364.9 38.8% 16.7% 11.9% 10.2% 14.7% 11.3% 0.68% 2.07% 74.0% 67.6% 47.4% 10.6% 12.7% 1.25% 0.86% 32.4% 67.6% 74.2% 19.6% 70.8% 29.2% 44 353 17 189 22 615 339 532 308 770 124 106 493 157 2.0 513 4.7x 58.7 41.3 38.5 38.5 36.7 21.0 2016 9.7% 7.0% 9.6% 6.9% 10.2x 4 662 8 966 21.13 20.72 4 994 3 859 3 360 294.3 870.5 908.8 352.3 40.0% 15.1% 10.7% 14.0% 10.7% 0.62% 1.54% 73.6% 66.4% 47.0% 11.5% 13.7% 1.34% 0.93% 29.6% 70.4% 71.7% 19.1% 63.8% 36.2% 45 352 18 119 10 994 24 044 359 732 334 720 121 683 505 593 ø # ø ø # # # # # # # # # Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Refer to definitions on page 193. Calculation not comparable. expected Basel III ‘fully loaded’ numbers are provided on page 52. The group’s ONE For the year ended 31 March For the year ended 31 Closing ZAR:£ exchange rate ZAR:£ exchange rate Average Total number of shares in issue (million) number of shares Total price (pence) Closing share Market capitalisation (£’million) (including temps and contractors) Number of employees in the group Dividend cover (times) (pence) Net asset value per share (pence) Net tangible asset value per share in issue (million) shares number of ordinary Weighted Basic earnings per share (pence) Basic earnings per share (pence) Diluted earnings per share (pence) Dividends per share Loans and advances to customers: customer deposits and key statistics Salient financial features (pence) Adjusted earnings per share (pence) Headline earnings per share Defaults (net of impairments and before collateral) as a % of net core loans and advances collateral) as a % of net core Defaults (net of impairments and before to customers Gearing ratio (assets excluding assurance assets to total equity) loans to equity ratio Core Common equity tier 1 ratio: Investec Limited^^º ^^º Leverage ratio: Investec Limited – current core loss ratio (income statement impairment charge as a % of average gross Credit loans and advances) Common equity tier 1 ratio: Investec plc^^º ^^º Leverage ratio: Investec plc – current Capital adequacy ratio: Investec Limitedº Capital adequacy tier 1 ratio: Investec Limitedº Customer accounts (deposits) (£’million) party assets under management (£’million) Third Capital adequacy ratio: Investec plcº Capital adequacy tier 1 ratio: Investec plcº Total assets (£’million) assets Total loans and advances to customers (£’million) Net core assets loans and advances to customers as a % of total Core Cash and near cash balances (£’million) Balance sheet liabilities) (£’million) (including subordinated resources capital Total (£’million) interests) and non-controlling shares equity (including preference shareholders’ Total (£’million) interests) equity (excluding non-controlling Shareholders’ Non-interest income as a % of operating income Non-interest Recurring income as a % of total operating income operational tax rate Effective Return on average risk-weighted assets Return on average assets (excluding assurance assets) per employee (£’000) Operating profit income as a % of operating income Net interest Cost to income ratio income ratio compensation to operating Staff equity (post-tax) Return on average adjusted shareholders’ equity (post-tax) Return on average adjusted tangible shareholders’ Operating profit: UK and Other (% of total) UK and Other Operating profit: goodwill, acquired before shareholders Adjusted earnings attributable to ordinary items (£’000) intangibles and non-operating Headline earnings (£’000) Income statement and selected returns Income statement and non-operating items and taxation (£’000) intangibles, goodwill, acquired before Operating profit Southern Africa (% of total) Operating profit: 28 Ten-year review Ten-year SALIENT FEATURES* * ^ ^^

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE

29 ^ ^ 2.3 658 5.5x 53.3 52.3 54.7 50.4 23.0 92.3 ONE 2007 12.2x 216.0 178.6 563.8 609.3 4 009 5 430 14.20 13.38 2 665 1 820 1 542 26.1% 31.7% 1.46% 29.2% 70.8% 58.7% 26.3% 38.4% 24.7% 14.7% 10.4% 0.17% 0.92% 89.1% 57.6% 42.4% 59.0% 40.9% 14.8% 56 121 26 300 10 095 10 650 466 585 300 704 294 881 ^ 2.3 339 5.8x 56.9 49.7 57.7 54.0 25.0 84.4 2008 9.2% (continued) (continued) 13.8x 260.6 215.0 606.2 657.6 2 229 6 333 16.17 14.31 3 275 2 210 1 911 5 028 23.6% 28.6% 1.31% 39.3% 60.7% 65.1% 22.6% 37.7% 15.3% 13.9% 10.0% 0.51% 1.29% 98.4% 66.7% 33.3% 56.1% 37.2% 52 749 34 224 12 854 12 133 508 717 344 695 301 499 3.3 292 6.2x 42.4 41.2 38.5 36.1 13.0 62.6 2009 13.0x 308.8 266.3 634.6 713.2 2 083 5 951 13.58 14.83 3 762 2 621 2 297 4 866 14.8% 17.4% 1.36% 0.84% 46.6% 53.4% 70.0% 21.1% 43.4% 16.2% 10.1% 14.2% 10.8% 1.08% 3.28% 74.0% 26.0% 55.9% 34.9% 48 828 37 365 16 227 14 573 Financial review Financial 103.6% 396 766 269 215 261 627 2.8 539 5.4x 45.1 40.1 44.0 41.5 16.0 69.7 2010 12.5x 364.0 324.1 686.3 741.0 3 993 6 123 11.11 12.38 4 362 3 292 2 955 9 117 76.2% 13.5% 15.4% 1.33% 0.83% 37.0% 63.0% 60.4% 20.6% 38.4% 15.9% 11.3% 15.6% 12.0% 1.16% 3.98% 67.2% 32.8% 57.8% 36.1% 74 081 46 572 17 891 21 934 432 258 309 710 275 131 2.5 478 4.7x 43.2 37.7 49.7 46.7 17.0 64.4 2011 11.3x 416.0 343.8 759.8 810.0 3 872 7 237 10.88 11.16 5 249 3 961 3 648 9 319 72.4% 11.2% 13.2% 1.23% 0.76% 34.9% 65.1% 62.3% 15.5% 36.8% 16.8% 11.6% 15.9% 11.9% 1.27% 4.66% 69.1% 30.9% 61.7% 40.7% 88 878 50 941 18 758 24 441 434 406 327 897 286 659 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 1.9 382 4.5x 17.0 31.8 26.8 25.7 24.3 47.8 2012 9.3% 7.8% 9.6% 9.3% 67.8x 11.3x 3 340 7 781 12.27 11.85 392.0 317.0 809.6 874.0 5 505 4 013 3 716 18.1% 35.4% 17.5% 11.6% 16.1% 11.6% 1.12% 3.31% 0.91% 0.57% 36.2% 63.8% 67.7% 80.7% 19.3% 64.7% 43.0% 10 251 96 776 51 550 18 226 25 344 358 625 257 579 217 253 2.0 459 4.7x 18.0 36.1 31.0 31.7 29.8 53.5 2013 8.9% 9.4% 8.8% 11.6x 4 061 8 151 13.96 13.44 384.2 310.9 856.0 884.8 9 828 5 693 3 942 3 661 71.5% 18.4% 35.4% 16.7% 11.0% 15.5% 10.8% 0.84% 2.73% 11.7% 1.06% 0.67% 35.2% 64.8% 68.6% 67.5% 32.5% 65.7% 43.9% 52 010 18 415 24 461 110 678 426 278 309 310 265 227 2.0 485 4.3x 19.0 37.9 33.8 34.3 32.3 54.9 2014 9.4% 7.8% 8.8% 7.4% 10.3x 4 325 8 258 17.56 16.12 376.0 309.0 862.6 891.7 9 136 5 355 4 016 3 572 72.0% 14.9% 11.0% 0.68% 2.30% 36.4% 15.3% 10.5% 17.1% 10.0% 12.3% 1.14% 0.75% 33.6% 66.4% 70.7% 66.0% 34.0% 67.6% 46.3% 22 610 47 142 17 157 109 189 450 676 326 923 291 561 For comparative purposes historical information has been adjusted for the 5:1 share split that took place on 4 September 2006. For comparative purposes historical information has been adjusted for the 5:1 share split that took place interests. Information prior to 2008 is shown before non-controlling interests and thereafter post other non-controlling and Investec plc has been reporting in terms of Basel III since 31 March 2014. Capital adequacy figures prior to 2008 are disclosed under Basel I. Investec Limited’s numbers have been reported in terms of Basel III since 31 March 2013, numbers Capital adequacy figures prior to 2008 are disclosed under Basel I. Investec Limited’s

# ø º – 4.8% 7.5% 5.0% 0.9% 1.0% 8.6% 2.5% 6.0% 8.4% 2.3% 5.4% 6.3% (3.5%) (4.5%) (8.6%) (7.6%) (1.7%) (2.0%) (4.3%) (4.5%) (4.0%) 57.8% 58.9% 17.6% 16.3% 10.2% % change 2016 vs 2015 2.0 561 9.4x 4.3x 39.4 35.8 24.4 23.1 20.0 59.7 2015 7.7% 9.6% 8.1% 364.9 308.1 862.7 899.4 5 045 8 254 17.97 17.82 9 975 5 219 4 040 3 501 0.68% 2.07% 74.0% 70.8% 29.2% 10.2% 67.6% 47.4% 10.6% 12.7% 1.25% 0.86% 32.4% 67.6% 74.2% 19.6% 38.8% 16.7% 11.9% 14.7% 11.3% 44 353 17 189 22 615 493 157 339 532 308 770 124 106 2.0 513 4.7x 41.3 38.5 38.5 36.7 21.0 58.7 2016 9.7% 7.0% 9.6% 6.9% 10.2x 352.3 294.3 870.5 908.8 4 662 8 966 21.13 20.72 4 994 3 859 3 360 0.62% 1.54% 73.6% 63.8% 36.2% 66.4% 47.0% 11.5% 13.7% 1.34% 0.93% 29.6% 70.4% 71.7% 19.1% 40.0% 15.1% 10.7% 14.0% 10.7% 45 352 18 119 10 994 24 044 359 732 334 720 505 593 121 683 ø # ø ø # # # # # # # # # Refer to definitions on page 193. Calculation not comparable. expected Basel III ‘fully loaded’ numbers are provided on page 52. The group’s Credit loss ratio (income statement impairment charge as a % of average gross core core loss ratio (income statement impairment charge as a % of average gross Credit loans and advances) loans and advances collateral) as a % of net core Defaults (net of impairments and before to customers Gearing ratio (assets excluding assurance assets to total equity) loans to equity ratio Core Loans and advances to customers: customer deposits and key statistics Salient financial features (pence) Adjusted earnings per share (pence) Headline earnings per share (pence) Basic earnings per share (pence) Diluted earnings per share (pence) Dividends per share Dividend cover (times) (pence) Net asset value per share (pence) Net tangible asset value per share in issue (million) shares number of ordinary Weighted in issue (million) number of shares Total price (pence) Closing share Market capitalisation (£’million) (including temps and contractors) Number of employees in the group Closing ZAR:£ exchange rate ZAR:£ exchange rate Average For the year ended 31 March For the year ended 31 selected returns Income statement and non-operating items and taxation (£’000) intangibles, goodwill, acquired before Operating profit Southern Africa (% of total) Operating profit: (% of total) UK and Other Operating profit: goodwill, acquired before shareholders Adjusted earnings attributable to ordinary items (£’000) intangibles and non-operating Headline earnings (£’000) Cost to income ratio income ratio compensation to operating Staff equity (post-tax) Return on average adjusted shareholders’ equity (post-tax) Return on average adjusted tangible shareholders’ Return on average risk-weighted assets Return on average assets (excluding assurance assets) per employee (£’000) Operating profit income as a % of operating income Net interest income as a % of operating income Non-interest Recurring income as a % of total operating income operational tax rate Effective Balance sheet liabilities) (£’million) (including subordinated resources capital Total (£’million) interests) and non-controlling shares equity (including preference shareholders’ Total (£’million) interests) equity (excluding non-controlling Shareholders’ (£’million) assets Total loans and advances to customers (£’million) Net core assets loans and advances to customers as a % of total Core Cash and near cash balances (£’million) Customer accounts (deposits) (£’million) party assets under management (£’million) Third Capital adequacy ratio: Investec plcº Capital adequacy tier 1 ratio: Investec plcº Common equity tier 1 ratio: Investec plc^^º ^^º Leverage ratio: Investec plc – current Capital adequacy ratio: Investec Limitedº Capital adequacy tier 1 ratio: Investec Limitedº Common equity tier 1 ratio: Investec Limited^^º ^^º Leverage ratio: Investec Limited – current * ^ ^^ Ten-year review Ten-year SALIENT FEATURES* 121.7 359.7 16 16 15 15 14 14 13 13 12 12 11 11 10 10 09 09 08 08 07 07 Up 6.0% to £359.7 million Down 2.0% to £121.7 billion since 31 March 2015 – Down 2.0% to £121.7 billion since 31 March neutral basis* of 3.8% on a currency an increase Net inflows of £5.3 billion 0 0 90 60 30 50 £’billion £’million 150 120 400 100 350 300 250 200 150 THIRD-PARTY ASSETS UNDER MANAGEMENT ADJUSTED EARNINGS ATTRIBUTABLE TO ORDINARY ATTRIBUTABLE TO ORDINARY ADJUSTED EARNINGS BEFORE GOODWILL, ACQUIRED SHAREHOLDERS NON-OPERATING ITEMS INTANGIBLES AND 24.0 18.1 41.3 16 16 15 15 14 14 13 13 12 12 11 11 Customer deposits 10 10 09 09 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review review Financial Financial (continued) 08 08 07 Core loans Core 07 Core loans: up 5.4% to £18.1 billion since Core of 15.9% on a currency – an increase 31 March 2015 neutral basis* Deposits: up 6.3% to £24.0 billion since 31 March 2015 neutral basis* of 16.6% on a currency – an increase Up 4.8% to 41.3 pence Currency neutral basis: calculation assumes that the closing exchange rates of the group’s relevant exchange rates, as reflected on page 26, remain the relevant exchange rates, as reflected on page 26, remain the Currency neutral basis: calculation assumes that the closing exchange rates of the group’s same at 31 March 2016 when compared to 31 March 2015. 5 0 0 ONE 15 25 10 20 30 60 50 40 30 20 10 £’billion pence 30 * CORE LOANS AND CUSTOMER DEPOSITS ADJUSTED EARNINGS PER SHARE ADJUSTED EARNINGS Track record Track

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 5 31 0 30 25 20 15 10 66.4 47.0 Percentage 16 ONE 16 3 859 Investec plc CAR*** 15 15 14 14 13 13 (continued) (continued) 12 12 COI target (below 65%) Investec Limited CAR*** 11 11 10 10 We intend to maintain a sufficient level of intend to maintain a sufficient We requirements, capital to satisfy regulatory as well as take advantage of opportunities that may arise in the our return industry focusing on increasing on equity in the medium to long term. a capital adequacy ratio range of We target between 14% and 17% on a consolidated basis for Investec plc and Investec Limited, and we target a minimum tier 1 ratio of 11.0% and a common equity tier 1 ratio above 10.0% We have set the following target over the have set the following target We medium to long term: in COI ratio: less than 65% Group Pounds Sterling COI 09 09 Financial review Financial Financial review Financial 08 08 SC 07 07 Total shareholders’ equity shareholders’ Total Target Target 0 0 80 70 60 50 40 30 20 10 Percentage ’000 5 000 4 000 3 000 2 000 1 000 £ TOTAL SHAREHOLDERS’ EQUITY AND CAPITAL ADEQUACY RATIOS (CAR) COST TO INCOME RATIO (COI) AND STAFF COST TO INCOME OPERATING INCOME RATIO (SC) COMPENSATION TO 21.0 41.3 11.5 16 16 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 15 15 14 14 13 13 12 12 11 11 10 10 DPS In the medium to long term, we aim to of 10% in achieve adjusted EPS growth excess of UK inflation (in Pounds Sterling). continually strive to build and maintain We intend a sustainable business model. We to maintain a dividend cover of between 1.7 to 3.5 times based on earnings per as defined above, denominated in share Pounds Sterling We have set the following target over the have set the following target We medium to long term: a rolling ROE: 12% to 16% over Group Sterling five-year period in Pounds 09 09 08 08 EPS 07 07 ROE is post-tax return on adjusted average shareholders’ equity as calculated on page 53. numbers have been reported in terms of Basel III since Capital adequacy figures prior to 2008 are disclosed under Basel I. Investec Limited’s 31 March 2013, and Investec plc has been reporting in terms of Basel III since 31 March 2014. 0 5 0 Target Target 60 50 40 30 20 10 15 25 10 20 30 pence Percentage *** Note: otherwise stated. The numbers shown in the financial targets graphs on this page are for the years ended 31 March, unless * ADJUSTED EARNINGS PER SHARE (EPS) AND DIVIDENDS PER SHARE (DPS) ROE* Financial targets trade volumes and world economic growth trade volumes and world economic growth have proved Foreigners slumped lower. portfolio assets net sellers of South Africa’s 2016 mid-December to end March from concerns, on domestic economic growth rating downgrades and fears of credit rates in expectations of higher interest rating the credit the US. In particular, South Africa’s reassessing agencies are in terms of its downward creditworthiness trajectory and rising economic growth government debt ratios. Indeed, the unsupportive global for a commodity exporter environment risks the South African economy stalling if not entering a technical this year, along with the global economic recession, slowdown. Besides the global headwinds, the domestic economy also faces constraints in terms of skills some real labour market shortages, a restrictive although meaningful and infrastructure, has begun on alleviating progress electricity supply constraints. South Bank ranking Africa has seen its World on the ease of doing business slip, but could see an structural improvements unemployment ability to reduce improved The and eliminate poverty. and inequality, advent of 2016 heralded a closer working between government relationship and business, which if successful will allow a social of upward rapid progression more in the earlier years of as occurred mobility, democracy. the country’s South Africa remains institutionally remains institutionally South Africa solid ratings from the World sound, with Global Competitiveness Economic Forum’s its auditing and as the strength of Survey, are ranked first, and reporting standards exchange the regulation of its securities (JSE) second, in the world Furthermore, South Africa is placed third South Africa is placed third Furthermore, of its corporate in terms of the efficacy and has incubated a large number boards, of companies to international with level, interests of minority shareholder protection banking South Africa’s globally. also third sector is ranked eighth with deep, liquid, sophisticated markets and consistent, sound budgetary policies which allow South Africa to be a key contributor in the global . The International latest Open Budget Budget Partnership’s among Index ranks South Africa third 88 countries, after only New Zealand and 2011 South Africa from Sweden. However, rating downgrades from has seen credit S&P on the deterioration in economic and some fiscal slippage as growth, the ratios deteriorated, although very conservative Budget was a more recently under the new Finance Minister, presented Pravin Gordhan. The financial market upheaval in mid- December 2015 impacted by the Finance of previous abrupt replacement Minister Nhlanhla Nene by temporary the Finance Minister van Rooyen drove JSE and bond yields domestic currency, to elevated risk-aversion levels. Despite of Pravin the appointment soon thereafter the to the Finance Minister role, Gordhan Rand went into the mid-January global debt, and equities market a historic reaching weakened, severely rout low of close to R17.00/USD, with the JSE to 45 493. The mid-January dropping fears of global on growing occurred rout as the commodity cycle, global recession 1.5% 2014/15 Economic growth 2015 R56 198 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Financial review Financial

GDP per has fallen 2015/16 Economic growth R56 169 1.3% 2016 South Africa faced another year in 2015, as the difficult slump in the commodity cycle intensified, along with the slower growth of key trading partners (notably China), while domestically the most in 25 years drought severe The commodity occurred. and manufacturing sectors saw an industrial sector and GDP recession, consequently growth slipped further to 1.3% last year on year from 1.5% year on year. year’s GDP per capita fell for the first time since the dropping 2009 recession, terms to R56 169 in real and gross R56 198 from national income per capita continued its declining began in 2013. which trend ONE OUR VIEWS South Africa An overview of the operating environment impacting our business of the operating environment An overview 32

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 33 ONE (continued) (continued)

Australian GDP continued Australian GDP continued at an annual to grow pace, slightly below trend at 2.5% in 2015 (2.6% over the financial year). OUR VIEWS Australia On a quarterly basis the year witnessed a of variation as swings in GDP were degree export volatility. driven by weather-related The Australian Dollar fell to its lowest reaching level since 2009 during the year, it continued as $0.68 versus the US Dollar, to movements in commodity to be correlated prices, which for much of 2015/16 witnessed significant falls. Despite the fall support in the Australian Dollar providing headwinds to the to the export sector, the decline primarily from economy remain, in commodity prices. Certainly the low is hurting commodity price environment estimates investment, with the latest official suggesting that 2015/16 capital expenditure in the mining sector may be 30% lower than in 2014/15. Rebalancing in the economy has continued Outside of the mining sector over the year. services have continued to see expansion, while household consumption has also albeit at below witnessed positive growth, levels. The labour market has also trend with the unemployment seen improvements rate falling to 5.7%, its lowest level since in trend July 2013. Meanwhile the upward years continued house prices seen in recent in 2015, with national prices rising over 9%. below Amidst headwinds to the economy, and subdued inflation the growth trend Reserve Bank of Australia cut the official low policy rate (Cash rate) to a new record of 2.00% in May 2015. Financial review Financial Financial review Financial Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review fall in energy prices since quarter four fall in energy prices since quarter four in the 2014, the other being the strength Pound Sterling over much of 2015. Given of these factors, the temporary nature back to the inflation should gradually trend target of 2% over the Bank of England’s medium term. on hold UK monetary policy remained the period, with the Bank rate throughout steady at 0.50%, marking the seventh rates. At the low interest year of record same time the level of outstanding asset was maintained at £375 billion. purchases of subdued nature Given the current inflation, as well as rising downside risks has been little to the global outlook there rates among appetite for raising interest the Monetary Policy Committee, with tightening dependent on the any future confidence that inflation is committee’s returning to target in the medium term. Activity in the housing market continued over the course of the year to recover with transactions and mortgage approvals rising to within 10% of their long-run averages, underpinned by easing credit conditions and households’ confidence in the outlook. Meanwhile, prices continued standing 4.8% higher upwards, to trend on year on year levels as the fundamental of a supply and demand backdrop imbalance supported prices. As the financial year closed the biggest point of uncertainty hanging over the on referendum economy was the UK’s EU membership, with the vote set to take place on 23 June 2016. Uncertainty over the vote outcome and the potential the ramifications of a leave vote represents primary risk to the UK outlook. The continued The continued also recovery has been evident in the labour the market where unemployment rate has fallen to 5.1%

2.8% Economic growth £28 132 2014/15 2015

GDP per capita has risen Economic growth 2016 £28 644 GDP now stands above its peak. pre-crisis 2.2% 2015/16 The fiscal year witnessed a continued The fiscal year witnessed a continued with the in the UK economy, recovery first quarter of 2016 seeing the thirteenth consecutive quarter of expansion. Once again, the last year has seen household consumption as the driving factor behind although investment also the recovery, contributed positively. now unemployed in 1.7 million people are the peak the UK, down one million from of 2.7 million seen in 2011. Employment although the year, has been firm through slowed the pace of employment growth somewhat over the second half of 2015. has been subdued, The inflation backdrop with headline CPI inflation falling into at -0.1%, troughing negative territory, the and averaging just +0.1% across two are fiscal year as a whole. There for the softness in the primary reasons one being the significant inflation readings, United Kingdom VIEWS OUR (continued) Given the tightening in labour market Given the tightening in labour market has begun to firm, conditions wage growth below historical trends. although it remains below the Federal Inflation has remained 2% goal over the year, Reserve’s of inflation with the targeted measure standing at just 0.8%. However, currently tentative signs that previous are there a strong from disinflationary pressures US Dollar over 2015 and falling energy beginning to fade. Meanwhile prices are domestic factors, including a strengthening of labour market point to a background inflationary pressures. A range of indicators thecontinued to show witnessinglabour market assustained strength growthnon-farm payrolls averaged US$233 000 a month over the last year and unemployment fell to 5.0% from 5.4% at the end of the last fiscal year Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued)

The US economy grew The US economy grew by 2.4% in the calendar year 2015, equalling the expansion seen in 2014. ONE Growth in the first quarter of 2016 had in the first quarter of 2016 had Growth been disappointing at an annualised rate the continued drag from of 0.5%, reflecting net trade, inventories and also business investment. In terms of the overall household consumption remains recovery, and driver of growth the predominant robust. relatively remains than seven years of record Following more rates, the Federal Reserve low interest began tightening policy in December 2015, range by raising the Federal Funds Target as the 0.25% to 0.25% – 0.50%. However, financial year closed, the Federal Reserve taking further action, from had refrained global citing potential downside risks from economic and financial developments. Further policy tightening over the forthcoming period will be very much driven by the evolution of the economy inflation. and, in particular, VIEWS OUR United States 34 An overview of the operating environment impacting our business impacting our business of the operating environment An overview

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 35 ONE (continued) (continued) Financial review Financial Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review The economic background has been one has been one The economic background area with the Euro of gradual growth, consecutive year of its third registering GDP expansion: calendar 2015 recorded of 1.5%. Household consumption growth has been positive, helped by improving confidence and the level of unemployment gradually coming down, although the latter elevated at 10.2%. Meanwhile remains investment has also returned to growth. has been encouraging over growth Credit households with lending to both the year, and corporates firming to multi-year highs, conditions. credit supported by improving a point of concern remained over Greece of capital as the introduction the year, bailout on a third a referendum controls, of the leftist party and the re-election Syriza in a coalition all contributed to a Ultimately a third period of uncertainty. (€86 billion) bailout package was agreed government between the Greek and its previous from In a departure creditors. crisis episodes, while local Greek Euro impacted, contagion to the markets were was limited, with of the Eurozone rest markets area yields in peripheral Euro was there Greece from contained. Away better news as Cyprus became the latest country to exit its assistance programme, Portugal and Spain which following Ireland, exited in prior years.

OUR VIEWS Eurozone Over the fiscal year, headline CPI inflation CPI inflation headline Over the fiscal year, averaged just +0.1%, a considerable target of ‘below, margin below the ECB’s but close to 2%’ as the collapse in wholesale energy prices weighed and the meant the inflation still gradual recovery subdued. outlook remained Having taken the historic step of a negative deposit rate in introducing June 2014, the ECB cut the key policy with the deposit rate ending rates further, the fiscal year at -0.40% and the main rate at 0.0%. Non-standard refinancing also expanded with were policy measures the size of its the central bank increasing to €80 billion programme asset purchase per month, which is now set to run until 2017. The ECB also expanded the March to universe of eligible assets for purchase in a significant corporate bonds, resulting corporate debt. rally in Euro-denominated secured a new four-year Additionally, was introduced, lending facility (TLTRO II) cheap funding to Eurozone providing banks. Following a year of Following a year of policy easing, 2015/16 witnessed the European Central Bank (ECB) going even further in providing monetary stimulus, driven by weak inflation and rising deflationary risks. (continued) Partly as a result of last year’s market market of last year’s Partly as a result gyrations, our view is that risks to the tilted global outlook have become more organisations, to the downside. Various Bank, such as the OECD, IMF and World is that But our view appear to concur. on a economic fundamentals remain footing – a view if unspectacular, steady, borne data, which have out by the ‘hard’ continued to point to sustained economic Consistent with, and in part growth. on broadly because of, the data remaining track, the last few weeks of the financial most of year saw equity markets recover their January and February losses. This pattern of declines (oil supply issues two major notwithstanding) reflects to global economic risks. The first relates issues came to a head last China, where of the Chinese August. A depreciation in equity markets a sell-off triggered Yuan about a worldwide as investors fretted after landing’. However, Chinese ‘hard a volatile few weeks, markets recovered as it turned out that global economic relatively to remain fundamentals appeared sound. deflationary The second risk, of a broader, global slowdown, particularly in the sharpened in January and area, Euro February 2016. The immediate trigger for in global markets was lurch a downward banking stocks. In in Eurozone a sell-off part, this could have been driven by fears negative about the impact of the ECB’s rate policy on banks’ profitability. interest a worry emerged that generally, More central banks and other policymakers are running out of scope to combat economic stagnation and deflation. Over and above these two global worries, of Finance Minister Nene in the removal South Africa in December 2015 caused and Banking indices to the JSE All Share fall by over 20% in a matter of days, with experienced over the month little recovery that followed, although the JSE All Share in line with the prior ended March 2016 level. year’s Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued)

ONE OUR VIEWS 36 Global stock markets An overview of the operating environment impacting our business impacting our business of the operating environment An overview But that early optimism turned into a challenging year as a whole for financial markets, with the price of risky assets in general, than when the year lower, began. After a surge in the middle of 2015, index in China was the Shanghai share 20% lower by financial year end. In the Stoxx 50 index slid the Euro Eurozone, declined FTSE All Share 19%. The UK’s 7%. In the US, the S&P 500 was more ending the year 0.4% lower. resilient, Commodity prices slid too, especially driven declines were the oil price, where continued bid to partly by Saudi Arabia’s by keeping output maintain market share high and prices low. Equity markets began Equity markets began the financial year in a buoyant mood, with the FTSE 100 breaking UK’s the significant through 7 000 point milestone to set a new high during April 2015. These gains the belief that reflected global economic growth was set to accelerate and and emerging Europe managing economies were their challenges.

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 37 2016 3 500 2 033 0.46% 1.81% 0.50% 0.59% 8.17% 6.45% 9.61% 6.43% 2.12% 18 844 17 306 51 705 2015 to ONE Average over the 31 March 31 March US$49/bbl US$983/oz year 1 April US$1 151/oz 0.1% 3.8% 1.8% (7.3%) (0.4%) (0.5%) (0.1%) (12.7%) (28.6%) (13.6%) (continued) (continued) % change Year 2015 2.8% 1.5% 3 664 2 068 0.42% 1.58% 0.50% 0.57% 7.80% 6.30% 9.25% 6.11% 1.93% ended 17 776 52 182 19 207 28 132 56 198 31 March US$56/bbl US$1 129/oz Financial review Financial US$1 188/oz

Year 2016 2.2% 1.3% 3 395 2 060 0.41% 1.42% 0.50% 0.59% 9.10% 6.92% 7.23% 1.79% ended 17 685 52 250 16 759 28 644 56 169 10.50% 31 March US$40/bbl US$976/oz US$1 233/oz Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Dow Jones Rates UK overnight Macro-economic UK GDP (% change over the period) Market indicators FTSE All share JSE All share S&P Nikkei UK 10 year UK clearing banks base rate month LIBOR – three SA R186 Rand overnight rate SA prime overdraft month JIBAR – three US 10 year Commodities Gold crude oil Brent Platinum Sources: Datastream, Bloomberg, Office for National Statistics, SARB Quarterly Bulletin. UK per capita GDP (£, calendar year) South Africa GDP (% change over the period) South Africa GDP (% change over the period) South Africa per capita GDP (real value in Rands, historical revised) value in Rands, historical revised) South Africa per capita GDP (real Operating environment Operating environment BE SHOULD THAT AN OVERVIEW BELOW PROVIDES OF SOME KEY STATISTICS THE TABLE PERFORMANCE REVIEWING OUR OPERATIONAL CONSIDERED WHEN Our net interest earnings and net Our net interest asset value may be adversely rate risk. by interest affected Retail conduct risk is the risk that we our customers unfairly and deliver treat outcomes. Wholesale inappropriate conduct risk is the risk of conducting in the market. ourselves inappropriately We may be exposed to investment We risk largely in our unlisted investment portfolio. We may be exposed to country We in sovereign risk i.e. the risk inherent and events in other exposure countries. Employee misconduct could cause to detect. harm that is difficult recruit, retain retain may be unable to recruit, We and motivate key personnel. Compliance, legal and regulatory Compliance, legal and regulatory risks may have an impact on our business. vulnerable to the failure may be vulnerable to the failure We of our of our systems and breaches security systems (including cyber and information security). Liquidity risk may impair our ability to fund our operations. environmental, social Unintended environmental, and economic risks could arise in our lending and investment activities. Market, business and general economic conditions and fluctuations could adversely affect our businesses in a number of ways. Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Operational risk (including financial may failure) crime and process in disrupt our business or result action. regulatory The financial services industry in which we operate is intensely competitive. Credit and counterparty risk Credit exposes us to losses caused by financial or other problems experienced by our clients. Market risk arising in our trading our operational book could affect performance. We may have insufficient capital may have insufficient We and may be unable to in the future additional financing when it secure is required. Reputational, strategic and business risk could impact our operational performance. ONE 38 An overview of the principal risks relating to our operations of the principal risks relating An overview on our management believe could have an impact and senior significant risks we face, which the board The most material and 2016 in Investec’s with further details provided summarised briefly below are viability and prospects operations, financial performance, of these principal risks. assessment various sub-committees, has performed a robust its through The board, integrated annual report. Regular provided. of these principal risks, see the references pertaining to the management and monitoring For additional information risk and capital committee (GRCC) at the group the board to senior management, the executives and of these risks is made reporting (BRCC). risk and capital committee and board even with sound appetite and recognises on page 80. The board risk appetite framework is provided approved board The group’s necessary to assess these It is however, control. completely outside of the board’s can happen that are events judgement that extreme carry It is policy to regularly the risk appetite framework if necessary. and how they may be mitigated by changing events and their impact that assess and plan what can be done and from but plausible events which in theory test extreme, testing scenarios out multiple stress may deem immaterial known to us or that we currently not presently outcome. Additional risks and uncertainties to mitigate the potential also negatively impact our business operations. in the future

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 39 3.7% 3.6% 0.1% (1.2%) (1.2%) (2.5%) (2.3%) (9.6%) (3.3%) (0.9%) (0.9%) (0.9%) 32.8% ONE > 100.0% % change % change % change 0.6% 5.4% 6.6% (0.6%) 61.7% 55.6% 42.4% 16.0% 32.4% 22.3% 57.6% 100.0% 100.0% 100.0% income income income (continued) (continued) % of total % of total % of total 2015 2015 2015 12 236 (13 424) 106 313 128 334 830 398 313 217 634 977 436 059 31 March 31 March 31 March 1 957 479 1 957 479 1 957 479 1 208 203 1 089 043 1 127 081 Financial review Financial 0.6% 0.6% 5.7% 8.8% 61.6% 54.7% 41.8% 16.7% 29.6% 58.2% 21.7% 100.0% 100.0% 100.0% income income income % of total % of total % of total 2016 2016 2016 12 090 11 377 110 227 170 408 811 122 324 500 573 769 421 615 31 March 31 March 31 March 1 939 496 1 939 496 1 939 496 1 193 381 1 061 625 1 128 374 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review

Further details on the key income drivers and significant variances in the various components of our operating income, income, in the various components of our operating key income drivers and significant variances Further details on the businesses on pages 67 to 73. be found in the description of our principal expenses and profit can   trading activities balance sheet management and other balance sheet management and other Total operating income before impairments income before operating Total Other operating income –  Trading income arising from income arising from Trading – customer flow Total operating income before impairments operating income before Total Investment income Total operating income before impairments income before operating Total Specialist Banking Net fee and commission income Southern Africa & Investment Wealth Net interest income Net interest UK and Other Asset Management £’000 £’000 £’000 The following table sets out information on total operating income before impairment losses on loans and advances by geography for the impairment losses on loans and advances by geography for the operating income before The following table sets out information on total year under review. The following table sets out information on total operating income before impairment losses on loans and advances by division for the and advances by division for the impairment losses on loans The following table sets out information on total operating income before year under review. Total operating income before impairment losses on loans and advances declined by 0.9% to £1 939.5 million (2015: £1 957.5 million). losses on loans and advances declined by impairment operating income before Total TOTAL OPERATING INCOME OPERATING TOTAL Statutory income statement analysis Statutory income income major category line items on the face of the for the variance in the will highlight the main reasons The overview that follows under review. statement during the year 7 541 (9.4%) (9.9%) (9.6%) 11.8% income Interest Interest 340 044 700 104 554 496 103 455 1 254 600 1 705 640 % change Total group Total 9 730 value sheet 774 (403) Balance 7 751 955 1 271 567 (61 579) (61 208) 12 575 269 18 118 815 10 366 860 31 975 381 Variance 7 541 29 445 income Interest Interest 292 563 826 999 550 044 276 955 1 156 548 2015 4 307 6 556 624 114 634 977 31 March 9 730 value sheet Southern Africa Net interest income Net fee and commission income Investment income Trading income arising from customer ow Trading income arising from balance sheet management and other trading activities Other operating income 573 692 Balance 6 952 692 6 856 533 3 458 680 10 315 213 17 851 327 – 2016 6.6% 5.4% 0.6% 3 904 7 330 32.4% 55.6% (0.6%) £1 957.5 million total operating income before impairments 31 March 2015 31 March 562 535 573 769 31 March 47 481 74 010 income Interest Interest 427 601 150 060 277 541 549 092 – value UK and Other sheet 697 875 Balance 3 510 327 4 293 275 5 622 577 7 803 602 14 124 054 1 2 3 Notes Trading income arising from customer ow Trading income arising from balance sheet management and other trading activities Other operating income Net interest income Net fee and commission income Investment income 8.8% 5.7% 0.6% 0.6% 29.6% 54.7% £1 939.5 million total operating income before impairments 31 March 2016 31 March Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Comprises (as per the balance sheet) cash and balances at central banks; loans and advances to banks; non-sovereign and non-bank cash placements; reverseComprises (as per the balance sheet) cash and balances at central banks; loans and advances to banks; non-sovereign securities. repurchase agreements and cash collateral on securities borrowed; sovereign debt securities; and bank debt to customers securitised. Comprises (as per the balance sheet) loans and advances to customers and own originated loans and advances are held at amortised cost in UK and Other. Comprises (as per the balance sheet) other securitised assets. In the current year no securitised assets ONE

Private client Private client Corporate, institutional and other clients Corporate, institutional and other clients For the year to 31 March 2016 For the year to 31 March £’000 2. 3. Notes: 1. Asset Management £’000 Wealth & Investment Wealth Specialist Banking income Net interest Cash, near cash and bank debt and sovereign Cash, near cash and bank debt and sovereign debt securities Core loans and advances loans and advances Core Other debt securities and other loans and Other debt securities and other loans and advances Other interest-earning assets Total interest-earning assets interest-earning assets Total % OF TOTAL OPERATING INCOME BEFORE IMPAIRMENTS % OF TOTAL OPERATING 40 A further analysis of interest received and interest paid is provided in the tables below. paid is provided and interest received A further analysis of interest Net interest income decreased by 9.6% to £573.8 million (2015: £635.0 million) largely due to a lower return earned by 9.6% to £573.8 million (2015: on the legacy income decreased Net interest Bank (Australia) Limited, Kensington UK and Start Irish operations; and the running down; the sales of Investec portfolios which are in margin earned and an increase on book growth by strong was partially offset of the Rand against Pounds Sterling. This depreciation higher activity levels. of loans, reflecting early redemption NET INTEREST INCOME

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 41 (93 388) (98 924) Interest Interest (15 494) (95 814) income Interest Interest Interest Interest 634 977 323 132 573 769 693 462 539 363 125 574 109 336 expense (860 535) (103 043) ONE expense (192 595) (827 968) 1 232 825 1 790 867 (1 155 890) (1 131 871) Total group Total Total group Total Total group Total value sheet value value sheet sheet 85 884 726 862 Balance 780 596 Balance Balance 4 902 608 1 178 299 5 668 800 1 134 883 7 120 196 1 202 203 29 422 637 30 933 848 22 614 868 24 044 281 12 093 678 17 188 910 10 068 714 31 265 387 (continued) (continued) 1.9% 1.9% 23 758 14 724 (51 519) (16 503) (43 162) Interest Interest (85 888) (15 494) (38 943) income Interest Interest Interest Interest 307 495 274 165 808 754 312 824 524 190 284 564 expense (702 722) (813 906) expense (703 399) (843 724) 1 121 401 value value value sheet sheet sheet Financial review Financial Southern Africa Southern Africa 85 884 Southern Africa 396 336 581 376 Balance 537 574 426 552 368 613 Balance Balance 2 905 400 3 184 183 6 214 823 6 726 853 3 400 940 12 316 375 16 199 487 13 243 613 17 051 254 10 127 793 17 137 781 – 2.0% 1.8%* 48 967 94 612 (41 869) (82 421) (59 881) Interest Interest (56 871) income Interest Interest Interest Interest 327 482 424 071 169 272 169 272 260 945 254 799 254 799 101 816 669 466 expense (157 813) (341 984) expense (106 707) (124 569) (288 147) – value value value UK and Other UK and Other sheet UK and Other sheet sheet 330 526 596 923 Balance 597 309 775 651 411 983 Balance Balance 1 997 208 3 341 861 3 719 256 2 484 617 5 878 855 7 061 117 10 298 493 13 223 150 10 800 668 13 882 594 14 127 606 4 4 5 5 1 2 3 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes Notes Notes Comprises (as per the balance sheet) cash and balances at central banks; loans and advances to banks; non-sovereign and non-bank cash placements;Comprises (as per the balance sheet) cash and balances at central banks; loans and advances to banks; non-sovereign reverse repurchase agreements and cash collateral on securities borrowed; sovereign debt securities; and bank debt securities. to customers securitised. Comprises (as per the balance sheet) loans and advances to customers; and own originated loans and advances held at amortised cost outside of Southern Africa. Comprises (as per the balance sheet) other securitised assets. In the current year no securitised assets are and cash collateral on securities lent. Comprises (as per the balance sheet) deposits by banks; debt securities in issue; repurchase agreements, liabilities arising on securitisation. In the current Comprises (as per the balance sheet) liabilities arising on securitisation of own originated assets; and year no liabilities on securitisation are held at amortised cost in UK and other. Impacted by sales of businesses as discussed on page 26.

Private client Private client Corporate, institutional and other clients Corporate, institutional and other clients For the year to 31 March 2015 For the year to 31 March £’000 2. 3. 4. 5. Notes: 1. For the year to 31 March 2015 For the year to 31 March £’000 For the year to 31 March 2016 For the year to 31 March £’000 Deposits by banks and other debt-related Deposits by banks and other debt-related securities Deposits by banks and other debt-related other debt-related Deposits by banks and securities Cash, near cash and bank debt and sovereign Cash, near cash and bank debt and sovereign debt securities Customer accounts (deposits) Customer accounts (deposits) Other interest-bearing liabilities Other interest-bearing Core loans and advances loans and advances Core Other interest-bearing liabilities Other interest-bearing Subordinated liabilities Subordinated Net interest margin (local currency) Net interest liabilities Subordinated Total interest-bearing liabilities liabilities interest-bearing Total income Net interest Total interest-bearing liabilities liabilities interest-bearing Total Other debt securities and other loans and Other debt securities and other loans and advances Net interest income income Net interest margin (local currency) Net interest Other interest-earning assets Total interest-earning assets assets interest-earning Total * 3.1% (6.6%) (3.0%) Total Total (2.5%) Total Total group group 59 107 88 922 57 875 91 868 (16 267) (32 140) 244 439 817 186 337 017 294 177 724 608 745 806 271 573 817 470 360 825 335 090 728 218 741 424 (110 120) (105 074) % change 1 061 625 1 089 043 9 417 27 418 Africa Africa (8 850) (23 808) (13 027) 76 809 81 803 30 966 32 856 32 302 34 664 (13 551) (12 576) (11 230) Variance 275 058 276 143 351 867 357 946 147 504 130 089 115 220 135 500 201 372 204 363 178 549 222 446 Southern Southern 2015 Other Other (2 716) 28 141 25 019 360 825 428 555 299 663 59 566 54 258 (19 564) (93 844) UK and UK and 164 088 219 870 540 050 567 257 167 630 189 770 542 128 541 327 709 758 731 097 189 513 225 325 505 772 520 245 31 March (101 270) 1 089 043 2016 337 017 415 528 309 080 31 March 1 061 625 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Deal fees Deal fees Annuity fees (net of fees payable) Annuity fees (net of fees payable) ONE

Corporate and institutional transactional and advisory services Corporate and institutional transactional and advisory Private client transactional fees Fee and commission expense Net fee and commission income Corporate and institutional transactional and advisory services Private client transactional fees Fee and commission expense Net fee and commission income Specialist Banking net fee and commission income Specialist Banking net fee and commission Fund management fees/fees for assets under management Private client transactional fees Fund management fees/fees for assets under management Fund management fees/fees for assets under Private client transactional fees Fee and commission expense Fee and commission expense Specialist Banking net fee and commission income Asset management and wealth management businesses net fee and commission income Asset management and wealth management businesses net fee and Asset management and wealth management commission income Net fee and commission income Specialist Banking Asset Management & Investment Wealth For the year to 31 March 2015 For the year to 31 March £’000 For the year to 31 March 2016 For the year to 31 March £’000 £’000 42 Further information on net fees by type of fee and geography is provided in the tables below. and geography is provided Further information on net fees by type of fee NET FEE AND COMMISSION INCOME NET FEE AND COMMISSION earned of lower fees £1 089.0 million) largely as a result by 2.5% to £1 061.6 million (2015: income decreased Net fee and commission by a sound. This was partially offset remained The deal pipeline has, however, prior year. following a strong in the UK corporate business Africa as well fund management businesses in South and property corporate structuring treasury, the corporate good performance from business in fees in the global private banking growth Investec Import Solutions). In addition, Strata (rebranded as the acquisition of Blue activity. client was supported by increased

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 43 Total Total Total 4 877 group 47.3% 32.3% (8 226) (2 311) 32.8% 13 037 15 419 28 456 44 135 62 120 100.0% (13 103) 170 408 240 167 108 288 170 408 284 302 ONE (131 813) (134 124) % change – 22 60 991 951 (332) 1 949 1 670 4 877 2 673 Africa (2 467) (4 137) 40 103 42 074 13 037 (13 103) (11 687) 108 288 240 167 Variance (131 813) Southern (continued) (continued) categories Other asset – – – – – 22 2015 4 123 9 121 4 877 1 282 1 282 Other (2 311) 21 910 11 507 20 628 62 120 15 419 44 135 UK and 124 189 128 334 31 March properties Investment Financial review Financial – – – – 44 2016 Debt 6 072 other) 6 114 3 052 9 166 (7 468) 32 841 31 143 23 675 164 292 170 408 31 March securities bank and (sovereign, – 12 977 76 824 15 419 15 562 10 319 41 300 (14 094) unlisted 118 124 227 043 portfolio equities)* (149 102) (listed and Investment Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Including embedded derivatives (warrants and profit shares). Funding and other net related income Funding and other net related Dividend income Funding and other net related income Funding and other net related Dividend income Total investment income/(loss) Total

Unrealised Realised Southern Africa

Investment income

Funding and other net related income/(costs) Funding and other net related Unrealised Dividend income Realised Unrealised UK and Other Realised * For the year to 31 March 2016 For the year to 31 March £’000 Asset Management & Investment Wealth Specialist Banking Investment income For the year to 31 March 2016 For the year to 31 March £’000 £’000 Further information on investment income is provided in the tables below. provided Further information on investment income is INVESTMENT INCOME securities the UK debt of higher earnings from as a result 32.8% to £170.4 million (2015: £128.3 million) by Investment income increased portfolio. unlisted investment the group’s and a sound performance from the Hong Kong portfolio from results portfolio, improved Total Total Total Total 4.4% 3.7% 2 194 5 878 group (8 107) (5 913) (2 210) 24 808 48 097 65 746 80 014 30 686 (69.1%) (90 296) (42 199) 128 334 130 544 128 334 145 760 % change – – (23) 329 (708) 5 105 3 914 4 622 5 411 2 194 1 003 8 125 Africa (8 107) 16 733 24 808 11 322 48 097 65 746 130 544 Variance Southern categories Other asset – – – – – 2015 1 024 8 726 2 194 5 878 8 726 Other (2 210) 38 636 10 169 19 741 29 910 80 014 (90 296) UK and 106 313 105 289 31 March properties Investment – – – – 316 2016 Debt other) 8 241 3 814 8 494 (2 626) 12 055 (23 175) (14 681) 110 227 109 911 31 March securities bank and (sovereign, – 5 878 (7 577) 75 591 24 808 29 358 42 214 83 168 63 395 (13 212) (76 850) equities)* unlisted portfolio (listed and Investment Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Including embedded derivatives (warrants and profit shares). Including embedded derivatives (warrants and profit ONE Total investment income/(loss) investment Total Funding and other net related income income Funding and other net related Dividend income Unrealised Realised Southern Africa Funding and other net related costs costs Funding and other net related Dividend income Unrealised Investment income/(loss) Realised Funding and other net related costs related Funding and other net Dividend income UK and Other Unrealised Realised Wealth & Investment Wealth customer flow income arising from Trading Specialist Banking £’000 * For the year to 31 March 2015 For the year to 31 March £’000 For the year to 31 March 2015 For the year to 31 March £’000 44 Arising from customer flow Arising from TRADING INCOME by 3.7% to £110.2 million (2015: £106.3 million) while trading income arising from flow increased customer income arising from Trading of £11.4 million (2015: loss of £13.4 million) largely due to a profit activities reflected balance sheet management and other trading as discussed on page 50). interests in non-controlling largely offset gains (these are currency foreign

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 45 6.1% 1.5% (1.5%) (1.9%) (8.2%) (6.9%) (1.5%) (1.7%) (2.7%) (2.6%) 14.0% 12.3% 41.0% (18.0%) (11.3%) (16.8%) (14.7%) ONE > 100.0% > 100.0% % change % change % change (64) (65) 375 183 0.1% 4.8% 4.1% 4.4% 1.9% 25.5% 14.6% 44.6% 70.1% 18 865 18 490 99.9% 24 683 24 801 100.0% Variance Variance (continued) (continued) % of total expenses 574 (456) 2015 2015 2015 1 485 (1 535) (25 674) (15 483) (13 424) (63 201) (54 433) (58 833) (24 729) (102 707) (128 381) (337 084) (193 529) (590 896) (927 980) 31 March 31 March 31 March (1 322 705) (1 324 240) Financial review Financial 509 (520) 2016 2016 0.1% 4.6% 4.5% 4.6% 1.6% 9 200 1 668 25.7% 13.8% 45.1% 70.8% 99.9% 11 377 (84 217) (25 299) 100.0% (109 516) 31 March 31 March % of total expenses 2016 (2 165) (58 847) (57 780) (59 737) (20 580) (330 588) (581 847) (177 642) (912 435) 31 March (1 287 021) (1 289 186) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Depreciation on operating leased assets Depreciation Total expenses Total Business expenses expenses (excluding depreciation) Premises Equipment expenses (excluding depreciation) Marketing expenses and impairment of property, Depreciation plant, equipment and software operating costs Total – variable – fixed Staff costs Staff £’000 Total impairment losses on loans and advances impairment Total Specialist Banking balance sheet management and arising from profit/(loss) Trading other trading activities UK and Other Southern Africa in home currency Impairment losses on loans and advances Southern Africa (R’million) Asset Management & Investment Wealth £’000 £’000 OPERATING COSTS OPERATING costs declined by 2.7% to £1 287.0 operating income was 66.4% (2015: 67.6%). Total The ratio of total operating costs to total operating in by an increase the sale of certain businesses, partially offset in costs arising from a reduction million (2015: £1 322.7 million) reflecting in variable initiatives and an increase activity and growth divisions to support increased expenses across headcount and business infrastructure in certain businesses. profitability given increased remuneration IMPAIRMENT LOSSES ON LOANS AND ADVANCES IMPAIRMENT loans and loss ratio on core to £109.5 million, with the credit £128.4 million from Impairments on loans and advances decreased £608.4 million to £466.1 million from defaults have improved 2015, gross Since 31 March advances amounting to 0.62% (2015: 0.68%). taking collateral into account) to core of impairments, but before of default loans (net The percentage and write-offs. due to redemptions satisfactory at 2.07%). The ratio of collateral to default loans (net of impairments) remains loans and advances amounted to 1.54% (2015: 1.35 times (2015: 1.37 times). OTHER OPERATING INCOME OTHER OPERATING and income earnedOther operating income includes associate income on operating lease rentals. Arising from balance sheet management and other trading activities balance sheet Arising from 1.8% 2.6% (6.0%) (0.1%) (0.9%) (3.5%) (2.6%) 16.5% % change % change 3.0% 57.6% 17.7% 21.7% 32.3% 67.7% 100.0% 100.0% % of total % of total expenses expenses 2015 2015 (39 312) (763 408) (234 436) (287 084) (427 119) (897 121) 31 March 31 March (1 324 240) (1 324 240) Staff costs Business expenses Premises expenses Equipment expenses Marketing expenses Depreciation Depreciation on operating leased assets 4.8% 4.1% 4.4% 1.9% 0.1% 3.6% 70.1% 14.6% 55.7% 18.5% 22.2% 32.8% 67.2% £1 324.2 million total expenses 31 March 2015 31 March 100.0% 100.0% % of total % of total expenses expenses 2016 2016 (45 805) (717 784) (238 765) (286 832) (423 389) (865 797) 31 March 31 March (1 289 186) (1 289 186) Staff costs Business expenses Premises expenses Equipment expenses Marketing expenses Depreciation Depreciation on operating leased assets 4.6% 4.5% 4.6% 1.6% 0.1% 70.8% 13.8% £1 289.2 million total expenses 31 March 2016 31 March Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) ONE Total expenses Total Group costs Group Specialist Banking Total expenses Total Wealth & Investment Wealth Southern Africa Asset Management UK and Other £’000 £’000 % OF TOTAL EXPENSES 46 The following table sets out certain information on total expenses by division for the year under review. out certain information on total expenses by The following table sets The following table sets out certain information on total expenses by geography for the year under review. out certain information on total expenses by The following table sets

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 47 (9.1%) 26.7% 17.0% 65.4% 109.1% 100.0% ONE % of total 8.8% 8.6% 3.6% 2.5% (8.0%) (9.5%) 30.2% 16.0% 61.8% 16.5% 100.0% 108.0% % of total % change (continued) (continued) Total Total 2.5% group group group group 11 701 78 781 85 735 35 201 (39 312) (45 805) 100.0% 100.0% 504 858 148 975 493 157 304 713 532 469 134 783 330 880 551 398 505 593 540 794 Africa (9 264) (7.5%) Africa Financial review Financial 70.8% 63.8% 73 484 21 910 57 930 22 608 (10 645) 349 048 262 918 358 312 252 837 333 375 322 730 Southern Southern Other Other 29.2% 26.9% 36.2% 75 491 56 871 41 795 76 853 63 127 78 043 (30 048) (35 160) UK and UK and 144 109 174 157 218 023 182 863 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review For the year to 31 March 2015 For the year to 31 March £’000 Asset Management & Investment Wealth group Total – equity interest Other non-controlling Operating profit % of total Specialist Banking costs Group For the year to 31 March 2016 2016 For the year to 31 March £’000 As a result of the foregoing factors, our operating profit before goodwill, acquired intangibles, non-operating items, taxation and after taxation and after intangibles, non-operating items, goodwill, acquired before operating profit factors, our of the foregoing As a result million to £505.6 million. £493.2 from by 2.5% increased interests other non-controlling non-operating items, taxation and after intangibles, goodwill, acquired before out information on operating profit The following tables set and by division for the year under review. by geography interests other non-controlling OPERATING PROFIT BEFORE GOODWILL, ACQUIRED INTANGIBLES, NON-OPERATING ITEMS TAXATION ITEMS TAXATION NON-OPERATING GOODWILL, ACQUIRED INTANGIBLES, PROFIT BEFORE OPERATING NON-CONTROLLING INTERESTS AND AFTER OTHER Asset Management Wealth & Investment Wealth Specialist Banking Group costs Group Total group Total Other non-controlling interest – equity interest Other non-controlling Operating profit % change % of total 2011 2011 6.2% 3.5% 6.0% 37.0% 25.9% 0.55% 16.0% 0.66% 24.5% 0.68% 28.9% 0.41% 31 March 31 March 2012 2012 8.8% 8.7% (5.3%) (7.4%) 35.7% 19.7% 0.61% 0.62% 16.3% 0.80% 28.5% 0.39% 31 March 31 March 2013 2013 6.7% 2.0% 1.3% 34.5% 20.3% 0.66% 0.62% 17.3% 0.86% 31.3% 13.9% 0.37% 31 March 31 March 2014 2014 3.7% 3.5% 5.1% 34.7% 22.9% 0.71% 0.60% 20.1% 0.89% 33.9% 13.6% 0.41% 31 March 31 March 2015 2015 4.6% 6.6% 7.1% 8.5% 34.2% 25.2% 0.72% 0.60% 22.7% 0.89% 35.1% 0.41% 31 March 31 March 2016 2016 4.1% 4.5% 4.5% 32.0% 26.4% 0.71% 0.55% 24.6% 0.87% 33.1% 10.4% 0.45% 31 March 31 March

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) A large portion of the funds under management are non-discretionary funds. period as a percentage of the average of opening The average income yield on funds under management represents the total operating income for the movements throughout the period on funds and closing funds under management. This calculation does not take into account the impact of market under management or the timing of acquisitions and disposals during the respective periods. & Investment Ireland (formerly NCB), which was acquired on 12 June 2012 and Wealth Management, Investec ‘Other’ comprises European Wealth & Investment Channel Islands. Investec Wealth ONE Operating margin Operating margin Average income yield earned Average on funds under management^ ^ ^^ * Net inflows in funds under management as a % of management as a % of Net inflows in funds under opening funds under management in funds under management as a Net organic growth % of opening funds under management UK and Other^^ (in Pounds Sterling) Operating margin Global business (in Pounds Sterling) Global business (in Pounds Sterling) Global business (in Pounds Average income yield earned on funds under Average management^ Net organic growth in funds under management as a in funds under management as a Net organic growth % of opening funds under management Average income yield earned Average on funds under management^ South Africa (in Rands) Operating margin Net organic growth in discretionary funds under funds under in discretionary Net organic growth funds management as a % of opening discretionary under management Average income yield earned Average on funds under management^* 48 WEALTH & INVESTMENT WEALTH ASSET MANAGEMENT Key income drivers in our core businesses in our core businesses Key income drivers businesses. our key income drivers in our core reflects The information below

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 49 – – 2011 8.2% 2.6% 4.8% 6.2% 9.6% 0.3% 60.1% 64.1% 13.3% 4.66% 5.67% 1.27% 2.05% 54.7% 10.7% 13.8% 3.97% 0.71% ONE 31 March – – 2012 5.1% 1.5% 0.3% 4.6% 9.6% 6.6% (1.8%) (2.8%) 62.4% 68.3% 3.31% 4.10% 1.12% 1.65% 55.2% 11.9% 2.73% 0.65% 31 March (continued) (continued) – – 2013 6.4% 1.7% 1.0% 4.7% 6.6% 7.7% 63.1% 69.0% 2.73% 3.75% 0.84% 1.16% 55.5% 10.0% 10.2% 16.5% 1.89% 0.61% 31 March 2014 7.9% 3.6% 0.4% (6.8%) (6.0%) (0.3%) Financial review Financial 11.9% 10.9% 2.30% 3.21% 0.68% 0.99% 10.6% 11.0% 1.46% 0.42% 51.0%* 63.2%* 72.5%* 12.5%* 31 March ^^ ^^ ^^ ^^ 2015 8.6% 9.6% 2.1% 8.3% 0.2% 12.8% 2.07% 3.00% 0.68% 1.16% 16.1% 1.43% 0.28% (4.9%) 78.9%* 47.2%* 15.2%* 63.1%* (14.1%) (15.5%) 31 March 2016 5.4% 5.5% 2.2% 6.7% 10.1% 13.0% 11.4% 10.5% 1.54% 2.19% 0.62% 1.13% 19.7% 15.1% 1.05% 0.26% 60.1%* 73.4%* 46.8%* 15.1%* 31 March Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review (in Pounds Sterling) # rate to derive post-tax the purpose of this calculation we have applied the group's effective tax rate to derive post-tax Divisional ROEs are reported on a pre-tax basis. For billion in the UK and c.R27.4 billion in South Africa. numbers. Capital as at 31 March 2016 was c.£1.1 Impacted by sale of assets. Excludes group costs. Includes UK, Europe, Australia and the legacy businesses.

Cost to income ratio ROE post-tax^ business)^ ROE post-tax (ongoing ^^ * ^ # Growth in net core loans in net core Growth Global business (in Pounds Sterling) Global business (in Pounds Cost to income ratio ROE post-tax (ongoing business)^ ROE post-tax^ loans in net core Growth Growth in risk-weighted assets Growth Defaults (net of impairments as a % of core loans) as a % of core Defaults (net of impairments in risk-weighted assets Growth loans) Defaults (net of impairments as a % of core Credit loss ratio on core loans loans loss ratio on core Credit loans loss ratio on core Credit UK and Other Southern Africa (in Rands) Cost to income ratio ROE post-tax^ loans in net core Growth in risk-weighted assets Growth Defaults (net of impairments as a % of core loans) Defaults (net of impairments as a % of core Credit loss ratio on core loans loans loss ratio on core Credit SPECIALIST BANKING – STATUTORY BASIS – STATUTORY SPECIALIST BANKING 240

2015 4.2% 1 877 3 320 5 437 (4.0%) 24.6% 25 919 88 045 361 527 147 227 508 754 242 126 356 090 31 March % change 2015 2016 £’000 8 280 1 616 1 149 26 277 88 045 11 045 (28 362) (70 661) (99 023) 242 672 368 039 148 280 516 319 356 994 31 March 31 March 2016 £’000 (35 335) (67 867) (103 202) 31 March 2015 22.3% 18.7% 19.6% 2016 19.8% 18.7% 19.1% Effective tax rates Effective Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Specialist Banking Wealth & Investment Wealth Asset Management Specialist Banking Wealth & Investment Wealth Asset Management £16.5 million profit attributable to non-controlling interests in the Asset Management business interests attributable to non-controlling £16.5 million profit Fund Limited in the Investec Property interests attributable to non-controlling £37.6 million profit of Investec plc which were securities issued by a subsidiary preferred to Euro-denominated of £2.5 million relating A reduction arising on transaction loss The transaction was hedged and a forex interests. on the balance sheet as part of non-controlling reflected in earnings attributable to goodwill with the equal and opposite impact reflected before in operating profit the is reflected non-controlling interests. These securities were redeemed on 24 June 2015. redeemed These securities were interests. non-controlling ONE Total goodwill Total Intangible assets and intangible assets goodwill Total Southern Africa Southern Africa UK and Other Tax £’000 UK and Other • • PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTS PROFIT ATTRIBUTABLE mainly comprises: interests attributable to non-controlling Profit • TAXATION tax rate amounts to 19.1% (2015: 19.6%). The effective NET LOSS ON DISPOSAL OF SUBSIDIARIES 2015 year end. As on page 26) a final net settlement amount was paid after the 31 March As part of the sale of Kensington (as discussed during the 2016 financial year. million was recognised taxation of £4.8 of this payment, a further loss before a result Amortisation of acquired intangibles of £16.2 million largely relates to the Wealth & Investment business and mainly comprises & Investment business and mainly comprises to the Wealth largely relates intangibles of £16.2 million Amortisation of acquired relationships. amortisation of amounts attributable to client AMORTISATION OF ACQUIRED INTANGIBLES AMORTISATION Goodwill and intangible assets analysis – balance sheet information information assets analysis – balance sheet Goodwill and intangible IMPAIRMENT OF GOODWILL IMPAIRMENT years. in prior certain asset management businesses acquired to relates goodwill impairment year’s The current 50

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 51 2015 (29.5) 899.4 869.9 308.1 364.9 ONE (326 693) (494 111) 31 March 3 500 837 2 680 033 2016 (40.3) 908.8 868.5 294.3 352.3 (300 258) (503 996) 31 March (continued) (continued) 3 360 287 2 556 033 Financial review Financial UK and Other Southern Africa 40.5% 59.5% £44 353 million total assets 31 March 2015 31 March Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review UK and Other Southern Africa 40.8% 59.2% £45 352 million total assets 31 March 2016 31 March  provided on pages 140, 141, 168 to 171. to dividends and earnings per share is Information with respect Total shareholders’ equity (including non-controlling interests) decreased by 4.5% to £3.9 billion largely due to the depreciation of the of the the depreciation by 4.5% to £3.9 billion largely due to decreased interests) equity (including non-controlling shareholders’ Total Rand against Pounds Sterling. and (which excludes goodwill net tangible asset value per share 3.4% to 352.3 pence and decreased Net asset value per share by 4.5% to 294.3 pence intangible assets) decreased to 11.5%. 10.6% from increased equity The return on adjusted average shareholders’ £’000 Shareholders’ equity Shareholders’ issued by holding companies shares Less: perpetual preference Less: goodwill and intangible assets (excluding software) Net tangible asset value in issue (million) Number of shares (million) shares Treasury Number of shares in issue in this calculation (million) Number of shares Net tangible asset value per share (pence) Net tangible asset value per share (pence) Net asset value per share The group’s net tangible asset value per share is reflected in the table below. is reflected net tangible asset value per share The group’s Statutory net tangible asset value per share Statutory net tangible asset value per share ASSETS BY GEOGRAPHY • • • Statutory balance sheet analysis Statutory balance 2015: Since 31 March DIVIDENDS AND EARNINGS PER SHARE DIVIDENDS AND EARNINGS EARNINGS ATTRIBUTABLE TO SHAREHOLDERS EARNINGS ATTRIBUTABLE to £368.5 million. £245.5 million from increased factors, earnings attributable to shareholders of the foregoing As a result # # # # # # IBL* IBL* 8.5% 8.3% 8.0% 7.5% 7.3% 7.1% 15.4% 11.4% 10.9% 11.0% 10.6% 10.6% 11.0% 14.6% 27 219 14 559 12 660 258 753 Average # # # # # # 2014 9.5% 9.6% 9.6% 9.6% 1.14% 27 836 14 125 13 711 8.5% 8.1% 7.2% 7.4% 6.9% 6.3% 14.7% 11.3% 10.7% 14.0% 248 040 326 923 Limited*^ Limited* 31 March Investec Investec 7.6% 7.6% 7.6% 7.7% 7.7% 7.7% IBPº* IBPº* 17.6% 12.2% 12.2% 12.2% 12.2% 12.2% 12.2% 17.2% 26 762 14 809 11 953 289 259 Average plcº* plcº* 2015 8.1% 7.7% 6.6% 1.25% 9.7% 9.7% 7.0% 7.0% 6.3% 26 600 14 992 11 608 16.7% 11.9% 10.2% 10.2% 10.7% 15.1% 269 466 339 523 31 March Investec Investec 2016 1.34% 26 923 14 626 12 297 309 052 359 732 31 March (£’million) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) formation for IBP. The The plc includes the information for IBP. Where: IBP is Investec Bank plc consolidated and IBL is Investec Bank Limited. The information for Investec information for Investec Limited includes the information for IBL. basis of calculation across the jurisdictions The capital adequacy disclosures follow Investec's normal basis of presentation so as to show a consistent of foreseeable dividends when calculating in which the group operates. For Investec plc and Investec Bank plc this does not include the deduction Authority technical standards. The impact of common equity tier 1 as now required under the Capital Requirements Regulation and European Banking the final proposed ordinary dividends totalling £46 million for Investec plc and £34 million for Investec Bank plc would be 40bps and and preference At 31 March 2015 the impact of the final proposed ordinary and preference dividends totalling £57 million for Investec plc respectively. 30bps lower, respectively. and £15 million for IBP was 50bps and 10bps lower, on Basel III capital requirements as fully phased in understanding of current and draft regulations. ‘Fully loaded’ is based Based on the group’s by 2022. The leverage ratios are calculated on an end-quarter basis. Based on revised BIS rules. profits are excluded from capital information, Investec Limited’s capital information includes unappropriated profits. If unappropriated Investec Limited’s common equity tier 1 ratio would be 16bps lower. ONE

Leverage ratio** – permanent capital Total capital adequacy ratio (as reported) Total Tier 1 (as reported) Common equity tier 1 (‘fully loaded’)^^ Returnassets on average risk-weighted ^Investec Limited risk-weighted assets (R’million) Tier 1 (as reported) Common equity tier 1 (‘fully loaded’)^^ adequacy ratio (as reported) capital Total Common equity tier 1 (as reported) Leverage ratio** – permanent capital Common equity tier 1 (as reported) # * º ^^ ** Leverage ratio** – current Leverage ratio** – ‘fully loaded’^^ As at 31 March 2015 As at 31 March Leverage ratio** – current Leverage ratio** – ‘fully loaded’^^ As at 31 March 2016 As at 31 March ^ Total risk-weighted assets (£’million) risk-weighted Total Investec Limited risk-weighted assets^ Investec Limited risk-weighted Investec plc risk-weighted assets (£’million) Investec plc risk-weighted Adjusted earnings attributable to ordinary Adjusted earnings attributable to ordinary intangibles goodwill, acquired before shareholders (£’000) and non-operating items 52 A SUMMARY OF CAPITAL ADEQUACY AND LEVERAGE RATIOS ADEQUACY OF CAPITAL A SUMMARY Capital management and allocation Capital management and capital targeting a minimum common equity tier 1 capital ratio of 10% and a total requirements hold capital in excess of regulatory We basis for each of Investec plc and Investec Limited. adequacy ratio range of 14% to 17% on a consolidated Statutory return on risk-weighted assets on risk-weighted assets Statutory return in the table below. is reflected return on risk-weighted assets The group’s

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 53 2015 12.7% 16.4% 10.6% 13.7% (99 023) (36 427) (29 885) 339 523 438 546 504 858 ONE Average (535 964) 31 March 2 671 811 3 207 775 3 207 775 2016 2014 13.7% 17.7% 11.5% 14.9% (26 130) (51 730) 359 732 462 934 540 794 (577 816) (103 202) 31 March 31 March (continued) (continued) 2 663 590 3 241 406 Average (499 054) 2 618 033 3 117 087 Financial review Financial 2015 (494 111) 31 March 2 680 033 3 174 144 2016 (503 996) 31 March 2 556 033 3 060 029 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Return on equity on an ongoing basis is provided on page 63. Return on equity on an ongoing basis is provided Before goodwill, acquired intangibles and non-operating items. Before goodwill, acquired intangibles and non-operating Adjusted tangible shareholders’ equity equity Adjusted tangible shareholders’ Goodwill and intangible assets (excluding software) assets (excluding software) Goodwill and intangible Calculation of average shareholders’ equity equity shareholders’ Calculation of average equity shareholders’ Ordinary Post-tax return on average adjusted tangible shareholders’ equity equity shareholders’ Post-tax return on average adjusted tangible Pre-tax return on average adjusted tangible shareholders’ equity equity return on average adjusted tangible shareholders’ Pre-tax Post-tax return on average adjusted shareholders’ equity equity Post-tax return on average adjusted shareholders’ Adjusted attributable earnings to ordinary shareholders* Adjusted attributable earningsordinary to equity return on average adjusted shareholders’ Pre-tax Revised operating profit Revised operating profit intangibles goodwill and acquired before on operating profit Taxation Accrued preference dividends, adjusted for currency hedge hedge dividends, adjusted for currency Accrued preference * £’000 Operating profit* interests Non-controlling £’000 Return on equity by country and business – statutory by country and business Return on equity Other (5 663) (5 760) 19.0% 20.8% 12.8% 14.8% 14.8% 16.5% 10.0% 11.7% (50 284) UK and 991 027 161 197 194 988 256 695 ongoing** (571 257) (488 674) (475 300) 1 088 799 1 179 572 1 618 766 1 661 559 1 562 284 1 186 573 1 675 247 1 172 572 1 647 872 Total Total group 16.4% 17.7% 13.7% 14.9% 12.7% 13.7% 10.6% 11.5% (26 130) (51 730) 339 523 359 732 540 794 (577 816) (494 111) (503 996) (103 202) 2 671 811 2 618 033 3 207 775 3 117 087 2 663 590 3 241 406 2 680 033 3 174 144 2 556 033 3 060 029 Africa (6 559) (5 437) 23.7% 21.8% 23.6% 21.5% 18.4% 16.8% 18.4% 16.6% (28 696) (20 467) (45 970) (67 867) 248 713 228 130 362 434 Southern 1 348 627 1 359 066 1 354 624 1 376 132 1 292 563 1 299 122 1 404 690 1 410 127 1 313 441 1 342 137 9.0% 6.4% 9.6% 6.9% 4.9% 7.6% Other (5 663) (5 760) 13.3% 10.5% 90 810 (35 335) UK and 131 602 178 360 (571 257) (488 674) (475 300) 1 323 184 1 258 967 1 853 151 1 740 955 1 371 027 1 942 284 1 275 343 1 764 017 1 242 592 1 717 892

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Before goodwill, acquired intangibles and non-operating items. Excluding the remaining UK legacy business as shown on page 65. ONE Pre-tax return on average tangible ordinary shareholders’ equity equity shareholders’ return on average tangible ordinary Pre-tax 2015 – 31 March Pre-tax return on average tangible ordinary shareholders’ equity equity shareholders’ return on average tangible ordinary Pre-tax 2016 – 31 March Pre-tax return on adjusted average ordinary shareholders’ equity equity shareholders’ return on adjusted average ordinary Pre-tax – 31 March 2015 – 31 March Pre-tax return on adjusted average ordinary shareholders’ equity equity shareholders’ return on adjusted average ordinary Pre-tax 2016 – 31 March Post-tax return on adjusted tangible shareholders’ equity equity Post-tax return on adjusted tangible shareholders’ 2015 – 31 March Post-tax return on average tangible shareholders’ equity equity Post-tax return on average tangible shareholders’ 2016 – 31 March Post-tax return on average ordinary shareholders’ equity equity shareholders’ Post-tax return on average ordinary 2015 – 31 March Post-tax return on average ordinary shareholders’ equity equity shareholders’ Post-tax return on average ordinary 2016 – 31 March Average tangible shareholders’ equity – 31 March 2015 equity – 31 March tangible shareholders’ Average Average tangible shareholders’ equity – 31 March 2016 equity – 31 March tangible shareholders’ Average Average ordinary shareholders’ equity – 31 March 2015 equity – 31 March shareholders’ ordinary Average Average ordinary shareholders’ equity – 31 March 2016 equity – 31 March shareholders’ ordinary Average Tangible ordinary shareholders’ equity – 31 March 2014 equity – 31 March shareholders’ ordinary Tangible Goodwill and intangible assets (excluding software) Goodwill and intangible assets (excluding software) Ordinary shareholders’ equity – 31 March 2014 equity – 31 March shareholders’ Ordinary Tangible ordinary shareholders’ equity – 31 March 2015 equity – 31 March shareholders’ ordinary Tangible Goodwill and intangible assets (excluding software) Goodwill and intangible assets (excluding software) Ordinary shareholders’ equity – 31 March 2015 equity – 31 March shareholders’ Ordinary Tangible ordinary shareholders’ equity – 31 March 2016 2016 equity – 31 March shareholders’ ordinary Tangible Goodwill and intangible assets (excluding software) Goodwill and intangible assets (excluding software) Ordinary shareholders’ equity – 31 March 2016 2016 equity – 31 March shareholders’ Ordinary Adjusted attributable earnings to ordinary shareholders – – Adjusted attributable earnings shareholders to ordinary 31 March 2015 Adjusted attributable earnings to ordinary shareholders – earnings shareholders Adjusted attributable to ordinary 31 March 2016 Accrued preference dividend adjusted for currency hedge currency dividend adjusted for Accrued preference Non-controlling interests Non-controlling Taxation on operating profit before goodwill and acquired intangibles intangibles acquired goodwill and before on operating profit Taxation Operating profit* Operating profit* * ** £’000 54 Return on equity by geography Return on equity

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 55 2 084 (4 789) 16.4% 15.9% 16.3% 16.1% 14 026 (97 096) (27 679) (52 220) (25 394) 367 213 395 142 409 215 ONE Banking ongoing** 2 242 229 2 421 744 2 304 617 2 461 693 2 001 779 2 098 875 2 482 681 2 510 360 2 360 808 2 413 028 Specialist 2 084 (4 789) 10.9% 10.7% 12.7% 12.5% 14 026 (97 096) (27 679) (52 220) (25 394) 279 667 316 807 330 880 Banking 2 558 469 2 501 139 2 620 856 2 541 088 2 545 487 2 642 583 2 571 451 2 599 130 2 430 828 2 483 048 (continued) (continued) Specialist (237) (822) 1 587 (9 139) 25.5% 30.7% 51 336 41 035 63 371 39 301 42 768 69 872 77 124 85 735 136.1% 187.9% 273 984 250 810 292 650 255 318 246 302 (229 279) (216 017) (203 534) Wealth & Wealth Investment^ Financial review Financial (499) 3 202 (1 262) (4 887) 95.2% Asset 79.1% 62 008 75 859 54 732 69 283 82 435 (92 391) (91 365) (89 194) 236.3% 173.1% 153 886 166 139 147 123 160 648 171 629 146 504 131 337 134 783 Management Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review # n of any surplus capital of an allocation of any surplus capital The return on equity by business is based on the level of internal capital required by each business, inclusive 1 capital instruments and Tier Additional equity, held by the group. The operating profit is adjusted to reflect a that includes common subordinated debt. except for an adjustment of £159.1 million between ordinary & Investment is consistent with the group computation, shareholders' funds and Wealth and intangible assets. These gains were goodwill, which represents historical accounting gains with a corresponding effective increase in goodwill excluded from group adjusted earnings. Excluding the remaining UK legacy business as shown on page 65. Before goodwill, acquired intangibles, non-operating items and after other non-controlling interests. Pre-tax return on average tangible ordinary shareholders’ equity – equity shareholders’ on average tangible ordinary return Pre-tax 2015 31 March Pre-tax return on average tangible ordinary shareholders’ shareholders’ on average tangible ordinary return Pre-tax 2016 equity – 31 March Pre-tax return on adjusted average ordinary shareholders’ equity – shareholders’ on adjusted average ordinary return Pre-tax 2015 31 March Pre-tax return on adjusted average ordinary shareholders’ shareholders’ on adjusted average ordinary return Pre-tax 2016 equity – 31 March Average tangible shareholders’ equity – 31 March 2015 equity – 31 March tangible shareholders’ Average Average tangible shareholders’ equity – 31 March 2016 equity – 31 March tangible shareholders’ Average Average ordinary shareholders’ equity – 31 March 2015 equity – 31 March shareholders’ ordinary Average Average ordinary shareholders’ equity – 31 March 2016 equity – 31 March shareholders’ ordinary Average Tangible ordinary shareholders’ equity – 31 March 2014 equity – 31 March shareholders’ ordinary Tangible Goodwill and intangible assets (excluding software) Goodwill and intangible assets (excluding software) Ordinary shareholders’ equity – 31 March 2014 equity – 31 March shareholders’ Ordinary Tangible ordinary shareholders’ equity – 31 March 2015 equity – 31 March shareholders’ ordinary Tangible Goodwill and intangible assets (excluding software) Goodwill and intangible assets (excluding software) Ordinary shareholders’ equity – 31 March 2015 equity – 31 March shareholders’ Ordinary Tangible ordinary shareholders’ equity – 31 March 2016 equity – 31 March shareholders’ ordinary Tangible Goodwill and intangible assets (excluding software) Goodwill and intangible assets (excluding software) Ordinary shareholders’ equity – 31 March 2016 equity – 31 March shareholders’ Ordinary Adjusted earnings – 31 March 2015 Adjusted earnings – 31 March Adjusted earnings – 31 March 2016 Adjusted earnings – 31 March Cost of preference shares shares Cost of preference Cost of subordinated debt Cost of subordinated Notional cost of statutory capital Notional cost of statutory Notional return on regulatory capital on regulatory Notional return Operating profit £’000

# * ^ ** Return on equity by business* Return on equity 59.7 59.7 58.7 58.7 Total Total 8 256 8 256 8 610 8 610 8 258 8 258 8 254 8 254 8 966 8 966 group group 493 157 532 469 551 398 505 593

57.4 78.2 59.9 67.1 5 310 4 465 5 520 4 811 5 407 4 404 5 213 4 525 5 826 5 097 Africa 349 048 304 713 330 880 322 730 Banking Southern Specialist

54.0 38.0 54.8 48.1 1 458 3 791 1 565 3 799 1 383 3 854 1 533 3 729 1 597 3 869 Other 78 781 85 735 UK and 144 109 182 863 Wealth & Wealth Investment ^^ 1 488 1 525 1 468 1 508 1 543 88.4 Asset 100.1^^ 148 975 134 783 Management – 31 March 2016 (£’000) – 31 March – 31 March 2016 (£’000) – 31 March ^ ^ Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) Operating profit excludes group costs. Based on average number of employees over the year. business. For Investec Asset Management, operating profit per employee includes Silica, its third party administration ONE Operating profit per employee Operating profit Operating profit per employee Operating profit Operating profit* – year to 31 March 2015 (£’000) – year to 31 March Operating profit* 2015 (£’000) – year to 31 March Operating profit Operating profit* – year to 31 March 2016 (£’000) – year to 31 March Operating profit* 2016 (£’000) – year to 31 March Operating profit Average employees – year to 31 March 2015 employees – year to 31 March Average 2015 employees – year to 31 March Average Average employees – year to 31 March 2016 31 March employees – year to Average 2016 employees – year to 31 March Average Number of employees – 31 March 2014 – 31 March Number of employees 2014 Number of employees – 31 March Number of employees – 31 March 2015 – 31 March Number of employees 2015 Number of employees – 31 March Number of employees – 31 March 2016 – 31 March Number of employees 2016 Number of employees – 31 March Operating profit per employee^ – 31 March 2015 (£’000) per employee^ – 31 March Operating profit Operating profit per employee^ – 31 March 2015 (£’000) per employee^ – 31 March Operating profit * ^ ^^ By geography By division 56 non-operating items, taxation and after other non-controlling interests) other non-controlling interests) items, taxation and after non-operating per employee Statutory operating profit (before goodwill, acquired intangibles, acquired intangibles, profit (before goodwill, Statutory operating

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 57 412 244 168 108 2015 109 108 436 412 Total Total 77 510 50 622 26 888 46 076 29 562 16 514 124 106 26 692 26 576 45 459 18 767 46 076 19 500 75 679 29 677 46 002 77 510 30 577 46 933 ONE 121 683 124 106 31 March – – 210 226 436 109 210 244 2016 4 945 4 974 51 076 24 603 29 769 15 690 75 679 45 459 Africa Africa 40 503 43 646 10 745 11 540 15 690 16 514 11 388 13 215 11 179 15 709 24 603 26 888 121 683 31 March (continued) (continued) Southern Southern 109 108 226 168 8 022 7 960 Other Other 21 747 21 602 18 289 32 787 19 398 31 224 81 180 80 460 29 769 29 562 51 076 50 622 UK and UK and Financial review Financial Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review UK and other funds UK and other funds Non-discretionary Non-discretionary Discretionary Discretionary activities Property Discretionary activities Property Mutual funds mandates Segregated & Investment Wealth Mutual funds mandates Segregated & Investment Wealth Asset Management Asset Management At 31 March 2015 At 31 March £’million At 31 March 2016 At 31 March £’million £’million Asset Management UK and Other Southern Africa & Investment Wealth UK and Other Southern Africa activities Property Southern Africa Australia UK and other funds A FURTHER ANALYSIS OF THIRD PARTY ASSETS UNDER MANAGEMENT ASSETS UNDER OF THIRD PARTY A FURTHER ANALYSIS Total third party assets under management third Total % 5.1% 1.4% 6.1% 4.0% 1.7% 2.3% 2.5% 2.5% 4.5% 0.9% 3.2% (0.8%) (9.1%) (2.9%) 67.3% 11.9% (28.3%) 16.8% 19.8% 18.7% change > 100.0% > 100.0% % change % change (98) (871) 849c 1 655 4 880 4 291 2015 (2 016) (1 969) 26 725 47 711 45 695 32 888 24 658 10 297 13 208 18 067 (18 099) (23 500) (32 095) R7 325 Year to Year Variance R10 374 31 March Results in Rand 47.5 2015 2016 862.7 66.5% (1 294) 12 188 1 008c (39 352) (18 184) (11 701) (13 041) (36 427) 409 910 R8 773 Year to Year 592 404 539 041 562 519 151 848 106 588 (116 182) R12 114 31 March 31 March 1 847 707 1 887 059 1 090 435 31 March (1 254 009) % 48.6 2016 2016 0.6% 3.2% 2.3% 870.5 65.8% (2 165) 11 617 12 090 change (41 368) (16 529) (35 201) (26 130) 619 129 571 929 567 399 423 118 169 915 110 879 (118 151) 31 March 31 March 1 893 402 1 934 770 1 058 340 (1 272 108) 2015 47.5p £580.7 £409.9 Year to Year 31 March Results in Pounds Sterling 2016 48.6p £583.9 £423.1 Year to Year 31 March Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued)

Before goodwill, acquired intangibles, non-operating items and after other non-controlling interests. Before goodwill, acquired intangibles, non-operating items and after non-controlling interests. Before goodwill, acquired intangibles, non-operating ONE ** * Ongoing information on our ongoing results. information The tables that follow provide Operating profit before taxation* (million) before Operating profit Adjusted earnings attributable to (million) shareholders** Adjusted earnings per share** Impairment losses on loans and advances Operating income Operating costs on operating leased assets Depreciation intangibles goodwill, acquired before Operating profit and non-operating items interests attributable to Asset Management non-controlling Profit Total operating income before impairment losses on loans income before operating Total and advances interests attributable to other non-controlling Profit £’000 £’000 income Net interest Net fee and commission income activities – balance sheet management and other trading Other operating income taxation before Operating profit intangibles goodwill and acquired before on operating profit Taxation dividends accrued Preference shareholders Adjusted attributable earnings to ordinary (pence) Adjusted earnings per share Cost to income ratio (million) Number of weighted average shares For the year to Investment income income arising from Trading – customer flow 58 CONSOLIDATED SUMMARISED ONGOING INCOME STATEMENT INCOME STATEMENT SUMMARISED ONGOING CONSOLIDATED

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 59 48.6 870.5 65.8% (2 165) 12 090 11 617 ONE (26 130) (35 201) (16 529) (41 368) Ongoing 423 118 567 399 619 129 110 879 169 915 571 929 (118 151) business 1 893 402 1 934 770 1 058 340 (1 272 108) – – – – – – – – – – – – – – – – – Australia (continued) (continued) Sale assets – – – – – – – – – – – – – – – – – Sale assets UK Financial review Financial Removal of:**

– – – – – 493 (240) (652) 4 726 3 285 1 840 14 949 (14 913) (68 148) (63 386) (78 335) (78 335) (63 422) business excluding UK legacy sale assets as 41.3 870.5 66.4% (2 165) 12 090 11 377 (26 130) (35 201) (16 529) 359 732 489 064 540 794 110 227 170 408 573 769 Statutory (103 202) (109 516) disclosed^ 1 829 980 1 939 496 1 061 625 (1 287 021) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review The remaining legacy business in the UK. The results of the businesses sold, i.e. Investec Bank (Australia) Limited, the UK Kensington business and the Start (Irish) mortgage business. The results of the businesses sold, i.e. Investec Bank (Australia) Limited, the UK Kensington business • Applying the group’s effective statutory taxation rate of 19.1%. Applying the group’s Refer to page 148. • Number of weighted average shares (million) Number of weighted average shares Adjusted earnings per share (pence) Adjusted earnings per share Cost to income ratio Adjusted attributable earnings to ordinary shareholders Preference dividends accrued Preference Taxation on operating profit before goodwill and before on operating profit Taxation acquired intangibles* Operating profit before taxation before Operating profit Profit attributable to other non-controlling interests attributable to other non-controlling Profit Profit attributable to Asset Management Profit non-controlling interests Operating profit before goodwill, acquired goodwill, acquired before Operating profit intangibles and non-operating items Depreciation on operating leased assets Depreciation Operating costs Impairment losses on loans and advances Operating income Total operating income before impairment losses income before operating Total on loans and advances Other operating income – balance sheet management and other trading activities Trading income arising from Trading – customer flow Investment income Net fee and commission income Net fee and commission Net interest income Net interest

^ ** * 2016 For the year to 31 March £’000 RECONCILIATION FROM STATUTORY SUMMARISED INCOME STATEMENT TO ONGOING SUMMARISED SUMMARISED TO ONGOING SUMMARISED INCOME STATEMENT FROM STATUTORY RECONCILIATION INCOME STATEMENT 47.5 862.7 66.5% (1 294) 12 188 409 910 Ongoing (36 427) (11 701) (18 184) (39 352) (13 041) 562 519 592 404 106 588 151 848 539 041 (116 182) business 1 847 707 1 887 059 1 090 435 (1 254 009) – – – – 48 288 (154) (210) 2 728 (1 179) (1 476) (1 867) (1 467) (1 467) 11 336 12 812 12 267 (12 803) Australia Sale assets – – – – UK (241) (248) (415) (4 232) 17 358 (4 085) (5 443) (4 876) 21 590 21 590 56 076 60 161 71 143 (34 245) Sale assets Removal of:** – – – – – 19 350 756 21 103 (2 553) 12 526 (86 566) (21 648) (83 468) (16 204) (86 021) business excluding (107 669) (107 669) UK legacy sale assets as 39.4 862.7 67.6% (1 535) 12 236 (36 427) (99 023) (11 701) (18 184) (13 424) 339 523 474 973 504 858 106 313 128 334 634 977 Statutory disclosed^ (128 381) 1 829 098 1 957 479 1 089 043 (1 322 705) (continued) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) The remaining legacy business in the UK. The results of the businesses sold, i.e. Investec Bank (Australia) Limited, the UK Kensington business and the Start (Irish) mortgage business. The results of the businesses sold, i.e. Investec Bank (Australia) Limited, the UK Kensington business • Applying the group’s effective taxation rate of 19.6%. Applying the group’s Refer to page 148. • ONE balance sheet management and other trading activities balance sheet management and other trading Number of weighted average shares (million) Number of weighted average shares Cost to income ratio Adjusted earnings per share (pence) Adjusted earnings per share Adjusted attributable earnings to ordinary shareholders Preference dividends accrued Preference Taxation on operating profit before goodwill and before on operating profit Taxation acquired intangibles* Operating profit before taxation before Operating profit Profit attributable to other non-controlling interests attributable to other non-controlling Profit Profit attributable to Asset Management Profit non-controlling interests Operating profit before goodwill, acquired goodwill, acquired before Operating profit intangibles and non-operating items Depreciation on operating leased assets Depreciation Operating costs Operating income Impairment losses on loans and advances Total operating income before impairment losses income before operating Total on loans and advances Other operating income – Trading income arising from Trading – customer flow Investment income Net fee and commission income Net fee and commission Net interest income Net interest

^ ** * 2015 For the year to 31 March £’000 60 RECONCILIATION FROM STATUTORY SUMMARISED INCOME STATEMENT TO ONGOING SUMMARISED SUMMARISED TO ONGOING SUMMARISED INCOME STATEMENT FROM STATUTORY RECONCILIATION INCOME STATEMENT

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 61 4 503 (2 149) (9 635) 9 179 9 179 10 797 93 000 55 810 (1 294) (16 069) 16 856 16 856 87 639 87 639 17 818 17 818 151 875 574 882 590 951 186 228 254 751 156 378 ongoing ongoing ONE (13 678) (29 660) (420 858) Banking Banking business business 129 341 129 341 112 485 112 485 523 052 523 052 536 730 536 730 226 717 226 717 225 037 225 037 (409 273) Specialist Specialist UK and Other UK and Other – – – – – – – – – – – – – – – – 48 (154) (210) 2 728 2 728 (1 476) (1 867) (1 467) (1 467) 11 336 11 336 12 812 12 812 12 267 12 267 (12 803) Australia Australia (continued) (continued) Sales assets Sales assets – – – – – – – – – – – – – – – – UK UK (241) (248) (415) (4 085) (5 443) (4 876) 21 590 21 590 21 590 21 590 56 076 56 076 60 161 60 161 71 143 71 143 (34 245) Sale assets Sale assets Financial review Financial Removal of:** Removal of:** – – – – – – 19 493 (240) (652) 350 350 756 756 4 726 3 285 1 840 (14 913) (68 148) (2 553) (78 335) (63 422) (78 335) 12 526 12 526 (21 648) (83 468) (16 204) (86 021) business business (107 669) (107 669) UK legacy UK legacy excluding excluding sale assets sale assets 4 503 (2 149) (9 875) 9 227 9 227 73 540 10 797 92 348 56 303 78 043 (84 217) (1 535) (5 696) 41 795 41 795 16 856 16 856 24 939 24 939 87 364 87 364 511 460 595 677 189 513 256 591 Banking Banking (435 771) statutory statutory (30 043) 504 443 504 443 607 150 607 150 225 325 225 325 320 973 320 973 Specialist Specialist (477 969) (102 707) as disclosed^ as disclosed^ UK and Other UK and Other Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review The remaining legacy business in the UK. The results of the businesses sold, i.e. Investec Bank (Australia) Limited, the UK Kensington business and the Start (Irish) mortgage business. The results of the businesses sold, i.e. Investec Bank (Australia) Limited, the UK Kensington business • Refer to pages 163 and 165. • Operating profit before taxation before Operating profit Operating profit before taxation before Operating profit Profit attributable to other non-controlling interests attributable to other non-controlling Profit Profit attributable to other non-controlling interests attributable to other non-controlling Profit Operating profit before goodwill, acquired goodwill, acquired before Operating profit intangibles and non-operating items Operating profit before goodwill, acquired goodwill, acquired before Operating profit intangibles and non-operating items Depreciation on operating leased assets Depreciation Depreciation on operating leased assets Depreciation Operating costs Operating costs Operating income Operating income Impairment losses on loans and advances Impairment losses on loans and advances Total operating income before impairment losses operating income before Total on loans and advances Total operating income before impairment losses income before operating Total on loans and advances Other operating income Other operating income – balance sheet management and other trading activities – and other trading activities balance sheet management Trading income arising from Trading – customer flow income arising from Trading – customer flow Investment income Investment income Net fee and commission income Net fee and commission income Net fee and commission Net interest income Net interest income Net interest

** ^ For the year to 31 March 2015 For the year to 31 March £’000 2016 For the year to 31 March £’000 RECONCILIATION FROM STATUTORY SUMMARISED INCOME STATEMENT TO ONGOING SUMMARISED SUMMARISED TO ONGOING SUMMARISED INCOME STATEMENT FROM STATUTORY RECONCILIATION BUSINESS AND OTHER SPECIALIST BANKING FOR THE UK INCOME STATEMENT % (7.9%) 27.2% 86.7% 20.9% 70.1% 14.7% 23.1% of total 100.0% 107.9% > 100.0% (> 100.0%) % change % % 2015 4.3% 8.8% (6.8%) 0.6% 1.6% (9.5%) 67.5% 13.6% 25.7% (1 467) 41 795 16.5% of total 21 590 21 590 change 129 341 100.0% 106.8% (107 669) 31 March – – Total Total Total 2016 0.6% group group 78 043 (78 335) 100.0% 11 701 78 781 100.0% 156 378 35 201 85 735 (39 312) (45 805) 580 703 592 404 620 015 392 259 148 975 619 129 583 928 629 733 409 215 134 783 31 March 31 March (7.5%) Africa Africa 55.3% 60.1% (9 264) 21 910 73 484 22 608 57 930 (10 645) 349 048 358 312 262 918 Southern Southern 322 730 333 375 252 837 Other Other 44.7% 12.8% 39.9% UK and UK and 56 871 75 491 63 127 76 853 (30 048) (35 160) 231 655 261 703 129 341 261 198 296 358 156 378 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) ONE Other non-controlling interest – equity interest Other non-controlling Operating profit % of total Total group Total Group costs Group Specialist Banking Wealth & Investment Wealth Asset Management For the year to 31 March 2015 For the year to 31 March £’000 Other non-controlling interest – equity interest Other non-controlling Operating profit Total group Total Group costs Group Specialist Banking Wealth & Investment Wealth Asset Management UK legacy remaining UK sale assets Australian sale assets UK and Other Specialist Banking per statutory accounts Total Total ongoing UK and Other Specialist Banking per above Total £’000 2016 For the year to 31 March £’000 62 % of total % change A RECONCILIATION OF THE UK AND OTHER SPECIALIST BANKING’S OPERATING PROFIT: ONGOING VS ONGOING VS PROFIT: SPECIALIST BANKING’S OPERATING OF THE UK AND OTHER A RECONCILIATION BASIS STATUTORY SEGMENTAL GEOGRAPHICAL AND BUSINESS ANALYSIS OF OPERATING PROFIT BEFORE GOODWILL, GOODWILL, PROFIT BEFORE OF OPERATING AND BUSINESS ANALYSIS GEOGRAPHICAL SEGMENTAL AND AFTER OTHER NON-CONTROLLING ITEMS, TAXATION NON-OPERATING ACQUIRED INTANGIBLES, BUSINESSINTERESTS – ONGOING

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 63 2015 16.8% 21.6% 13.8% 17.7% (12 119) (53 078) (65 197) (65 477) (76 022) (36 427) (29 885) (10 545) 526 092 409 910 592 404 Average ONE Ongoing (116 182) (535 964) 31 March business 2 437 426 2 973 390 17 535 720 17 600 917 16 493 472 16 569 494 2016 2014 16.7% 21.3% 13.9% 17.8% (20 400) (33 182) (26 130) (51 730) 541 269 423 118 619 129 (100 953) (121 353) 583 095 704 448 (142 871) (176 053) 695 438 871 491 (577 816) (118 151) business 31 March 31 March excluding 2 283 590 2 861 406 (continued) (continued) UK Legacy sale assets Removal of:** (43 727) (32 519) Average (208 348) (252 075) (154 031) (186 550) (499 054) Statutory 2 538 638 3 037 692 17 188 910 17 440 985 18 118 815 18 305 365 Financial review Financial as disclosed 2015 (494 111) 31 March 2 591 263 3 085 374 2016 (503 996) 31 March 2 486 013 2 990 009 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Before goodwill, acquired intangibles and non-operating items. Before goodwill, acquired intangibles and non-operating The remaining legacy business in the UK. Net core loans and advances to customers Net core Adjusted tangible shareholders’ equity equity Adjusted tangible shareholders’ Portfolio impairments Goodwill and intangible assets (excluding software) assets (excluding software) Goodwill and intangible Specific impairments Calculation of average shareholders’ equity equity shareholders’ Calculation of average equity shareholders’ Ordinary Total impairments Total Post-taxation return on average adjusted tangible shareholders’ equity equity shareholders’ Post-taxation return on average adjusted tangible Pre-taxation return on average adjusted tangible shareholders’ equity equity return on average adjusted tangible shareholders’ Pre-taxation Post-taxation return on average adjusted shareholders’ equity equity Post-taxation return on average adjusted shareholders’ Revised operating profit Revised operating profit intangibles goodwill and acquired before on operating profit Taxation shareholders* Adjusted attributable earningsordinary to equity return on average adjusted shareholders’ Pre-taxation * £’000 Accrued preference dividends, adjusted for currency hedge hedge dividends, adjusted for currency Accrued preference Operating profit* interests Non-controlling £’000 31 March 2015 31 March loans and advances to customers core Gross Net core loans and advances to customers Net core Portfolio impairments Specific impairments Total impairments Total 31 March 2016 31 March loans and advances to customers core Gross

** A RECONCILIATION OF CORE LOANS AND ADVANCES: STATUTORY BASIS AND ONGOING BASIS STATUTORY ADVANCES: OF CORE LOANS AND A RECONCILIATION RETURN ON EQUITY – ONGOING BASIS – ONGOING BASIS RETURN ON EQUITY £’000 – – 2015* 0.46% 1.49% 1.04% 0.22% (65 477) (10 545) (65 477) (10 545) (76 022) (34 600) 30.77% 236 297 247 090 171 068 31 March 31 March 16 569 494 16 493 472 15 471 756 – – Total group Total 2016 0.37% 1.15% 0.78% 0.26% (53 078) (12 119) (53 078) (12 119) (65 197) (43 344) 32.29% 209 828 201 930 136 733 31 March 31 March 17 600 917 17 535 720 17 085 206 – – 2015* (9 545) (9 545) 0.62% 2.04% 1.43% 0.28% (54 086) (54 086) (63 631) (27 359) 30.56% 208 247 144 616 207 561 31 March 31 March 9 598 894 10 191 424 10 127 793 – – 2016 0.42% 1.47% 1.05% 0.26% Southern Africa (32 240) (11 119) (32 240) (11 119) (43 359) (25 538) 28.50% 152 135 108 776 175 051 31 March 31 March 10 358 572 10 315 213 10 274 998 – – 2015* (1 000) (1 000) (7 241) 0.19% 0.61% 0.42% 0.12% 28 736 (11 391) (11 391) (12 391) 38 843 26 452 31.90% 31 March 31 March 6 378 070 6 365 679 5 872 862 – – 2016 UK and Other (1 000) (1 000) 0.30% 0.69% 0.39% 0.26% 34 777 (20 838) (20 838) (21 838) (17 806) 49 795 27 957 43.86% 31 March 31 March 7 242 345 7 220 507 6 810 208 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Financial review Financial (continued) The 31 March 2015 disclosures have been adjusted to reflect the allocation of the portfolio impairment to the legacy portfolio in the UK. The 31 March 2015 disclosures have been adjusted to reflect the allocation of the portfolio impairment ONE £'000 Gross core loans and advances to core Gross customers Total impairments Total Specific impairments Portfolio impairments Net core loans and advances to Net core customers Average gross core loans and loans core gross Average advances to customers Total income statement charge for income Total loans and impairments on core advances Gross default loans and advances to Gross customers Specific impairments Portfolio impairments Defaults net of impairments before collateral held Collateral and other credit Collateral and other credit enhancements Net default loans and advances to customers (limited to zero) Ratios core as a % of gross impairments Total loans and advances to customers Total impairments as a % of gross as a % of gross impairments Total default loans Gross defaults as a % of gross core core defaults as a % of gross Gross loans and advances to customers Defaults (net of impairments) as a % of loans and advances to net core customers Net defaults as a % of net core loans Net defaults as a % of net core and advances to customers Credit loss ratio (i.e. income statement Credit loans as impairment charge on core loans and core a % of average gross advances) 64 * AN ANALYSIS OF CORE LOANS AND ADVANCES TO CUSTOMERS AND ASSET QUALITY BY BY TO CUSTOMERS AND ASSET QUALITY ADVANCES OF CORE LOANS AND AN ANALYSIS BUSINESS GEOGRAPHY – ONGOING

INVESTEC IN PERSPECTIVE INVESTEC IN PERSPECTIVE 65 – 50 126 176 176* Total Total 2015 sheet balance ONE 31 March 31 March impairment 47 648 695 510 185 2015 (after assets Total net net Total 31 March 31 March (continued) (continued) impairments) Other Private Bank assets Private Bank Irish planning and development assets Other corporate assets and securitisation activities – 14 107 121 121* Total Total 2016 sheet balance 31 March 31 March impairment Financial review Financial 23 560 583 440 143 382 F18 2016 (after assets Total net net Total 31 March 31 March impairments) 490 F17 Expected run-off 16 583 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 15 695 14 2 185 13 2 615 08 4 856 Assets put on the bank’s books pre-2008 where market conditions post the financial crisis materially impacted the business model market conditions post the financial crisis materially where pre-2008 books Assets put on the bank’s 2008 with very low/negative margins Assets written prior to undertaking. no longer are to business we Assets relating arch 2015 disclosures impairment of £20.4 million (31 March 2015: £33.2 million). The 31 March 2015 disclosures Included in balance sheet impairments is a group portfolio impairment to the legacy portfolio. have been adjusted to reflect the allocation of this portfolio 0 Performing Non-performing Private Bank Irish planning and development assets Private Bank Irish planning and development Other Private Bank assets legacy assets other Total £’million EXPECTED RUN-OFF OF LEGACY ASSETS EXPECTED RUN-OFF OF LEGACY £’million * AN ANALYSIS OF ASSETS WITHIN THE LEGACY BUSINESS AN ANALYSIS Since 31 March 2015 the group’s legacy portfolio in the UK has continued to be actively managed down from £695 million to £583 million £695 million to £583 million down from in the UK has continued to be actively managed legacy portfolio 2015 the group’s Since 31 March of £78.3 million taxation a loss before total legacy business over the year reported The and write-offs. redemptions largely through the sees opportunities to clear down as the group legacy portfolio will continue to be managed The remaining (2015: £107.7 million). defaults in the legacy net Total two to four years to clear. legacy book will take a further believes that the remaining portfolio. Management 2015: £185 million). million (31 March book amount to £143 LEGACY BUSINESS – OVERVIEWLEGACY BUSINESS OF RESULTS THE LEGACY BUSINESS IN THE UK SPECIALIST BANK COMPRISES: IN THE UK SPECIALIST BANK THE LEGACY BUSINESS • • • 1 000 2 000 3 000 4 000 Total remaining UK legacy assets remaining Total 5 000 Two Divisional review DIVISIONAL REVIEW

67

TWO

Glynn Burger Hendrik du Toit Private Banking activities Corporate and Institutional Banking activities Investment activities activities Property Services and Other activities Group Australia Hong Kong India Southern Africa UK and Europe USA Where we operate Where What we do SPECIALIST SPECIALIST BANKING

earned from financial risk businesses. businesses. earned financial risk from not over reliant that we are This ensures business to sustain on any one part of our we have a large our activities and that base that enables us revenue recurring and to varying cycles to navigate through objectives. growth support our long-term include strategic objectives Our current of our non- the proportion increasing largely base which we lending revenue the continued intend to achieve through of and development strengthening our wealth and asset management businesses. Human resources and organisational and organisational Human resources development Kahn Marc Corporate governance and compliance Bradley Tapnack Finance and risk management Glynn Burger schemes and secretarial Share Les Penfold SUPPORT STRUCTURES SUPPORT Group divisional structure Group Asset Management Hendrik du Toit & Investment Wealth Steve Elliott risk and finance director Group Executive director Executive director Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Global Roles What we do Southern Africa Hong Kong UK and Europe Portfolio management Stockbroking Alternative investments Investment advisory services trading services Electronic and succession planning Retirement Where we operate Where WEALTH & & WEALTH INVESTMENT

Our strategic goals and objectives are objectives are Our strategic goals and an to develop motivated by the desire on an and integrated business efficient the active international through scale core pursuit of clearly established business competencies in our principal philosophy has been Our core areas. to build well-defined, value-added serving the needs businesses focused on we can where of select market niches compete effectively. seek to maintain an appropriate We earnedbalance between revenue from operational risk businesses and revenue Stephen Koseff Bernard Kantor Specialist Banking Ciaran Whelan David van der Walt

Investec is a a Investec is

Steve Elliott David van der Walt South Africa Glynn Burger Wainwright Richard United Kingdom

bank and asset asset bank and

Chief executive officer Chief executive officer LEADERS BUSINESS GEOGRAPHICAL Managing director to be distinctive to be distinctive What we do Equities Multi Asset Alternative ASSET MANAGEMENT Africa Americas Asia Pacific Europe UK Where we operate Where

manager striving striving manager does it does in all that

Integrated global management structure GLOBAL EXECUTIVE focused specialist focused specialist

Operations platform Client base Investing – – – – – – Organically built an independent Organically built an independent an emerging global platform from market base Independently managed entity within the Investec group Competitive investment performance in chosen specialities to: Global approach Institutional and advisor focus Unique and clearly understood culture  Stable and experienced leadership. OUR value proposition • • • • • • • , (2015: 34.2%) Assets under management £75.7bn (2015: £77.5bn) Operating margin 32.0% Our investment team of over 180 investment applies clear investment professionals multiple across philosophies and processes is organised asset classes. Our client group five geographically defined units across the globe. serving our clients around supported by our global These teams are operations platform. ASSET MANAGEMENT Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Asset Management

Operating profit before non- before Operating profit decreased interests controlling by 9.5% to £134.8 million, contributing 26.7% to group profit Net inflows of £3.2bn (2015: £3.1bn) TWO Established in South Africa in 1991, we have built a successful global investment emerging markets. management firm from still managed by our founding We are and continuity has members whose tenure balanced stability and growth. 68 ANNUAL ANNUAL HIGHLIGHTS service expectations exceeding their investment and clientexceeding their investment to the highest standard possible by possible to the highest standard to manage our clients’ investmentsto manage our clients’ individual investors. Our business isindividual investors. banks to intermediaries servingbanks to intermediaries range from foundations and central foundations and range from funds, insurers and corporates, and and corporates, funds, insurers private and public sector pensionprivate and public include some of the world’s largest world’s include some of the investment expertise. Our clientsinvestment expertise. by offering specialist, activeby offering to meet their financial objectivesto meet their the globe to retire with dignity or with to retire the globe we want to assist people aroundwe want to

Global head: Hendrik du Toit At Investec At Investec

DIVISIONAL REVIEW DIVISIONAL REVIEW 69 TWO Europe £861mn Commodities Private equity Private debt Real estate Infrastructure debt £1 425mn Asia Paci c (including Middle East) – – – – – – – – – – ALTERNATIVES (continued) (continued) £1 457mn Asia Pacific £2 267mn Europe (including UK) Global solutions Emerging market solutions Income solutions – – – MULTI ASSET MULTI – – – Africa £229mn Americas Asset Management Client groups (£1 649mn) 2016 Developed Emerging Multi- strategy – – – – Global operations platform – – – – Africa FIXED INCOME £639mn 2015 £1 093mn Americas Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Frontier Emerging Regional Global EQUITIES – – – – Capabilities and organisational structure Capabilities and – – – – United Kingdom

we do

Chief executive officer Kim McFarland Global head of client group Domenico (Mimi) Ferrini Co-chief investment officer John McNab Hendrik du Toit Chief operating officer John Green Co-chief investment officer

NET FLOWS BY GEOGRAPHY Financial years to 31 March 2015 and 31 March 2016. WHERE we operate

Global executive committee Global executive WHAT

Investec Wealth & Investment & Investment Investec Wealth has been built via the acquisition and integration of businesses and over a long period organic growth of time platforms in the Well-established UK, South Africa, Switzerland, and GuernseyIreland has The business currently four distinct channels: direct, intermediaries, charities and international, and is progressing with the development of its online capabilities to form a fifth ‘digital’ distribution channel Strategy to internationalise within the Investec jurisdictions where has an established already group business in our Focus is on organic growth key markets and enhancing our range of services for the benefit of our clients. OUR value proposition • • • • •

Assets under management down only 1.3% Assets under management down only 1.3% 2015 to since March £45.5bn, despite falls in the UK equity markets and the impact of the weaker Rand Net new flows of £2.1bn (2015: £2.7bn) Investec Wealth & Investment is one of Investment is one of Investec Wealth & leading private client investment the UK’s managers, the largest in South Africa, has and is presence a significant European developing its operations internationally. Switzerland head: Peter Gyger head: Eddie Clarke Ireland

WEALTH & INVESTMENT & WEALTH

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Wealth & Investment Wealth

Further detail on the Wealth & Investment management structure is structure is & Investment management Further detail on the Wealth available on our website: www.investec.com

26.4% (2015: 25.2%) positively impacted by investment gains Operating profit up 8.8% to up 8.8% to Operating profit £85.7mn, contributing £85.7mn, contributing 17.0% to group profit 17.0% to group Operating margin  TWO 70 ANNUAL ANNUAL HIGHLIGHTS The business specialises in wealth The business specialises in wealth management, portfolio management, services for and stockbroking private office individuals, families, trusts and charities.

the largest in South Africa the largest South Africa head: Henry Blumenthal client investment managers andclient investment Global head: Steve Elliott UK head: Jonathan Wragg one of the UK’s leading private one of the UK’s Investec Wealth & Investment is & Investment Investec Wealth depth of investment processes.depth of scale, international reach and reach scale, international offers its clients comfort in its clients comfort offers its Investec

DIVISIONAL REVIEW DIVISIONAL REVIEW 71 TWO (continued) (continued) Developing Wealth & Investment & Investment Developing Wealth capability in Hong Kong Asia Succession planning ISAs planning. Retirement • • • Financial planning Wealth & Investment Wealth UK and Europe Brand well recognised Established platforms in the UK, Switzerland, Republic of Ireland and Guernsey leading private One of the UK’s client investment managers ability to attract and recruit Proven investment managers Strong brand and positioning Strong Largest player in the South African market & Newly launched Wealth Investment capability in Mauritius South Africa and Mauritius Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Discretionary Discretionary investment management for company pension and Self Invested Personal Pensions (SIPPs)  Advice and guidance on pension schemes, life assurance and income schemes. protection • • Pensions and retirement The European operations are conducted through Investec Wealth & Investment & Investment Investec Wealth conducted through operations are The European & Investment Ireland Investec Wealth Limited in the UK, Investec Bank Switzerland, Channel Islands. & Investment and in Guernsey Investec Wealth through with the UK and Europe, located throughout offices operate from Over 1 200 staff & Investment is billion. Investec Wealth combined funds under management of £29.8 of private client investment management services. leading providers one of the UK’s Investec Wealth & Investment South Africa provides portfolio management, wealth & Investment South Africa provides Investec Wealth services for private clients, charities, pension funds management and stockbroking R104.5 billion of South Africa with across eight offices and trusts, operating from and annuity managed assets and a further R227.0 billion of funds under discretionary various other forms of administration. we operate we do

Discretionary and advisory and advisory Discretionary portfolio management services for private clients Specialist investment management services for charities, pension schemes and trusts Independent financial planning advice for private clients Specialist portfolio management services for international clients.

Southern Africa • • • • UK and Europe Investments and savings Investments and

WHERE WHAT WHAT

High-quality specialist banking solution to corporate and private clients with leading positions in selected areas high touch Provide personalised service – ability to execute quickly Ability to leverage international, platforms cross-border positioned to capture Well opportunities between the developed and the emerging world – internationally mobile ability to originate, Strong and distribute manufacture Balanced business model with good business depth and breadth. • • • • • • OUR value proposition

£330.9mn Loans and advances (statutory) £18.1bn Customer deposits (statutory) £24.0bn Operating profit (statutory) Operating profit up 8.6% to Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Specialist Banking Banking Specialist

Further information on the Specialist Banking management structure is management structure is Further information on the Specialist Banking available on our website: www.investec.com

 (2015: 15.9%) 12.5% (statutory) ROE (pre-tax) (2015: 10.7%) 16.1% (ongoing) ROE (pre-tax) Operating profit (ongoing) Operating profit up 4.3% to £409.2mn TWO ANNUAL ANNUAL HIGHLIGHTS 72 The specialist teams are well positioned well positioned The specialist teams are services for both personal to provide Private and business needs right across Banking, Corporate and Institutional Banking, Investment and Property activities. David van der Walt Ciaran Whelan and energy Global heads: with dedication with dedication delivered Specialist expertise expertise Specialist

DIVISIONAL REVIEW DIVISIONAL REVIEW 73 TWO Experienced local Experienced local teams in place with industry expertise Focus is on position entrenching as a boutique operation Australia Investment activities Distribution platform Hong Kong (continued) (continued) Australia Hong Kong India Southern Africa UK and Europe USA – – – – – – Treasury and trading services Treasury Specialised lending, funds and debt capital markets and trading sales Institutional research Advisory – – – – – – Corporate and Institutional Banking activities Brand well established Sustainable business on the back of client activity South Africa UK and Europe Strong brand and brand and Strong positioning Leading in corporate institutional and private client banking activities Specialist Banking Banking Specialist Mauritius North America Distribution platform advisory Growing and PFI capabilities India Established a in 2010 presence Facilitates the link between India, UK and South Africa Established in 1997 Leading in corporate institutional and banking client private activities Australia Hong Kong Southern Africa UK and Europe Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review – – – – Principal investments investment fund Property management – – – – A highly valued partner and advisor to our clients partner and advisor to our A highly valued Corporates/government/institutional clients Investment activities we operate Natural linkages between the private client and corporate businesses Natural linkages between the private we do

Southern Africa UK and Europe

– – High-income and high High-income and clients net worth private Focus on helping our Focus on helping and clients create wealth preserve Private Banking activities Transactional banking and foreign banking and foreign Transactional exchange Lending Deposits Investments – –

WHAT WHERE Three Risk management and corporate governance RISK MANAGEMENT AND CORPORATE GOVERNANCE 75 THREE and objectives, continually seeking new ways enhance to techniques. believeWe that the risk management systems and processes we have in place are adequate support to strategy the group’s (as explained and allow on 16) pages to 13 the group operate to within its risk appetite tolerance as set out on page 80. OF THE YEAR A SUMMARY A RISK IN REVIEW FROM PERSPECTIVE Executive management is intimately involved in ensuring stringent management We capital and conduct. of risk, liquidity, continue to seek to achieve an appropriate in balance between risk and reward our business, taking cognisance of all stakeholders’ interests. Notwithstanding, a challenging and experienced in uncertain environment geographies, the group core the group’s was able to maintain sound risk metrics The group the year in review. throughout within the majority of its risk remained the various appetite limits/targets across risk disciplines with any exceptions Our by the board. noted and approved risk appetite framework as set out on page 80 continues to be assessed in light market conditions and group of prevailing strategy. steadily loan book has grown Our core reflecting over the year in home currencies, of 19.7% in South Africa, and an increase 10.5% in the UK. This has been supported owner- in our residential by solid growth occupied mortgage portfolios, private client and corporate client lending in our books has been portfolios. Growth our business lines, with diversified across loan to values at conservative levels and in line with the prior year. margins broadly to a select target are exposures Our credit market comprising high income and high net worth individuals, established corporates, and medium-sized enterprises. Our risk appetite continues to favour lower risk, income-based lending, with well collateralised and credit exposures risk taken over a short to medium term. These target clients have remained and have active during the financial year, seeking displayed a level of resilience, out opportunities, despite the volatility in the markets. well diversified loan book remains Our core property producing rent with commercial 15% of loans comprising approximately the book, other lending collateralised by Risk management Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review PHILOSOPHY AND APPROACH APPROACH PHILOSOPHY AND TO RISK MANAGEMENT committee capital and risk board The (comprising both executive and non- executive directors) meets six times per annum and approves the overall risk The group. Investec the for appetite riskgroup’s appetite statement sets broad parameters relating the to board’s performance, around expectations management. risk and stability business The board ensures that there are risk the manage to resources appropriate our businesses. running from arising management risk comprehensive Our process involves identifying,quantifying, risks the mitigating and managing businesses. our of each with associated compliance and control awareness, Risk are embedded in all our day-to-day activities. seek We achieve to an risk between balance appropriate and reward, taking cognisance of all stakeholders’ interests. A strong riskand embedded is culture management capital into our values. monitors, Management Risk Group manages and reports on our risks ensure to that they are within the stated risk appetite mandated the by board of directors through committee. capital and risk board the monitorWe and control risk exposure market, credit, independent through audit internal risk, legal operational, liquidity, and compliance teams. This approach is core assuming to a tolerable risk and reward profile, helping to us pursue business. our across growth controlled Group Risk Management operates within divisional and geographical integrated an management our with line in structure, appropriate the that ensuring approach, processes are used address to all risks specialist are There group. the across divisions in the UK and South Africa and regions other in divisions risk smaller tasked with promoting sound risk management practices. locally are units Management Risk This helps globally aware. yet responsive businesses and initiatives all that ensure to operate within our defined risk parameters Statement from the the Statement from the group chairman of risk and capital committee Be the custodian of adherence to to Be the custodian of adherence our risk management culture the business operates Ensure risk within the board-stated appetite Support the long-term sustainability an by providing of the group established, independent framework for identifying, evaluating, monitoring and mitigating risk and monitor Set, approve to risk parameters and adherence and ensure the group limits across implemented and adhered they are to consistently and monitor our Aggregate risk classes across exposure risk management Coordinate the organisation, activities across covering all legal entities and jurisdictions reasonable Give the boards assurance that the risks we are identified and exposed to are managed and appropriately controlled risk committees, Run appropriate as mandated by the board. • • • • • • • • Group Risk Group Risk Management to: objectives are a low reliance on interbank wholesale on interbank wholesale a low reliance asset growth. lending funding to fund core amounted Cash and near cash balances representing to £11.0 billion at year-end, 38.8% of our liability base. to normalise balance The strategy in the UK the strategic sheet liquidity levels following of the previous sales in the last quarter by mid-year financial year was achieved and growth a combination of asset through loan to deposit liability management. Our average ratio is at 72.2%. Our weighted cost of funding over the year continued to and we comfortably meet Basel decrease for the Liquidity liquidity requirements Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). In South Africa surplus cash balances significantly as we remained increased conservative given the volatility in the ended the year with the markets. We average of Investec Bank three-month (solo) LCR at 117.3%, which is Limited’s well ahead of the minimum levels required. successful in raising two to three were We year term US Dollar (USD) funding at levels last witnessed over five years ago. The USD liquidity position long-term bank’s is very positive and places us in a strong position ahead of any concern South over rating heightened risk of a credit Africa’s downgrade. Our USD funding merely augments our surplus cash balances, and fully funded loans and advances are core domestic deposits, with our loan from to deposit ratio (excluding USD funding) at 74.6%. continue to spend much time and We focusing on operational, reputational, effort risks. and resolution conduct, recovery During the year customer and market established conduct committees were in South Africa and the UK, with the objective of ensuring that Investec maintains a client-focused and fair outcomes-based culture. high remain Financial and cybercrime priorities, and Investec continually aims in its systems and controls to strengthen obligations to meet its regulatory order to combat money laundering, bribery and corruption. testing framework is stress Investec’s well embedded in its operations and is test the designed to identify and regularly key ‘vulnerabilities under stress’. group’s testing A fundamental part of the stress is a full and comprehensive process material business analysis of all the group’s risk, activities, incorporating views from The group has minimal exposure to the to the has minimal exposure The group and sector in South Africa, agriculture to mining and exposure our overall group amounts to 2.6% of our credit resources net Overall and counterparty exposures. at a manageable are defaults of the group of our tier 1 level, amounting to 9.7% with total impairments amounting to equity, income. 17.8% of our pre-provision in the UK Our investment portfolios a sound and South Africa delivered year we performance. During the a sizeable portion of our transferred South African unlisted investments portfolio to an investment vehicle called Investec Equity Partners (IEP), in which With a 45% interest. the backing we retain of external strategic investors, we believe that IEP is better positioned to deliver value this portfolio. Overall, we and grow from, comfortable with the performance remain of our equity investment portfolios which comprise 3.88% of total assets. market risk within our trading Proprietary modest with value at risk portfolio remains testing scenarios remaining and stress at prudent levels. Potential losses that could arise in our trading book portfolio tested under extreme when stress value market conditions (i.e. per extreme theory) amount to less than 0.2% of total operating income. Investec has continued to maintain a sound balance sheet with a low gearing ratio of loans to equity ratio 10.2 times and a core leverage ratios of 4.7 times. Our current at for Investec Limited and Investec plc are 6.9% and 7.0% respectively. have always held capital in excess of We and we intend to requirements regulatory All our banking perpetuate this philosophy. internal targets for subsidiaries meet current did not meet our We total capital adequacy. internal target for our common equity tier 1 ratio to be in excess of 10% at our holding of solid growth companies, as a result risk-weighted assets during the in credit and we are Capital continued to grow year. is in line with growth comfortable that credit our risk appetite framework and supported believe that a by sound risk metrics. We common equity tier 1 ratio in excess of 10% for our business, given our is appropriate high leverage ratios and we will continue to build our business in a manner that achieves this target. available, Holding a high level of readily high quality liquid assets remains paramount in the management of our continue to maintain balance sheet. We Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Risk management (continued) THREE 76 property 10%, high net worth and private and private 10%, high net worth property corporate lending client lending 35% and concentrations 40% (with most industry over the past well below 5%). Our focus our and rebalance few years to realign risk appetite portfolios in line with our in the relative framework is reflected on our balance changes in asset classes in private sheet; showing an increase other lending, client and corporate and by in lending collateralised and a reduction of our book. as a proportion property Our legacy portfolio in the UK has been £695 million actively managed down from 2015 to £583 million largely at 31 March and write-offs redemptions through (notably on the Irish portfolio). will continue to manage this portfolio We cautiously down, although we remain and our view is optimistic in this regard legacy book will still that the remaining take two to four years to clear as explained in detail on page 65. Impairments on loans and advances £128.4 million to from decreased 2015 £109.5 million. Since 31 March from defaults have improved gross £608.4 million to £466.1 million. The of default loans (net of percentage taking collateral impairments but before loans and advances into account) to core amounted to 1.54% (2015: 2.07%). The ratio of collateral to default loans (net satisfactory at of impairments) remains 1.35 times (2015: 1.37 times). in the level of an increase reported We impairments taken on our South African comfortable with the portfolio, but remain overall performance of the book, as the loss ratio amounts to 0.26% and credit defaults (net of impairments but before 1.05% of our book. The collateral) are rates in South Africa in interest increase has had little impact on the performance of our book to date, as our target market is rate less sensitive to the moderate interest will however, to date. We moves incurred monitor our portfolio in light of the Given rate environment. interest increasing outlook in South Africa, the weaker growth it is likely that defaults could increase, although we would still expect our credit within our long-term loss ratio to remain loss of 30bps to 40bps. The credit trend ratio in our UK and Other businesses during the year to 1.13%, with improved the bulk of impairments taken on the losses on our legacy portfolio. Our credit ’ongoing’ UK and Other book remain core low at 0.26%.

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 77 THREE (continued) (continued) Risk management Our viability statement is is Our viability statement provided on pages 82 to 84. provided on pages 82 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Stephen KoseffStephen capital and risk group the of Chairman committee June 2016 10 CONCLUSION and economic regulatory The current continues to prove environment we challenging to our business, however, risk comfortable that we have robust are and systems in management processes foundation a strong place which provide and the business to manage to the board and mitigate risks within our risk appetite tolerance framework. board the of behalf on Signed maintain adequate liquidity and capital and capital maintain adequate liquidity continued balances to support the operation of the group. We were very pleased to receive a number a number very pleased to receive were We the period, rating upgrades during of credit to our adjustments made with upward and the UK. ratings both in South Africa a are believe these rating upgrades We we have made of the progress reflection over the past few years in simplifying and derisking our business, maintaining sound capital and high liquidity ratios, risk metrics at and managing credit tolerable levels. the business and the executive – a – a the business and the executive analysis. called the ‘bottom-up’ process analysis, the ‘bottom-up’ Resulting from are scenarios the Investec-specific stress test the unique designed to specifically portfolio. The attributes of the group’s potential threats key is to understand the and profitability to our sustainability and have thus a number of risk scenarios These been developed and assessed. form scenarios Investec specific stress capital planning an integral part of our also testing process The stress process. process informs the risk appetite review and the management of risk appetite limits and is a key risk management tool of the allows the group This process group. to identify underlying risks and manage them accordingly. to Investec continued During the year, testing framework. enhance its stress Given the volatility and uncertainty in the scenarios market, a number of new stress incorporated into our processes, were these included for example, the events that December 2015 in Africa South in unfolded of Finance Minister Nene; with the removal rating downgrade of South a sovereign Africa to below investment grade; and ‘Brexit’. its various risk and through The board, capital committees, continued to assess the impact of its principal risks and the scenarios on above mentioned stress has concluded its business. The board systems and has robust that the group in place to manage these processes stress risks, and that while under a severe scenario, business activity would be very would continue to subdued, the group Southern Africa risk Credit by loans and advances grew Net core 2016 at 31 March 19.7% to R218.0 billion private owner-occupied, with residential portfolios client lending and corporate for the majority of the growth representing the financial year in review. as a Default loans (net of impairments) loans and advances of core percentage 1.43% to 1.05% as a result from improved credit and settlements. The of write-offs 0.28%. to 0.26% from loss ratio improved market risk Traded continue to manage to a very low level We at R4.8 million at of market risk with VaR conditions have 2016. Trading 31 March challenging. Markets have been remained very volatile while the lack of liquidity has focused on continued. Investec remains demand of our facilitating the near-term clients. The equity derivatives business their synthetic has continued to grow to a diversified client offering product have kept market base. All trading areas at low levels throughout risk exposures the year. Balance sheet risk by deposits increased customer Total 1 April 2015 to R280 billion 26.4% from 2016. Cash and near cash at 31 March by 40.8% from balances increased 1 April 2015 to R125 billion at 31 March 2016. Investec Bank Limited (solo basis) ended the financial year with the three- month average of its LCR at 117.3%, which is well ahead of the minimum level of 70% required. regulatory UK and Other UK and Other risk Credit and rebalance continue to realign We our stated our portfolio in line with in the reflected risk appetite, which is and in corporate client exposures growth and the decline private client mortgages in lending collateralised by property has been Continued progress exposures. made during the year in our strategic active through portfolio rebalancing portfolio management and the consistent application of our risk appetite statement. by loans and advances increased Net core 2015 £7.1 billion at 31 March 10.5% from 2016, largely to £7.8 billion at 31 March in our diversified of solid growth as a result corporate lending and high net worth and other private client lending activities. Default loans (net of impairments) have 3.00% to 2.19% of core from decreased loss ratio loans and advances. The credit is at 1.13% (2015: 1.16%), impacted by further impairments on the legacy portfolio. market risk Traded continue to manage to a very low level We at £0.5 million at of market risk with VaR growth was strong 2016. There 31 March rate and the interest in client activity across exchange corporate sales desks foreign and Distribution. Products within Treasury markets volatility in the forex Increased active client activity and in more resulted rate hedging activity was driven interest Market risk internalby strong deal flow. all asset classes have across exposures the year. low throughout remained Balance sheet risk Cash and near cash balances at amounted to £5.1 billion 31 March 2016 (2015: £5.0 billion) with total UK by 4.9% customer deposits increasing to £10.8 billion (2015: £10.3 billion). to comfortably exceed We continue for the LCR Basel liquidity requirements and NSFR. Geographic summary of of Geographic summary from the year in review a risk perspective Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Risk management (continued) THREE 78 The group maintained The group maintained a strong liquidity in position well excess of regulatory policy and internal requirements throughout the year

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 79 – £ n/a n/a n/a n/a n/a 4.3x 9.4x 2015 4 040 9 975 0.86% 1.25% 3.49% 2.07% 0.68% 1.15% 4.19% 3.87% 74.0% 26 601^ 17 189 38 016 22 615 THREE – £ n/a n/a n/a n/a n/a 4.7x 2016 10.2x 3 859 Investec group 0.93% 1.34% 2.55% 1.54% 0.62% 0.99% 3.88% 2.06% 73.5% 26 923^ 18 119 39 505 10 994 24 044 (continued) (continued) – R 3.5 5.1x 2015 9.6% 8.1% 10.1x 1.20% 1.59% 2.04% 1.43% 0.28% 0.44% 4.88% 2.32% 78.6% 14.7% 11.3% 35 526 88 691 182 058 359 728 269 466 221 377 Risk management – R 4.8 5.2x 2016 9.6% 6.9% 10.6x 1.15% 1.61% 1.47% 1.05% 0.26% 0.17% 4.16% 0.63% 74.6% 14.0% 10.7% Southern Africa 41 851 217 958 445 239 309 052 124 907 279 820 – £ 0.7 3.4x 8.8x 2015 7.7% 7 061 2 074 5 039 0.44% 0.72% 5.52% 3.00% 1.16% 1.92% 3.44% 4.32% 68.5% 16.7% 11.9% 10.2% 17 970 11 608 10 298 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review – £ 0.5 4.1x 9.8x 2016 9.7% 7.0% UK and Other 7 804 1 881 5 082 0.71% 1.10% 3.95% 2.19% 1.13% 1.92% 3.56% 3.63% 72.2% 15.1% 10.7% 18 489 12 297 10 801 ‘derived’ by adding Investec plc and Investec Limited (Rand converted into Pounds Sterling) numbers numbers ‘derived’ by adding Investec plc and Investec Limited (Rand converted into Pounds Sterling) # statement impairment charge on core loans as a percentage of average advances. # Total assets excluding assurance assets. Total The group numbers have been Total assets excluding assurance assets to total equity. Total preference dividends, but before goodwill, Where return represents operating profit after taxation and non-controlling interests and after deducting are calculated on a straight-line average. balances acquired intangibles and non-operating items. Average together. ^ Year to 31 March to Year Net core loans and advances (million) Net core Return on average risk-weighted assets Total assets (excluding assurance assets (excluding assurance Total assets) (million) Total risk-weighted assets (million) risk-weighted Total Total equity (million) equity Total Cash and near cash (million) Customer accounts (deposits) (million) Gross defaults as a % of gross core core defaults as a % of gross Gross loans and advances Defaults (net of impairments) as a % loans and advances of net core Net defaults (after collateral and loans impairments) as a % of net core and advances Credit loss ratio* Credit Structured credit as a % of total assets** credit Structured Banking book investment and equity as a % of total assets** risk exposures Level 3 (fair value assets) as a % of total assets** Traded market risk: one-day value at market risk: one-day value Traded risk (million) Core loans to equity ratio Core Total gearing ratio^^ gearing Total Loans and advances to customers to customer deposits Capital adequacy ratio Tier 1 ratio Common equity tier 1 ratio Leverage ratio – current Return on average assets Certain information is denoted as n/a as these statistics are not applicable at a consolidated group level and are best reflected per per reflected best are level and not applicable at a consolidated group Certain information is denoted as n/a as these statistics are disclosed. not previously or were and other requirements; banking entity or jurisdiction in line with regulatory ^ * Income ** Salient features A summary of risk key indicators is provided in the table below. # ^ Positioning at 31 March 2016 Positioning at 31 March Capital light activities contributed 55% to total operating income and capital intensive activities contributed 45% Recurring income amounted to 71.7% of total operating income. The cost to income ratio amounted to 66.4%. on equity amounted to 11.5% and our The return return on risk-weighted assets amounted to 1.34%. Refer to pages 52 and 53 for further information for to page 52 achieved this internal target; refer We further information we have not meet total capital targets; however, We growth met our common equity targets due to strong to page 52 for risk-weighted assets; refer in credit further information maintained this risk tolerance level in place We the year throughout Refer to the Investec 2016 integrated annual report loans amounted to loss charge on core The credit 0.62% and defaults net of impairments amounted to loans. Refer to the Investec 2016 1.54% of total core integrated annual report cash and near cash balances amounted Total 45.7% of customer to £11.0 billion representing deposits. Refer to the Investec 2016 integrated annual report meet these internal limits. Refer to the Investec We 2016 integrated annual report Our unlisted investment portfolio is £500 million, 17.4% of total tier 1 capital. Refer to the representing Investec 2016 integrated annual report Refer to the Investec 2016 integrated annual report Refer to the Investec 2016 integrated annual report Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Risk management (continued) We seek to maintain an appropriate balance between revenue earned balance between revenue seek to maintain an appropriate We the split in revenue capital light and capital intensive activities. Ideally from market conditions should be 50:50, dependent on prevailing revenue income base supported by diversified have a solid recurring We income ratio in excess of 65% and target a recurring streams, cost a group over fixed costs and target seek to maintain strict control We to income ratio of below 65% return to aim to build a sustainable business generating sufficient We return on equity over the longer term, and target a long-term shareholders return on risk-weighted ratio range of between 12% and 16%, and a assets in excess of 1.2% banking a lowly leveraged firm and target a leverage ratio in all our are We subsidiaries in excess of 6% level of capital to satisfy regulatory intend to maintain a sufficient We adequacy and our internal target a capital target ratios. We requirements basis for Investec ratio range of between 14% and 17% on a consolidated tier 1 ratio of 11.0% plc and Investec Limited and we target a minimum and a common equity tier 1 ratio above 10.0% we know and target a diversified loan portfolio, lending to clients We or to a single/connected individual limit our exposure understand. We by the relevant approved company to 5% of tier 1 capital (up to 10% if and also have a number of risk tolerance limits committee). We board targets for specific asset classes main in the group’s for primary exposure is a preference There will accept operating geographies (i.e. South Africa and UK). The group we have a branch or local banking subsidiary and where exposures we have developed a local to other countries where tolerate exposures facilitating a transaction for a client understanding and capability or we are geography facilities in a foreign who requires and we target The level of defaults and impairments continues to improve loans of less than 0.5% of average core loss charge on core a credit advances (less than 1.25% under a weak economic environment/stressed scenario), and we target defaults net of impairments less than 1.5% of loans (less than 4% under a weak economic environment/ total core scenario) stressed to carry a high level of liquidity in all our banking subsidiaries in order We be able to cope with shocks to the system, targeting a minimum cash to customer deposit ratio of 25% have modest market risk as our trading activities primarily focus on We trading is limited. We supporting client activity and our appetite for proprietary of less than R15 million for set an overall tolerance level of a one-day 95% VaR Investec Limited and less than £5 million for Investec plc have moderate appetite for investment risk, and set a risk We tolerance of less than 20% of tier 1 capital for our unlisted principal investment portfolio (excluding IEP) business Our operational risk management team focuses on improving review, through requirements performance and compliance with regulatory challenge and escalation have a number of policies and practices in place to mitigate We legal and conduct risks reputational, Risk appetite and tolerance metrics • • • • • • • • • • • • • • THREE 80 Overall group risk appetite Overall group to our our risk tolerance and approach appetite statements and policy documents covering risk has a number of board-approved The group risk appetite level. The group identify and manage risk at a group In addition, a number of committees and forums principal aspects of risk. the risk appetite framework acts as a guide to determine group mandated risk appetite. The sets out the board’s statement and framework limits/targets are that risk appetite statement ensures capital. The group owners of the group’s by the of the group acceptable risk profile statement is a high-level, strategic risk appetite jurisdictions and legal entities. The group all key operating across applied and monitored risk The group at each entity and geographic level. the detailed risk policy documents and does not replace framework that supplements and and the regulatory testing reviews our stress budget and capital processes, function of business strategy, appetite framework is a (in light of the above aspects) and risk appetite framework is reviewed is operating. The group the group in which economic environment against our risk is measured our risk profile where exists business needs dictate. A documented process at least annually or as approved risk and capital committee. and the board risk and capital committee to the group is presented appetite and this positioning overall risk tolerance framework. summary of the group’s a high-level The table below provides

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 81 THREE committee Customer and market conduct forum capital committee Deal forum/ new product new product Group risk and Group committee Group investment Group Hendrik du Toit is the chief Hendrik du Toit is not of IAM and executive officer risk taker for classified as a material regulations the purpose of the PRA plc applicable to Investec Bank The management of IAM, including undertook a Hendrik du Toit, substantial investment in IAM, in alignment with resulting and, as interests shareholder will disclosed, there previously be no deferral of any short-term incentive until such time as the debt taken out by Hendrik du Toit to fund his investment in IAM has been repaid. The directors' remuneration report on pages 96 to 137 provides details of the remuneration policy and the implementation of that policy for all directors. – – payment of any sums. The remuneration payment of any sums. The remuneration be continues to of Hendrik du Toit to the determined by reference Asset policy of the Investec remuneration This isManagement (IAM) business. by the remuneration deemed appropriate reasons: committee for the following – – forum Global forums/ Executive risk review risk review committees DLC social and ethics committee risk forums Group legal Group Corporate governance governance Corporate

bal credit committee bal credit Glo Global market risk forum Global compliance forum committee Global IT steering committee DLC capital Group operational risk committees Group Group asset and liability committees Group capital committee DLC board risk and DLC board Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Stakeholders D1.1 states that performance-related D1.1 states that performance-related schemes for executive remuneration that should include provisions directors would enable the company to recover sums paid or withhold the payment of any sum, and specify the circumstances to in which it would be appropriate remuneration do so. The current do not arrangements for Hendrik du Toit sums that to recover include provisions been paid or to withhold the have already INL Audit Statement of compliance Statement of GOVERNANCE UK CORPORATE CODE based on is of the opinion that, The board this throughout the practices disclosed in operation during the which were report, has complied the group year under review, set out in the provisions with the relevant UK Corporate Governance Code, except as disclosed below: • stakeholders are assured that we are being being that we are assured stakeholders are in compliance with managed ethically and and best the latest legislation, regulations practices. committee sub-committees DLC nominations and directors affairs affairs and directors PLC DLC audit committees Audit and compliance conduct committee implementation forums (employees, shareholders, government, regulatory bodies, clients, suppliers, communities) government,(employees, shareholders, regulatory Prudential, audit and Investec plc (PLC) and Investec Limited (INL) board of directors of (INL) board Investec plc (PLC) and Investec Limited PLC Audit committee Audit Internal sub-committees DLC remuneration DLC remuneration Compliance Governance framework The board, management and employees The board, committed to complying of Investec are rules and transparency with the disclosure and listing rules of the United Kingdom Listing Authority (UKLA), the JSE Limited regulatory (JSE) listings requirements, in the countries in which we requirements operate, the UK Corporate Governance Code (the Code) which was issued by Financial Reporting Council in the UK’s in September 2012, and 2010 and revised the King Code of Governance Principles all for South Africa (King III). Therefore, Board statement Introduction Sound corporate governance is implicit in functions processes, our values, culture, and organisational structure. of our a summary This section provides corporate governance philosophy practices for the year ended and key developments is detailed review 2016. A more 31 March in the Investec 2016 integrated provided annual report. Through its various sub-committees, its various sub-committees, Through risk the group notably the audit committees, (GRCC), the BRCC and capital committee the board and the capital committees, assessment carries out a robust regularly potential impact of these risks, and their and solvency on the performance, liquidity board The activities of these of the group. issues considered sub-committees and the governance described in this by them are section of this report. together these risks into account, Taking strategic objectives and with the group’s the market environment, the prevailing the overall risk appetite approved board risk The group’s for the Investec group. parameters appetite statement sets broad expectations around to the board’s relating performance, business stability and risk management. considers that prudential risk The board management is paramount in all it does. of depositors, customers’ Protection capital adequacy and shareholder interests, manage the key drivers. To returns are a number of are there risk appetite group’s detailed policy statements and governance that ensures in place. The board structures in place resources appropriate are there running to manage the risks arising from our business by having independent Risk Management, Compliance, and Financial supplemented functions. These are Control by an Internal Audit function that reports independently to a non-executive Audit committee chairman. believes that the risk The board we management systems and processes adequate to support have in place are strategy and allow the the group’s to operate within its risk appetite group of the group’s framework. A review against its performance/measurement at risk appetite framework is provided each BRCC meeting and at the main board meetings. In terms of the South African Reserve Bank (SARB), the UK Financial Conduct Authority (FCA) and Prudential Regulation Authority is also the group (PRA) requirements, with standards to meet regulatory required In terms of to capital and liquidity. respect is required the group these requirements, its capital and liquidity positions to stress conditions. stress under a number of severe testing framework is well stress Investec’s embedded in its operations and is designed The board has identified the principal and emerging risks facing the group and these are highlighted on page 38 with detailed information provided in the Investec 2016 integrated annual report. The group’s strategy and prevailing and prevailing strategy The group’s market conditions and business environment and complexity of our business Nature Risks we assume, and their management and mitigation in processes Key business and control operation rating and access to capital Credit Needs of all our stakeholders Operational soundness Accounting policies adopted Corporate governance practices and clear relevant to provide Desire disclosures committee support Operation of board structures. Viability statement Viability a going concern In addition to providing in terms is required, statement, the board of the UK Corporate Governance Code, to the to make a statement with respect viability (i.e. its ability to continue group’s in operation and meet its liabilities) taking position of the into account the current of the assessment the board’s group, and the principal risks it prospects group’s faces. Following confirmation by the BRCC (comprising a majority of non-executive which includes members of the directors, audit committees) the audit committees the viability statement for recommended approval. board This process was in place for the year was in place for the This process of approval and up to the date under review and report of this integrated annual The process annual financial statements. and is implemented by management effectiveness for independently monitored sub-committees by the audit, risk and other of the board. are Our annual financial statements on a going concern basis, taking prepared into consideration: • • • • • • • • • • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Corporate governance governance Corporate (continued) For a complete list of all principles For a complete list of and a reference to demonstrate these how Investec has applied to our principles, please refer website.  Budgeting and forecasts Profitability Capital Liquidity Solvency. THREE 82 The directors have confirmed that they The directors as well as satisfied that the group, are Investec plc and Investec Limited individually, to continue in have adequate resources The future. business for the foreseeable assumptions underlying the going concern discussed at the time of the statement are by the of the annual financial results approval and these include: board • • • • • is of the opinion, based on its The board key processes knowledge of the group, in operation and enquiries, that there to support adequate resources are as a going concern for the the group future. foreseeable is of the opinion the board Furthermore, risk management that the group’s and the systems of internal processes operate effectively. control for monitoring responsible are The directors integrity and the preparation, and reviewing of the Investec plc and Investec reliability Limited combined consolidated financial statements, accounting policies and the information contained in the integrated that the annual and to ensure annual report, balanced fair, financial statements are and understandable. the In undertaking this responsibility, supported by an ongoing are directors for identifying, evaluating and process managing the key risks Investec faces in the financial and other information preparing contained in this integrated annual report. Financial reporting and Financial reporting and going concern KING III based on is of the opinion that, The board this throughout the practices disclosed in operation throughout which were report, has applied Investec the year under review, the King III principles.

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 83 THREE (continued) (continued) out ‘reverse stress tests’ i.e. those scenarios stress out ‘reverse its to breach that would cause the group These capital and liquidity requirements. highly unlikely, considered scenarios are liquidity position strong given the group’s leverage parameters.and sound capital and to is required the group Furthermore, plan for and resolution have a recovery Investec plc. both Investec Limited and plans are The purpose of the recovery and senior to document how the board the group that management will ensure to financial stress extreme from recovers in its avoid liquidity and capital difficulties companies. separately regulated The capital and liquidity plans, stress plans and resolution scenarios, recovery and the risk appetite statement are In addition, at least annually. reviewed senior management hosts an annual at which risk appetite process three-day framework risk appetite the group’s and modified to take into is reviewed account risk experience and changes in strategic Furthermore, the environment. which focus on, amongst budget processes other things, the business and competitive landscape; opportunities and challenges; – take place within financial projections each business division at least annually. A summary of these divisional budgets, budget, together with a consolidated group during its to the board is presented early in the year. process strategic review the board viability, In assessing the group’s has taken all of the abovementioned into factors, documents and processes can confirm consideration. The directors expectation that they have a reasonable that Investec will continue to operate and meet its liabilities as they fall due over the has used a years. The board next three assessment period as this is three-year medium-term capital aligned to the group’s liquidity, profitability, incorporate which plans leverage and capital adequacy projections a and include impact assessments from scenarios. The board number of stress viability in its has assessed the group’s ‘base case’ and ‘down case’ scenarios. Detailed management information therefore senior management and exists to provide visibility and realistic sufficient the board viability over the next three of the group’s 2019 under these years to 31 March various scenarios. a number viability, In assessing the group’s built into its capital and of assumptions are liquidity plans. In the ‘down case’ scenario Corporate governance governance Corporate Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review A substantial global and domesticA substantial global and in (with GDP growth recession territory) South Africa falling to negative A further commodity slump sharpDomestic and global rapid, rate hikes interest the Substantial Rand weakness (where Rand falls below 20 to the US Dollar and then to over 25 to the US Dollar) The unemployment rate moves to over 30% rating is credit sovereign South Africa’s to speculative grade dropped electricity load Persistent schedule three shedding ensues The BOE ‘Anchor Scenario’: this scenario incorporates a UK slowdown a slump in Pounds in GDP growth, in inflation Sterling, a significant increase rates in the UK and interest is an oil there A scenario where price shock with prices increasing in a This would result substantially. significant deterioration in global risk sentiment. UK inflation rises and spirals to a CPI peak of 5%. The UK economy with GDP recession undergoes a severe by over 4%. peak to trough falling from National house prices fall over 20% (and in London by over 45%), and the FTSE falls close to 30% global growth A scenario where is a collapse disappoints and there in the oil price which pushes down inflation and leads to a deflationary is a period of stagnation mindset. There which moderately impacts UK GDP. cut into negative rates are UK interest National house prices in the UK territory. negatively impacted as is the FTSE. are The group’s current down case stress down case stress current The group’s takes into scenario in Investec Limited which are account a number of factors, briefly highlighted below: • • • • • • • Investec plc runs a number of stress briefly scenarios, some of which are highlighted below: • • • the group In addition, during the year, incorporated a number of new stress scenarios into its liquidity and capital plans, for example, the events that unfolded in South Africa in December 2015, a sovereign rating downgrade of South Africa to below also carry We investment grade and ‘Brexit’. to identify and regularly test the group’s key key group’s test the to identify and regularly ‘vulnerabilities under stress’. daily rigorous Scenario modelling and performed tests are liquidity stress and manage the group’s to measure banking entities’ liquidity respective obligations can positions such that payment of company- be met under a wide range scenarios. stress specific and market-driven liquidity, sufficient The objective is to have continue to scenario, to in an acute stress period as detailed operate for a minimum risk appetite and in the board-approved The group’s the regulators. by as required each banking risk appetite also requires entity to maintain a minimum cash to customer deposit ratio of 25%, and ensure banking entities are that the respective on wholesale funding to fund not reliant Each banking entity is asset growth. core to be fully self-funded. Our banking required businesses in both the UK and South Africa for requirements exceed the regulatory the net stable funding ratio and liquidity has currently coverage ratio. The group £11 billion in cash and near cash assets, 45.7% of customer deposits. representing develops annual capital plans The group period. over a three-year that look forward designed to assess the These plans are respective capital adequacy of the group’s banking entities under a range of economic and internal conditions, with the impact on risk appetite and earnings, asset growth, The output of capital liquidity considered. the and allows senior management planning that the to make decisions to ensure board capital to continues to hold sufficient group capital targets meet internal and regulatory over the medium term (i.e. three years). targets a minimum capital The group adequacy ratio of 14% to 17%, a common equity tier 1 ratio in excess of 10% and a leverage ratio in excess of 6% for each of its banking entities. The parameters used in the capital and regularly, reviewed are liquidity stresses taking into account changes in the business business and inputs from environments units. A detailed ‘bottom-up’ analysis is performed in designing Investec’s also scenarios. The group specific stress Englandof Bank and SARB the incorporates into its capital (BOE) ‘anchor stresses’ As the group’s and liquidity processes. separately regulated banking entities are different one another, and ring-fenced from the respective scenarios apply across stress banking entities and jurisdictions. of forecasts and regular management, and regular of forecasts updates strategic and operational annual budgets, capital Approves plans and business plans, projections compliance with Monitors the group’s of and codes laws, regulations relevant business practice Assisted by the audit committees’ and risk and board support structures that ensures capital committee (BRCC), conduct risk is adequately mitigated, managed and addressed Assisted by the audit committees, BRCC and capital committees, regularly assessment of itscarries out a robust principal risks and their impact on the performance, liquidity and solvency of the group in processes are there Ensures place enabling complete, timely, accurate and accessible relevant, to stakeholders and risk disclosure monitors our communication with all made stakeholders and disclosures and effective transparent to ensure communication Identifies and monitors key risk areas and key performance indicators thereby and extent of determining the nature principal risks it is willing to take in achieving its strategic objectives to and procedures Reviews processes of the internal the effectiveness ensure systems of control Assisted by the social and ethics we adopt committee, ensures sustainable business practices, environmental and social our including activities Assisted by the audit committees, IT governance appropriate ensures in place, the are processes implementation of which management and ensuring that the for, is responsible is aligned to the performance process and sustainability objectives of the board Assisted by the audit committees’ BRCC, monitors and structures support cyber risks and mitigating factors to cybercrime prevent Monitors and evaluates significant IT investments and expenditure information assets are Ensures managed effectively • • • • • • • • • • • • considers adherence to non-binding to non-binding considers adherence rules and standards for the governance Is responsible information of risk, including that of technology (IT) and custodian Acts as a focal point for of corporate governance leadership on an effective Provides ethical foundation is, and is seen to be, the group Ensures corporate citizen. a responsible of theHas delegated the review and annualintegrated annual report financial statements to the audit committees. The audit committees that, taken as a whole, therecommended balanced is fair, integrated annual report isand understandable and the board satisfied with the recommendation Assesses the quantitative and qualitative performance aspects of Investec’s system of a comprehensive through financial and non-financial monitoring involving an annual budget process, review regular detailed monthly reporting, • • • • meets its objectives by The board and guiding corporate strategy, reviewing values and standards, setting the group’s of corporate high standards promoting key policies and governance, approving objectives, ensuring that obligations to its and other stakeholders are shareholders understood and met, understanding the key risks, determining our risk tolerance and in the processes and reviewing approving materialising, operation to mitigate risk from of the terms of including the approval committees. of supporting board reference specifically reserved Certain matters are achieve its objectives, the To for the board. may delegate certain of its duties board committees, and functions to various board forums or the chief executive officer, group without abdicating its own responsibilities. has formally defined and The board documented, by way of terms of reference, the authority it has delegated to the various forums and chief committees, group board executive officer. is the board In fulfilling its responsibilities, supported by management in implementing by the the plans and strategies approved board. its or through directly Furthermore, committees, the Investec board: • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Corporate governance governance Corporate (continued) Approves the group’s strategy the group’s Approves compliance with the Monitors group and applicable laws and regulations The strategic and financial overview of The strategic and financial the business Detail on the principal and emerging faces risks the group approach The overview of the group’s to risk management, and the processes in mitigating in place to assist the group its principal risks various Information on the group’s testing processes stress and approach philosophy The group’s to liquidity management management capital The group’s framework. THREE 84 • Board of directors In terms of the DLC arrangement, the of Investec plc and Investec Limited boards is managed identical and the group are as a unified economic enterprise. The and for creating is responsible board value by delivering sustainable shareholder within a overall strategic direction providing framework of risk appetite and controls. charter has adopted a board The board annually and which which is reviewed a framework of how the board provides, operates as well as the type of decisions to and which decisions be taken by the board should be delegated to management. The Investec board: • these include, for example, dividend these include, for example, asset growth and payments being reduced being curtailed. in should be read The viability statement sections in conjunction with the following annual report, the Investec 2016 integrated the board’s all of which have informed viability: assessment of the group’s • • • • • • viability statement This forward-looking is based on made by the board at information and knowledge of the group could be a number 10 June 2016. There of risks and uncertainties arising from (but not limited to) domestic and global economic and business conditions beyond that could cause the control the group’s performance or actual results, group’s achievements in the markets in which it those anticipated. from operates to differ

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 85 – – – – No Yes Yes Yes Yes Yes Yes Yes Yes Yes THREE Independent On appointment (continued) (continued) 3 Jul 2002 1 Jan 2015 6 Oct 1986 8 Jun 1987 1 Mar 2013 1 Nov 2014 8 Aug 2014 8 Aug 2014 8 Aug 2014 30 Jul 1980 30 Jan 2004 18 Jun 2010 29 Jun 1981 18 Mar 2005 15 Dec 2010 Investec Limited Date of appointment 3 Jul 2002 1 Jan 2015 1 Mar 2013 1 Nov 2014 8 Aug 2014 8 Aug 2014 8 Aug 2014 30 Jan 2004 18 Jun 2010 26 Jun 2002 26 Jun 2002 26 Jun 2002 26 Jun 2002 18 Mar 2005 Investec plc 15 Dec 2010 Corporate governance governance Corporate Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Ensures the appropriate risk governance, including IT, is in place including continual risk monitoring by management is in place including continual risk governance, including IT, the appropriate Ensures ongoing training and development of, directors the induction of, and Ensures planning. of senior management and considers succession Evaluates the performance F Titi (chairman) NON-EXECUTIVE DIRECTORS ZBM Bassa LC Bowden CA Carolus (senior independent director) PKO Crosthwaite Lord Malloch-Brown KCMG Malloch-Brown Lord D Friedland CR Jacobs IR Kantor KL Shuenyane PRS Thomas B Kantor (group managing director) B Kantor (group risk and finance director) GR Burger (group HJ du Toit S Koseff (group chief executive officer) (group S Koseff EXECUTIVE DIRECTORS • • • board the stepped down from meeting, and accordingly at the 2015 annual general as a director seek re-election Haruko Fukuda did not from with effect the board 2015. Bradley Fried stepped down from 2015 annual general meeting held on 6 August at the conclusion of the at the themselves for re-election will offer of the board with the UK Corporate Governance Code, the remainder 1 April 2016. In accordance meeting. August 2016 annual general under review and their independence status for the year the year of their appointment the date of this report, at The names of the directors set out below: are status for the year under review the year of their appointment and their independence at the date of this report, The names of the directors set out below: are Male Female Executive Non-executive 0 — 3 years 3 — 6 years 6 — 9 years 9 years plus – 5 2 4 80.0% 20.0% 27.0% 73.0% Post-2015 AGM Post-2015 AGM Post-2015 AGM: 5 years average 5 years average Male Female Executive Non-executive 0 — 3 years 3 — 6 years 6 — 9 years 9 years plus – 6 2 5 76.0% 24.0% 24.0% 76.0% BOARD GENDER BALANCE: AGM Pre-2015 BALANCE OF NON-EXECUTIVE AND EXECUTIVE DIRECTORS: BALANCE OF NON-EXECUTIVE AGM Pre-2015 Aspirational target: by 2015 Per the Davies Report: 25% female representation AVERAGE LENGTH OF SERVICE: AGM: Pre-2015 1 4 10 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Corporate governance governance Corporate (continued) South Africa UK including Europe Chairman Executives 53.0% 47.0% Non-executives (Length of service by band) for non-executive directors Average length of Average service:  Recommendation that non- executives should not serve longer the time of than nine years from their appointment. UK CORPORATE UK CORPORATE GOVERNANCE RECOMMENDATION: DIVERSITY INDEPENDENCE 64% TENURE OF BOARD INDEPENDENT THREE 86 GEOGRAPHICAL MIX

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 87 THREE Financial Financial Bluevine (51) (52) DLC audit, audit, DLC DLC audit, Investec plc Investec audit, DLC BAcc, DipAcc,BAcc, CA(SA) Board committees: Investec plc and Investec Bank plc audit, Investec Limited and Investec Bank Limited audit, board DLC risk and capital and DLC remuneration Appointed the to board in November 2014. Zarina is the executive chairman of Ernst partner of former A Capital. Songhai she Inc., joined& Young the Absa Group in 2002 and was an executive director and a member of the bank’s executive private for accountability with committee, chaired previously has She banking. Auditors’ and Accountants’ Public the Board, the Auditing Standards Board and the Accounting Standards Board and has been a member of the JSE GAAP Panel. Monitoring Other directorships include: Services Board, Investec Bank Limited, Group Oceana Limited, Ore Iron Kumba and Limited International Sun Limited, Holdings Limited. Woolworths LAUREL C BOWDEN ZARINA BM BASSA National Higher Diploma Engineering, BSc, MBA Board committees: and Investec Bank plc audit, Investec Limited audit Limited Bank Investec and Appointed the to board in January 2015. Laurel is a partner at 83 North, where her enterprise internet, include focus of areas software and fintech. Laurel has over investment15 years’ experience and was previously a director at GE Capital in for responsible was she where London, transport and consumer in acquisitions finance in Europe. Other directorships include: Ebury Limited, Partners Inc., Capital iZettle Limited, Ventures G&T 83 North, Limited Enterprises AB, Notonthehighstreet Limited. Group Wonga and Investec Limited Investec

Investec Investec (54) Directorate Investec plc and and plc Investec Directorate DLC remuneration, remuneration, DLC (54) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Chairman BSc MA, (Hons), MBA Board committees: DLC boardDLC risk and capital, DLC affairs and directors’ and nominations DLC social and ethics Appointed the to board in January 2004. Fani is chairman of Investec Bank Limited, Investec Bank plc and former chairman of Tiso Group Limited and former deputy chairman of the Bidvest Group. Other directorships include: Bank plc Investec (chairman), Limited Bank Benefits Employee Investec (chairman), Limited and Investec Asset Management Holdings (Pty) Investec Ltd, Asset Iron Kumba Limited, Management Ore Limited (chairman) and MRC MRC and (chairman) Limited Ore Media (Pty) Ltd. Non-executive directors (details as at 30 June 2016) TITI FANI HENDRIK J DU TOIT HENDRIK J DU TOIT Investec Asset Management chief executive officer BCom BCom Law, (Hons) (cum laude), MCom (cum laude), MPhil (Cambridge) Appointed the to board in December 2010. University the at economics lecturing After Hendrik the joined Stellenbosch, of Investment division of Old Mutual from where he moved Investec to as in 1991 portfolio manager and later chief executive officer of Investec Asset Management. Other directorships include: Asset Management Holdings (Pty) Ltd, Investec Asset Management Limited as well Limited. Naspers and subsidiaries their as Phumelela Phumelela Investec (66) (64) (59) DLC board DLC risk and DLC board DLC risk Gaming and Leisure Limited, Investec Bank Limited, Investec Bank plc and a number of subsidiaries. Investec Group risk and finance director H Dip MBLBAcc, BDP, CA(SA), Board committees: capital DLC and capital Appointed the to board in July 2002. Glynn joined Investec His in 1980. positions within Investec have included chief accounting officer, group risk manager and Africa. South for director managing joint Other directorships include: Bank Limited and a number of Investec subsidiaries. Managing director Managing CTA Board committees: social DLC and capital DLC capital, and and ethics Appointed the to board in June 1987. Bernard joined Investec He in has 1980. had varied experience within Investec as a marketing division, trading the of manager manager and chief operating officer. Other directorships include: GLYNN R BURGER GLYNN BERNARD KANTOR STEPHEN KOSEFF STEPHEN KOSEFF Executive directors (details as at 30 June 2016) Chief executive officer H Dip MBABCom, BDP, CA(SA), risk committees: DLC board Board and DLC social and capital, DLC capital and ethics Appointed the to board in October 1986. Stephen joined Investec He in has 1980. had diverse experience within Investec as chief accounting officer and general manager of banking, treasury and merchant banking. include: Investec Other directorships Bank Limited, Investec Bank plc and a number of Investec subsidiaries. (45) Investec Investec (71) DLC audit, Investec Investec audit, DLC DLC audit, audit, DLC Details of the board members of our major subsidiaries are available on our website.  Bradley Fried resigned as a director with effect from 1 April 2016. Haruko Fukuda OBE resigned as a director with effect from August 6 2015. PETER RS THOMAS Footnotes • •  KHUMO L SHUENYANE CA(SA) Board committees: plc and Investec Bank plc audit, Investec Limited Bank Investec and Limited audit, board DLC risk and capital, DLC DLC affairs and directors’ and nominations social and ethics Appointed the to board in June 1981. Peter was the former managing director of Limited. Group Unisec The Other directorships include: subsidiaries, Investec various Limited, Bank companies. unlisted various and Limited JCI Associate (Member CA of the Institute of Chartered Accountants in England Science Social in Bachelor Wales), and Economics) with studies (International Board committees: Investec plc and InvestecBank plc audit, Investec Limited and Investec Bank Limited audit and board DLC risk and capital Appointed the to board in August 2014. Khumo is a chartered accountant (England International and BEcon Wales), and chief group previously was and Studies officer (Mergers and Acquisitions and of Development) Business International MTN Group Khumo Limited. was Until 2007, head of Principal Investments at Investec Bank Limited. Other directorships include: Benefits Employee Investec Limited, Bank Limited and Investec Property Fund Limited. Fresnillo plc plc Fresnillo Gadco IdB Holdings Holdings IdB (49) DLC remuneration remuneration DLC DLC social DLC and ethics (69) LLB Board committees: Appointed the to board in August 2014. LLP Linklaters partner of a is Charles specialising in public and private M&A, offerings, public initial and raisings capital joint ventures, corporate governance and work. corporate other Linklaters at solicitor a been has Charles for over 24 years and has been a partner since 1999. Other directorships include: independent senior director, (non-executive remuneration the of chairman and director committee). LORD MALLOCH-BROWN KCMG (62) BA (Hons) History, MA (Political Science) Board committees: IAN R KANTOR Appointed the to board in August 2014. chairman former a is Malloch-Brown Lord of Europe, Middle East and Africa at FTI Consulting. From 2009, 2007 to Lord Malloch-Brown was a UK government minister. Lord deputy the formerly was Malloch-Brown Nations United the of secretary-general as well as development specialist at the World Bank and United Nations and a journalist and consultant communications with wide ranging experience of boards. Other directorships include: Petroleum Seplat U.A., Cooperatief and plc Company Development Smartmatic Limited. CHARLES R JACOBS CHARLES R JACOBS BSc (Eng), MBA BSc (Eng), Appointed the to board in July 1980. Ian is a co-founder of Investec, served as the chief executive of Investec Bank Limited until and 1985 was the former chairman of Limited. Holdings Investec Other directorships include: SA (in which Investec Limited indirectly holds aninterest), 8.3% Bank Insinger de Beaufort NV (where he is chairman of the management board), Investec Asset Management Holdings (Pty) and Ltd Investec Asset Management Limited. (67) Investec Investec De Beers Beers De (58) (63) DLC remuneration and and remuneration DLC DLC audit, audit, DLC DLC social DLC and ethics Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Directorate Investec plc and and plc Investec Directorate Limited Investec (continued) THREE 88 Senior independent director Senior MA (Hons) in modernlanguages Board committees: affairs directors’ and nominations DLC Appointed the to board in June 2010. Perry is a former chairman of Investec and Securities and director of Investec Bank plc. Other directorships include: Bank plc, Melrose Industries plc, Investec Investec and Limited (Ireland) Holdings Limited. (Ireland) Investments and Capital BCom, CA(SA) Board committees: Investec plc and Investec Bank plc audit, Investec Limited and Investec Bank Limited audit, DLC board risk and capital, DLC directors’ and nominations DLC and capital affairs Appointed the to board in March 2013. David is a former partner of both Arthur Andersen and KPMG Inc. where he also served as head of audit and risk in KPMG, Town. Cape Other directorships include: The plc, Bank Investec Limited, Bank Foschini Group Limited, Pick Stores n Pay Limited and Pres Les (Pty) Ltd. BA (Law), BEd,BA Honorary (Law), doctorate in Law Board committees: Appointed the to board in March 2005. Cheryl acted as the South African High 1998 between London to Commissioner and 2001 and was chief executive officer of South African Tourism. Other directorships include: Consolidated Mines Limited, Gold Gold Limited, Mines Consolidated South Mercedes-Benz Limited, Fields Africa (Pty) Ltd, WWF South Africa and Ltd, (Pty) Business IQ International, Ponahalo Capital (Pty) executive Ltd, Holdings Group Peotona of (Pty) director Ltd, of a number of the International and companies group Peotona Group. Crisis DAVID FRIEDLAND DAVID PERRY KO CROSTHWAITE KO CROSTHWAITE PERRY CHERYL A CAROLUS A CAROLUS CHERYL

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 89 0.2% 0.4% 1.4% 1.1% 5.7% 3.9% 0.4% 0.6% 2.0% 1.2% 4.5% 3.5% 87.3% 87.8% 100.0% 100.0% THREE % of issued % of issued share capital share share capital share 703 530 1 065 453 3 992 596 3 094 108 2 831 046 3 579 883 7 249 498 Number of Number of 16 711 411 11 493 717 12 289 439 27 647 593 21 977 520 254 302 891 291 363 706 541 843 885 617 418 864 shares in issue shares shares in issue shares South Africa UK USA and Canada Rest of Europe Asia Other countries and unknown 6.7% 2.9% 2.8% 62.0% 14.5% 11.1% Shareholder analysis Shareholder Investec Limited 5.2% 8.6% 2.0% 3.4% 3.5% 4.0% 1.1% 1.9% 42.1% 17.2% 21.5% 54.0% 16.4% 19.1% 100.0% 100.0% % of total % of total shareholders shareholders Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 1 – 500 1 – 500 Holdings Holdings 501 – 1 000 501 – 1 000 1 001 – 5 000 1 001 – 5 000 5 001 – 10 000 5 001 – 10 000 10 001 – 50 000 10 001 – 50 000 100 001 and over 100 001 and over 50 001 – 100 000 50 001 – 100 000 South Africa UK USA and Canada Rest of Europe Asia Other countries and unknown 4.1% 1.5% 4.6% 47.0% 30.0% 12.8% Investec plc 995 309 554 418 690 162 270 3 383 4 666 5 445 1 382 1 146 1 724 8 029 15 391 28 506 Number of Number of shareholders shareholders GEOGRAPHICAL HOLDING BY BENEFICIAL ORDINARY SHARE OWNER AS AT 31 MARCH 2016 GEOGRAPHICAL HOLDING BY BENEFICIAL ORDINARY SHARE OWNER SPREAD OF ORDINARY SHAREHOLDERS AS AT 31 MARCH 2016 AT SHAREHOLDERS AS SPREAD OF ORDINARY in issue shares Investec plc ordinary Investec ordinary shares Investec ordinary in issue respectively. shares and 291.4 million ordinary plc and Investec Limited had 617.4 million 2016, Investec As at 31 March Investec Limited ordinary shares in issue shares Investec Limited ordinary 7.6% 5.1% 5.1% 4.1% 3.6% 3.5% 2.9% 2.6% 2.5% 2.5% 8.3% 6.9% 4.7% 4.5% 3.5% 3.0% 2.9% 2.9% 2.8% 11.9% 39.5% 51.4% % holding % holding shares shares 8 827 801 8 462 492 8 343 386 8 174 947 Number of Number of 15 555 721 47 208 864 31 339 094 31 199 907 25 291 526 22 287 014 21 301 483 17 606 939 16 141 177 15 671 161 34 648 763 24 168 089 20 128 341 13 565 085 13 180 460 10 185 439 243 602 886 149 684 803 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Shareholder analysis Shareholder (continued) Legal & General Investment Mgt (UK) Public Investment Corporation (ZA) Schemes (ZA) Share Investec Staff Old Mutual (ZA) Allan Gray (ZA) (ZA) Sanlam Group Dimensional Fund Advisors (UK and US) Fund Mgrs (ZA) Coronation MMI Holdings (ZA) BlackRock Inc (UK and US) Public Investment Corporation (ZA) Public Investment Corporation BlackRock Inc (UK & US) Allan Gray (ZA) Old Mutual (ZA) (ZA) Prudential Group T Rowe Price Associates (UK) Royal London Mutual Assurance Society (UK) Schemes (UK) Share Investec Staff Corporation (UK and US) State Street (UK and US) Group Vanguard 1. 2. 3. 4. 5. 6. 7. 8. 9. 1. 2. 3. 4. 5. 6. 7. 8. 9. THREE 90 10. 10. The top 10 shareholders account for 39.5% of the total shareholding in Investec plc. This information is based on a threshold of of in Investec plc. This information is based on a threshold shareholding account for 39.5% of the total The top 10 shareholders to be marginally below this, which may cause the above figures shares Some major fund managers hold additional 20 000 shares. understated. of is based on a threshold in Investec Limited. This information account for 51.4% of the total shareholding The top 10 shareholders to be marginally figures below this, which may cause the above Some major fund managers hold additional shares 20 000 shares. understated. INVESTEC LIMITED analysis by manager group Shareholder Shareholder analysis by manager group analysis by manager Shareholder INVESTEC PLC Largest ordinary shareholders as at 31 March 2016 shareholders as at 31 Largest ordinary 2006 and section 56 of the South African Companies for in section 793 of the UK Companies Act, with the terms provided In accordance nominee and asset (including shares holders of its ordinary investigations into the registered has conducted Act, 2008, the group as discussed below. are and the results management companies)

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 91 2.8 3.0 8.4 12.0 5.39 5.62 2.87 2010 0.0% 1.7% 8.3% 2010 269.8 3 378 1 068 1 068 62.49 65.40 37.51 471.1 2 539 1 933 1 933 90.0% 10.0% 46 299 46 299 100.0% 31 March 31 March 31 March 31 March % holding THREE 2.5 3.6 9.0 794 794 11.1 4.78 5.50 4.29 2011 272.8 3 872 52.80 65.50 49.49 2011 537.2 2 568 1 634 1 634 42 768 42 768 325 31 March 31 March shares Limited Investec (continued) (continued) 4 966 715 Number of 29 135 129 24 168 089 262 228 577 291 363 706 1.9 4.5 8.3 12.0 3.82 5.22 3.18 2012 276.0 3 340 1 033 47.16 57.36 42.00 2012 598.3 2 286 1 683 41 232 31 March 31 March 4.7% 0.6% 1.5% 2.6% 95.3% 100.0% 2.0 3.9 7.9 980 % holding 12.7 4.59 5.14 3.10 2013 279.6 4 061 64.26 69.89 41.31 2013 605.2 2 778 1 305 56 857 31 March 31 March plc Shareholder analysis Shareholder 2.0 3.9 7.8 shares 810 12.8 4.85 5.08 3.66 2014 2014 Investec 282.9 4 325 84.84 85.04 59.00 608.8 2 953 1 985 75 652 3 645 183 9 423 082 Number of 29 209 442 16 141 177 588 209 422 617 418 864 31 March 31 March 2.0 3.5 7.0 739 14.2 5.61 6.06 4.91 2015 2015 285.7 5 045 86.02 613.6 3 442 2 170 90 388 100.51 107.35 31 March 31 March 31 March 31 March Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 2.0 4.1 8.1 963 12.4 5.13 6.47 4.03 2016 2016 291.4 4 662 93.91 617.4 3 167 1 474 99 886 109.91 121.90 31 March 31 March 31 March 31 March 3 1 3 3 1 2 2 2 2 year ended as Investec Limited is not capitalisation, as Investec Limited is not The LSE only includes the shares in issue for Investec plc, i.e. currently 617.4 million, in calculating market incorporated in the UK. and non-operating items; and dividends per Calculations are based on the group's consolidated earnings per share before goodwill, acquired intangibles share as prepared in accordance with IFRS and denominated in Pounds Sterling. Investec plc and Investec Limited in calculating The JSE Limited agreed to use the total number of shares in issue for the combined group, comprising market capitalisation, i.e. currently a total of 908.8 million shares in issue.

As per the JSE Listings Requirements. For the year ended For the year ended 3 1 2 For the year ended For the year ended Market capitalisation (R’million) Market capitalisation (£’million) traded (’000) Daily average volume of shares Public* Dividend cover (times) Dividend yield (%) Earnings yield (%) Market capitalisation (£’million) traded (’000) Daily average volumes of share Closing market price per share (Rands) Closing market price per share – year ended Closing market price per share (Pounds Sterling) Closing market price per share – Non-public Price earnings ratio – highest highest – highest Non-executive directors of Investec plc/Investec Limited of Investec Non-executive directors – lowest – lowest Executive directors of Investec plc/Investec Limited of Investec Executive directors Number of ordinary shares in issue (million) shares Number of ordinary Number of ordinary shares in issue (million) shares Number of ordinary Investec staff share schemes share Investec staff Total

INVESTEC LIMITED INVESTEC PLC * Share statistics Shareholder classification as at 31 March 2016 classification as at 31 March Shareholder 0.2% 0.9% 1.1% 0.8% 3.4% 2.8% 6.7% 4.0% 8.8% 5.2% 17.2% 16.8% 11.1% 15.3% 21.4% 32.8% 13.1% 10.5% 43.1% 59.9% 24.9% 100.0% 100.0% 100.0% preference preference preference preference % of issued % of issued % of issued share capital share capital share capital share 29 252 25 015 63 148 295 199 118 700 383 494 610 432 253 326 747 193 237 910 565 854 1 090 380 1 016 526 5 552 526 2 830 926 2 306 340 6 874 433 1 969 828 1 687 642 9 030 071 2 275 940 Number of Number of Number of preference preference preference 13 883 393 15 081 149 32 214 499 shares in issue shares in issue shares in issue shares 8.2% 7.4% 7.9% 6.5% 8.8% 3.0% 0.4% 1.0% 3.1% 0.7% 1.0% 11.3% 17.0% 21.5% 14.7% 24.0% 19.4% 48.9% 44.0% 40.4% 10.8% 100.0% 100.0% 100.0% % of total % of total % of total shareholders shareholders shareholders 1 – 500 1 – 500 1 – 500 Holdings Holdings Holdings 501 – 1 000 501 – 1 000 501 – 1 000 1 001 – 5 000 1 001 – 5 000 1 001 – 5 000 5 001 – 10 000 5 001 – 10 000 5 001 – 10 000 10 001 – 50 000 10 001 – 50 000 10 001 – 50 000 100 001 and over 100 001 and over 100 001 and over 50 001 – 100 000 50 001 – 100 000 50 001 – 100 000 4 4 90 81 80 33 37 29 22 30 38 110 919 144 478 169 393 106 350 977 418 1 297 2 374 5 393 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Shareholder analysis Shareholder (continued) Number of Number of Number of shareholders shareholders shareholders THREE 92 Investec Limited perpetual preference shareholders Investec Limited perpetual preference Investec plc (Rand denominated) perpetual preference shareholders preference Investec plc (Rand denominated) perpetual SPREAD OF PERPETUAL PREFERENCE SHAREHOLDERS AS AT 31 MARCH 2016 AS AT PREFERENCE SHAREHOLDERS SPREAD OF PERPETUAL shareholders preference Investec plc perpetual Investec perpetual preference shares Investec perpetual shares. perpetual preference Limited and Investec Bank Limited have issued Investec plc, Investec

RISK MANAGEMENT AND CORPORATE GOVERNANCE RISK MANAGEMENT AND CORPORATE GOVERNANCE 93 – 1.4% 8.4% 5.9% 8.8% 8.8% 22.8% 17.8% 21.7% 12.5% 11.0% 29.7% 23.0% 28.2% 100.0% 100.0% THREE preference preference preference % of issued % of issued share capital share capital share (continued) (continued) – 49 962 74 460 52 930 136 044 223 248 910 981 106 338 177 011 596 745 3 354 204 1 692 785 3 558 715 1 354 996 4 352 701 Number of Number of preference preference 15 447 630 shares in issue shares in issue shares Shareholder analysis Shareholder – 6.2% 4.4% 1.0% 6.2% 0.9% 5.1% 0.1% 0.5% 0.6% 87.4% 20.4% 28.7% 38.5% 100.0% 100.0% % of total % of total shareholders shareholders Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 1 – 500 1 – 500 Holdings Holdings 501 – 1 000 501 – 1 000 1 001 – 5 000 1 001 – 5 000 5 001 – 10 000 5 001 – 10 000 10 001 – 50 000 10 001 – 50 000 100 001 and over 100 001 and over 50 001 – 100 000 50 001 – 100 000 – 1 69 49 11 10 19 21 975 749 228 187 1 051 1 412 3 667 1 115 Number of Number of shareholders shareholders Investec Bank Limited perpetual preference shareholders Investec Bank Limited perpetual preference Investec Limited redeemable preference shareholders preference Investec Limited redeemable LARGEST PERPETUAL PREFERENCE SHAREHOLDERS AS AT 31 MARCH 2016 SHAREHOLDERS AS AT LARGEST PERPETUAL PREFERENCE follows: as are shares issued preference in excess of 5% of the holding beneficial interests Shareholders shares Investec plc perpetual preference Pershing Nominees Limited (6.1%) Chase Nominees Limited (Artemis) (6.6%) shares Investec plc (Rand denominated) perpetual preference NES Investments (Pty) Ltd (5.3%) Regent Company Limited (6.6%) (8.1%) Old Mutual Foundation Trust shares Investec Limited perpetual preference Strategic Income fund (5.2%) Bank – Coronation Chartered Standard Capital Plus fund (5.4%) Bank – Coronation Chartered Standard shares preference Investec Limited redeemable Nominees (Pty) Ltd (14.6%) Febros shares Investec Bank Limited perpetual preference in Investec Bank Limited as at shares in excess of 5% of the issued preference holding beneficial interests no shareholders were There 2016. 31 March Building a sustainable business for model to position the group the long-term so that Investec can make a valuable contribution to society and to macro- economic stability Attracting and developing a diverse and capable strong, workforce Unselfishly contributing to society and to the well-being of our communities, largely through education and entrepreneurship Understanding and managing our footprint so we can environmental make a positive impact through our operations and business activities clients’ and preserving Growing and stakeholders’ wealth based of trust. on relationships Please refer to the website full corporate for Investec’s citizenship statement  Sustainability at Sustainability at Investec is about: • • • • • allows us to concentrate, for now, on key on allows us to concentrate, for now, Deliberately not driven on a focus areas. top-down basis, the executive maintains for oversight, direction, responsibility and integration of our coordination while the individual sustainability efforts the key drivers business units provide behind our activities, in a manner that best makes sense to each. Reduce the of operational impacts business. physical our considerations into activities business and investing and projects energy developments. green  Embed environmental Responsible financing Funding renewable DIRECT IMPACT • INDIRECT IMPACT • • • PLANET business practices business Guided by our purpose to create sustained long-term wealth, we seek to be a positive sustained long-term wealth, we seek to be to create Guided by our purpose we operate. and in each of the societies in which businesses influence in all our core and education, and entrepreneurship through do this by empowering communities We that climate change the challenges recognise We our diversity. leveraging the value in and we will consider supporting any meaningful to the global economy presents the life of our planet. negative impact on or prolongs the activity that either reduces Our culture and values demonstrate our Our culture belief that as an organisation we can and must have a positive impact on the success and well-being of communities and the environment, local to our offices, stability. on overall macro-economic Our philosophy seeks to align the interests and stakeholders over of shareholders the individual business time, and provides which with a basis from units and regions The to determine their own approach. is not intended to philosophy group’s be mutually exclusive or exhaustive, but Environment. Entrepreneurship Education Respect and uphold uphold Respect and rights. human Provide a progressive environment work Strong, diverse and and diverse Strong, workforce capable

   • • SUPPORTING OUR COMMUNITIES • • • SUPPORTING OUR EMPLOYEES • PEOPLE Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Corporate responsibility Corporate

Our approach to sustainability is documented throughout this integrated annual report with further detail in a more extensive sustainability report on our website.

Balanced and resilient resilient and Balanced model. business risk Strong consciousness banking Responsible practices lending Responsible and investing. Strong culture and values underpin to our functions processes, and structures.

     PROFIT FINANCIAL STRENGTH AND RESILIENCE • RISK MANAGEMENT AND COMPLIANCE • • • GOVERNANCE • OUR SUSTAINABILITY SUSTAINABILITY OUR PHILOSOPHY THREE 94

Investec as a responsible corporate that while our At Investec we recognise at the forefront, remain shareholders our purpose ultimately is not only about strive to be a distinctive We driving profits. specialist bank and asset manager, moral integrity, demonstrating cast-iron and behaviour which promote strength values include unselfishly trust. Our core valuing diversity contributing to society, others. Outstanding and and respecting spirit and talent, entrepreneurial empowered other qualities that for the planet are regard of our organisation align with the culture business. to responsible and our approach SUSTAINABILITY Sustainability at Investec and planet: people of profit, key areas of the three and the interdependence sustainability focus encompasses endurance Investec’s

RISK MANAGEMENT AND CORPORATE GOVERNANCE Four Remuneration report 6.0% 4.8% 5.0% (1.9%) % change 2015 7.7% 9.6% 8.1% 16.7% 1.25% 74.2% 10.6% 10.2% 14.7% 22.5% 19.7% 31 March 31 March 39.4 pence 20.0 pence £337 million Year ended Year £339.5 million 2016 9.7% 7.0% 9.6% 7.0% (4.8%) 15.1% 1.34% 71.7% 11.5% 14.0% 13.6% European Banking Authority (EBA) which Banking Authority (EBA) European when by the committee will be considered 2016. policy in calendar year reviewing AND BUSINESS CONTEXT THE YEAR OUTCOMES FOR UNDER REVIEW to place great The committee continues is that there importance on ensuring remuneration clear alignment between key and delivery of the group’s strategic objectives. During the 2016 financial year the positive business benefited from group its operations momentum across a sound performance, and delivered notwithstanding challenging operating conditions. against key performance The group’s metrics is shown in the table below. In light of the positive financial performance during the 2016 financial of the group achieved progress year and the resultant a range of financial, non-financial across (in terms of the and strategic measures executive short-term incentive plan as and reflected by shareholders approved on pages 103 to 105), the remuneration an annual bonus committee approved of £1.4 million each for Stephen Koseff and £1.2 million for Kantor, and Bernard Bernard Stephen Koseff, Glynn Burger. 30% Kantor and Glynn Burger receive of their bonuses in cash, 30% in shares in shares. with the balance deferred upfront, Malus and clawback arrangements apply to these awards. 31 March 31 March 41.3 pence 21.0 pence £331 million Year ended Year £359.7 million REMUNERATION OUTCOMES REMUNERATION FOR 2015 a 75% vote in favour of the received We policy remuneration executive directors’ meeting. at the 2015 annual general a number of The policy incorporated the outcomes of changes, which reflected at the time. engagement with shareholders in It is anticipated that this policy will remain until the 2018 annual general meeting force changes or the business unless regulatory necessitate or economic environment earlier amendment. The volume and pace of regulatory change continued during 2015 and the committee spent much of its time during the period monitoring and analysing these developments against the group’s arrangements. The remuneration current committee is comfortable that our current reflects policy appropriately remuneration and robust is philosophy, our remuneration fit for purpose and complies with applicable we have not made As a result, regulations. any significant changes to the current policy. remuneration executive and group Malus adjustments on unvested share applicable to all employees are awards Furthermore, the group. across also subject to are Material Risk Takers clawback adjustments. Further guidance on remuneration practices has been published by the values which include risk consciousness, values which include risk material employee ownership meritocracy, to colleagues, and an unselfish contribution clients and society. Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration FOUR Core tier 1 capital ratio, Investec plc Core Total capital adequacy ratio, Investec plc Total Return on average risk-weighted assets Earnings attributable to shareholder before goodwill, acquired intangibles, acquired goodwill, before Earnings attributable to shareholder interests non-operating items and after non-controlling Recurring income as a % of total operating income Adjusted earnings per share Dividends per share Return on equity GROUP PERFORMANCE METRICS Leverage ratio, Investec plc Core tier 1 capital ratio, Investec Limited Core Total capital adequacy ratio, Investec Limited Total Leverage ratio, Investec Limited Variable remuneration pool remuneration Variable Total shareholder return, Investec plc (Pounds Sterling) return, shareholder Total Investec Limited (Rands) return, shareholder Total 96 Our overarching remuneration philosophy philosophy remuneration Our overarching prior years unchanged from has remained as we maintain focus on employing and individuals the highest calibre retaining the payment of industry through competitive packages and long-term share alignment with key which ensure awards, stakeholders in our business. continue to be distributed Our rewards earnings generated pools of realised from which in excess of targeted thresholds usage of risk-adjusted capital. This reflect economic value-added model has been in operation for about 17 years and ensures that risk and capital management form the at both a group basis for key processes and transaction level thus balancing the between all stakeholders. rewards that financial institutions recognise We their from have to distribute the return enterprises between the suppliers of capital and labour and the societies in which they taxation and do business, the latter through activities. Our corporate social responsibility philosophy seeks remuneration group-wide balance between to maintain an appropriate of these stakeholders, and the interests and is closely aligned to our culture REMUNERATION PHILOSOPHY REMUNERATION REMAINS UNCHANGED This remuneration report was compiled by was compiled report This remuneration committee (the remuneration the board the board. by committee) and approved Statement by the chair the chair Statement by of the remuneration committee

REMUNERATION REPORT REMUNERATION REPORT 97 FOUR (continued) (continued) Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Our directors’ remuneration report for report remuneration Our directors’ 2016 the year ended 31 March Our non-executive directors’ remuneration. Perry Crosthwaite committee Chairman, DLC remuneration 10 June 2016 We remain committed to engaging remain We and shareholder with our shareholders that organisations to ensure representative taken into consideration their views are when determining our remuneration positive continue to receive practices. We feedback in this regard. at the approval seeking shareholder are We for: 2016 annual general meeting • • Signed on behalf of the board LOOKING FORWARD that The committee will continue to ensure appropriately packages remain reward an incentive for competitive, provide of our performance, and take due regard values, philosophies, business culture, capital risk management and strategy, management frameworks. Hendrik du Toit was awarded a bonus of a bonus was awarded Hendrik du Toit solely in relation £3.9 million, determined Asset to the performance of Investec on page 102. Management as set out du Toit The bonus payable to Hendrik time as until such will not be deferred to fund a the debt taken out by him into Investec Asset substantial investment repaid. Management has been committee approved The remuneration and in the salary inflationary increases in line directors benefits of the executive to provided with average salary increases the group. employees across in a modest increase approved The board fees for the forthcoming year for the non- executive directors. 98 99 101 101 102 107 108 111 112 116 118 118 119 119 120 120 120 121 124 124 124 125 127 127 127 134 136 PAGE/S 117 and 118 Requirements and the South African Notice Requirements on the Governance and Risk Management 2014. Framework for Insurers, comprises the report The remuneration the committee annual statement from policy remuneration the directors’ chair, policy for that sets out our remuneration the next two years and the differences policy and the policy between the future and the operated in the 2016 financial year, that explains on remuneration annual report how the policy has been implemented in also The report the 2016 financial year. as mandated contains Pillar III disclosures PRA and the South African by the UK’s Reserve Bank.

governance statement complies with report The remuneration of Schedule 8 of the the provisions Large and Medium-sized Companies (Accounts and Reports) and Groups (Amendment) Regulations 2013, the UK Corporate Governance Code 2014, the UK Companies Act 2006, the Rules of the UK Financial the UK Listing Authority, Conduct Authority rules, the PRA and FCA Remuneration Code, the South African King III Code of Corporate Practice and Conduct, the South African Companies Act 2008, the JSE Limited Listings Compliance and Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) Stephen Koseff – chief executive officer – chief executive officer Stephen Koseff (CEO) Kantor – managing director Bernard (MD) risk and finance Glynn Burger – group (GRFD) director – chief executive officer Hendrik du Toit of Investec Asset Management (CEO of IAM) FOUR WHERE TO FIND DETAILS OF THE KEY REMUNERATION INFORMATION OF THE KEY REMUNERATION WHERE TO FIND DETAILS Compliance and governance statement A summary of the remuneration decisions made during the year ended 31 March 2016 March decisions made during the year ended 31 A summary of the remuneration remuneration on directors’ Annual report committee of the Composition and role 2017 31 March policy for the year ending of remuneration Statement of implementation (audited) of remuneration figure single total Executive directors’ of performance targets Executive short-term incentives – achievement (audited) of remuneration single total figure Non-executive directors’ in shares interest Directors’ dilution Shareholder table performance graph and CEO remuneration return shareholder Total of spend on remuneration importance and relative change in CEO remuneration Percentage Statement of voting at 2015 annual general meeting (unaudited) disclosures Additional remuneration 2017 and subsequent years policy for the year ending 31 March remuneration Directors’ Benchmarks arrangements remuneration Impact of CRD IV on executive directors’ Remuneration of the CEO of IAM policy table remuneration Executive directors’ performances be assessed? How will executive directors’ and the policy for all employees policy of the executive directors between the remuneration Differences of new executive directors Policy for the recruitment Service contracts and terms of employment Remuneration policy for non-executive directors and employee views Shareholder (unaudited) disclosures Additional remuneration PRA and FCA Remuneration Code disclosures disclosures SARB Pillar III remuneration 98 • • • Executive directors whose The executive directors are is disclosed in this report remuneration to as follows: referred • Navigating this report Navigating this out below. a brief summary of key content is set report, navigate the remuneration help shareholders To

REMUNERATION REPORT REMUNERATION REPORT 99 2015 47.4% 47.6% 55.9% 45.2% FOUR 31 March 31 March Year ended Year 2016 47.0% 48.2% 53.8% 44.8% 31 March 31 March (continued) (continued) Year ended Year Staff compensation ratios Staff Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Provide staff share ownership through ownership through share staff Provide share participation in our employee those of with schemes to align interests our owners the Continue to acknowledge division importance of the appropriate by our generated of the returns owners, our business between our and the societies in which workforce we operate. • • we estimate our total In summary, has been divided between economic return taxation, owners government through dividends and employees through through total compensation as follows: Employ the highest calibre individuals individuals Employ the highest calibre characterised by integrity, who are intellect and innovation and who adhere values and subscribe to our culture, and philosophies by entrepreneurship Strive to inspire that a working environment providing performance, so stimulates extraordinary and employees that executive directors may be positive contributors to our clients, their communities and the group Total for the group for Total Asset Management & Investment Wealth Specialist Banking The total cost of compensation is managed through staff compensation ratios which are reviewed regularly. The total staff compensation The total staff regularly. reviewed compensation ratios which are staff The total cost of compensation is managed through as follows: ratios are Our philosophy, which remains unchanged which remains Our philosophy, prior years, is to: from • • REMUNERATION PHILOSOPHY REMUNERATION A summary of the the A summary of decisions remuneration the year made during 2016 ended 31 March – – – – – – – 636 694 436 494 200 200 200 200 2015 3 319 Year 5 Year Year 5 Year 31 March 31 March – – – LTIPs** Value of Value exercised exercised 2016 1 089 – – – – 31 March 31 March 636 693 436 493 200 200 200 200 Year 4 Year Year 4 Year 2015 4 811 3 573 3 970 3 970 31 March 31 March period – – 2016 880 974 436 493 244 281 200 200 444 481 4 375 3 837 4 364 4 364 Year 3 Year Year 3 Year Total remuneration remuneration Total awarded in current in current awarded 31 March 31 March – – – – Received in Received in 2015 – – – – 31 March 31 March 444 481 244 281 200 200 444 481 – Year 2 Year Year 2 Year 2016 1 308 1 480 1 480 performance conditions^^ still subject to not vested and Value of LTIPs – of LTIPs Value 31 March 31 March – – – 2015 1 000 1 000 1 000 733 842 200 200 308 480 1 241 1 522 1 241 1 522 (2016) (2016) Year 1 Year Year 1 Year 31 March 31 March – subject to retention^ 2016 1 000 1 000 1 000 Fixed allowance payable in shares payable in shares 31 March 31 March – 308 480 2016 2016 1 221 1 404 3 837 4 364 1 308 1 480 2 529 2 884 1 000 1 000 2015 1 800 2 000 2 000 31 March 31 March Awarded in Awarded Awarded in Awarded – bonus* 488 562 562 2016 Total deferred deferred Total 31 March 31 March 773 970 970 2015 4 811 31 March 31 March Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) 2016 4 375 1 041 1 322 1 322 salary, bonus salary, Total cash benefits, Total 31 March 31 March 40% of the bonus is deferred in shares which vest equally after one and two years, subject to six months retention. 40% of the bonus is deferred in shares which vest equally 20% released each year for a period of five years. on 2 June 2016 and the amount reflected in the table represents the number of awards made As discussed on page 115, the awards were made conditions being met. are still subject to performance awards have not vested and multiplied by the share price on the date of award. These the number of shares that were exercised awarded in prior years which have been exercised during the financial period. The value represents LTIPs on which they were exercised. multiplied by the market price of the shares at the date Short-term incentive Short-term incentive Fixed allowance payable in shares Fixed allowance payable in shares Salary and benefits Salary and benefits FOUR Total remuneration Total Total remuneration Total CEO IAM Long-term incentive awarded in 2016 Long-term incentive awarded performance still subject to future conditions Long-term incentive awarded in 2016 Long-term incentive awarded performance still subject to future conditions GRFD MD Remuneration awarded in 2016 Remuneration awarded performance not subject to future conditions Remuneration awarded in 2016 Remuneration awarded performance not subject to future conditions £’000 £’000 £’000 ^ ^^ ** * CEO 100 The remuneration awarded to HJ du Toit (CEO IAM) will not be deferred until such time as the debt taken out by him to fund a substantial until such time as the debt taken out by him (CEO IAM) will not be deferred to HJ du Toit awarded The remuneration investment in IAM has been repaid. The payment and deferral profile of the remuneration awarded to GR Burger (GRFD) during the 2016 financial year is as follows: awarded of the remuneration The payment and deferral profile The payment and deferral profile of the remuneration awarded to S Koseff (CEO) and B Kantor (MD) during the 2016 financial year is to S Koseff awarded of the remuneration The payment and deferral profile as follows: OUTCOMES FOR EXECUTIVE DIRECTORS DURING THE YEAR EXECUTIVE DIRECTORS DURING THE OUTCOMES FOR can be found awards of these A further breakdown for the year. made to executive directors awards The following table summarises on page 107.

REMUNERATION REPORT REMUNERATION REPORT 101 FOUR (continued) (continued) continued to review and provide information information and provide continued to review and benchmarks, industry on appropriate remuneration comparable organisations’ are practices. Their recommendations of our valued in the ongoing review Street practices. New Bridge remuneration Remuneration is a signatory to the UK and Code of Conduct Consultants Group’s material work for the does not conduct any the committee and company other than for committee, on an is part of Aon plc. The the advice annual basis, formally evaluates to ensure New Bridge Street from received that it is both objective and independent, and considers whether this service should for the forthcoming year. be retained for the paid to New Bridge Street Total fees year amounted to £7 318 (based on their hourly rates). standard the services The company retained of PricewaterhouseCoopers to assist with the development of remuneration arrangements in light of evolving Banking Authority guidelines European developments. and industry remuneration with This information was also shared the committee. we have used the services Furthermore, of Linklaters who have advised this year mainly on a number of issues pertaining to our existing incentive plans. Linklaters is legal advisers. one of Investec plc’s Certain specialist divisions within the group, and the for example, human resources division, provide schemes shares staff supporting information and documentation to presented to matters that are relating the committee. This includes, for example, comparative data and motivations for awards. bonus and share salary, proposed pools are The variable remuneration determined by our finance teams taking into account risk-adjusted capital requirements gains. The and after eliminating unrealised employees within these specialist divisions, support to the committee, which provide not and are directors not board are appointed by the committee. Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review he committee’s terms of The committee’s reference are subject to annual review and are available on our website.

Review and approve, within the within Review and approve, the total policy, terms of the agreed packages individual remuneration and persons of executive directors responsibilities discharging managerial including, and Material Risk Takers bonuses, incentive appropriate, where awards scheme payments and share the terms within Review and approve, the total individual policy, of the agreed of packages of members remuneration the Internal Audit, Risk and Compliance functions Oversee any major changes in our employee benefit structures that the comments, Ensure and rules within recommendations the UK and South Africa pertaining to respected. are remuneration • • • • The committee is authorised by the board any from to seek any information it requires to perform its duties. employee in order Where appropriate, the committee appropriate, Where has access to independent executive consultants. The selection remuneration of of the advisers is at the discretion the committee and Investec funds any to their appointment. expenses relating the committee During the financial year, continued to use the services of its principal which among advisers, New Bridge Street, and provided other things reviewed information on industry consultation and developments papers, regulations practices and to remuneration with respect our alignment to them. In addition, they Meetings committee met nine The remuneration times during the financial year. of Investec plc acts The company secretary do not Executive directors as the secretary. attend meetings of the committee, unless to do so by the chairman invited or required of the committee. The chairman of the on the activities of the committee reports committee at each meeting of the board. Advisers to the committee and the company Determine, develop and agree with Determine, develop and agree the framework or broad the board, of executive policy for the remuneration and executive management directors (comprising individuals discharging who are managerial responsibilities, of areas the global heads of our core members of our global activity and are operations forum) of Commission and consider the results of an annual central and internal review policy implementation remuneration that qualified and experienced Ensure management and executives are incentives to with appropriate provided encourage enhanced performance and manner, in a fair and responsible are, for their contribution to the rewarded and alignment success of the group with the corporate objectives and business strategy the design of and Review and approve determine targets and objectives for remuneration any performance-related and schemes operated by the group annual payouts the aggregate approve under such schemes Perry Crosthwaite is the chairman of the Perry Crosthwaite committee. The other members of the Fani Titi,committee are Jacobs and Charles Zarina Bassa. Current members of the committee are deemed to be independent as discussed on page 85. also of the committee are members Two risk and board members of the group’s capital committee thus bringing risk and mechanisms into the committee’s control deliberations. principal responsibilities The committee’s to: and objectives are • • • • COMPOSITION AND ROLE OF THE COMMITTEE The Investec group aims to apply aims to apply The Investec group directors policies to executive remuneration consistent largely and employees that are that but recognises the group, across governed by are certain parts of the group more that may contain local regulations in certain respects. requirements onerous Annual report on Annual report directors’ remuneration Released over five years 20% each year Malus and clawback provisions apply Malus and clawback provisions in cash; Deferral period: 30% upfront shares 40% deferred in shares; 30% upfront vesting after one and two years, subject to six-month holding period will be no deferral of the short-term There incentive until such time as the debt taken out by the CEO of IAM to fund a substantial investment in IAM has been repaid Payable in shares on award Vests Retention period: –  –  subject to performance criteria as set Award out on pages 105 and 106 at of one times fixed remuneration Award face value Deferral period: equal vesting over years three to five, subject to six-month holding period For CEO, MD, GRFD: award subject to For CEO, MD, GRFD: award performance criteria as set out on pages 103 to 105 –  –  For CEO of IAM: –  • • • • • • No increase • • 0.23% each of adjusted operating profit 0.23% each of adjusted operating profit for CEO and MD for GRFD 0.20% of adjusted operating profit Subject to a maximum of 100%* of fixed executive for each of the three remuneration subject to CRD IV directors 1.85% of the earnings of IAM before variable variable 1.85% of the earnings of IAM before compensation and tax Maximum 100% fixed remuneration in shares Paid entirely directors Applicable for each of the three subject to CRD IV (CEO, MD and GRFD) long-term CEO of IAM will no longer receive as he is a participant in the incentive awards IAM equity ownership scheme (as explained on pages 132 and 133) Incentive pool for CEO, MD, GRFD: – – – £480 000 for the CEO £480 000 for the MD £308 445 (i.e. R4 500 000 Rand portion and £90 300 Pound portion) for the GRFD £450 874 for the CEO of IAM Incentive pool for CEO of IAM: – • • • • £1 000 000 for each of the three executive £1 000 000 for each of the three subject to CRD IV (CEO, MD and GRFD) directors • • • • • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) Cap defined in line with EBA discounting rules which allow, when 25% of variable remuneration is deferred over at least five years, a slightly higher cap than Cap defined in line with EBA discounting rules which allow, These limits will be in line with this EBA cap. 2x fixed remuneration (typically approximately 2.2x fixed remuneration dependent on interest rates and inflation). FOUR

* LTI STI FIXED ALLOWANCE BASE SALARY AND BENEFITS AND BASE SALARY 102 EXECUTIVE DIRECTORS the year ending will be implemented for the executive directors policy for general meeting, the remuneration at the 2015 annual As approved 2017 as follows: 31 March Statement of implementation of remuneration policy for the year ending ending policy for the year implementation of remuneration Statement of 31 March 2017

REMUNERATION REPORT REMUNERATION REPORT 103 FOUR Target (100%) Target Target (100%) Target Stretch (200%) Stretch Stretch (200%) Stretch Threshold (0%) Threshold Threshold (0%) Threshold Achievement levels (continued) (continued) 25% attributable to prudential measures 60% attributable to profitability 60% attributable to profitability measures } } 0% – 200% 0% – 200% 25% 35% 85% Score range Score 12.5% 6.25% 6.25% Weighting Remuneration report Remuneration 85% 15% Weighting Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 1 3 4 4 2 Return on risk-weighted assets is defined as adjusted earnings/average risk-weighted assets, where adjusted earnings are earnings attributable to ordinaryReturn on risk-weighted assets is defined as adjusted acquired intangibles and non-operating items. goodwill, and preference dividends, but before shareholders after taxation, non-controlling interests ordinaryReturn on equity is defined as adjusted earnings/average (excluding preference share capital). shareholders’ equity plc and Investec Limited (50% plc: 50% Limited). 1 capital adequacy condition is a blend of the underlying tier 1 capital adequacy ratios for Investec Tier funding ratio) are a blend of the underlying liquidity metrics weighted by region (55% South Africa: The liquidity metrics (liquidity cover ratio and net stable 45% UK).

Net stable funding ratio Tier 1 capital adequacy 2 3 4 1 Aggregate Return on risk-weighted assets Financial metric Performance conditions Financial metrics Non-financial metrics Liquidity cover ratio Return on equity Each financial and non-financial metric has set threshold levels below which no short-term incentive will be earned and stretch levels which no short-term incentive will be earned levels below and stretch metric has set threshold Each financial and non-financial operating profit. of adjusted but to a level capped as a percentage incentives earned the pool for short-term will be increased, whereby actual performance in an incentive pool which will reflect demanding and will result are levels The committee believes that these stretch incentive will be Achievement levels for the short-term of shareholders. with the interests of the executive directors and align the interests by the committee. annually regularly reviewed Achievement levels for each of the financial metrics, as described above, which determine threshold, target and stretch performance are performance are target and stretch threshold, Achievement levels for each of the financial metrics, as described above, which determine economic and market conditions. The threshold, of relevant and detailed review by the committee, following a careful regularly reviewed outlined on the next page. Achievement levels for performance levels for the financial metrics set by the committee are target and stretch shown on page 108. 2016 are the year ended 31 March Executive short-term incentive – financial metrics: achievement levels The financial metrics are designed to ensure an appropriate balance between measures which drive profitability (return on risk-weighted (return which drive profitability balance between measures an appropriate designed to ensure The financial metrics are ratios, (tier 1 capital adequacy measures on equity) which comprise 60% of the total weighting of 85% and prudential assets and return of 85%. liquidity cover ratios and the net stable funding ratio) which comprise 25% of the total weighting The weightings for each financial metric are as follows: The weightings for each financial metric are Executive short-term incentive – financial metrics and weightings Executive short-term incentive – financial FURTHER DETAILS ON THE EXECUTIVE DIRECTORS’ SHORT-TERM INCENTIVE PLAN: DIRECTORS’ SHORT-TERM ON THE EXECUTIVE FURTHER DETAILS 4 4 4 4 UK 12% 15% 45% 95% 1.6% 150% 175% 225% 100% 110% 200% 99.5% 162.5% Stretch (200%) Stretch 3 3 3 3 12% 55% 55% 65% 75% 65% 75% 85% 1.2% 150% 89.5% 10.5% 132.5% South Africa Target (100%) Target Achievement levels 2 2 2 2 9% 82% 9.5% 0.9% 115% 100% Threshold (0%) Threshold Achievement levels 1 1 1 1 25% 35% 50% 85% 6.25% 6.25% 12.5% Weighting 0 0 0 0 0% 15% 3.75% 3.75% 3.75% 3.75% Weighting Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) The group’s adjusted earnings for the year ended 31 March 2016 amounted to £359.7 million earnings adjusted March for the year ended 31 The group’s earnings adjusted for the year on risk-weighted assets metric, the group’s achievement level for the return to achieve the stretch In order larger at £426.6 million ceteris paribus 2016 would have needed to be 18.6% ended 31 March adjusted earnings for the year ended on equity metric, the group’s achievement level for the return to achieve the stretch In order at £467.5 million ceteris paribus. 2016 would have needed to be 30.0% larger 31 March hted by region (55% South Africa: of the underlying liquidity metrics weighted by region (55% South cover ratio and net stable funding ratio) are a blend The liquidity metrics (liquidity 45% UK) as set out below: Threshold Threshold Target Stretch Target Stretch FOUR Net stable funding ratio* Employee relationship and developments Employee relationship Liquidity cover ratio* Governance and regulatory and Governance and regulatory relationships shareholder Tier adequacy 1 capital Franchise development Return on equity Liquidity cover ratio Net stable funding ratio Culture and values Culture Return assets on risk-weighted Geographical weighting Non-financial metrics Financial metric 104 • • Stretch achievement levels for return on risk-weighted assets and return on equity are considered to be demanding: considered on equity are assets and return on risk-weighted achievement levels for return Stretch • The committee believes that it is right to incentivise executive directors to attend to important matters on which the long-term performance to attend to important matters The committee believes that it is right to incentivise executive directors returns. linked to financial Withoutof the company depends, but which cannot in any one performance period be directly a meaningful in any significant way for activities which the for non-financial metrics, the executives would not be rewarded weighting and target score The capability and overall long-term sustainability of the company. risk profile, as essential to the reputation, regard committee and the board balance of view of the proper the board’s reflect committee considers that both the short- and long-term incentive schemes should properly for the executive directors. responsibilities regularly). reviewed scale (these are assessed on a four-point of focus, weightings and objectives for the non-financial metrics are The areas as follows: These are Executive short-term incentive – non-financial metrics: achievement levels Executive short-term incentive – non-financial Measure *

REMUNERATION REPORT REMUNERATION REPORT 105 45% 1.6% FOUR Target (100%) Target Target (100%) Target Stretch (150%) Stretch Stretch (200%) Stretch Threshold (0%) Threshold Threshold (0%) Threshold Stretch (150%) Stretch Achievement levels 30% 1.2% (continued) (continued) Target (100%) Target Diversity and black economic Diversity and black economic and results empowerment initiatives of people Continued development – both on the job and extramurally. – – – – Achievement levels The committee assesses achievement The committee assesses non-financial against objectives for the scale and score metrics on a four-point in exceptional 0 (0%) and 4 (200%) only range score with the typical circumstances, or 3 (150%). being 1 (50%), 2 (100%) FURTHER DETAILS ON THE FURTHER DETAILS EXECUTIVE DIRECTORS’ LONG‑TERM INCENTIVE PLAN for the executive The vesting of awards will be conditional on performance directors weighted as to financial and non-financial against performance and measured achievement levels. prescribed 0 – 150% 0 – 200% 15% Score range Score 0.7% Remuneration report Remuneration 75% 25% Threshold (0%) Threshold Weighting 35% 40% 75% Weighting Succession and the development of the next generation Maintaining open and transparent Maintaining open and transparent with regulators relations Regulators should have confidence that the firm is being properly governed and managed should have Shareholders confidence that the firm is being managed. properly Quality of brand, development of Quality of brand, development to theclient base, commitment in building community and progress the firm and other Environmental sustainability issues. Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review – – – – – – Employee relationship and development Employee relationship – Governance and regulatory and Governance regulatory and relationships shareholder – – – Franchise development – – • • • 1 2 Management visible and proactive proactive Management visible and in demonstrating appropriate behaviour Performance-driven, transparent and risk-conscious organisation and Delivering appropriate with sustainable products high levels of service and responsiveness supporting the Acting with integrity, developing people and community, with key maintaining good relations stakeholders Continual monitoring of the culture of the group. – – – – – Return on risk-weighted assets is defined as adjusted earnings/average risk-weighted assets, where adjusted earnings are earnings attributable to ordinaryReturn on risk-weighted assets is defined as adjusted earnings/average risk-weighted assets, where adjusted goodwill, acquired intangibles and non-operating items, and will shareholders after taxation, non-controlling interests and preference dividends, but before the actual return on risk-weighted assets achieved for each of be measured over the three financial years preceding the first date of vesting by averaging those three financial years. The growth in tangible net asset value is expressed per share based on neutral currency and after adding back dividends and will be measured over the The growth in tangible net asset value is expressed per share based on neutral currency and after adding three financial years preceding the first date of vesting. Culture and values Culture – – – – – Financial metrics Non-financial metrics Return on risk-weighted assets Financial metrics Growth in tangible net asset value Growth

The number of shares which vest against both the financial and non-financial performance conditions depend on whether threshold (0%), depend on whether threshold which vest against both the financial and non-financial performance conditions The number of shares vesting on a linear basis between each level. achieved, with awards (150%) levels are target (100%) or stretch vesting will be increased satisfied, the number of shares achievement levels for both the financial and non-financial metrics are If the stretch at the time of grant. awarded and capped at a maximum of 135% of the number of shares The awards will be tested over the three financial years preceding the first date of vesting against the achievement levels set on grant and financial years preceding will be tested over the three The awards the combined total which has been achieved. to will be determined by reference to be received the number of shares 2 1 Executive long-term incentive – financial metrics: achievement levels performance performance for the three-year target and stretch The achievement levels for each financial metric which determine threshold, being made after a careful by the committee in advance of the award regularly will be reviewed period applicable to each annual award constant expected to remain economic and market conditions. The weightings for each of the financial metrics are of relevant review going forward. as follows: are achievement levels for the financial metrics currently target and stretch Threshold, The committee has set the following areas the following areas The committee has set of the non-financial of focus in respect performance conditions: • The number of shares awarded will be decreased or increased by a performance multiplier comprising weightings and achievement scores achievement scores by a performance multiplier comprising weightings and or increased will be decreased awarded The number of shares ranges for the financial and non-financial metrics, as follows: within score 4 4 4 4 200% 3 3 3 3 150% 2 2 2 2 100% AS PROPOSED BY THE AS PROPOSED BY THE BOARD FOR THE PERIOD ENDING 31 AUGUST 2017 £425 000 per year £72 000 per year £10 000 per year £62 000 per year £45 000 per year £18 000 per year £16 500 per year £12 000 per year £12 000 per year £44 000 per year £14 500 per year R142 000 per year £13 500 per year £55 000 R305 000 per year R450 000 £2 000/R30 000 1 1 1 1 Achievement levels 50%

0 0 0 0 0% YEAR ENDED YEAR ENDED 31 MARCH 2016 £415 000 per year £70 000 per year £10 000 per year £60 000 per year £44 000 per year £17 500 per year £16 000 per year £11 500 per year £11 500 per year £43 500 per year £14 000 per year R142 000 per year £13 000 per year – R290 000 per year – £2 000/R30 000 4% 4% 4% 25% 13% Weighting Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) FOUR Non-financial metrics and values Culture Franchise development and shareholder Governance regulatory and relationships and development Employee relationship Chairman’s total fee Chairman’s NON-EXECUTIVE DIRECTORS’ NON-EXECUTIVE DIRECTORS’ REMUNERATION Basic non-executive director fee Basic non-executive director Senior independent director Chairman of the DLC audit committee committee Chairman of the DLC remuneration Member of the DLC audit committee committee Member of the DLC remuneration Member of the DLC nominations and directors’ affairs committee Member of the DLC social and ethics committee risk and capital committee Chairman of the board risk and capital committee Member of the board member in attendance Investec Bank Limited board risk and capital committee of the board Member of the Investec Bank plc board (also member of main board) Member of the Investec Bank plc board Member of the Investec Bank Limited board (also member of main board) Member of the Investec Bank Limited board Per diem fee for additional work committed to the group 106 The committee assesses achievement against objectives for the non-financial metrics on a four-point scale and score 0 (0%) and 4 (200%) 0 (0%) scale and score objectives for the non-financial metrics on a four-point The committee assesses achievement against range being 1 (50%), 2 (100%) or 3 (150%). with the typical score only in exceptional circumstances NON-EXECUTIVE DIRECTORS and 2017 financial years is shown in the table below: for the 2016 for non-executive directors The fee structure Executive long-term incentive – non-financial metrics: achievement levels incentive – non-financial metrics: achievement Executive long-term will be reviewed period applicable to each annual award performance and associated objectives for the three-year The non-financial metrics and operational objectives. strategic the group’s being made, taking into account of the award by the committee, in advance regularly as follows: are non-financial metrics The current

REMUNERATION REPORT REMUNERATION REPORT £ 107 tion Total Total 4 364 000 3 970 000 4 364 000 3 970 000 3 837 890 3 573 417 5 464 024 8 130 189 remunera- FOUR – – – – – – £ LTIPs Value of Value 1 089 150 3 319 059 exercised exercised – – – – – £ (continued) (continued) mance Value of Value LTIP– not LTIP– to perfor- 1 480 000 1 480 000 1 308 445 conditions vested and still subject – – £ STI – 561 600 561 600 488 400 deferred 2 000 000 2 000 000 1 800 000 £ STI – shares upfront upfront upfront 842 400 500 000 842 400 500 000 732 600 450 000 cash and Remuneration report Remuneration 3 924 000 4 360 000 £ tion Gross 450 874 451 130 1 480 000 1 480 000 1 308 445 1 470 000 1 470 000 1 323 417 remunera- – £ – Fixed 1 000 000 1 000 000 1 000 000 allowance 1 000 000 1 000 000 1 000 000 £ Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Total Total other 9 493 5 659 7 162 9 924 5 968 10 102 10 864 10 180 taxable benefits – £ – ment 60 883 25 379 30 688 Retire- 62 612 24 912 35 363 benefits £ Salary 409 015 396 524 445 128 439 120 272 098 280 892 440 950 440 950 Gross remuneration comprises base salary, fixed allowance and other benefits. Gross remuneration comprises base salary, the fixed allowance of £1 million) increased by 2.1% from £470 000 to £480 000. The gross Gross remuneration of S Koseff and B Kantor (excluding of £1 million) The gross remuneration of GR Burger (excluding the fixed allowance as the prior year. largely remained the same remuneration for HJ du Toit Rand-based gross remuneration increased by 6.1% from Burger’s Sterling. In Rand terms GR is largely determined in Rands and converted into Pounds 2016 and his Pounds Sterling-based gross remuneration increased 4.4% from £86 500 to £90 300 in R4 240 000 in March 2015 to R4 500 000 in March March 2016. may include pension schemes; life, disability and personal accident insurance; medical cover; and fixed The executive directors receive other benefits which allowances, on similar terms to other senior executives. the CEO, MD and GRFD requirements of CRD IV, As part of the restructuring of the remuneration arrangements in 2014/15 to ensure compliance with the Kantor and GR Burger was awarded in the form have received fixed allowances, payable in shares. The fixed allowance of £1 million each to S Koseff, B subject to a retention on award. These shares are, however, of 166 945 forfeitable Investec plc shares to each of the directors which vested immediately years. The 166 945 Investec plc shares for each of the directors is period in terms of which 20% of the shares are released each year over a period of five included in their beneficial and non-beneficial interest holding on page 112. of one of our defined contribution pension or Retirement benefits: None of the directors belong to a defined benefit pension scheme and all are members to these schemes payable by the company. provident schemes. The amounts reflected in the table above represent the contribution is currently a director of Investec plc and Investec Limited, he does not perform Investec group-wide executive activities. Notwithstanding that HJ du Toit and any remuneration benefits due to him are subject to the remuneration policies, rules and regulations applicable to employees HJ du Toit Accordingly, is the founder and CEO of within the Investec group. HJ du Toit of IAM and not the remuneration policies, rules and regulations applicable to other entities arrangements are not affected by the cap on variable by PRA regulations. As a result, his compensation IAM and is not classified as Material Risk Takers of IAM before variable compensation and tax. For the year remuneration. The short-term incentive payable to the CEO of IAM is 1.85% of the earnings There will be no deferral of the short-term ended 31 March 2016, a payment of £3.9 million was due and was paid in cash shortly after the year end. investment in IAM has been repaid. Further detail on this equity incentive until such time as the debt taken out by the CEO of IAM to fund a substantial profit before tax and non-controlling interests of 9.5% to transaction is provided on pages 132 and 133. IAM reported a decrease in adjusted operating £134.8 million. Assets under management amounted to £75.7 billion, with £3.2 billion in net inflows. S Koseff, B Kantor and GR Burger are classified as Material Risk Takers. with reference to performance against financial The annual bonus for the year ended 31 March 2016 for S Koseff, B Kantor and GR Burger was determined incentive is subject to 100% of fixed remuneration and non-financial metrics as set out below and described in detail on pages 103 to 105. The short-term as explained on page 102. 102 a portion of bonuses are paid in cash and a Further information on the short-term incentives is set out on pages 103 to 105 and as discussed on page portion is deferred. The portion deferred is deferred in shares. adjusted to 0.66% of the group’s The short-term incentive pool available for the CEO, MD and GRFD for the year ended 31 March 2016 amounted and non-operating items and after non-controlling interests. If the operating profit, defined as operating profit before taxation, goodwill, acquired intangibles 0.23% to the CEO, 0.23% to the MD and 0.20% to the GRFD. target performance conditions are achieved, distribution of the pool will be as follows: scores within score ranges for the financial and The pool is decreased or increased by a performance multiplier comprising weightings and achievement The maximum aggregate pool, if all financial and non-financial stretch levels are achieved, non-financial performance measures described in the table bel Executive directors S Koseff (chief executive S Koseff officer) – 2016 – 2015 B Kantor (managing director) – 2016 – 2015 GR Burger (group risk GR Burger (group and finance director) – 2016 – 2015 HJ du Toit (CEO IAM) HJ du Toit – 2016 – 2015 Salary and benefits • • • • • STI • • • • The determination of bonuses for the CEO, MD and GRFD are set out below: • • Executive directors’ single total figure of remuneration (audited) of remuneration total figure single Executive directors’ the financial period. over for each executive director figure total remuneration a single The table below provides 978 Actual Actual 84.7% 1 125 2 025 1 480 1 761 1 308 84.7% 136.0% 113.3% 200.0% 200.0% 200.0% 136.0% 113.3% 200.0% 127.0% 127.0% achieved 489 064 489 064 achieved weighting weighting % vs target vs % target 466 207 139 122 122 141 536 238 158 141 £’000 1 056 £’000 1 214 Actual Actual achieved achieved allocation allocation 15% 15% 1.6% 1.6% 200% 200% 12.0% 99.5% 12.0% 99.5% Stretch Stretch Stretch Stretch 162.5% 162.5% 12% 12% 1.2% 1.2% 100% 100% Target Target Target Target 10.5% 89.5% 10.5% 89.5% 132.5% 132.5% Achievement levels Achievement levels 0% 9% 0% 9% 82% 82% 0.9% 9.5% 0.9% 9.5% 115% 115% Threshold Threshold Threshold Threshold 2016 2016 Actual Actual 1.34% 11.5% 10.7% 1.34% 11.5% 10.7% ment at ment at 403.9% 118.3% 403.9% achieve- achieve- 118.3% 31 March 31 March 31 March 31 March

35% 25% 35% 25% 6.25% 6.25% 6.25% 6.25% 85.0% 85.0% 12.5 % 12.50% Weighting Weighting Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) FOUR Total Tier 1 capital adequacy LCR NSFR Financial metrics Return on equity NSFR Total Return on equity Tier 1 capital adequacy LCR Financial metrics Return on risk-weighted assets Return on risk-weighted assets 108 Adjusted operating profit at 31 March 2016 (£’000) at 31 March Adjusted operating profit GRFD ‘incentive pool’ at 0.20% (£’000) The determination of the bonus for GR Burger is shown below: ‘incentive pool’ at 0.23% (£’000) CEO/MD ‘incentive pool’ at 0.23% cap (£’000) application of the remuneration Maximum leverage at 180%, i.e. maximum potential bonus before The determination of the bonus for S Koseff and B Kantor is shown below: and B Kantor is shown of the bonus for S Koseff The determination 2016 (£’000) March at 31 Adjusted operating profit Maximum leverage at 180%, i.e. maximum potential bonus before application of the remuneration cap (£’000) of the remuneration application i.e. maximum potential bonus before Maximum leverage at 180%, (£’000) cap and 100% of fixed remuneration to remuneration Maximum bonus subject (£’000) cap and 100% of fixed remuneration Maximum bonus subject to remuneration The short-term incentive sharing percentage was reduced by 50% to reflect the reintroduction of the long-term incentive. The portion of the the reintroduction to reflect by 50% was reduced The short-term incentive sharing percentage on risk-weighted assets; £282 000 for return on to £2 115 000 (£836 000 for return 2015 bonus ‘achieved’ for financial metrics amounted 000 for the LCR; and £267 000 for the NSFR). The portion of the bonus for the 2016equity; £463 000 for tier 1 capital adequacy; £267 in most of the metrics. improvement of a strong financial metrics is thus largely as a result financial year attributable to performance against has halved. by the fact that the maximum short-term incentive that could potentially be awarded impacted are comparisons Year-on-year Non-financial metrics of committee decided to allocate an award described on pages 104 and 105) the remuneration Following an assessment of these metrics (as to the ‘culture of 2 (i.e. weighting of 100%) was awarded against non-financial metrics. A score (2015: £385 000) for performance £190 000 and development’ categories and a score and ‘employee relationship relationships’ and shareholder and values’, ‘governance and regulator that fact the by impacted are comparisons Year-on-year to the ‘franchise development’ category. of 3 (i.e. weighting of 150%) was awarded has halved. Further be awarded the maximum short-term incentive that could potentially information is provided on page 102. and B Kantor to S Koseff Final bonus awarded above) yield a bonus of £1 404 000. and non-financial metrics (reflected of the performance assessment against financial The results and B Kantor falls to S Koseff and the bonus awarded The short-term incentive is subject to a maximum of 100% of fixed remuneration, within that cap.

REMUNERATION REPORT REMUNERATION REPORT 109 FOUR (continued) (continued) Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review The executive together with senior employees, the group chairman and the The executive together with senior employees, the group and with shareholders committee meet regularly chairman of the remuneration and important organisations. These engagements are representative shareholder committee to decisions made by the remuneration contribute directly Members of the Investment Analyst Society in South Africa voted Investec as the in the financial services sector. leader in corporate reporting The executive continued to actively engage with employees through, for example, employees through, The executive continued to actively engage with – management panels, induction presentations management hosted breakfasts, and values including culture facilitating discussions on a number of aspects, which a number of case studies and The executive hosted a risk appetite forum in on various aspects of risk. The purpose of these analyses presented analyses were our risk appetite framework and determine was to foster debate on our risk culture and Organisational Development divisions continued to Our Human Resources our values teams to ensure actively work with the executive and our management into our day-to-day activities. lived and entrenched are established in Committees were During the year Customer and Market Conduct the UK and South Africa, with the objective of ensuring that Investec maintains a client-focused and fair outcomes-based culture. • • • • • • Achievements during the year Maintaining open and transparent relations relations Maintaining open and transparent with regulators Regulators should have confidence that the governed and managed firm is being properly should have confidence that Shareholders managed. the firm is being properly Management visible and proactive in Management visible and proactive behaviour demonstrating appropriate and risk- Performance-driven, transparent conscious organisation and sustainable Delivering appropriate with high levels of service and products responsiveness supporting the Acting with integrity, developing people and community, with key maintaining good relations stakeholders of Continual monitoring of the culture the group. GOVERNANCE AND REGULATORY AND SHAREHOLDER RELATIONSHIPS: GOVERNANCE AND REGULATORY • • • • Areas of focus as set out on page 104 Areas AND VALUES: CULTURE • • • • An assessment of non-financial metrics non-financial metrics for the CEO, taken into consideration in the assessment of performance against the The following aspects were MD and GRFD. The short-term incentive sharing percentage was reduced by 50% to reflect the reintroduction of the long-term incentive. The portion of the of the reintroduction by 50% to reflect was reduced sharing percentage The short-term incentive on assets; £251 000 for return on risk-weighted (£743 000 for return for financial metrics amounted to £1 880 000 2015 bonus ‘achieved’ bonus for the 2016 and £237 000 for the NSFR). The portion of the 1 capital adequacy; £237 000 for the LCR; equity; £412 000 for tier of the metrics. in most improvement of a strong thus largely as a result to performance against financial metrics is financial year attributable halved. has that could potentially be awarded by the fact that the maximum short-term incentive impacted comparisons are Year-on-year Non-financial metrics decided to allocate an award committee and 105) the remuneration of these metrics (as described on pages 104 Following an assessment to the was awarded of 2 (i.e. weighting of 100%) metrics. A score 000) for performance against non-financial of £165 000 (2015: £370 and development’ categories ‘employee relationship and relationships’ and shareholder and values’, ‘governance and regulator ‘culture impacted by comparisons are Year-on-year category. to the ‘franchise development’ of 150%) was awarded of 3 (i.e. weighting and a score below and on is provided has halved. Further information be awarded short-term incentive that could potentially the fact that the maximum page 102. to GR Burger Final bonus awarded above) yield a bonus of £1 221 000. financial and non-financial metrics (reflected of the performance assessment against The results to GR Burger falls within and the bonus awarded of fixed remuneration, The short‑term incentive is subject to a maximum of 100% that cap. Investec was voted third most attractive employer in South Africa in the 2016 Investec was voted third Universum Most Attractive Employer awards economic empowerment. committed to black In South Africa, Investec remains We Empowerdex. a level 2 BBBEE rating status from During the year we received workplace that encourages committed to achieving and sustaining an equitable are strategies focused on the corrective and manages diversity and as such remains as set out in our employment equity plan for the period 2013 to 2017. In terms of the numerical targets for 2015, we marginally missed our targets (by an average of middle and junior and Indian headcount at top, senior, 3.5%) for African, Coloured we exceeded targets at the semi-skilled level by 24%. management. However, in line with This is due to the implementation of several learnership programmes level and developing them our strategy of employing individuals at a ‘grass roots’ black emphasis was placed on recruiting into skilled leaders over time. Strong on all our non- delivered We and disabled candidates into these programmes. and, leadership numerical goals including a continued focus on diversity awareness of black and female talent development and retention a detailed committee (NOMDAC) received affairs’ The nomination and directors senior management succession, and the the executive regarding from presentation is a formal management succession plan in place. NOMDAC is satisfied that there 2015 in November further made an announcement in this regard The group In 2016, we invested £14.7 million in the learning and development of our to £14.1 million in the prior year. employees, compared The past year focused largely on the execution of our planned strategy; we largely on the execution of our planned strategy; The past year focused of the client, corporate and institutional franchises the private continued to grow Wealth of our Asset Management and in the growth Specialist Bank and invested area. a key focus Our digitisation strategy remains & Investment businesses. in made on managing down the legacy portfolio was significant effort Furthermore, the UK inclusion in a number of internationalInvestec maintained its sustainability indices During the year we spent contributing to society. values include unselfishly Our core £5.4 million) £4.9 million on social investment initiatives (2015: continues to outpace Promaths, Our flagship educational initiative in South Africa, the national average for Mathematics and Science for Community Impact Charity Award Investec has been short listed in the Business by Bow Beyond Business incubator in the UK for our partnership with the Bromley for our project, for 2016 Dragon awards Mayor’s Investec is a finalist in the Lord category award Beyond Business, in the enterprise and employment in the City of London (UK) won their ninth Platinum award Street Investec Gresham 2015 Clean City Awards Scheme Corporation’s the ISO 14001 certification and the Energy retained (UK) office Street The Gresham (ERV) in December 2015 Kitemark Reduction Verification in South Africa and 113 companies Investec Limited was one of the five companies This includes companies that globally to make the 2015 CDP Climate A list. change an A-grade for their actions to mitigate climate received £884 million. energy sector of arranged funding for the renewable We • • • • • • • • • • • • • • Achievements during the year Achievements during Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) Succession and the development of the next generation Diversity and black economic empowerment initiatives and results Continued development of people – both on the job and extramurally Quality of brand, development of client base, Quality of brand, development and progress commitment to the community in building the firm issues and other sustainability Environmental Long-term incentive awards were granted during the 2016 financial year to S Koseff, B Kantor and GR Burger. The number of long- B Kantor and GR Burger. granted during the 2016 financial year to S Koseff, were Long-term incentive awards as explained on 100% of fixed remuneration represents shown on page 115. The long-term incentive awards are term incentive awards testing against performance conditions. still subject to future have not yet vested and are page 102. These awards the number of shares represent in the table on page 100 in 2016 and 2015. The values provided exercised were for HJ du Toit LTIPs Further information is exercised. at the date on which they were multiplied by the market price of the shares exercised that were on page 113. provided FOUR • • EMPLOYEE RELATIONSHIP AND DEVELOPMENT: EMPLOYEE RELATIONSHIP • • Areas of focus as set out on page 104 of focus as set out on page Areas FRANCHISE DEVELOPMENT: • 110 Long-term incentive awards • •

REMUNERATION REPORT REMUNERATION REPORT £ 111 2015 Total 92 667 72 473 35 819 34 754 94 000 21 250 82 322 53 971 68 000 51 063 41 043 59 315 363 438 184 069 163 550 289 763 195 633 FOUR 1 903 130 remuneration – – – – £ 2016 Total 36 900 87 500 84 989 85 988 81 500 81 500 415 000 196 015 115 666 294 590 123 814 121 132 205 510 1 930 104 (continued) (continued) remuneration Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 2 1 KCMG

1 2 2 1 1 1 2 3 Sir DJ Prosser, GFO Alford, OC Dickson and MP Malungani resigned from the board on 8 August 2014. GFO Alford, OC Dickson and MP Malungani Sir DJ Prosser, H Fukuda resigned from the board on 6 August 2015. CR Jacobs, Lord Malloch-Brown KCMG and KL Shuenyane were appointed to the board on 8 August 2014. ZBM Bassa was appointed to the board on CR Jacobs, Lord Malloch-Brown KCMG and KL Shuenyane 1 November 2014 and LC Bowden on 1 January 2015. Non-executive directors (current) Non-executive directors F Titi (chairman) ZBM Bassa Name GFO Alford OC Dickson MP Malungani H Fukuda Pounds Sterling in Total CA Carolus CA Carolus PKO Crosthwaite B Fried D Friedland CR Jacobs IR Kantor Malloch-Brown Lord KL Shuenyane LC Bowden PRS Thomas (no longer on the board) Non-executive directors (former joint chairman) Sir DJ Prosser

PAYMENTS TO PAST DIRECTORS AND PAYMENTS FOR LOSS OF OFFICE (AUDITED) DIRECTORS AND PAYMENTS TO PAST PAYMENTS No such payments have been made. 2 3 1 NON-EXECUTIVE DIRECTORS’ SINGLE TOTAL REMUNERATION FIGURE (AUDITED) REMUNERATION DIRECTORS’ SINGLE TOTAL NON-EXECUTIVE over the financial period. for each non-executive director figure total remuneration a single The table below provides – – – – – – – – – – 1 2016 0.4% 1.0% 0.0% 0.1% 0.2% 1.7% 0.0% 1.7% % of 31 March 31 March shares shares Limited Investec in issue

– – – – – – – – – – 325 325 2016 1 327 076 604 740 31 March 31 March 1 234 399 2 800 500 4 967 040 4 966 715 – – – – – – – – – – interest 325 325 2015 Beneficial and non-beneficial 1 April Investec Limited 627 076 604 740 6 367 040 1 534 399 3 600 500 6 366 715 – – – – – – – – – – – 1 2016 0.9% 0.1% 0.6% 0.5% 0.6% 2.1% 1.5% % of 31 March 31 March shares in issue Investec plc – – – – – – – – – 2016 19 900 832 657 115 738 1 31 March 31 March 5 274 035 3 509 545 3 645 183 3 316 390 9 423 082 13 068 265 – – – – – – – – – interest 2015 Investec plc Beneficial and non-beneficial 1 April 19 900 488 918 115 738 3 645 183 4 773 200 3 509 545 2 848 944 8 111 062 11 756 245 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued)

2

2 2 The number of shares in issue and share prices for Investec plc and Investec Limited over the period is provided on page 116. The number of shares in issue and share prices for Investec plc and Investec Limited over the period is Investec plc shares which relate to the award to each of include 166 945 The beneficial and non-beneficial holdings of S Koseff, B Kantor and GR Burger, 107). The shares are subject to a retention period in the directors of shares in respect of a £1 million fixed allowance on 1 June 2015 (as explained on page term of which 20% of the shares are released each year over a period of five years. FOUR Executive directors S Koseff Name B Kantor GR Burger Non-executive directors F Titi (chairman) ZBM Bassa LC Bowden CA Carolus PKO Crosthwaite D Friedland CR Jacobs IR Kantor KCMG Malloch-Brown Lord KL Shuenyane PRS Thomas number Total number Total HJ du Toit HJ du Toit number Total

112 There are no requirements for directors to hold shares in the group. to hold shares for directors no requirements are There The table above reflects holdings of shares by current directors. 1 2 Directors’ shareholdings in Investec plc and Investec Limited shares at 31 March 2016 (audited) 2016 (audited) at 31 March plc and Investec Limited shares in Investec shareholdings Directors’ DIRECTORS’ SHAREHOLDINGS, OPTIONS AND LONG-TERM INCENTIVE AWARDS (AUDITED) INCENTIVE AWARDS OPTIONS AND LONG-TERM DIRECTORS’ SHAREHOLDINGS, long-term incentive awards. options and shareholdings, full details of directors’ contains interests of directors’ register The company’s for the year ended long-term incentive awards options and shareholdings, information on the directors’ The tables that follow provide 2016. 31 March

REMUNERATION REPORT REMUNERATION REPORT – 113 2016 4 000 Period FOUR 31 March 31 March exercisable 2015 4 000 1 April date of exercise made on Investec Bank Limited £1 089 150 Gross gains Gross (continued) (continued) price £5.80 2016 3 000 Market exercise 31 March 31 March at date of – at 2016 2015 3 000 1 April Investec Limited Balance 31 March Remuneration report Remuneration – 2016 Options the year granted/ 101 198 31 March 31 March lapsed during the year Investec plc 2015 during 1 April (187 500) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Exercised 101 198 187 500 shares at shares Number of 1 April 2015 Investec plc Nil price Exercise

2010 grant 1 July Date of The market price of an Investec plc preference share at 31 March 2016 was R104.00 (2015: R90.21). plc preference share at 31 March 2016 was R104.00 The market price of an Investec R73.20 (2015: R73.50). Limited preference share at 31 March 2016 was The market price of an Investec was R79.00 (2015: R83.45). Bank Limited preference share at 31 March 2016 The market price of an Investec Name HJ du Toit Name • • • Executive director S Koseff Directors’ interest in Investec 1 Limited's long-term incentive plans at 31 March 2016 (audited) plans at 31 March in Investec 1 Limited's long-term incentive interest Directors’ Investec plc shares plc shares. in options over Investec do not have any interest The directors Investec Limited shares Limited shares. in options over Investec do not have any interest The directors Directors’ interest in options at 31 March 2016 (audited) in options at 31 March interest Directors’ Directors’ interest in preference shares at 31 March 2016 (audited) at 31 March shares in preference interest Directors’ Term of Investec plc for nil consideration pursuant to the Long‑Term of nil cost options in the capital in respect has made awards The group committee and with the rules of the the determination of the remuneration with in accordance are The awards Incentive Plan (LTIP). his options and exercised Hendrik du Toit becoming an executive director. prior to Hendrik du Toit made were awards These LTIP. no performance conditions were There price of £5.80 per share. average share on 1 July 2015 at an sold 187 500 Investec plc shares attached to these awards. to to 2018 2019 2018 2019 2018 2018 2019 2018 period 2017 to 2017 to 2018 to 2017 to 16 March 16 March 16 March 16 March 16 March 16 March 16 March 16 March 16 March 16 March 16 March 16 March Retention 16 September 16 September 16 September 16 September 16 September 16 September

criteria criteria criteria 75% is 75% is 75% is Period 25% on 25% on 25% on being met being met being met 2017; and 2017; and 2017; and exercisable 2018, subject 16 September 16 September 2018, subject 16 September 16 September 2018, subject exercisable on exercisable 16 September exercisable on exercisable 16 September exercisable on exercisable to performance to performance to performance Total Total shares 804 617 804 617 804 617 Shares Shares 204 617 204 617 204 617 being met conditions awarded for awarded performance Yes* Yes* Yes* met (Y/N) conditions Performance 2016 2016 2016 period 31 March 31 March 31 March 31 March Performance 1 April 2013 to 1 April 2013 to 1 April 2013 to Nil Nil Nil price Exercise 2013 shares Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 600 000 600 000 600 000 Remuneration report Remuneration (continued) Number of awarded on awarded Investec plc 16 September The performance criteria in respect of these awards are detailed on pages 105 and 106. The performance period for these awards made in 2013 has The performance criteria in respect of these awards are detailed on pages 105 and 106. The performance a total number of 804 617 shares have been awarded to S Koseff, now been tested and the results are indicated on page 115. In terms of this assessment These awards are only exercisable in 2017 and 2018 as shown above. B Kantor and GR Burger. FOUR Name S Koseff B Kantor GR Burger GR 114 The Executive Incentive Plan and the awards made on 16 September 2013 were approved at the July 2013 annual general meeting in terms at the July 2013 approved made on 16 September 2013 were The Executive Incentive Plan and the awards B Kantor and GR Burger. to S Koseff, awarded of which 600 000 nil cost options each were * Directors’ interest in the Investec plc Executive Incentive Plan 2013 at 31 March 2016 (audited) March Executive Incentive Plan 2013 at 31 in the Investec plc interest Directors’ 2013 ending 31 March of the financial year made in respect Awards

REMUNERATION REPORT REMUNERATION REPORT 115 Actual period 159.7% 110.6% 136.8% 600 000 810 000 A further A further A further achieved weighting FOUR six-month six-month six-month Retention % vs target vesting date vesting date vesting date retention after retention retention after retention retention after retention Actual number 383 377 232 240 615 617 of shares achieved: Period allocation (continued) (continued) exercisable 1.6% 200% 45.0% Stretch Stretch criteria being met criteria being met criteria being met on 2 June 2020; and on 2 June 2020; and on 2 June 2020; and One third is exercisable is exercisable One third One third is exercisable is exercisable One third One third is exercisable is exercisable One third subject to performance subject to performance subject to performance one third on 2 June 2021, one third one third on 2 June 2021, one third one third on 2 June 2021, one third on 2 June 2019; one third on 2 June 2019; one third on 2 June 2019; one third 1.2% 100% Target Target 30.0% 2019 2019 2019 period Achievement levels Remuneration report Remuneration 0% 1 April 2016 to 31 March 1 April 2016 to 31 March 1 April 2016 to 31 March Performance 0.7% 15.0% Threshold Threshold at 2016 277 801 314 225 314 225 Balance 31 March 2016 39.7% 1.24% period. three-year three-year Result over 1 April 2013 to 31 March to 31 March Commencing 277 801 314 225 314 225 awards the year Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Conditional 40% 35% made during 75.0% – – – Weighting shares at shares Number of Investec plc 1 April 2015 Nil Nil Nil price Exercise Date 2016 2016 2016 2 June 2 June 2 June of grant GR Burger B Kantor S Koseff Name Financial metrics neutral net tangible asset in currency Growth including dividends, over the value per share period three-year Return on risk-weighted assets (average over period) the three-year Total On 2 June 2016, 314 225 nil cost options were awarded to S Koseff and B Kantor and 277 801 to GR Burger. These awards form part These awards and B Kantor and 277 801 to GR Burger. to S Koseff awarded On 2 June 2016, 314 225 nil cost options were 2016. year ending 31 March of the financial at the 2015 annual general meeting, in respect as approved of their variable remuneration in the table on page 100. is reflected The value of these awards have as yet vested. The on pages 105 and 106. None of these awards detailed are of these awards The performance criteria in respect and B Kantor and £1 308 000 for GR Burger based on an actual amounts to £1 480 000 for S Koseff face value at grant for these awards at face value remuneration subject to 100% of fixed are price for Investec plc of £4.71 on 2 June 2016 (date of grant). The awards share as explained on page 102. Awards made in respect of the financial year ending 31 March 2016 of the financial year ending 31 March made in respect Awards Maximum leverage at 135%, i.e. maximum potential LTIPs if stretch targets obtained if stretch i.e. maximum potential LTIPs Maximum leverage at 135%, Original number of LTIPs awarded on 16 September 2013 awarded Original number of LTIPs The number of long-term incentive shares ‘achieved’ for financial metrics amounts to 615 617. ‘achieved’ The number of long-term incentive shares Non-financial metrics assessment for 2016 was described on pages 108 and 109 and the period. The assessed over the three-year These metrics are Following these assessments, the committee decided to allocate an award annual reports. assessment for prior periods in those respective and to the ‘culture of 2 (i.e. weighting of 100%) was awarded metrics. A score for performance against non-financial of 189 000 shares of 3 and development’ categories and a score and ‘employee relationship relationships’ and shareholder values’, ‘governance and regulator to the ‘franchise development’ category. (i.e. weighting of 150%) was awarded – – £4.03 R93.91 the year Low over 3/4/5/6 – – Number: 28 364 499 % of issued share capital of company: 3.12% Number: 344 026 % of issued share capital of company: 0.0% Number: 37 773 545 % of issued share capital of company: 4.16% Total issued issued Total at 31 March 2016 £6.47 the year R121.90 High over 2 6 664 976 1 450 950 8 431 958 Options granted during the year 2015 613.6 285.7 £5.61 R100.51 31 March 31 March 2016 617.4 291.4 £5.13 R109.91 31 March 31 March Long-term share awards: one-third at the one-third awards: Long-term share four and five; and for end of years three, nil cost options: one- Material Risk Takers: the end of two and a half years, three at third and a half years and four and a half years period plus a six-month retention equally over awards: Short-term share date of award years from three Market strike options: 25% end of years four and five two, three, one-thirdawards: share Long-term at the four and five end of years three, equally over awards: Short-term share date of award years from three • • • • • Vesting period Vesting 1 Cumulative limit of all 2 500 000 across option plans Excluding EVA awards In any financial year: 1x remuneration package Cumulative limit of all 2 500 000 across option plans Excluding EVA awards In any financial year: 1x remuneration package • • • • • • Maximum award per Maximum award individual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) The market price of an Investec Limited share at 31 March 2016 was R109.91 (2015: R100.51), ranging from a low of R93.91 to a high of R121.90 during The market price of an Investec Limited share at 31 March 2016 was R109.91 (2015: R100.51), ranging the financial year. table above excludes details of the Investec plc The rules of these long-term incentive plans do not allow awards to be made to executive directors. The executive incentive plan 2013 on pages 114 and 115. The market price of an Investec plc share at 31 March 2016 was £5.13 (2015: £5.61), ranging from a low of £4.03 to a high of £6.47 during the financial The market price of an Investec plc share at 31 March 2016 was £5.13 (2015: £5.61), ranging from a low year. The limits for allocations to employees and executive management during a financial year may be exceeded if the directors determine that exceptional The limits for allocations to employees and executive management during a financial year may be exceeded circumstances make it desirable that options should be granted in excess of that limit. More details on the directors’ shareholdings This represents the number of awards made to all participants. For further details, see pages 166 and 167. are also provided in tables accompanying this report. 2014 edition (formerly ABI remuneration Dilution limits: Investec is committed to following the Investment Association principles of remuneration: 2002), the maximum number of new shares which as from the date of the implementation of our DLC structure (29 July principles) and accordingly, after July 2002) may not exceed 10% of the issued share capital may be issued by the company under all of the share plans (in respect of grants made have, since our listing date, complied with both the 10% in 10 years guideline for discretionary and of the company over a rolling 10-year period. We non-discretionary as well as the 5% in 10 year guideline for discretionary awards in aggregate awards. The committee regularly monitors the utilisation of scheme are paid for EVA Shares issued in terms of the group’s dilution limits and available headroom to ensure that these guidelines are complied with. calculations as they have been issued for full value. The issued by the respective division at the time of the award and are not included in these dilution million shares, respectively. share capital of Investec plc and Investec Limited at 31 March 2016 was 617.4 million shares and 291.4 New and existing full-time employees in South Africa, Botswana, Namibia and Mauritius Excluding executive directors New and existing full‑time employees Excluding employees in South Africa, Botswana, Namibia and Mauritius Excluding executive directors FOUR

Number of Investec plc shares in issue (million) shares Number of Investec plc in issue (million) shares Number of Investec Limited Investec plc share price Investec plc share price Investec Limited share 6 4 5 2 3 1 • • INVESTEC LIMITED SHARE INCENTIVE PLAN – 6 MARCH 2005 – INVESTEC LIMITED INVESTEC LIMITED SHARE INCENTIVE • • • Eligibility PLAN – 16 MARCH 2005 – INVESTEC PLC INVESTEC 1 LIMITED SHARE INCENTIVE 116 SUMMARY OF INVESTEC’S SHARE OPTION AND LONG-TERM INCENTIVE PLANS OF INVESTEC’S SHARE SUMMARY Shareholder dilution The number of shares in issue and share prices for Investec plc and Investec Limited over the period are provided below: provided Limited over the period are prices for Investec plc and Investec and share in issue The number of shares statistics and Investec Limited share Summary: Investec plc

REMUNERATION REPORT REMUNERATION REPORT 117 FOUR (continued) (continued) Index. It shows that, at 31 March 2016, a 31 March 2016, Index. It shows that, at in Investec plchypothetical £100 invested 2009 would have generated at 31 March with a compared of £124 a total return in the FTSE 350 of £235 if invested return a return of £103General Finance Index and Index.if invested in the FTSE 100 2015 to 1 April During the period from shareholders to 2016, the return 31 March Pounds in of Investec plc (measured in (measured Sterling) and Investec Limited 13.6%, respectively. Rands) was -4.8% and for the to a -2.6% return This compares FTSE 350 General Finance Index, a return of -5.3% for the FTSE 100 Index and a 40 Index. return of 3.3% for the JSE Top on the LSE The market price of our shares 2016, ranging from was £5.13 at 31 March a low of £4.03 to a high of £6.47 during The market price of our the financial year. on the JSE Limited was R109.91 shares a low of 2016, ranging from at 31 March R93.91 to a high of R121.90 during the financial year. Remuneration report Remuneration Investec plc (LSE listing) return total shareholder of return shareholder Total the FTSE 350 General Finance index of return shareholder Total the FTSE 100 index 16 335 224 203 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 15 344 241 214 the (LSE) took the London Stock Exchange been listed have We place on 29 July 2002. in South Africa since 1986. and Medium- Schedule 8 of the UK Large (Accounts sized Companies and Groups 2008 (as and Report) Regulations to include a this report amended) requires total plc’s performance graph of Investec (TSR) performance return shareholder index. A market against that of a broad within the FTSE 350 number of companies conduct similar General Finance Index activities to us, although they do not necessarily have the same geographical Nevertheless, to date this has been profile. index against which the most appropriate our performance on the LSE. to measure included in not currently Although we are part of that index the FTSE 100, we were between 2010 and 2011 and we have of that return included the total shareholder index for illustrative purposes. The graph below shows the cumulative return for a holding of our shares shareholder (in purple) in Pounds Sterling on the LSE, with the average total shareholder compared of other members of the FTSE 350return General Finance Index and the FTSE 100 14 280 201 201 13 220 189 182 12 167 163 143 11 185 162 174 10 191 150 150 09 100 March 0 50 Rebased to 100 (value £) Total shareholder return shareholder Total 400 350 300 250 200 150 100 Source: Datastream Source: PERFORMANCE GRAPH We recognise that remuneration is an area is an area that remuneration recognise We and to shareholders of particular interest that in setting and considering changes to it is important that we take remuneration a their views into account. Accordingly, held each year with series of meetings are and shareholder our major shareholders The remuneration groups. representative committee chairman attends these meetings, accompanied by senior Investec chairman. This employees and the group engagement is meaningful and helpful to the committee in its work and contributes to the decisions made by the directly committee. in have implemented a DLC structure, We terms of which we have primary listings in London and Johannesburg. The listing on PERFORMANCE GRAPH: TOTAL TOTAL PERFORMANCE GRAPH: SHAREHOLDER RETURN Directors’ remuneration Directors’ remuneration interests – alignment of with shareholders (unaudited) % 95% 0.6% 6.8% (1.8%) (1.7%) (1.5%) (1.9%) 13.4% bonus 2016 (43.8%)* (28.3%) Annual 4 364 2 884 1 480 change 4 171 858 2 303 178 2 843 336 Number of abstentions – 65% 2015 3 970 3 970 23% 25% 16% 2015 2.3% 2.1% 16.9% 36 427 590 896 337 084 204 913 168 486 927 980 benefits ‘against’ 31 March 31 March resolution Salary and % of votes – 50% 2014 2 420 2 420 2016 26 130 ‘against’ 581 847 330 588 206 139 180 009 912 435 resolution votes cast Number of 31 March 31 March 154 581 743 167 830 111 105 021 932 n/a^ 2013 4 602 1 950 2 652 ‘for’ 77% 75% 84% – resolution n/a^ % of votes 450 450 2012 ‘for’ – n/a^ resolution votes cast Number of 2011 3 425 3 425 516 480 504 505 159 546 567 427 567 – n/a^ 2010 2 660 2 660 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) The short-term incentive sharing percentage was reduced 50% reflect to by the reintroduction of the long-term incentive Historical long-term incentives did not vest as they did not meet performance conditions in the relevant periods. Incentives awarded on Historical long-term incentives did not vest as they did criteria, as shown on page 115, and are now due to vest in 2017 and 2018. 16 September 2013 have been tested against performance conditions and have not yet vested. subject to performance the March 2016 information) are still Incentives awarded on 2 June 2016 (as reflected in of a formulaic approach where maximum and minimum awards could be derived. Historically annual bonuses were not determined in terms FOUR To approve the non-executive directors’ remuneration the non-executive directors’ approve To Average based on Investec Limited employees (in Rands) Average To approve the directors’ remuneration policy remuneration the directors’ approve To Average based on Investec plc employees (in Pounds Sterling) based on Investec plc employees (in Pounds Average To approve the directors’ remuneration report remuneration the directors’ approve To CEO (in Pounds Sterling) * * ^ Year ended 31 March ended Year – Fixed – Variable Dividends to shareholders shares – Ordinary shares – Preference Group compensation costs Group CEO single figure of total remuneration of total remuneration CEO single figure (£’000) Salary, benefits, fixed allowance and bonus Salary, (£’000) Long-term incentives granted (value reflects (value reflects Long-term incentives granted price multiplied by number of shares share (£’000) at date of award)* awarded % maximum of short-term incentive 118 Statement of voting at 2015 annual general meeting as follows: were resolutions on the four remuneration At the 2015 annual general meeting, the voting results £’000 RELATIVE IMPORTANCE OF SPEND ON REMUNERATION IMPORTANCE RELATIVE is and distributions to shareholders of remuneration importance the relative on page 10. In summary, Our value-added statement is provided shown below: PERCENTAGE CHANGE IN THE CEO’S REMUNERATION PERCENTAGE with salary and annual bonus between 2015 and 2016 compares in the CEO’s change The table below shows how the percentage employees and Investec Limited for Investec plc components of remuneration change in the average of each of those the percentage employees. TABLE OF CEO REMUNERATION TABLE the value of of the CEO. For the purpose of calculating remuneration a seven-year summary of the total provides In addition, the table below as set out on methodology figure’ the ‘single remuneration has been collated on a basis consistent with of the CEO, data the remuneration page 107.

REMUNERATION REPORT REMUNERATION REPORT 119 FOUR (continued) (continued) Be in line with the business strategy, Be in line with the business strategy, objectives, values and long-term of the Investec group interests sound Be consistent with and promote risk management, and not and effective encourage risk taking that exceeds the level of tolerated risk of the Investec group that payment of variable Ensure does not limit the remuneration ability to maintain or Investec group’s its capital base strengthen (base fixed remuneration gross Target salary and benefits including pension) at median market levels to contain fixed costs that variable remuneration Ensure is largely economic value added – based and underpinned by (EVA) risk appetite and our predetermined capital allocation Facilitate alignment with shareholders deferral of a portion of short- through and long- term incentives into shares awards term incentive share total compensation (base salary, Target benefits and incentives) to the relevant competitive market at upper quartile levels for superior performance. More details of the remuneration policies policies details of the remuneration More companies subsidiary our of in each applied 127 to 134. can be found on pages PHILOSOPHY REMUNERATION unchanged which remains Our philosophy, highest prior years, is to employ the from characterised individuals who are calibre intellect and innovation and by integrity, culture, and subscribe to our who adhere strive to We values and philosophies. by providing entrepreneurship inspire that stimulates a working environment performance so that extraordinary and employees may executive directors be positive contributors to our clients, their communities and the group. PRINCIPLES REMUNERATION and Remuneration policies, procedures to as the practices, collectively referred designed, in policy’, are ‘remuneration normal market conditions, to: • • • • • • • Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Investec Asset Management Limited & Investment Limited Investec Wealth Investec Bank plc Hale Limited. Hargreave SCOPE OF OUR REMUNERATION SCOPE OF OUR REMUNERATION POLICY aims to apply The Investec group policies to executive directors remuneration largely consistent and employees that are that but recognises the group, across governed by are certain parts of the group that may contain more local regulations certain respects. in requirements onerous are In those cases, the higher requirements This is applied to that part of the group. to Investec plc and its subsidiary relevant subject to the PRA companies that are and FCA Remuneration Code (as a level 2 and in organisation as defined therein), to Material Risk Takers. particular in relation any aspect of our where Additionally, policy contravenes local laws remuneration the local laws or regulations or regulations, shall prevail. entities are The following Investec plc group by the PRA and/or FCA separately regulated and as such maintain their own remuneration the Investec group policies separate from own risk policy and in line with such entity’s and business activities: profile • • • • Under the PRA and FCA Remuneration Code, Investec Bank plc is the only entity which is classified as being group level 2. It should be noted that our Asset Management Management and Wealth businesses have been classified as level 3 rules of the entities under the proportionality PRA and FCA Remuneration Code. Shareholders voted in favour of our voted in favour of Shareholders policy at the remuneration directors’ meeting and August 2015 annual general It is that date. from the policy was effective until in force anticipated that it will remain meeting unless the 2018 annual general changes or the business or regulatory necessitate earlier economic environment amendment. Directors’ remuneration Directors’ remuneration year policy for the 2017 ending 31 March years and subsequent David van der Walt Ciaran Whelan Steve Elliott Hendrik du Toit – – – – – – – – Specialist Banking Wealth & Investment Wealth Asset Management Hendrik du Toit is one of the executive Hendrik du Toit of Investec Limited and his directors is disclosed on page 107. remuneration by Investec Steve Elliott is remunerated & Investment Limited (a UK Wealth domiciled company and subsidiary of and Investec plc), and David van der Walt employed by Investec Ciaran Whelan are Bank plc (a UK domiciled company and a subsidiary of Investec plc). As a result, to disclose their not required they are under the South African remuneration Companies Act. • • Subsequent to regulatory developments in developments Subsequent to regulatory is required South Africa, Investec Limited of those to disclose the remuneration defined by the South individuals that are African Companies Act, No 71 of 2008 together with the (as amended), read Companies Regulations 2011 (together the officers. Act), as prescribed integrated In keeping with the group’s as well as global management structure distinct business activities of the the three & i.e. Asset Management, Wealth group, Investment and Specialist Banking, the for Investec Limited, as officers prescribed the following heads of the per the Act, are distinct business activities: three group’s • SOUTH AFRICAN 2008 ACT, COMPANIES DISCLOSURES Additional Additional remuneration disclosures (unaudited) Hendrik du Toit will no longer Hendrik du Toit receive long-term incentive awards as he is a participant in the IAM equity ownership scheme as explained on pages 132 and 133. and regulations applicable to employees applicable to employees and regulations policies, of IAM and not the remuneration to applicable rules and regulations Investec group. other entities within the and quantum the structure Consequently, in many respects differs of his remuneration directors. that of the other executive from practice in asset For example, in line with his short-term management businesses, incentive is uncapped. remuneration Hendrik du Toit’s by CRD IV not impacted arrangements are as IAM is not subject to these requirements, is not Hendrik du Toit and accordingly He is defined as a Material Risk Taker. entitled to an annual bonus as determined to the performance of IAM with respect IAM and is Hendrik is the founder of only. entitled to 1.85% of the earnings of IAM tax and variable remuneration. before The pool is decreased or increased The pool is decreased by a performance multiplier and comprising weightings score achievement scores within and ranges for the financial non-financial performance on measures (as discussed pages 103 to 105). Notwithstanding that Hendrik du Toit is Notwithstanding that Hendrik du Toit of Investec plc and a director currently Investec Limited, he does not perform executive duties. Investec group-wide and any Hendrik du Toit Accordingly, benefits due to him are remuneration policies, rules subject to the remuneration REMUNERATION OF THE REMUNERATION CEO OF IAM IMPACT OF CRD IV ON IMPACT EXECUTIVE DIRECTORS’ REMUNERATION ARRANGEMENTS that has been CRD IV is EU regulation January 2014. The main 1 from effective of CRD IV that impacts directors’ feature at Investec is the application remuneration of a cap on variable remuneration to Material Risk that can be awarded executive directors). (including Takers At the 2014 annual general meeting, a maximum approved shareholders fixed remuneration variable remuneration: ratio of 2:1, which applied to variable of the in respect awarded remuneration 2015 performance year and thereafter. Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) An annual gross remuneration package package remuneration An annual gross an (base salary and benefits) providing industry competitive package A variable short-term incentive related to performance (annual bonus) awards) A long-term incentive (share long-term equity participation providing Certain of our Material Risk Takers fixed monthly cash allowances receive and a for the role) appropriate (where of variable commensurate reduction short-term incentive. FOUR 120 BENCHMARKS The short-term incentive initially allocated in to the CEO and pool (as reflected our policy) in 2015 was arrived at after extensive benchmarking over a five-year period against short-term incentives of: and (ii) groups (i) chief executive officers, for a bespoke peer of executive directors of South African (and sub-groups group and non-South African peers) comprising: Asset Management, Barclays Aberdeen Alliance Bernstein, Close Africa Group, FirstRand, , Group, Brothers , Julius Baer, Jefferies, Rathbone Nedbank Group, Man Group, Bank Group Standard , Brothers, The short-term incentive Prebon. and Tullett by has been reduced sharing percentage of the reintroduction 50% in 2016 to reflect the long-term incentive. and the pool share The levels of CEO profit compatible with international more are levels than South African reward reward levels. The committee believes this is given the complexity of appropriate, Investec and the challenges involved in three operating across managing a group geographies. businesses in two core Given our stance on maintaining a low Given our stance on maintaining our remuneration, fixed cost component of an entrepreneurial commitment to inspiring on and our risk-adjusted return culture, we do not apply to EVA, capital approach other rewards an upper limit on variable Takers of Material Risk than in respect (as discussed hereunder). employees generally for their reward We contribution through: • • • •

REMUNERATION REPORT REMUNERATION REPORT 121 FOUR None None None None • • • • Changes from Changes from prior year (continued) (continued) 1 Remuneration report Remuneration £1 million per annum paid in shares The individual can elect what is of fixed remuneration proportion allocated as their pension/provident contribution Targeted at median market levels at median market levels Targeted with relevant when compared comparator groups Benefits include: life, disability and personal accident insurance; medical cover; and other benefits, as dictated by competitive local market practices is no maximum value but There the value of benefits provided will generally be in line with market comparators Annual increases in salaries are in salaries are Annual increases to the average increase referenced to other employees, unless awarded committee deems the remuneration to adjustments to be made relating market factors • • Maximum value and performance Maximum value and targets • • • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 1 Executive directors participate Executive directors in defined contribution pension/ schemes provident Only salaries, not fixed allowances or annual bonuses, pensionable are Fixed allowance reviewed by Fixed allowance reviewed committee the remuneration years or on a every three change of role Paid in shares over a five-year period Deferred with 20% being released each year benchmarked Benefits are comparator against relevant groups Salaries of executive directors Salaries of executive directors and set annually reviewed are committee by the remuneration benchmarked Salaries are comparator against relevant groups Executive directors may elect Executive directors to sacrifice a portion of their in remuneration annual gross exchange for benefits such as travel allowances and medical aid • • • • • • Operation • • • To enable executive To for to provide directors their retirement To provide a market a market provide To competitive package To provide competitive competitive provide To recognising remuneration and depth of the breadth the role To provide an industry provide To competitive package so able to recruit that we are the people that and retain we need to develop our business the relative Salaries reflect skills and experience of, and contribution made by, the individual Notes: Refer to page 123. • PENSION/PROVIDENT • BENEFITS • FIXED ALLOWANCES – CEO, MD AND GRFD FIXED ALLOWANCES • Purpose and link to strategy FIXED REMUNERATION SALARY • EXECUTIVE DIRECTORS’ REMUNERATION POLICY TABLE REMUNERATION EXECUTIVE DIRECTORS’ years. 2017 and subsequent for the year ending 31 March policy for executive directors the remuneration The table below summarises None None • • Changes from prior Changes from year 5 2 Culture and values; Culture Franchise development; Governance and regulatory compliance; and Employee and shareholder relationships. Return on risk-weighted assets; Return on equity; Tier 1 capital adequacy; Liquidity coverage ratio; and Net stable funding ratio. (continued) – – – – – – – – – If target performance conditions achieved, distribution will be as follows: 0.23% of AOP to CEO; 0.23% of AOP to MD; and 0.20% of AOP to GRFD 15% based on non-financial including: measures – – – – The CEO of IAM is entitled to 1.85% tax and of the earnings of IAM before variable compensation committee The IAM remuneration of IAM the financial results reviews within the context of the risk appetite of the business and can risk-adjust the cash bonus should they believe given the risk taken this is required and the overall financial results If all financial and non-financial stretch If all financial and non-financial stretch met, up to 180% of the levels are subject target may be awarded, to an overall maximum of variable being (including LTIPs) remuneration cap subject to the remuneration committee has The remuneration to vary the weightings of discretion the performance metrics to improve alignment with business strategy Based on a balanced scorecard Based on a balanced scorecard of financial and non-financial with performance measures correspond achievement levels that with our short-term objectives 85% based on financial measures including: – – – – – • • • • • • • • Maximum value and performance Maximum value and targets 3 2 Any short-term incentive is payable in cash shortly after the end of the financial year The short-term incentive for the CEO of IAM will not be subject to deferral during the period when the debt to finance his investment in IAM is being repaid The cash bonus payment to the by the CEO of IAM is approved committee DLC remuneration Establishment of a short-term Establishment of a short-term the incentive pool based on adjusted operating group’s (AOP) profit Receive 30% in cash immediately; 30% in upfront 40% is the remaining shares; which vest in shares deferred equally after one and two years must be shares Deferred for a period of six retained months after vesting period may be The retention extended to one year to meet requirements regulatory Remuneration committee to reduce discretion retains the amount payable to ensure that incentives truly reflect not performance and are distorted by an unintended formulaic outcome Malus and clawback may be shares applied to deferred • • • • • • • • • Operation Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) To reward behaviour and reward To against objectives effort key and values and retain employees The cash bonus pool determination is based on of IAM only the profitability Alignment with key business objectives Deferral structure alignment with provides shareholders FOUR Notes: Refer to page 123. SHORT-TERM INCENTIVE – CEO OF IAM SHORT-TERM • • • • VARIABLE REMUNERATION VARIABLE CEO, MD AND GRFD INCENTIVE – SHORT-TERM EXECUTIVE DIRECTORS’ REMUNERATION POLICY TABLE POLICY TABLE REMUNERATION EXECUTIVE DIRECTORS’ Purpose and link to strategy 122

REMUNERATION REPORT REMUNERATION REPORT 123 FOUR None • Changes from prior Changes from year (continued) (continued) Remuneration report Remuneration Growth in tangible net asset Growth value (40%); Return on risk-weighted assets (35%); (25%). Non-financial measures – – – (continued) Targets for financial performance Targets and non-financial measures metrics will be set annually by the committee in advance remuneration being made of the award committee The remuneration in exceptional has discretion, to amend targets or circumstances, if an event happens that, in measures the opinion of the committee, caused to no those targets or measures longer be appropriate committee retains The remuneration weightings the adjust to discretion the to best of performance measures meet the objectives of the business Annual award of 100% of aggregate of 100% of aggregate Annual award fixed remuneration subject to the following are Awards and performance measures weightings: – – – • • • • • Maximum value and performance Maximum value and targets Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 4 Applies to the CEO, MD and Applies to the CEO, MD GRFD Conditional awards of shares of shares Conditional awards subject to performance over conditions measured years three financial equal vest in three Awards fourth tranches on the third, and fifth anniversary of grant subject to are shares Vested a further six-month retention period period may be The retention extended to one year to meet requirements regulatory subject to malus of are Awards and clawback unvested shares of vested shares Remuneration committee to adjust discretion retains vesting to the level of awards that incentives truly ensure performance and are reflect not distorted by an unintended formulaic outcome • • • • • • • Operation Hendrik du Toit will no longer receive long-term incentive awards as he is a participant in the IAM equity ownership scheme as explained on pages 132 Hendrik du Toit and 133. when 25% of variable remuneration is deferred over at least five years, a slightly higher cap Cap defined in line with EBA discounting rules which allow, on interest rates and inflation). These limits will be in line with this than 2x fixed remuneration (typically approximately 2.2x fixed remuneration dependent EBA cap. Peer group companies include Aberdeen Asset Management, Barclays Africa Group, Alliance Bernstein, , FirstRand, Invesco, Peer group companies include Aberdeen Asset Management, Prebon. Nedbank Group, , Schroders, Standard Bank Group and Tullett Macquarie Group, Man Group, Jefferies, Julius Baer, and after non-controlling interests. AOP defined as operating profit before taxation, goodwill, acquired intangibles and non-operating items is currently a director of Investec plc and Investec Limited, he does not perform Investec group-wide executive Notwithstanding that Hendrik du Toit policies, rules and regulations applicable and any remuneration benefits due to him are subject to the remuneration Hendrik du Toit activities. Accordingly, is not to other entities within the Investec group. Hendrik du Toit to employees of IAM and not the remuneration policies, rules and regulations applicable and is entitled to an annual bonus as determined with respect to the performance of IAM only as explained in the table defined as a Material Risk Taker above. Clear link between performance and remuneration Embeds alignment with returns shareholder Performance targets aligned with business objectives Non-financial metrics take into account the group’s strategic and operational objectives

4 5 2 3 Notes to the table above: 1 • LONG-TERM INCENTIVE – CEO, MD AND GRFD LONG-TERM INCENTIVE • • • Purpose and link to strategy EXECUTIVE DIRECTORS’ REMUNERATION POLICY TABLE POLICY TABLE REMUNERATION EXECUTIVE DIRECTORS’ In line with policy £1 million Currently 15% of salary In line with policy remuneration 100%* of fixed remuneration 100%* of fixed MAXIMUM VALUE The remuneration committee can buy out a bonus or incentive awards that the new executive director has forfeited that the new executive director committee can buy out a bonus or incentive awards The remuneration applicable where of forfeiture of accepting the appointment, subject to proof as a result made to compensate for forfeited remuneration by the PRA and FCA Remuneration Code, any award As required value timing, and form of delivery of the the than, and should aim to mirror generous no more should be broadly forfeited remuneration Determined by market conditions, market practice and ability to recruit committee remuneration or promotion, If salary below market level on recruitment salary over transitional period with higher than normal increases may realign Determined by similar factors to salary In line with normal policy in line with normal policy Offered In line with normal policy In line with normal policy • • • • COMMENTARY Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) A detailed explanation of these performance measures is provided on pages 103 to 105. The performance measures have on pages 103 to 105. The performance of these performance measures is provided A detailed explanation into account: been selected taking Cap defined in line with EBA discounting rules which allow, when 25% of variable remuneration is deferred over at least five years, a slightly higher cap than Cap defined in line with EBA discounting rules which allow, These limits will be in line with this EBA cap. 2x fixed remuneration (typically approximately 2.2x fixed remuneration dependent on interest rates and inflation). More details of the approach to employee remuneration can be found on pages 127 to 134. More details of the approach to employee  Key stakeholders’ requirements (including shareholders and regulators) which were assessed through extensive consultations on assessed through which were and regulators) shareholders (including Key stakeholders’ requirements the matter balance between measures an appropriate is for a range of financial metrics that ensure the board of the committee and The preference believes that it is right to include non-financial committee In addition, the remuneration measures. and prudential which drive profitability important matters on which the long-term should be incentivised to attend to as directors of awards in determining levels measures to financial returns. linked cannot in any one performance period be directly performance of the company depends, but which

FOUR Fixed allowance Pension Other benefits STI LTIP Buy-outs * Salary ELEMENT 124 • • If the new joiner is not affected by the bonus cap then the remuneration committee may construct a package as set out above, but then committee may construct by the bonus cap then the remuneration If the new joiner is not affected other relevant given market factors and opportunities as appropriate award may allocate the amount of the fixed allowance into STI or LTI comparator trends. Policy for the recruitment of new executive directors Policy for the recruitment policy for executive remuneration will be in line with the current executive directors of new to the recruitment It is intended that the approach that for new recruits committee will consider levels of remuneration the remuneration However, as outlined above and below. directors the by the bonus cap under CRD IV, For individuals covered competitive for the skills and experience of the individual being recruited. are be as set out below. will on recruitment of each element of remuneration treatment Differences between the remuneration policy of the executive directors and policy of the executive directors and Differences between the remuneration the policy for all employees cognisant of these when the whole employee population and are principles and philosophies across apply consistent remuneration We is benchmarked against of salary and benefits paid to executive directors The quantum remuneration. considering executive directors’ to the average is referenced in such remuneration the annual increase (as discussed on page 120), however, comparator groups appropriate Although this has not been the case of late, the remuneration to employees in South Africa and the UK, respectively. awarded increase have been large make adjustments outside these parameters, particularly in cases when there under certain circumstances, committee may, referenced. adjustments in the comparator group performance a number of specific are there incentive is performance-based, however, As is the case with other employees, the short-term annual bonus for the CEO, MD and GRFD (as set out below). The annual bonus for criteria that apply in the case of determining the Short-term to the performance of IAM only. is referenced of the Investec group) (CEO of IAM and executive director Hendrik du Toit subject to deferral, malus and clawback are defined as Material Risk Takers, and the employees, incentives for executive directors GRFD and to some employees in the UK Specialist Bank only applicable to the CEO, MD and of CRD IV are The requirements requirements. classified as Material Risk Takers. who are HOW WILL EXECUTIVE DIRECTORS’ PERFORMANCES BE ASSESSED? DIRECTORS’ PERFORMANCES HOW WILL EXECUTIVE subject to performance conditions. incentives are The short-term and long-term

REMUNERATION REPORT REMUNERATION REPORT 125 FOUR (continued) (continued) Fixed remuneration includes the latest Fixed remuneration company pension known salary, contributions and the benefits during the year ended receivable 2016 31 March short-term incentive is 1.85% Variable and pre-compensation of pre-tax earnings of IAM, determined on a and uncapped basis discretionary will no longer receive Hendrik du Toit as he is a long-term incentive awards participant in the IAM equity ownership scheme information cannot beForecasted or target to determine a stretch provided years and thus theamount for future depictsgraph on the next page merely and prioramounts paid in the current financial year. For the CEO of IAM: • • • • Remuneration report Remuneration Indefinite contract of employment, terminable by either party Indefinite contract of employment, months’ written notice with three benefits and pension payable for period of notice Salary, payable on early termination for compensation No provision n/a n/a n/a requirement is no formal shareholding There CEO IAM Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review ‘At stretch’ – fixed remuneration and – fixed remuneration ‘At stretch’ achievement levels that the ‘stretch’ for variable short-term may be awarded vesting annual incentive and ‘stretch’ of any long-term incentives that may be awarded. includes salaries, Fixed remuneration company pension contributions and for (i.e. as proposed benefits receivable 2017), and a the year ending 31 March fixed allowance of £1 million variable short-term incentive is Target 0.23% (CEO and MD) and 0.20% for the GRFD of adjusted operating profit interests) (after total non-controlling for based on £489.1 million as reported the financial year ended 31 March 2016 and maximum variable short-term incentive is 180% of target (subject to an overriding maximum in terms of by cap as approved the remuneration shareholders) long-term incentive is equal to Target one times fixed remuneration. • price share The scenarios do not reflect and potential movement between award any dividends or dividend vesting, nor are equivalents taken into account. For the CEO, MD and GRFD based on the for the year policy proposed remuneration 2017: ending 31 March • • • ‘Minimum’ – fixed remuneration only ‘Minimum’ – fixed remuneration and the ‘At target’ – fixed remuneration ‘at target’ variable short-term annual incentive and ‘at target’ vesting of any long-term incentives that may be awarded CEO, MD AND GRFD with of employment, terminable by either party Indefinite service contracts six months’ written notice Salary, fixed allowance, benefits and pension payable for period of notice fixed allowance, benefits and pension payable Salary, payable on early termination for compensation No provision lapse on resignation awards or LTI shares EVA bonus Outstanding deferred misconduct or termination for gross a is considered if the director may be retained awards or LTI share Deferred with a minimum of 10 years’ service, disability ‘good leaver’ (e.g. retirement or ill health) event, the remuneration In the event of a takeover or major corporate to determine whether all outstanding awards committee has the discretion in the same or vest at the time of the event or whether they continue revised form requirement is no formal shareholding There The charts on page 126 show the potential value of the executive directors’ arrangements under this remuneration performance scenarios: policy in three • • ILLUSTRATIVE SCENARIOS ILLUSTRATIVE FOR EXECUTIVE DIRECTORS’ REMUNERATION How does executive How does executive directors’ remuneration change based on performance? Executive directors are permitted to accept are Executive directors or outside appointments on external boards not deemed these are committees provided with the business of the to interfere Any fees earned by executives in company. to Investec. forfeited are this regard Copies of the service contracts are available for inspection at the company’s registered office. Service contracts and terms of employment Service contracts is set out below. for the four executive directors of office for compensation for loss and provision The terms of service contracts The maximum potential remuneration as calculated in terms of the formula is this amount £4.377 million. However, will be capped to £4.251 million when one applies the remuneration cap as approved by shareholders. The maximum potential remuneration as calculated in terms of the formula is this amount £4.985 million. However, will be capped to £4.810 million when one applies the remuneration cap as approved by shareholders. ^ * Bonus Salary and bene ts (gross xed remuneration) Bonus Long-term incentive (have not vested and subject to performance conditions) Annual allowance (payable in and subject to shares period) retention Salary and bene ts (gross xed remuneration) Bonus Long-term incentive (have not vested and subject to performance conditions) Annual allowance (payable in and subject to shares period) retention Salary and bene ts (gross xed remuneration) Cap to be applied^ Cap to be applied* 4 377 4 985 40% 30% 23% 7% 40% 30% 20% 10% 4 811 91% 9% At stretch At stretch 31 March 2015 3 594 4 085 27% 36% 28% 9% 28% 36% 24% 12% At target At target 4 375 90% 10% Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 1 308 68% 32% 76% 24% 1 480 Remuneration report Remuneration (continued) 31 March 2016 Minimum Minimum 0 0 0 FOUR 126 1 000 2 000 3 000 4 000 5 000 1 000 2 000 3 000 4 000 5 000 1 000 2 000 3 000 4 000 5 000 6 000 £’000 £’000 £’000 ILLUSTRATIVE PAYOUTS FOR THE CEO OF IAM ILLUSTRATIVE PAYOUTS FOR THE GRFD ILLUSTRATIVE PAYOUTS FOR THE CEO AND MD ILLUSTRATIVE PAYOUTS

REMUNERATION REPORT REMUNERATION REPORT 127 FOUR Changes from Changes from prior year None (continued) (continued) Additional Additional remuneration disclosures (unaudited) POLICY AND REMUNERATION PRINCIPLES FOR EMPLOYEES to the remuneration Our policy with respect unchanged of employees has remained 2016. during the year ending 31 March has 45 Material Risk Investec currently a fixed of which a number receive Takers, appropriate monthly cash allowance where for the role. benefits payable (salary, All remuneration and incentives) is assessed at a group, business unit and individual level. This framework seeks to balance both financial of performance and non-financial measures factors are that the appropriate to ensure and prior to making awards, considered mix of cash and that the appropriate made. are awards share-based Remuneration report Remuneration Fee increases will generally be in Fee increases line with inflation and market rates subject to an fees are Aggregate overall maximum of £1 million under the Investec plc articles Refer to page 106 for further information Maximum value and performance Maximum value and targets • • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review STATEMENT OF CONSIDERATION OF CONSIDERATION STATEMENT OF EMPLOYMENT CONDITIONS ELSEWHERE IN THE GROUP policy of executive The remuneration has been drawn up in line with directors philosophy remuneration our group-wide below), subject to the and principles (refer is The committee of CRD IV. requirements arrangements mindful of the remuneration the group. across meet regularly with our major shareholders with our major shareholders meet regularly groups. representative and shareholder committee chairman The remuneration attends these meetings, accompanied by senior Investec employees and the chairman. This engagement is meaningful and helpful to the committee in its work and to the decisions made contributes directly by the committee. committee and the The remuneration and transparent believe in effective board communication with key stakeholders, and will continue to engage on matters that may of importance and/or concern arise and are to stakeholders. Fees of non-executive directors are reviewed reviewed are Fees of non-executive directors taking into account annually by the board market data and time commitment covers the dual roles The fee structure perform for the UK-listed that the directors Investec plc and the South African-listed Investec Limited boards membership, In addition to fees for board payable to the senior independent fees are of chairmanship and membership director, committees, membership major DLC board of the Investec Bank Limited and Investec and for attendance at Bank plc boards certain committee meetings Operation • • • Non-executive directors’ remuneration Non-executive directors’ FEES industry provide To competitive fees to attract non-executive directors skills and with appropriate experience Purpose and link to strategy We recognise that remuneration is an area is an area that remuneration recognise We and to shareholders of particular interest bodies, and representative shareholder that in setting and considering changes to it is important that we take remuneration, we their views into account. Accordingly, SHAREHOLDER VIEWS IN THE OF EXECUTIVE CONSIDERATION DIRECTORS’ REMUNERATION ARRANGEMENTS Shareholder and Shareholder and employee views Fees are also payable for any additional Fees are including time committed to the group, attendance at certain other meetings. for non-executive is no requirement There company. in a group to hold shares directors has left this choice to the discretion The group of each non-executive director. The policy as described above will be taken of new non- into account in the recruitment executive directors. Copies of the letters of appointment are available for inspection at the company’s office. registered Remuneration policy for non-executive directors policy for non-executive Remuneration in non-executive committees. The increase and membership of board individual responsibilities policy is that fees should reflect The board’s Their fee structure time commitment required. market conditions and additional current year reflects fees for the forthcoming directors’ and are the South African-listed Investec Limited boards perform for the UK-listed Investec plc and directors that the covers the dual roles companies. equally between the two awarded Alignment and adherence to our Alignment and adherence and values culture The level of cooperation and collaboration fostered Development of self and others risk Attitude displayed towards risk consciousness and effective management to internal controls Adherence procedures Compliance with the group’s and requirements regulatory policies and procedures, relevant customers fairly including treating and develop The ability to grow markets and client relationships Multi-year contribution to performance and brand building Long-term sustained performance Risk the Group Specific input from and Compliance functions Attitude and contribution to sustainability principles and initiatives. Achievement of individual targets Achievement of individual and objectives and Scope of responsibility individual contributions. Market context Risk the Group Specific input from and Compliance functions. – – – – – – – – – – – – – – – The most relevant competitive reference competitive reference The most relevant based levels are points for remuneration and on the scope of responsibility individual contributions made that we The committee recognises operate an international business and compete with both local and international competitors in each of our markets Non-financial measures of performance Non-financial measures – – – – – – – – – – – Financial measures of performance Financial measures – – Non-financial measures of performance: Non-financial measures – – Remuneration levels are targeted to be Remuneration levels are competitive, on the following commercially basis: • • • Factors considered to determine total to determine Factors considered individual include: compensation for each • • Risk-adjusted EVA model Risk-adjusted EVA Affordability. – – Financial measures of performance: Financial measures – – DETERMINATION OF DETERMINATION LEVELS REMUNERATION Qualitative and quantitative considerations form an integral part of the determination and total of overall levels of remuneration compensation for each individual. for overall levels of Factors considered at the level of the group remuneration include: • that employees do not become dependent that employees do not as we are on their variable compensation not consider not contractually (and do to make variable ourselves morally) bound Investec has the awards. remuneration bonuses and make ability to pay no annual should the awards no long-term incentive individual or performance of the group this. employees require through do not pay remuneration We of vehicles that facilitate avoidance applicable laws and regulations. employees must undertake Furthermore, not to use any personal hedging strategies or liability-related or remuneration contracts of insurance to undermine embedded in the risk alignment effects arrangements. Group their remuneration compliance maintains arrangements that employees comply designed to ensure with this policy. No individual is involved in the determination of his/her own remuneration and and specific internal controls rewards conflicts in place to prevent are processes between Investec and its clients of interest occurring and posing a risk to the from on prudential grounds. group that financial we recognise In summary, institutions have to distribute the return their enterprises between the suppliers from of capital and labour and the societies in which they do business, the latter through taxation and corporate social responsibility remuneration activities. Our group-wide philosophy seeks to maintain an balance between the interests appropriate of these stakeholders, and is closely aligned and values which include to our culture material risk consciousness, meritocracy, employee ownership and an unselfish contribution to colleagues, clients and society. Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) An annual gross remuneration package package remuneration An annual gross an providing (base salary and benefits) industry competitive package related A variable short-term incentive bonus) to performance (annual awards) A long-term incentive (share long-term equity participation providing Risk Takers Certain of our Material fixed monthly cash allowances receive and a for the role) appropriate (where of variable commensurate reduction short-term incentive. FOUR 128 • • • of the above as consider the aggregate We package designed the overall remuneration incentivise and drive the to attract, retain, behaviour of our employees over the short, medium and longer term in a risk-conscious as considered are Overall, rewards manner. values of work content important as our core variety of work and responsibility, (greater high level of challenge) and work affiliation feel to the company and (entrepreneurial and in the attraction, retention unique culture) motivation of employees. merit entrepreneurial, have a strong We characterised by and values-based culture, passion, energy and stamina. The ability to live and values in the and perpetuate our culture industry pursuit of excellence in a regulated risk management and within an effective paramount in is considered environment levels. determining overall reward The type of people the organisation and environment attracts, and the culture crucial within which they work, remain in determining our success and long- programmes Our reward term progress. designed clear and transparent, are and to align directors’ and administered with those of all employees’ interests short-, the group’s stakeholders and ensure medium- and long-term success. target total compensation (base salary, We benefits and incentives) to the relevant competitive market at upper quartile levels for superior performance. Given our stance on maintaining a low our fixed cost component of remuneration, commitment to inspiring an entrepreneurial on and our risk-adjusted return culture, we do not apply to EVA, capital approach other an upper limit on variable rewards (as of Material Risk Takers than in respect discussed on page 120). The fixed cost component of remuneration so designed to be sufficient is, however, We reward employees generally for their reward We contribution through: •

REMUNERATION REPORT REMUNERATION REPORT 129 FOUR (continued) (continued) management and allocation process. Senior process. management and allocation risk management members of the group’s for the information teams, who provide contribute and meeting packs and present attend discussions, to the committee’s these meetings. is a sub- The DLC capital committee and provides committee of the BRCC identification, detailed input into the group’s of its quantification and measurement taking into account capital requirements, of the banking the capital requirements It determines the amount of regulators. should hold internal capital that the group and its minimum liquidity requirements, taking into account all the associated risks or unidentified for any future plus a buffer of internal capital forms risks. This measure part of the basis for determining the variable pools of the various operating remuneration business units (as discussed above). forum (ERRF), The executive risk review comprising members of the executive and the heads of the various risk functions, include Its responsibilities meets weekly. limits and mandates, ensuring approving to and that agreed adhered these are to mitigate risk are recommendations implemented. and risk forums credit central The group’s independent transaction approval provide of the business unit on a deal-by-deal basis, and the riskiness of business undertaken at and approved evaluated is therefore deal initiation of the business through forum, investment committee and ERRF and ratified at ERRF on a and is reviewed basis. These central forums provide regular a level of risk management by ensuring that being risk appetite and various limits are interest to and that an appropriate adhered rate and, by implication, risk premium transaction. is built into every approved of transactions by these The approval independent central forums thus ensures that every transaction undertaken by the in a contribution to profit results group been subject to some risk that has already adjustment. model as described in detail below Our EVA profits is principally applied to realised targets above risk against predetermined In terms of and capital weighted returns. capital is allocated based structure, the EVA the higher the risk, the on risk and therefore higher the capital allocation and the higher This model return rate required. the hurdle that risk and capital management ensures at both a embedded in key processes are and transaction level, which form group Remuneration report Remuneration

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review In our ordinary course of business we face a number of risks that could affect our business operations, as highlighted on page 38.  Group risk management is independent Group the business units and monitors, from on the group’s manages and reports it is within the stated risk risk to ensure of appetite as mandated by the board risk and capital the board through directors monitors committee (BRCC). The group credit, through risk exposure and controls operational and legal risk market, liquidity, divisions/forums/committees. Risk consciousness and management is embedded in the organisational culture the initiation of transactional activity from to the monitoring of adherence through to mandates and limits and throughout everything we do. The BRCC (comprising both executive and meets six times non-executive directors) per annum and sets the overall risk appetite and determines the for the Investec group categories of risk, the specific types of risks and the extent of such risks which should undertake, as well as the group the mitigation of risks and overall capital Specialist Banking: variable Specialist Banking: variable short-term incentive form basis for Risk-weighted returns levels variable remuneration VARIABLE SHORT-TERM SHORT-TERM VARIABLE BONUS INCENTIVE: ANNUAL eligible to be considered All employees are annual bonus, subject for a discretionary inter alia to the factors set out above in the section dealing with the determination of of short- levels. The structure remuneration term incentives varies between employees operating divisions: Asset of our three & Investment and Management, Wealth differing the Specialist Bank. This reflects on the different requirements regulatory competitive legal entities and also differing distinct market. in each pressures Benefits are targeted at competitive levels targeted at competitive Benefits are flexible and through delivered and are pension packages. Benefits include tailored and personal schemes; life, disability cover; and accident insurance; medical by competitive other benefits, as dictated Only salaries, not local market practices. Risk Takers annual bonuses or Material pensionable. allowances, are Appropriate benchmark, industry and benchmark, industry Appropriate remuneration comparable organisations’ regularly reviewed practices are combinations For employees generally, 15 and the JSE Financial of firms from Finance sector the FTSE 350 General the most appropriate have offered benchmarks to avoid disproportionate In order of the group areas packages across adjustments and between executives, to may be made at any extremes internal consistency. broad ensure Adjustments may also be made to the competitive positioning of remuneration components for individuals, in cases a higher level of investment is where or to build or grow needed in order sustain either a business unit or our capability in a geography. Salaries and benefits are reviewed annually reviewed Salaries and benefits are skills and experience the relative and reflect the individual. of, and contribution made by, policy to seek to set base It is the group’s salaries and benefits (together known as at median market remuneration) gross like for like with peer levels when compared companies. group division provides The Human Resources guidelines to business units on recommended salary levels for all employees within the These organisation to facilitate the review. guidelines include a strategic message on how to set salary levels that will aid Investec in true to meeting its objectives while remaining corporate values, and incorporate guidance levels to take account of the on increasing change in the cost of living over the year to that salary levels always allow ensure of standard a reasonable employees to afford onliving and do not encourage a reliance variable remuneration. often engaged by either the Advisers are division or the business Human Resources units to obtain general benchmark information or to benchmark specific remuneration that gross positions to ensure market-driven and competitive so levels are do not inhibit our that levels of remuneration the people we need to ability to recruit develop our business. GROSS REMUNERATION: BASE GROSS REMUNERATION: AND BENEFITS SALARY • • • The following section outlines our detail for each policy in more remuneration element of total compensation as it applies to employees. analysis of the risks inherent within that analysis of the risks inherent of the business and an assessment costs of those risks are rates or targeted returns Hurdle unit determined for each business average cost based on the weighted for trading of capital (plus a buffer account businesses to take into in the additional risks not identified to applied capital allocation process) internal capital by business unit differ returns Targeted the competitive economics reflecting expectation for the and shareholder of the business, and are specific area of risk to the degree set with reference and the competitive benchmarks for line each product In essence, varying levels of return for each business unit required are the state of market maturity, reflecting country of operation, risk, capital invested (capital intensive businesses) or expected expense base (fee-based businesses) over time will in profitability Growth bonus pool, in an increasing result as long as it is not achieved at the expense of capital efficiency must be reflective returns Target risk assumed in the of the inherent in absolute business. Thus, an increase does not automatically result profitability in the annual bonus pool. in an increase allows us to embed risk This approach and capital discipline in our business subject to These targets are processes. annual review and risk forums credit The group’s transaction approval provide independent of the business unit on a deal-by-deal basis adding a level of risk consciousness to the predetermined (and risk-adjusted) capital allocation rates and thus hurdle and required that each transaction generates ensure that is commensurate with its a return associated risk profile. • • • • • • if business process, In terms of our EVA and individual performance goals are exceeded, the variable element of the package is likely to total remuneration be substantially higher than the relevant that overall target benchmark. This ensures levels have the potential to remuneration be positioned at the upper quartile level for superior performance, in line with our policy. remuneration overarching Add back: Debt coupon or dividends paid out share preference applicable) of the business (where operating costs Less: Direct (personnel, systems, etc) costs Less: Group-allocated charges (certain and residual are functions independent group on a centralised basis, provided applied with an allocation model to to charge out costs incurred business units. Costs allocated are based on the full operational costs for the particular central service inclusive of the variable area, cost of the central remuneration service. Allocation methodologies generally use cost drivers as the basis of allocation) earned on retained Less: Profits earnings and statutory held capital paid by centre Add: Notional profit on internal allocated capital Equals: Net profits. – – – – – – Capital allocated is a function of and internal capital both regulatory the risk assumed within requirements, the business and our overall business strategy has always held capital The group in excess of minimum regulatory and this principle is requirements, perpetuated in our internal capital This process allocation process. that risk and capital discipline ensures is embedded at the level of deal initiation and incorporates independent (outside of the business unit) approval of transactions by the various risk and committees. credit Internal capital comprises the regulatory taking into account capital requirement a number of specified risks plus a which caters, inter alia, capital buffer risks not for any unspecified or future specifically identified in the capital The Investec group planning process. that it actually holds then ensures capital in excess of this level of internal capital Internal capital is allocated to each business unit via a comprehensive – – – – – – A detailed explanation of our capital A detailed explanation of our capital is management and allocation process in our 2016 integrated annual provided report. • •  • • Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) Realised gross revenue (net margin revenue Realised gross and other income) Less: Funding costs Less: Impairments for bad debts – – – The profitability of each operating The profitability business unit is determined as if they a stand-alone business. Gross are is determined based on the revenue activity of the business, with arm’s length pricing applicable to inter- determined are Profits segment activity. as follows: – – – FOUR 130 Our business strategy and associated risk capital appetite, together with effective bonus annual utilisation, underpin the EVA allocation model. in the annual bonus Business units share pool to the extent that they have generated on their allocated risk- return a realised adjusted capital base in excess of their Many of the on equity. target return risks that the firm may potential future ensuring that the avoided through face are based on actual realised bonus pools are risk-adjusted profits. The bonus pools for non-operating business units (Central Services and Head generated by a levy functions) are Office payable by each operating business on This bonus pool may, its operating profit. in some years, be supplemented by a allocation as determined by discretionary and managing the chief executive officer by the remuneration and agreed director, committee. model has been consistently Our EVA applied for a period of about 17 years and encompasses the following elements: • EVA MODEL: ALLOCATION MODEL: ALLOCATION EVA OF PERFORMANCE-RELATED BONUS POOL the basis of the group’s performance- the basis of the group’s thus model, variable remuneration related stakeholders. of all balancing the interests both the Risk and Compliance Further, in the also embedded functions are subject and are operating business units by the internal audit and to review teams. The Risk compliance monitoring on also provide, and Compliance functions information relating an exception-only basis, and business to the behaviour of individuals has been evidence of non- if there areas compliance or behaviour which gives rise the riskiness of to concerns regarding business undertaken.

REMUNERATION REPORT REMUNERATION REPORT 131 FOUR (continued) (continued) Material Risk Takers include senior include Material Risk Takers engaged staff management, risk takers, any other in central functions and activities employees whose professional on Investec’s have a material impact within Investec plc risk profile to Material Risk Individual awards based on determined are Takers pools in the same manner as is EVA (as set out above), applicable to all staff remuneration and subject to the group (also policy and governance processes set out above) to directors Annual bonus awards of the UK Specialist Bank (excluding employees who are executive directors firm) and of a separately regulated where all annual bonus awards exceeds total variable remuneration subject to 60% deferral £500 000 are to All other annual bonus awards subject to are Material Risk Takers 40% deferral in the former The 40% not deferred in the instance or the 60% not deferred as to latter instance will be awarded forfeitable 50% in cash and 50% in EVA forfeitable shares) EVA (upfront shares forfeitable shares EVA The upfront but will only be will vest immediately, after a period of six months, released which we consider to be an appropriate period retention for awards remuneration Variable not who are Material Risk Takers exempted by the de minimis subject to 40% deferral concession are (60% if total variable remuneration exceeds £500 000) after taking into awards account the value of share member in the granted to each staff applicable financial year and which are variable included in deferred portion of The deferred remuneration. to Material Risk awards discretionary will, at the election of the staff Takers in the be made either entirely member, or awards, form of short-term share and awards 50% in short-term share 50% in cash All deferrals in the form of forfeitable (being either 50% or 100% of shares such deferral) vest in equal amounts at DEFERRAL OF VARIABLE DEFERRAL OF VARIABLE AWARDS: REMUNERATION RISK TAKERS UK MATERIAL BANK WITHIN THE SPECIALIST • • • • • • • • Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review recommendations for each team for each team recommendations member taking into consideration criteria qualitative and quantitative (as mentioned above) then are Bonus recommendations geographic subject to an extensive local involving human resources, review remuneration management and local committees are recommendations these Thereafter, by executivesubject to a global review the remuneration management before process. and approval review committee’s DEFERRAL OF ANNUAL BONUS OTHER THAN AWARDS: WITHIN RISK TAKERS MATERIAL THE SPECIALIST BANK exceeding a All annual bonus awards subject to level are hurdle predetermined of that portion that 60% deferral in respect level. The deferred exceeds the hurdle in the form of: forfeitable amount is awarded equal tranches vesting in three awards share at the end of 12 months, 24 months and in three 36 months; or cash released equal tranches at the end of 12 months, shares 24 months and 36 months. Where to employees as part of being awarded are the deferral of performance bonus awards, to as short-term EVA referred these are made in terms are These awards shares. of our existing long-term incentive plans amount of the to page 116). The entire (refer is payable annual bonus that is not deferred in cash. upfront • • committee remuneration The group the and approves specifically reviews packages of the individual remuneration persons discharging executive directors, and Material managerial responsibilities, The committee also reviews Risk Takers. the salaries and performance bonuses to a number of other senior and awarded the group. higher paid employees across In addition, the committee specifically the salaries and and approves reviews to each performance bonuses awarded employee within the Internal Audit, Compliance and Risk functions, both in the business units and in the central functions, ensuring that such packages determined competitive and are are independently of the other business areas. In making these decisions the committee on a combination of external advice relies and supporting information prepared internally by the group. A fixed predetermined percentage of percentage A fixed predetermined hurdle in excess of the EVA any return pool accrues to the business units’ EVA pool is A portion of the total EVA the bonus pool allocated towards for central service and head office employees regularly reviewed These bonus pools are management andby the appropriate non-executive committees to ensure only paid when it is are that awards to do so, consideringappropriate firm-wide performance against non- and future) financial risk (both current and compliance-based objectives and that the payment of to ensure in order bonuses does notsuch discretionary ability to maintain/ inhibit the group’s raise its capital levels. All users of capital operate within a strict philosophical a balancing of framework that requires and that is designed risk and reward to encourage behaviour in the interests of all stakeholders as opposed to just employees calculated centrally pools are The EVA Finance function and by the group’s subject to audit as part of the year-end audit process Once the annual audit is complete, line managers in each business bonus unit will make discretionary In circumstances where an operating an operating where In circumstances have an EVA business unit does not a loss or when pool (e.g. when it incurs executive officer it is a start-up), the chief may consider and managing director for a allocation to allow a discretionary who were staff modest bonus for those to the longer-term expected to contribute the group, of that business unit or interests in the short profits despite the lack of EVA support staff functions, term, e.g. control and key business staff. It should be noted the salaries and proposed for risk,bonuses for employees responsible internal not based audit and compliance are independent and are on a formulaic approach generated by the or profits of any revenues they work. The level ofbusiness units where assessed for these employees are rewards against the overall financial performance of objectives based on their function;the group; and compliance with the various non-financial to above. aspects referred Key elements of the bonus allocation set out below: are process • • • • • EMPLOYEE EQUITY OWNERSHIP In August 2013, 40 employees of IAM a 15% stake in the IAM business, acquired in which a trust structure ultimately through each employee owns a portion of the underlying trust assets. Each employee a combination funded their portions through compensation (for of existing deferred which vesting was accelerated), personal debt and personal cash. Annual bonuses for these senior employees will not generally until such time as the debt be deferred taken out by these employees to fund their This structure investment has been repaid. locks in key talent and aligns employees’ of the firm as a with the interests interests and our clients. whole, our shareholders governed Employees’ portion holdings are by the terms of a trust deed to which all summary, portion holders have agreed. In apply to provisions various pre-emption the transfer of employees’ portions. On to offer leaving, an employee is required a risk report to the IAM remuneration to the IAM remuneration a risk report when making committee for consideration and decisions. IAM HR remuneration for ensuring responsible Compliance are compliant are processes that remuneration with applicable regulations. Compliance In addition, IAM HR and for ensuring that the responsible are into committee takes IAM remuneration and non-financial consideration financial and reports, criteria, risk and compliance in making information any other relevant remuneration. decisions around The primary determinant of the variable compensation pool available for distribution is an There own annual profit. is IAM’s annual budget against which the business is measured. The variable compensation pool is allocated to business divisions and then to individuals based on divisional performance and the that performance. This ensures individual’s for meeting appropriately rewarded are staff their objectives and keeping within the values of the business. The oversight of conflicts of interest is and the link between risk and reward a combination of effective achieved through components, designed to remuneration incorporate risk and of the dual operation committee and of the DLC remuneration committee in ensuring IAM remuneration necessary, and, where appropriate independent oversight of both remuneration policy and outcomes. DEFERRED BONUS PLAN (DBOP) DEFERRED BONUS As noted above, participation in the DBOP is determined on an annual basis at the of of IAM based on the roles discretion individual employees. The purpose of the key employees and DBOP is both to retain better alignment of the interests to provide with clients and to manage potential, risks. unknown future currently The conditions for participation in the DBOP by the IAM remuneration approved are based on the committee annually, in the year being requirements remuneration This will take into consideration considered. practices and local market remuneration regulations. and required relevant made in the form of are The DBOP awards investments into various funds managed by IAM and with specific allocations for the portfolio managers into their own funds. The years anddeferral period is just over three only paid out under specific listed are awards does not accrue toconditions. The award the employee until the end of the deferral period and as such both the asset and liability on the balance sheet of IAM until thatremain time. Employees forfeit their allocations if they or their employment terminates (otherresign of IAM for redundancy, than at the discretion death or disability) prior to the retirement, vesting date. Payments can only be made to participants prior to a scheduled vesting date with the consent of the IAM executive committee and committee. ultimately by the IAM remuneration operating governance processes, IAM’s Investec within the context of the broader oversight robust ensure processes, group’s management of any and effective of reward while reflecting potential conflicts of interest decisions with the need to link remuneration risk appetite. IAM’s The head of the IAM risk committee assesses the risk appetite, risk tolerance level and risk management for IAM and feeds her views into the remuneration including sending decision-making process, the long term even if the business had been the long term even if the term). loss-making in the short to is provided Management information to ensure committee the IAM remuneration put into the are financial results that IAM’s of the businesscontext of the risk appetite is committee and the IAM remuneration bonus pool able to risk-adjust the cash given the is required should they believe this financial results. risk taken and the overall Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) Annual Discretionary Cash Bonus Annual Discretionary Scheme (ADCBS) (all employees of IAM eligible to be considered currently are for a cash bonus payment under this scheme) Bonus Plan (DBOP) Deferred (participation in this scheme is determined on an annual basis at the of of IAM based on the roles discretion individual employees). the end of 12 months, 24 months and the end of 12 months, to an then subject 36 months and are being period of retention, appropriate six months. FOUR 132 ANNUAL DISCRETIONARY CASH ANNUAL DISCRETIONARY BONUS SCHEME (ADCBS) payable under the ADCBS are Awards in cash. The purpose of the cash entirely behaviour and effort bonus is to reward against objectives and values, and retain key employees. The cash bonus pool determination is based on the profitability would be In principle, there of IAM only. no cash bonus payments should IAM be loss-making (although this would be that it was considered where reviewed necessary in order bonus payments were the business in and protect staff to retain • allocated to the of profit The percentage pool has been agreed variable remuneration (at a fixed participation rate) and approved by both the DLC and IAM remuneration committees. The same fixed participation rate has been applied consistently for has been a key many years. This structure contributor to the long-term success of to behave IAM and encourages the staff believe in aligning the like owners. We of clients, shareholders long-term interests and staff. are Individual annual bonus awards by the IAM remuneration approved committee and the DLC remuneration committee annually. IAM: variable incentive (IAM) The Investec Asset Management for committee is responsible remuneration all and overseeing considering, agreeing the overall and elements of remuneration principles and philosophy, remuneration this from policy of IAM. The proposals by subject to final approval committee are committee. the DLC remuneration IAM operates the following annual bonus in annual schemes which may result payments to employees: • •

REMUNERATION REPORT REMUNERATION REPORT 133 FOUR (continued) (continued) Where the firm or business unit suffers suffers the firm or business unit Where of risk management. a material failure individual had The extent to which the over the outcome control systems of internal control Failure of the The impact of the risk profile or member of the group relevant business unit culture Any violation of the group’s and values The long-term impact of the outcome business unit or relevant on the group External factors including market conditions factors. Any other relevant LONG-TERM INCENTIVE: SHARE AWARDS option and have a number of share We incentive plans that are long-term share of employees designed to align the interests and long-term with those of shareholders and to build organisational interests, ownership over the long material share These share awards. share term through also used in option and incentive plans are as a mechanism circumstances appropriate the skills of key talent. for retaining made in the form of forfeitable are Awards other than for countries where awards share is penal. In the taxation of such awards made in the form of are these cases awards or market strike options. conditional awards eligible In principle all employees are are for long-term incentives. Awards committee by the remuneration considered and made only in the 42-day period • and the In these cases, management into committee will take remuneration in determining account the following factors the quantum the extent (if any) to which to should be subject awards of deferred clawback: • • • • • • • where awards, share Specifically for EVA used to determine the original profits after materially reduced bonus are EVA will the bonus determination, the awards and for such reduction be recalculated consideration given to clawback (if any) to pool is EVA the extent that the prior period’s and the extent to which it affected reduced each employee. of non-Material awards share The deferred subject to malus adjustments. are Risk Takers Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Where there is reasonable evidence of is reasonable there Where employee misbehaviour the firm or operating business Where a material downturn in its unit suffers financial performance As there are no overriding regulatory overriding regulatory no are As there applicable to the business, requirements the policies applicable to the Specialist on pages 129 to 131. Bank are ON OTHER INFORMATION AND DEFERRED AWARDS PROVISIONS CLAWBACK WITHIN THE GROUP Employees who leave the employment of Investec prior to vesting of deferred will lose their EVA incentive awards of other than as a result forfeitable shares normal subject to the group’s retirement, and approval good leaver provisions in exceptional cases. process for Material Risk awards share The deferred subject to malus and clawback are Takers adjustments. The assessment of whether any malus adjustment should be made will be unvested award to an individual’s undertaken within the following framework: • • Investec Wealth & Investment & Investment Investec Wealth South Africa: variable short-term incentive for each year to 28 February, are payable are for each year to 28 February, over a three-year deferred in cash, and are attract employer period. Payments do not pension contributions. bonus plans, incentive and Under the core to performance for the relate awards An interim March. financial year ending 31 the annual award payment on account of at the half-year. is considered and is reviewed, Non-financial performance standards individuals fall below the where or may be deferred expected, awards forfeited, in part or in full. Payments are in cash and do not attract made entirely employer pension contributions. The to the individual may be paid directly award (subject to the deduction of income tax at Wealthand national insurance) or, & Investment as an additional discretion, employer pension contribution. participate in the IW&I executive directors role an individual’s bonus plan, and where will is primarily client-facing that director also be eligible to participate in the core plans. incentive and growth

Core incentive plan – for those in client- Core and administrative staff facing roles who support them directly Bonus plan – for those in non-client- facing, central services and support functions primarily in plan – for staff Growth who generate client-facing roles income directly. • • of the Funding is at the discretion committee. Under the core remuneration plan, an incentive pool is derived from to the related a formula that is directly of a team or business unit. profitability The pool is distributed to the members of the team or business unit on a discretionary basis. to the Funding for bonuses is related of the Wealthoverall profitability & Investment to business and is awarded basis. individuals on a discretionary in plan incentivises growth The growth net of the impact of market revenues, to performance relate movements. Awards Investec Wealth & Investment recognises & Investment recognises Investec Wealth that all obligation to ensure Investec’s satisfy their businesses within the group obligations under the PRA and FCA & Investment Remuneration Code. Wealth procedures that the policy, recognises and practices it has adopted should not obligations under conflict with the group’s the PRA and FCA Remuneration Code. & Investment remuneration The Wealth for considering, committee is responsible and overseeing all elements of agreeing and the overall remuneration remuneration & philosophy and policy of Wealth Investment within the context of the remuneration agreed Investec group’s The proposals philosophy and policy. subject to final this committee are from by the DLC remuneration approval committee. the & Investment operates Wealth discretionary following performance-related plans: remuneration • Investec Wealth & Investment other other & Investment Investec Wealth variable than in South Africa: short-term incentive their portions for sale (save in limited their portions for sale (save part of the portion where circumstances leaver/bad Good holding may be retained). the apply to determine leaver provisions must be offered price at which the portions for sale.

k’s qualitative The bank’s remuneration disclosures are provided on pages 96 to 134.  The information contained in the tables quantitative below sets out the bank’s of Material Risk in respect disclosures 2016. for the year ended 31 March Takers PRA and FCA Remuneration Code disclosures Disclosure Chapter on In terms of the PRA’s (BIPRU 11.5.18) the bank Requirements to make certain in the UK is required quantitative and qualitative remuneration on an annual basis with respect disclosures to Material Risk Takers. defined as those are Material Risk Takers whose employees (including directors) activities could have a material professional A total of risk profile. impact on the bank’s Material Risk Takers 45 individuals were in 2016. Severance awards Investec plc or one Severance payments by for the early of its subsidiary companies at executive are termination of a contract and absolute discretion management’s over performance achieved must reflect a way that does time and be designed in Severance payments failure. not reward shall be subject for Material Risk Takers by the DLC remuneration to approval committee. extended pension Discretionary benefits policy extended pension payments All proposed made to employees upon reaching by the will be reviewed retirement committee for alignment with remuneration laws, policy and regulation. appropriate should consider seeking guidance on the should consider seeking for awards of retention appropriateness certain individuals. Exceptional In the context of hiring new staff Limited to the first year of service. Retention awards to awards Investec only pays retention in exceptional circumstances. serving staff shall In all such cases, human resources that payments to ensure proposed review in line with this policy and any they are for Additionally, regulation. other relevant the remuneration Material Risk Takers, all proposed committee shall review the group where Circumstances awards. awards will consider making retention include the case of a major restructuring of the company or any subsidiary or one of its business units (for instance in the start‑up of a new business line, or the the of a business line) where closure of individuals is essential to the retention completion of the task. A valid business of the individual case for the retention for a retention in order must be presented and the PRA should to be approved award award be notified prior to the retention and being made to Material Risk Takers, OTHER REMUNERATION OTHER REMUNERATION STRUCTURES remuneration Guaranteed variable Guaranteed variable remuneration whose remuneration comprises all forms of prior to award. value can be determined limited to sign-on, This includes, but is not Guaranteed buy-out and guarantee awards. paid or will not be awarded, variable awards to any individual within the group provided unless they are: • • • committee at least The remuneration guaranteed variable annually reviews payments and the number remuneration and approves of guarantees awarded any exceptions. employees throughout the vesting period the vesting employees throughout contribution to and allows for multi-year building. performance and brand Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) ‘New starter’ awards are made based made based are ‘New starter’ awards basis on a de facto non-discretionary linked to using an allocation table salary levels also are ‘General allocation’ awards awards de facto non-discretionary of the same quantum as new starter made to employees and are awards who have not had any other share period in a three-year award made at the are awards up’ ‘Top of line management primarily discretion multi-year performance and to ensure long-term value generation. FOUR 134 • • long-term incentive awards All proposed by business unit recommended are by the staff management, approved executive committee and then the share being committee before remuneration of Investec plc forfeitable Awards awarded. to employees of Investec made are shares of Investec Limited plc and awards for employees of Investec forfeitable shares only are Limited. At IAM, long-term awards for employees who do generally considered not participate in the DBOP and/or the IAM equity ownership scheme. for non-Material Risk Forfeitable shares vesting subject to one-third are Takers fourth and fifth at the end of the third, for which we believe is appropriate year, awards LTIP our business requirements. subject to are to Material Risk Takers performance conditions and to one-third vesting at the end of two and a half years, and a half years and four and a half three then subject to a six-month years, and are forfeited are period. The awards retention on termination, but ‘good leaver’ discretion is applied in exceptional circumstances. the through Retention is addressed granted, of awards long-term nature an element of ‘lock-in’ for which provides following the release of our interim or of our interim following the release with in accordance final financial results principles of the Investment Association ABI 2014 edition (formerly remuneration: awards principles). These remuneration elements, namely: comprise three •

REMUNERATION REPORT REMUNERATION REPORT – – – – – – 9 2 1 1 1 1 3 135 1:1 9.1 5.4 2.3 6.1 44.8 50.7 16.8 21.9 58.6 (10.2) (14.5) Total Total Number FOUR of Material Risk Takers – 2.2 1.9 1.6 5.7 2.9 (5.3) (5.0) 19.1 35.1 10.5 39.7 1.2:1 Other Other Material Material (continued) (continued) Risk Takers Risk Takers – 6.9 3.5 0.7 3.2 (4.9) (9.5) 25.7 15.6 11.1 11.4 18.9 0.8:1 Senior Senior management management Remuneration report Remuneration Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Total number of employees receiving variable remuneration was 45. number of employees receiving variable remuneration was Total price. These awards were made during the period but have not yet represents the number of shares awarded multiplied by the applicable share Value years and the final 25% at the end of four end of three and a half and to 75% vesting at the vested. These awards are subject to performance conditions and a half years, subject to a six-month retention period. All employees are subject to clawback provisions as discussed on page 133. No remuneration was reduced for ex post implicit adjustments during All employees are subject to clawback provisions as discussed on page 133. No remuneration was reduced the year. Deferred shares – long-term incentive awards** – long-term incentive shares Deferred Deferred shares Deferred Deferred cash Deferred Ratio between fixed and variable pay Total aggregate remuneration and deferred incentives and deferred remuneration aggregate Total Deferred unvested remuneration outstanding at the end of the year^^ unvested remuneration Deferred – Deferred remuneration vested in year remuneration Deferred – Deferred remuneration reduced in year through performance adjustments in year through reduced remuneration Deferred – Deferred remuneration awarded in year awarded remuneration Deferred Variable remuneration* Variable – Cash Deferred unvested remuneration adjustment – employees no longer unvested remuneration Deferred and reclassifications Material Risk Takers Fixed remuneration Deferred unvested remuneration outstanding at the beginning of the year unvested remuneration Deferred £3 600 001 – £4 000 000 £4 400 001 – £4 800 000 £4 800 001 – £5 200 000 >£5 200 001 £1 200 001 – £1 600 000 £1 600 001 – £2 000 000 £2 000 001 – £2 400 000 £2 400 001 – £2 800 000 £2 800 001 – £3 200 000 £3 200 001 – £3 600 000 £4 000 001 – £4 400 000 £800 000 – £1 200 000 * ** £’million ^^ £’million Additional disclosure on deferred remuneration on deferred Additional disclosure Material Risk Takers received total remuneration in the following bands: total remuneration received Material Risk Takers Aggregate remuneration by remuneration type by remuneration remuneration Aggregate – – – – 1 0.8 1.9 5.4 (3.3) (3.8) (3.1) 50.7 43.4 Total Total Total (10.2) 29.7 84.0 Total 850.4 234.5 245.7 256.5 – – – – – – – 0.9 2.9 (1.4) (1.9) (2.0) (5.3) 1.0 35.1 31.3 staff^ 63.9 74.2 Other Other Other 304.0 164.9 Material Material Material Risk Takers Risk Takers Risk Takers risk control risk control Financial and – – – – 1 – 0.8 1.0 2.5 (1.9) (1.9) (1.1) (4.9) 15.6 12.1 70.2 42.9 85.7 49.1 Risk Senior Senior Senior 247.9 takers^ management management management 29.7 40.1 85.8 42.5 298.5 100.4 Senior management^ Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Remuneration report Remuneration (continued) ank’s qualitative remuneration disclosures are provided on pages 96 to 134. The bank’s See page 137. number of employees receiving variable remuneration was 258. Total but have not yet represents the number of shares awarded multiplied by the applicable share price. These awards were made during the period Value 25% at the end of five years. vested. These awards are subject to 75% vesting at the end of four years and the final Deferred shares – long-term incentive awards** shares Deferred Deferred cash Deferred For awards made in 2013 financial year For awards Deferred shares Deferred For awards made in 2014 financial year For awards For awards made in 2015 financial year For awards FOUR Number of beneficiaries Total aggregate remuneration and deferred incentives and deferred remuneration aggregate Total Guaranteed bonuses Made during the year (£’million) – Number of beneficiaries – Severance payments Made during the year (£’million) – Other – – Number of beneficiaries – Cash – Variable remuneration* Variable – Cash Sign-on payments Made during the year (£’million) Deferred unvested remuneration outstanding at the end of the year outstanding unvested remuneration Deferred – Equity vested in year remuneration Deferred – Fixed remuneration ^ * ** £’million £’million £’million R’million 136 The information contained in the tables below sets out the bank’s quantitative disclosures for the year ended 31 March 2016. for the year ended 31 March quantitative disclosures The information contained in the tables below sets out the bank’s Aggregate remuneration by remuneration type by remuneration remuneration Aggregate Pillar lll remuneration disclosures on an annual basis in terms of the disclosures to make certain quantitative and qualitative remuneration The bank in South Africa is required requirements. Basel Pillar III disclosure South African Reserve Bank’s Other remuneration disclosures Other remuneration

REMUNERATION REPORT REMUNERATION REPORT – – – – – – – 137 – 48.9 (29.9) (22.4) (20.9) Total Total (73.2) 962.1 913.2 (73.2) Total Total 348.2 (316.8) 1 061.6 1 103.4 FOUR – – – – – – – – – (0.7) (0.6) (0.3) (1.6) (1.6) (8.0) 64.9 staff^ staff^ staff^ staff^ 224.9 169.6 193.7 193.7 (continued) (continued) risk control risk control risk control risk control risk control risk control risk control Financial and Financial and Financial and Financial and – – – – – – – – – (6.8) (7.2) Risk (11.0) (25.0) Risk Risk Risk (25.0) 353.0 113.1 368.3 (103.4) 284.7 284.7 takers^ takers^ takers^ takers^ – – – – – – – – Remuneration report Remuneration 48.9 434.8 (18.2) (15.0) (13.4) (46.6) Senior Senior Senior Senior (46.6) 483.7 170.2 565.5 (205.4) 483.7 management^ management^ management^ management^ Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Senior management: All members of our South African general management forum, excluding executive directors. balance sheet management, Risk takers: Includes anyone (not categorised above) who is deemed to be responsible for a division/function (e.g. lending, advisory activities) which could be incurring risk on behalf of the bank. and transactional banking Financial and risk control staff: Includes everyone finance and central group risk as well as employees responsible for Risk and Finance in central group functions within the operating business units. For awards made in 2015 financial year For awards made in 2014 financial year For awards made in 2013 financial year For awards Number of beneficiaries Deferred unvested remuneration outstanding at the end of the year unvested remuneration Deferred Guaranteed bonuses Made during the year (R’million) Deferred remuneration vested in year remuneration Deferred Number of beneficiaries Deferred remuneration reduced in year through performance performance in year through reduced remuneration Deferred adjustments Severance payments Made during the year (R’million) – Other Deferred remuneration awarded in year awarded remuneration Deferred Number of beneficiaries – Cash Deferred unvested remuneration adjustment – employees that are – employees that are adjustment unvested remuneration Deferred the bank and reclassifications no longer employed by Sign-on payments Made during the year (R’million) Deferred unvested remuneration outstanding at the beginning outstanding unvested remuneration Deferred of the year outstanding at the end of the year unvested remuneration Deferred – Equity R’million R’million ^    R’million vested in year remuneration Deferred – – – Other remuneration disclosures Other remuneration Additional disclosure on deferred remuneration on deferred Additional disclosure Five Summary annual nancial statements

138 Investec integrated annual review and summary financial statements 2016 SUMMARY ANNUAL FINANCIAL STATEMENTS 139 FIVE Bernard Kantor Managing director The directors’ report and the annual financial statements of the  companies and the group, which appear on pages 140 to 143 and pages 148 to 192, were approved by the board of directors on 9 June 2016. It is the responsibility of the external auditorsIt is the responsibility on the combined consolidatedto report to Their report annual financial statements. set out on are the members of the companies aware, page 147. are As far as the directors audit information of which is no relevant there unaware. the external are auditors Approval of annual financial statements directors are responsible for the responsible are The directors maintenance and integrity of the corporate and financial information included on the companies’ website. Legislation in the United Kingdom governing the preparation and dissemination of the annual financial legislation in from statements may differ other jurisdictions. Signed on behalf of the board Stephen Koseff Chief executive officer 10 June 2016 Directors’ responsibility statement responsibility Directors’ Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review plans that take cognisance of the relative degrees of risk of each function business the of aspect or together committees, audit group The integral an play Audit, Internal with and financial to relating matters in role policies, accounting control, internal disclosure. reporting and • belief, the best of our knowledge and To are directors based on the above, the in the breakdown satisfied that no material of internaloperation of the system control during the has occurred and procedures year under review. consistently adopts appropriate The group accounting policies and recognised supported by reasonable and these are judgements and estimates on a consistent additional disclosures basis and provide when compliance with the specific in International Financial requirements insufficient (IFRS) are Reporting Standards to enable users to understand the impact of particular transactions, other events and financial position conditions on the group’s and financial performance. The annual financial statements of the have been companies and the group with the respective in accordance prepared Companies Acts of the United Kingdom and South Africa and comply with IFRS and Article 4 of the IAS Regulation and comply of Investec plc with FRS 101 in respect company accounts. parent of the opinion, based are The directors on their knowledge of the companies, in operation and enquiries, key processes exist to support that adequate resources the companies on a going concern basis These annual financial over the next year. on statements have been prepared that basis. The board and management management and standards set internal of systems implements controls and accounting and information systems aimed at providing are assets that assurance reasonable safeguarded and the risk of fraud, error or loss is reduced in a cost-effective in contained controls, These manner. procedures, and policies established of delegation proper the include within authorities and responsibilities effective framework, defined clearly a adequate and procedures accounting duties of segregation function, audit internal group’s The and unimpeded operates which operational from independently unrestricted has and management, committee, audit group the to access necessary, when and, appraises the in improvements recommends system of internal controls and audit on based practices, accounting Declaration by the company secretary Niki van Wyk Investec Limited Company secretary, 10 June 2016 In terms of section 88(2)(e) of the South African Companies Act, No 71 of 2008, as amended (the Act), I hereby certify that, to the best of my certify that, to the (the Act), I hereby In terms of section 88(2)(e) of the South African Companies Act, No 71 of 2008, as amended ended Commission, for the financial year knowledge and belief, Investec Limited has lodged with the Companies and Intellectual Property and true, correct and notices are the Act and that all such returns in terms of required and notices as are 2016, all such returns 31 March up to date. The following statement, which should beThe following statement, report in conjunction with the auditors’ read made with a view toset out on page 147, is the respective distinguishing for stakeholders and of the of the directors responsibilities to the combinedexternal in relation auditors consolidated annual financial statements. for the responsible are The directors of the integrity and objectivity preparation, annual financialcombined consolidated state of the statements that fairly present at the end of the financial of the group affairs year and the net income and cash flows for contained in and other information the year, this report. to meet these the directors enable To responsibilities: • • 9.5 pence9.5 per ordinary share resident African non-South to African South shareholders and resident shareholders 8.5 pence) (2014: registered and on 11 December 2015 was paid on 23 December 2015. pence per ordinary11.5 share non- to shareholders resident African South pence) registered on 11.5 (2015: 29 July 2016. South AfricanTo resident shareholders registered through on 29 July 2016, a dividend paid Investec by Limited on the SA share, DAS pence of 9.5 per ordinary share pence and 2.0 per ordinary share paid Investec by plc. INVESTEC LIMITED An interim dividend of 207.0 cents per (2014: 146.0 cents) was share ordinary on registered to shareholders declared 11 December 2015 and was paid on 23 December 2015. a final have proposed The directors of the financial year dividend in respect 2016 of 266 cents ended 31 March share. (2015: 216 cents) per ordinary The final dividend will be payable 10 August 2016 to on Wednesday, at the close on the register shareholders 29 July 2016. The of business on Friday, annual general meeting at which the for dividend will be considered proposed Financial results plc and of Investec The combined results in the annual set out Investec Limited are accompanying financial statements and 2016. 31 March notes for the year ended results of these combined The preparation risk and group was supervised by the Glynn Burger. finance director, Ordinary dividends INVESTEC PLC to An interim dividend was declared as follows: shareholders • a final have proposed The directors on registered dividend to shareholders 29 July 2016, of 11.5 pence (2015: which is share, 11.5 pence) per ordinary of the members subject to the approval of Investec plc at the annual general meeting which is scheduled to take place will be on 4 August 2016 and, if approved, paid on 10 August 2016, as follows: • • 128 670 Class ILRP2 redeemable ILRP2 Class 670 128 on shares preference non-participating per share 010.35 at R1 29 May 2015 par(R0.01 and premium 010.34 of R1 per share) 2 222 356 ordinary shares on per share at R109.98 25 June 2015 (R0.0002 par and premium of per share)R109.9798 convertible special 387 308 3 on shares preference redeemable of R0.000225 June each 2015 at par ordinary3 392 727 shares on per at share R108.23 26 June 2015 (R0.0002 par and premium of perR108.2298 share) convertible special 835 500 on shares preference redeemable of R0.0002 each 2015 14 August at par. Investec Limited the following shares During the year, were issued: • • • • • On 11 September 2015, a partial early of 54 456 Class ILRP1 redemption non-participating preference redeemable took place at R1 000.00 per share, shares of R999.99 per (R0.01 par and premium share). On 29 January 2016, a partial early of 20 000 Class ILRP1 redemption non-participating preference redeemable took place at R1 000.00 per share, shares of R999.99 (R0.01 par and premium per share). On 29 January 2016, a partial early of 31 431 Class ILRP2 redemption non-participating preference redeemable took place at R1 000.00 per share, shares of R999.99 (R0.01 par and premium per share). On 23 February 2016, a partial early of 20 000 Class ILRP2 redemption non-participating preference redeemable took at R1 000.00 per share, shares of place (R0.01 par and premium R999.99 per share). any of Investec Limited did not repurchase during the financial year shares its ordinary 2016. ended 31 March 2016, Investec Limited held At 31 March (2015: in treasury 24 158 289 shares 21 162 694). Investec plc held 16 141 177 (2015: 8 325 971). The in treasury shares held in treasury maximum number of shares by Investec Limited during the period under was 25 775 322. review Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Directors’ report Directors’ 3 308 ordinary 387 shares on at 599.00 pence25 June 2015 per share 2 222 356 special converting shares on of £0.0002 June25 each 2015 at par special3 392 727 converting shares on of £0.0002 June26 each 2015 at par August 14 on ordinary shares 835 500 at 599.00 pence2015 per share. FIVE 140 INVESTEC PLC AND INVESTEC LIMITED set out in capital are Details of the share note 42 to the annual financial statements. Investec plc the following shares During the year, were issued: • • • • any of its Investec plc did not repurchase during the financial year shares ordinary 2016. ended 31 March Authorised and issued share capital We are an international bank and specialist are We a diverse range asset manager that provides to a select and services of financial products UK principal markets, client base in three South Africa and Asia/Australia and Europe, countries. Investecas well as certain other profitable focuses on delivering distinctive of areas core three solutions for its clients in Asset Management, Wealth activity namely, & Investment and Specialist Banking. Section 414A of the UK Companies to present the directors Act 2006 requires and in the annual report a strategic report accounts. The company has chosen, in with section 414C(11) of the accordance Companies Act 2006, to include certain that would matters in its strategic report otherwise be disclosed in this directors’ on pages 22 The strategic report report. an overview of our strategic to 25 provides position, performance during the financial developments year and details of likely future in in the business. It should be read conjunction with the sections on pages 26 to 137 which elaborate on the aspects highlighted in this review. deals with the report The directors’ of the combined consolidated requirements comprising the legal entities Investec group, Investec plc and Investec Limited. Extended business Extended business review

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 141 FIVE (continued) (continued) Directors’ shareholdings and options to 112 to 115. corporate governance The group’s board statement and governance framework are set out on pages 81 to 86. Details regarding options granted during the year are set out on page 115. Details of directors and company Details of directors and plc and secretaries of Investec  on Investec Limited are reflected pages 87 and 88.   

Corporate governance Share incentives Audit committees The audit committees comprising meet independent non-executive directors with senior management, the regularly external auditors, Operational Risk, Internal Audit, Compliance and the Finance division and scope of the to consider the nature of our and the effectiveness audit reviews systems. risk and control and responsibility Further details on the role of the audit committees can be found in the integratedInvestec 2016 annual report. Directors and secretaries Directors and Directors and their interests The register of directors’ interests contains interests of directors’ The register and shareholdings full details of directors’ shares. options to acquire In accordance with the UK Corporate with the UK Corporate In accordance will board Governance the entire Code, annual at the 2016 itself for re-election offer general meeting. herself for re- offer H Fukuda, OBE did not election at the annual general meeting held on 6 August 2015. with effect the board from B Fried resigned 1 April 2016. from of Investec plc The company secretary is David Miller and Niki van Wyk is the of Investec Limited. company secretary Directors’ report Directors’ Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Class ILRP1 redeemable non- Class ILRP1 redeemable shares participating preference dividend number 8 for the period Preference 2015, amounting to1 April 2015 to 30 June declared was share, 1 289.29579 cents per on shares holding preference to shareholders on 27 July 2015.24 July 2015 and was paid dividend number 9 for the Preference September 2015,period 1 July 2015 to 30 cents per share, amounting to 1 329.37002 holding to shareholders was declared on 23 October 2015 and shares preference was paid on 26 October 2015. dividend number 10 for the Preference period 1 October 2015 to 31 December 2015, amounting to 1 353.75897 cents per holding to shareholders was declared share, on 22 January 2016 and shares preference was paid on 25 January 2016. dividend number 11 for the Preference 2016, period 1 January 2016 to 31 March amounting to 1 410.01817 cents per share, holding to shareholders was declared on 22 April 2016 and was shares preference paid on 25 April 2016. non- Class ILRP2 redeemable shares participating preference dividend number 1 for the period Preference 2015 to 30 June 2015, amounting 25 March was to 1388.47239 cents per share, holding preference to shareholders declared on 24 July 2015 and was paid on shares 27 July 2015. dividend number 2 for the Preference period 1 July 2015 to 30 September 2015, amounting to 1 329.37002 cents per share, holding to shareholders was declared on 23 October 2015 and shares preference was paid on 26 October 2015. dividend number 3 for the period Preference 1 October 2015 to 31 December 2015, amounting to 1 353.75897 cents per share, holding to shareholders was declared on 22 January 2016 and shares preference was paid on 25 January 2016. dividend number 4 for the Preference 2016, period 1 January 2016 to 31 March amounting to 1 410.01817 cents per share, holding to shareholders was declared on 22 April 2016 and was shares preference paid on 25 April 2016. Redeemable cumulative preference shares Dividends amounting to R21 453 331 paid on the (2015: R19 970 856) were shares. cumulative preference redeemable Non-redeemable, non-cumulative, non- Non-redeemable, shares participating preference dividend number 22 for the Preference period 1 April 2015 to 30 September 2015, amounting to 364.34712 cents to shareholders was declared per share, registered shares holding preference on 4 December 2015 and was paid on 14 December 2015. dividend number 23 for the Preference period 1 October 2015 to 31 March 2016, amounting to 384.96150 cents to shareholders was declared per share, registered shares holding preference on 10 June 2016 and will be paid on 20 June 2016. INVESTEC LIMITED Non-redeemable, non-cumulative, non- non-cumulative, Non-redeemable, shares participating preference dividend number 19 for the Preference September 2015,period 1 April 2015 to 30 was per share, amounting to 7.52055 pence to members holding preference declared 2015 and on 4 December registered shares was paid on 14 December 2015. dividend number 20 for the Preference 2016, period 1 October 2015 to 31 March was amounting to 7.52055 pence per share, to members holding preference declared 2016 and will on 10 June registered shares be paid on 20 June 2016. Rand-denominated non-redeemable, non-cumulative, non-participating shares preference dividend number 9 for the Preference period 1 April 2015 to 30 September 2015, amounting to 445.06849 cents per to members holding was declared share, non- rand-denominated non-redeemable, cumulative, non-participating preference 2015 and on 4 December registered shares was paid on 14 December 2015. dividend number 10 for the Preference period 1 October 2015 to 31 March 2016, amounting to 470.25000 cents to members was declared per share, registered shares holding preference on 10 June 2016 and will be paid on 20 June 2016. Preference dividends INVESTEC PLC approval is scheduled to take place on is scheduled to take place approval 4 August 2016. Thursday, Detailed information on the group’s risk the group’s Detailed information on can be and policy management process integrated found in the Investec 2016 annual report. Political donations and expenditure Investec plc did not make any donations for political purposes in the UK or the of the EU, nor did it make any rest political donations to political parties or other political organisations, or to any independent election candidates, or incur during the year. any political expenditure its subsidiaries, Invested Limited through made political donations totalling R1.5 million in 2016 (2015: R1.0 million). Financial instruments  hedge Information on the group’s the use of derivatives accounting policy and in the Investec and hedges can be found report. 2016 integrated annual Employees on and promote Our policy is to recruit without the basis of aptitude and ability, discrimination of any kind. Applications for employment by disabled people are bearing in mind the always considered qualifications and abilities of the applicants. In the event of employees becoming is made to ensure disabled, every effort their continued employment. Our policy is to adopt an open management style, encouraging informal consultation thereby at all levels about aspects of our operations, involvement in our and motivating staff performance by means of employee share schemes. committed to ensuring the health, are We of our employees and safety and welfare and maintaining safe working to providing have health and safety conditions. We of operation that cover policies in all regions and additional all legislated requirements where for staff provided benefits are constantly seek to improve possible. We both policies and the execution of health This in all our offices. and safety standards education, regular takes the form of staff drills and maintenance of an open door fire to dialogue on the issue. policy with regard the appointment of appropriate, Where of for various areas individuals responsible health and safety is made. A renewable authority was granted granted was authority renewable A Investecto Limited and anyof its own its acquire to subsidiaries non- redeemable, ILRP1 Class participating preference shares, non- redeemable, ILRP2 Class participating preference shares, any non-participating redeemable, other preference shares and non- non- non-cumulative, redeemable, terms in shares preference participating of the provisions of the South African Companies of 2008 Act, No 71 to granted was authority renewable A Investec Limited provide to financial the with comply to order in assistance provisions of sections 44 and 45 of the South African Companies Act, No 71 of 2008 to granted was authority renewable A Investec Limited approve to directors’ with comply to order in remuneration the provisions of sections 65(11)(h), 66(8) and 66(9) of the South African Companies of 2008 Act, No 71 of capital share authorised The Investec Limited was amended the by conversion authorised 681 of 1 091 redeemable, ILRP1 Class unissued but shares preference non-participating authorised 1 091 681 to but unissued non-participating redeemable, preference shares Annexure the A to Memorandum of correctly to amended was Incorporation of capital share authorised the reflect number the reducing by Limited Investec redeemable, Class ILRP1 authorised of shares preference non-participating from 1 500 and 000 408 to 319 redeemable, of number the increasing shares preference non-participating from 47 000 000 48 681 091 to Annexure of the Memorandum B1 of Incorporation was amended the by paragraphs current the of deletion and46 and the 47 substitution thereof with new paragraphs 46 and 47. • • • • • • Accounting policies and disclosure set having regard Accounting policies are practice and comply with to commercial applicable United Kingdom and South African law and International Financial Reporting Standards. company accounts of The parent under FRS 101. prepared Investec plc are The accounting policies adopted in this consistent with the are abridged report integratedInvestec 2016 annual report. Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Directors’ report Directors’ (continued) The largest shareholders of Investec plc and Investec Limited are reflected on page 90. Refer to page 125 for details of contracts with directors.   A renewable authority was granted granted was authority renewable A Investecto Limited and any of its ordinary own its acquire to subsidiaries shares in terms of the provisions of the South African Companies Act, No 71 of 2008 A renewable authority was granted to to granted was authority renewable A Investec plc acquire to its own ordinary shares in accordance with the terms of section of the Companies 701 Act 2006 granted was authority renewable A Investecto plc acquire to its own accordance in shares preference with the terms of section of the 701 2006. Act Companies FIVE 142 At the annual general meeting held on At the annual general meeting held on 6 August 2015, the following special passed in terms were resolutions of which: • INVESTEC LIMITED At the annual general meeting held on At the annual general meeting held on were 6 August 2015, special resolutions passed in terms of which: • Special resolutions INVESTEC PLC • Major shareholders Details of principal subsidiary and can be found in associated companies are the Investec 2016 integrated annual report. Subsidiary and associated companies Contracts Auditors LLP have indicated their Ernst & Young as auditors in office willingness to continue and Inc. of Investec plc and Ernst & Young their willingness KPMG Inc. have indicated of as joint auditors to continue in office Investec Limited. them as auditors to reappoint A resolution at the annual general will be proposed place on meeting scheduled to take 4 August 2016.

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 143 FIVE (continued) (continued) Directors’ report Directors’ Stephen Koseff Chief executive officer Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Chairman 10 June 2016 The group’s policies for managing the financialthe managing for policies group’s The to and exposure risk to which it is exposed risk are liquidity and cash flow price, credit, section in theset out in the risk management annual report. Investec 2016 integrated Additional information for shareholders report Schedule A to the directors’ of is a summary of certain provisions Articles of Association current Investec plc’s and applicable English law concerning companies (the UK Companies Act 2006). considers that this integrated The board and annual financial annual report statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders performance, to assess the group’s business model and strategy. of Investec plc On behalf of the boards and Investec Limited Fani Titi Risk management Risk management policies Refer to pages 82 to 84 for the directors’ viability statement. Refer to page 82 for the directors’ statement in relation to going concern.  Viability statement Viability Research and development course of business, Investec In the ordinary and services in develops new products each of its business divisions. Going concern We are committed to pursuing sound are We of policies in all aspects environmental to encourage and our business and seek practice good environmental promote and within the among our employees operate. community in which we be found in the Further information can Investec 2016 integrated annual report. Environment, including Environment, greenhouse gas emissions Transfer of shares Transfer by may be effected All transfers of shares transfer in writing in any usual or common form or in any other form acceptable to the The instrument of transfer shall be directors. and signed by or on behalf of the transferor by (except in the case of fully paid shares) of Transfers or on behalf of the transferee. in uncertificated form are which are shares by means of the CREST system. effected in in the case of shares may, The directors Deadlines for exercising Deadlines for voting rights meeting at a general exercisable are Votes the of which of Investec plc in respect is being heard. business being voted upon in person, by may be exercised Votes corporate members, to or in relation proxy, The Articles by corporate representatives. of proxy a deadline for submission provide hours before forms of not less than 48 the holding of the the time appointed for meeting or adjourned meeting. of rights Variation Subject to the Companies Act 2006, the Articles specify that rights attached to may be varied with any class of shares the written consent of the holders of not in nominal value less than three-fourths of that class, or with of the issued shares resolution the sanction of an extraordinary passed at a separate general meeting of At every such the holders of those shares. separate general meeting the quorum is only if there shall be two persons or, holding or that holder at least one holder, in least one-third at by proxy representing of the nominal value of the issued shares held class (calculated excluding any shares The rights conferred shares). as treasury shall not, upon the holders of any shares in provided unless otherwise expressly be the rights attaching to those shares, or deemed to be varied by the creation ranking pari passu issue of further shares under the company’s with them. Where, the incentive plan, participants are share but not the beneficial owners of the shares, not owners, the participants are registered any voting rights until entitled to exercise to the participants. released are the shares employee trust, Under the company’s of the trustee does not vote in respect unallocated shares. Restrictions on voting No member shall be entitled to vote either at any general in person or by proxy of any meeting or class meeting in respect held by him if any call or other sum shares of that share then payable by him in respect unpaid. In addition, no member remains shall be entitled to vote if he has been to provide served with a notice after failure Investec plc with information concerning to be required in those shares interests under the Companies Act. provided Voting rights Voting Subject to any special rights or restrictions at a attaching to any class of shares, in general meeting, every member present person has, upon a show of hands, one vote and, on a poll, every member who is has one vote in person or by proxy present In the case of joint holders for each share. the vote of the senior who of a share, tenders a vote, whether in person or by of shall be accepted to the exclusion proxy, the votes of the other joint holders and for this purpose seniority shall be determined in which the names stand in by the order of the of members in respect the register Under the Companies Act 2006 share. entitled to appoint a proxy, members are who need not be a member of Investec plc, all or any of their rights to to exercise attend and vote on their behalf at a general meeting or class meeting. A member may to a in relation than one proxy appoint more general meeting or class meeting, provided is appointed to exercise that each proxy or share the rights attached to a different A member held by that member. shares that is a corporation may appoint an individual to act on its behalf at a general meeting or class meeting as a corporate The person so authorised representative. the same shall be entitled to exercise powers on behalf of such corporation as an if it were the corporation could exercise individual member of Investec plc. payment. The board may withhold payment may withhold payment. The board dividends or other of all or any part of any Investec of monies payable in respect a person with a 0.25% from shares plc’s in nominal value of the interest or more has been if such a person issued shares to provide failure served with a notice after concerningInvestec plc with information to be required in those shares interests Act 2006. under the Companies provided Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Schedule A to the directors’ report A to the directors’ Schedule FIVE 144 Subject to the provisions of the Companies Subject to the provisions Act 2006, Investec plc may by ordinary time to time declare from resolution dividends not exceeding the amount The board by the board. recommended may pay interim dividends whenever the financial position of Investec plc, in justifies such the opinion of the board, Dividends and distributions Subject to the provisions of the Articles, the Subject to the provisions Companies Act 2006, the uncertificated 2001 and every securities regulations other statute for the time being in force concerning companies and affecting of shareholders Investec plc, the approval in the Investec plc Articles, as provided to any relevant and without prejudice special rights attached to any class of or may Investec plc may purchase, shares, enter into a contract under which it will any of its own shares or may purchase, of any class, including without limitation in any way and shares, any redeemable at any price (whether at par or above or below par). Purchase of own shares Share capital capital of Investec plc at The issued share 2016 consists of 617 418 864 31 March of £0.0002 each, shares ordinary non- 15 081 149 non-redeemable, cumulative, non-participating preference of £0.01 each, 2 275 940 ZAR shares non-cumulative, non-redeemable, shares non-participating preference of R0.001 each, 291 363 706 special of £0.0002 each, the converting shares of £0.001, the UK special voting share of £0.001 and the UK DAS DAN share of £0.001 (each class as defined in share the Articles). Set out below is a summary of certain Set out below is a summary Articles current of Investec plc’s provisions and applicable of Association (the Articles) English law concerning companies (the This is a UK Companies Act 2006). provisions relevant summary only and the Act 2006 of the Articles or the Companies further information should be consulted if is required. Additional information Additional information for shareholders

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 145 FIVE (continued) (continued) A resolution of Investec plc is of Investec plc is A resolution directly which resolution proposed the rights attached to the affects or the shares perpetual preference of the holders thereof, interests is of Investec plc or a resolution to wind up or in relation proposed plc to the winding up of Investec of its capital, or for the reduction in which event the preference shall be entitled to shareholders vote only on such resolution. – – The ZAR perpetual preference shares are are shares The ZAR perpetual preference subject to substantially similar terms and conditions as the existing Pounds Sterling non-cumulative, non- non-redeemable, as outlined shares, participating preference denominated in above, save that they are South African Rands. Shares required for the DLC structure Investec SSC (UK) Limited, a UK trust specially formed for the purpose company, holds the plc special of the DLC structure, the plc special converting voting share, and the UK the UK DAN share shares, can only be These shares DAS share. to another UK trust company, transferred in limited circumstances. specially are The plc special voting shares of both so that shareholders shares created Investec plc and Investec Limited effectively vote together as a single decision-making of shareholders body on matters affecting both companies in similar ways, as set out in the Articles. of approval Prior to a change of control, (which termination of the sharing agreement the DLC), liquidation or insolvency regulates of Investec plc, the plc special converting have no voting rights, except in shares proposing the: to a resolution relation Rand-denominated non- redeemable non-cumulative non-participating perpetual preference shares (the ZAR perpetual preference shares) with the Schedule A to the directors’ report A to the directors’ Schedule with theplc preference shares, The preference dividend or any dividend or any The preference in arrears remains part thereof and unpaid as determined in with the Articles after accordance the due date six months from and/or thereof; Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review – Holders of plc preference shares will not be entitled attend to and vote at general meetings of Investec plc. Holders will be entitled attend to and at a classvote meeting of holders of plc preference shares. Each perpetual preference share share preference perpetual Each will rank as regards dividends and a repayment of capital on the winding up of Investec plc prior the to ordinary converting special plc the shares, shares, the UK DAN share, the UK share,DAS but passu pari plc preference shares. The perpetual preference shares shall confer on the holders, on a per perpetual preference shares and equal basis, the righton a return of capital on the winding up of Investec plc of an amount equal to value nominal the of aggregate the and premiums in respect of perpetual preference shares issued, divided by preference perpetual of number the shares in issue Each perpetual preference share may right the thereof holder the upon confer receiveto out of the profits of Investec plc which it shall determine distribute, to in priority the to ordinary shares, the plc special converting shares, the UKDAN share and the UK share, DAS but pari passu the preference dividend calculated in in dividend calculated preference the Articles the with accordance The holders of the perpetual preference shares shall be entitled receive to notice of and be present but either not vote, to in person or at proxy, any by meeting of Investec plc, virtue by of or in respect of the perpetual preference shares, unless either or both of the following circumstances prevail at the date of the meeting: – • Non-redeemable Non-redeemable non-cumulative non-participating preference shares the rights and The following are privileges which attach to the perpetual preference shares: • • •

herewith herewith On a return of capital, whether or not on a winding up (but not on a redemption or purchase of any shares Investec by plc) or otherwise, the plc preference shares will interse rank, passu pari ranking senior most the with and preference shares of Investec plc in issue (if any) from time time to and with any other shares of Investec plc that are expressed rank to passu pari capital, the in participation regards as and otherwise in priority any to other class of shares of Investec plc Investec at its plc option, may, redeem all or any of the plc preference shares for the time being issued and outstanding on the first call date or any thereafter date payment dividend Plc preference shares the rights and privileges The following are shares: which attach to the plc preference • • certificated form, in their absolute discretion absolute discretion certificated form, in their refuse reason, and without assigning any (not any transfer of shares to register such that provided being fully paid shares), a in such may not be exercised discretion of shares dealings in the way as to prevent an open and taking place on that class from refuse may also basis. The directors proper of shares an allotment or transfer to register in favour of more (whether fully paid or not) If the directors than four persons jointly. an allotment or transfer to register refuse they shall within two months after the date on which the letter of allotment or transfer was lodged with Investec plc send to the a notice of the refusal. allottee or transferee any may decline to recognise The directors instrument of transfer unless the instrument of only one class of of transfer is in respect and, when submitted for registration, share share is accompanied by the relevant certificates and such other evidence as the Subject require. may reasonably directors and to the Companies Act and regulations may applicable CREST rules, the directors may determine that any class of shares be held in uncertificated form and that by may be transferred title to such shares means of the CREST system or that shares of any class should cease to be so held and transferred. employee A number of the company’s on transfer plans include restrictions share subject to the are while the shares of shares incentive plan. the share plans, in particular, Significant agreements: Significant agreements: change of control The Articles of Investec plc and the Memorandum of Incorporation of Investec that a person cannot Limited ensure for one company without make an offer to the having made an equivalent offer of both companies on shareholders equivalent terms. Pursuant to the terms of the agreements if either establishing the DLC structure, Investec plc or Investec Limited serves written notice on the other at any time after either party becomes a subsidiary of the other party or after both Investec plc and Investec Limited become subsidiaries of a establishing the party the agreements third will terminate. DLC structure plans contain share All of Investec plc’s to a change of control. relating provisions and options would Outstanding awards normally vest and become exercisable and, where on a change of control applicable, subject to the satisfaction of any performance conditions at that time. The board may exercise all the powers all the powers may exercise The board and to money of Investec plc to borrow of its undertaking, mortgage or charge any and uncalled capital and assets property, securities, and other to issue debentures collateral security whether outright or as obligation of for any debt, liability or party. Investec plc or of any third Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Schedule A to the directors’ report A to the directors’ Schedule (continued) variation of the rights attaching to the variation of the rights attaching or shares no rights to winding up, and they have converting shares dividends. The special Limited held on trust for the Investec are Investec plc shareholders. ordinary established and Investec Limited have as dividend access trust arrangements part of the DLC. FIVE 146 Powers of directors Subject to the Articles, the Companies and Act 2006, the CREST regulations every other statute for the time being in concerning companies and affecting force given by Investec plc, and any directions the business or special resolution, ordinary of Investec plc will be managed by the all the powers who may exercise board of Investec plc. Directors shall be no less than four and no Directors is not A director than 20 in number. more of Investec plc to hold any shares required by way of qualification. Investec plc may by the or reduce increase special resolution maximum or minimum number of directors. Appointment and replacement of directors (ii) two dividend Investec plc has issued and share the UK DAS access shares, which enables Investec UK DAN share plc to pay dividends to the shareholders of Investec Limited. This facility may be imbalances to address used by the board of Investec plc in the distributable reserves and Investec Limited and/or to address of South African exchange the effects and/or if they otherwise consider it controls necessary or desirable. (i)

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 147 FIVE Opinion financial In our opinion the summary with the full information is consistent Remuneration financial statements and ended for the year Report of the Group 2016. 31 March of any the effects have not considered We on which we events between the date annual financial on the full signed our report 2016 and the statements dated 9 June date of this statement. LLP Ernst & Young London Place 1 More London SE1 2AF 10 June 2016 members of Investec plc of Investec members Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Independent auditor's statement to the to statement auditor's Independent Our responsibility is to report to you our to you our is to report Our responsibility of the summary opinion on the consistency the full annual financial information with the Remuneration financial statements and Report. the other information also read We annual review contained in the integrated statements and and summary financial for our report consider the implications of any apparent if we become aware inconsistencies misstatements or material information. with the summary financial conducted our work in accordance We with Bulletin 2008/3 issued by the Auditing on the Group’s Our report Practices Board. full annual financial statements describes the basis of our opinion on those financial statements and on the Remuneration Report. The auditor has issued unqualified reports on the full annual financial statements, the auditable part of the directors' remuneration reports on the full annual financial statements, the auditable part of the directors' The auditor has issued unqualified report on the full Their with those annual financial statements. report the consistency of the strategic and directors’ report and on can be found on the Investec plc report remuneration Annual Financial Statements and the auditable part of the directors’ website www.investec.com/en_za/#home/investor_relations.html. Directors’ statement The Directors are responsible for preparing for preparing responsible are The Directors the summary financial information so that it is consistent with the full annual financial statements of the Group. Respective responsibilities of the Directors and the auditor We have examined the summary have examined the summary We the year ended financial information for the which comprises 31 March 2016 Income Statement, Combined Consolidated Statement of the Combined Consolidated Income, the Combined Comprehensive Sheet, the Combined Consolidated Balance Statement, the Consolidated Cash Flow of Changes in Consolidated Statement the accounting policies set out on Equity, notes. page 154 and the related Members, is made solely to the This report as a body, of Investec plc (the ‘Group’), with the terms of our in accordance the fullest extent To engagement letter. we do not accept or permitted by law, to anyone other than assume responsibility for our work, for the Members as a body, or the opinion we have formed. this report, 24.4 23.1 2015 (1 535) (5 337) 12 236 (14 497) (93 033) (99 023) (17 574) (18 184) (11 701) (13 424) 504 858 485 024 391 991 275 394 245 509 128 334 106 313 634 977 (128 381) (137 214) 1 829 098 1 957 479 1 226 257 1 790 867 (1 322 705) (1 155 890) 38.5 36.7 2016 5 197 (2 165) (1 577) (4 778) 12 090 11 377 (16 248) (16 529) (35 201) 540 794 522 969 518 191 420 186 368 456 170 408 110 227 573 769 (103 202) (109 516) (126 387) 1 829 980 1 939 496 1 188 012 1 705 640 (1 287 021) (1 131 871) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Combined consolidated consolidated Combined statement income customer flow activities balance sheet management and other trading FIVE Depreciation on operating leased assets Depreciation intangibles goodwill and acquired before Operating profit Impairment of goodwill intangibles Amortisation of acquired Operating profit Net loss on disposal of subsidiaries taxation before Profit intangibles goodwill and acquired before on operating profit Taxation of subsidiaries intangibles and acquisition/disposal/integration on acquired Taxation after taxation Profit interests attributable to Asset Management non-controlling Profit interests attributable to other non-controlling Profit Earnings attributable to shareholders (pence) Earnings per share – Basic – Diluted Operating costs Impairment losses on loans and advances Operating income Total operating income before impairment losses on loans and advances income before operating Total Other operating income Fee and commission expense Investment income income arising from Trading – – Net interest income Net interest Fee and commission income For the year to 31 March £’000 Interest expense Interest Interest income Interest 148

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 149 2015 1 037 (4 660) 6 340 32 050 34 803 (32 816) (58 318) 275 394 186 977 120 124 186 977 FIVE 2016 4 738 (1 961) (5 123) 84 932 33 192 (31 934) (37 153) 420 186 113 001 113 001 (240 875) income

of comprehensive statement consolidated Combined Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review For the year to 31 March £’000 Profit after tax Profit Other comprehensive income income Other comprehensive to the income statement Items that may be reclassified income comprehensive to other cash flow hedges taken directly Fair value movements on Gains on realisation of available-for-sale assets recycled through the income statement through assets recycled of available-for-sale Gains on realisation Fair value movements on available-for-sale assets taken directly to other assets taken directly available-for-sale Fair value movements on income comprehensive Foreign currency adjustments on translating foreign operations foreign adjustments on translating currency Foreign Items that will never be reclassified to the income statement Items that will never be reclassified of net defined pension asset Remeasurement Total comprehensive income comprehensive Total Total comprehensive income attributable to ordinary shareholders shareholders income attributable to ordinary comprehensive Total Total comprehensive (loss)/income attributable to non-controlling interests interests (loss)/income attributable to non-controlling comprehensive Total Total comprehensive income attributable to perpetual preferred securities securities income attributable to perpetual preferred comprehensive Total Total comprehensive income comprehensive Total 226 153 2015 1 823 30 599 76 481 40 726 25 244 99 301 (68 065) 509 059 229 957 279 102 109 953 616 909 201 790 885 003 102 354 617 898 361 527 147 227 947 846 448 647 574 830 780 596 627 373 586 400 (563 985) 4 040 495 3 500 837 1 874 360 1 178 299 2 258 148 6 335 326 1 845 679 1 709 369 1 544 168 1 284 945 1 908 294 6 337 149 1 741 713 1 086 349 1 580 681 2 958 641 1 161 055 1 812 156 3 045 864 2 529 562 44 353 402 40 312 907 39 134 608 32 797 459 22 614 868 44 353 402 38 016 253 16 740 263 – 228 153 2016 1 533 72 615 26 031 55 486 85 650 90 888 400 374 472 989 120 851 192 255 957 418 971 646 938 879 368 039 148 280 660 795 437 243 321 617 160 295 267 099 112 135 896 855 949 950 466 573 (125 717) (784 051) 3 859 307 3 360 287 2 030 310 1 134 883 2 239 364 5 845 503 1 802 967 2 299 751 1 582 847 2 397 403 5 847 036 2 092 661 1 119 074 1 580 949 3 208 862 2 497 125 2 498 585 3 007 269 45 351 781 41 492 474 40 357 591 34 510 555 24 044 281 45 351 781 39 504 745 17 681 572 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Combined consolidated balance sheet balance consolidated Combined FIVE Total liabilities and equity Total Non-controlling interests Non-controlling securities issued by subsidiaries – Perpetual preferred in partially held subsidiaries interests – Non-controlling equity Total Other Additional Tier 1 securities in issue Shareholders’ equity excluding non-controlling interests equity excluding non-controlling Shareholders’ Equity capital share Ordinary shares Treasury Other reserves Retained income Subordinated liabilities Subordinated capital share Perpetual preference premium Share Insurance liabilities, including unit-linked liabilities Liabilities to customers under investment contracts Other liabilities Liabilities arising on securitisation of other assets taxation liabilities Current taxation liabilities Deferred Liabilities arising on securitisation of own originated loans and advances Other trading liabilities and cash collateral on securities lent agreements Repurchase Customer accounts (deposits) Debt securities in issue financial instruments Liabilities Deposits by banks Other financial instruments at fair value through profit or loss in respect of liabilities or loss in profit Other financial instruments at fair value through to customers Investment properties Investment properties Goodwill Intangible assets assets classified as held for sale Non-current Property and equipment Property Investment portfolio Loans and advances to customers securitised Own originated loans and advances to customers Other loans and advances Other securitised assets in associated undertakings Interests taxation assets Deferred Other assets Securities arising from trading activities Securities arising from Bank debt securities Other debt securities Derivative financial instruments Sovereign debt securities Sovereign Non-sovereign and non-bank cash placements and non-bank Non-sovereign on securities borrowed and cash collateral agreements Reverse repurchase At 31 March £’000 Loans and advances to banks Loans and advances to Assets banks Cash and balances at central 150

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS – – 151 131 2015 (6 503) 19 593 38 896 30 599 19 764 40 914 40 914 (45 775) (64 269) (33 793) (17 091) 722 593 596 203 226 291 193 737 513 837 586 400 FIVE (105 230) (168 486) (122 637) (259 012) 2 291 132 4 049 011 4 562 848 2 529 562 1 446 886 4 562 848 (2 312 292) – – – – (969) 2016 11 358 (24 314) (13 925) 35 480 81 422 87 452 (73 027) (59 518) 730 920 620 836 153 299 466 573 (132 134) (180 009) (163 277) (347 741) (171 718) (142 111) 4 602 620 4 562 848 4 650 300 3 007 269 1 176 458 4 650 300 (4 580 570) flow statement Combined consolidated cash cash consolidated Combined Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Includes equity instruments issued by subsidiaries. * For the year to 31 March £’000 Profit before taxation adjusted for non–cash and non-operating items taxation adjusted for non–cash before Profit paid Taxation in operating assets Increase in operating liabilities Increase activities operating Net cash inflow from operations of group Cash flow on acquisition from investing activities Net cash (outflow)/inflow Cash flow on disposal of group operations of group Cash flow on disposal Cash flow on net (acquisition)/disposal of associates equipment and intangible assets Cash flow on acquisition of property, equipment and intangible assets Cash flow on disposal of property, shareholders Dividends paid to ordinary Dividends paid to other equity holders costs net of related on issue of shares, Proceeds on issue of Other Additional TierProceeds 1 securities related costs net of shares, Cash flow on acquisition of treasury on issue of other equity instruments* Proceeds partial disposal of subsidiaries from Proceeds interests Redemption of non-controlling debt raised subordinated from Proceeds Repayment of subordinated debt Repayment of subordinated financing activities Net cash outflow from of exchange rates on cash and cash equivalents Effects in cash and cash equivalents Net increase Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of the Cash and cash equivalents is defined as including: Cash and balances at central banks On demand loans and advances to banks and non-bank cash placements Non-sovereign Cash and cash equivalents at the end of the year Cash and cash equivalents have a maturity profile of less than three months. of less than three Cash and cash equivalents have a maturity profile – – – – – – – – 39 Total 1 037 6 340 4 738 equity (4 660) (1 961) 63 475 38 896 56 216 54 720 30 012 19 725 40 885 (39 835) (18 702) (29 466) (31 934) (37 153) (18 673) (32 816) (58 318) (14 519) (16 101) 153 299 113 001 186 977 275 394 420 186 (168 486) (122 637) (180 009) (142 111) (163 277) (240 875) 3 859 307 4 015 878 4 040 495 – – – – – – – – – – – – – – – – – – – – – – – 39 (778) Non- 2 165 (1 522) (5 123) 32 050 19 725 43 129 15 872 29 885 18 702 51 730 (39 835) (18 702) (29 466) (56 853) (15 872) 472 989 153 299 443 582 509 059 interests (142 111) controlling – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 587 587 Tier 1 Other 2 801 (2 801) (4 568) (4 568) 26 031 30 012 30 599 in issue securities Additional – – – – – – – – – – – – – – – 778 non- 6 340 4 738 1 522 1 037 equity (1 961) (4 660) (2 244) Share- 54 720 63 475 38 896 56 216 (31 934) (37 153) (33 192) (32 816) (61 070) (34 803) holders’ 122 692 245 509 154 340 368 456 interests (163 277) (168 486) (122 637) (179 454) (180 009) excluding 3 360 287 3 572 296 3 500 837 controlling – – – – – – – – – – – – – – – – – – – 778 (455) 4 738 1 522 6 340 9 430 5 324 (9 322) (2 244) (5 989) 56 216 63 475 income (58 106) (33 192) (34 803) (66 519) 378 518 245 509 245 860 175 631 368 456 Retained (180 009) (168 486) 2 030 310 1 652 016 1 874 360 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Foreign (56 782) (56 782) reserves currency currency (690 748) (158 673) (158 673) (475 293) (532 075) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 6 051 hedge reserve (31 934) (32 816) (26 765) (31 934) (49 776) (76 541) (108 475) Cash flow – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – risk 333 333 (138) (138) 9 322 (9 430) 39 078 38 991 29 423 reserve general Regulatory Other reserves – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 1 037 7 858 4 235 (1 961) (4 660) (3 623) reserve (34 879) (37 153) (39 114) for–sale Available- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Capital 10 973 10 973 10 973 reserve account –

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – shares 66 519 58 106 (48 603) (68 065) (85 981) (125 717) Treasury (115 758) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 455 Share (4 212) (4 212) 54 718 38 894 (26 438) (74 034) (47 519) (26 438) premium (175 631) 2 239 364 2 258 148 2 473 131 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 153 153 153 share capital Perpetual preference – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 2 2 228 226 224 share capital Ordinary Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Combined consolidated statement statement consolidated Combined in equity of changes FIVE Redemption of non-controlling interests Redemption of non-controlling to partial disposal of subsidiaries relating interest Non-controlling Partial sale of subsidiary Dividends paid to non-controlling interests Dividends paid to non-controlling shares Issue of ordinary Issue of equity by subsidiaries Dividends declared to perpetual preference shareholders and shareholders to perpetual preference Dividends declared Other Additional Tier 1 security holders included in shareholders Dividends paid to perpetual preference and Other Additional Tier interests 1 security holders non-controlling Remeasurement of net defined pension asset Remeasurement income comprehensive Total payments adjustments Share-based shareholders Dividends paid to ordinary Gains on available-for-sale assets recycled to the income statement assets recycled Gains on available-for-sale to other assets taken directly Fair value movements on available-for-sale income comprehensive operations adjustments on translating foreign currency Foreign taken directly to other Fair value movements on cash flow hedges taken directly income comprehensive Transfer from regulatory general risk reserve regulatory from Transfer shares to treasury payment reserve share-based from Transfer 2015 At 31 March 2016 1 April 2015 – 31 March Movement in reserves after taxation Profit Partial sale of subsidiary shares Movement of treasury premium share from Transfer Issue of ordinary shares Issue of ordinary Issue of Other Additional Tier 1 securities in issue interests Acquisition of non-controlling to partial disposal of subsidiaries relating interest Non-controlling Dividends paid to perpetual preference shareholders included in shareholders Dividends paid to perpetual preference and Other Additional Tier interests 1 security holders non-controlling interests Dividends paid to non-controlling Total comprehensive income comprehensive Total payments adjustments Share-based shareholders Dividends paid to ordinary and shareholders to perpetual preference Dividends declared Other Additional Tier 1 security holders Foreign currency adjustments on translating foreign operations adjustments on translating foreign currency Foreign of net defined pension asset Remeasurement Fair value movements on cash flow hedges taken directly to other cash flow hedges taken directly Fair value movements on income comprehensive the income statement to assets recycled Gains on available-for-sale to other assets taken directly Fair value movements on available-for-sale income comprehensive At 1 April 2014 2015 2014 – 31 March 1 April Movement in reserves after taxation Profit £’000 Transfer to capital reserve Transfer general risk reserve to regulatory Transfer shares to treasury payment reserve share-based from Transfer 2016 At 31 March Movement of treasury shares Movement of treasury 152

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 153 – – – – – – – – 39 Total 4 738 1 037 6 340 equity (4 660) (1 961) 56 216 54 720 63 475 38 896 30 012 19 725 40 885 (14 519) (18 673) (32 816) (16 101) (31 934) (37 153) (39 835) (58 318) (18 702) (29 466) FIVE 113 001 153 299 275 394 186 977 420 186 (142 111) (163 277) (122 637) (240 875) (180 009) (168 486) 3 859 307 4 040 495 4 015 878

– – – – – – – – – – – – – – – – – – – – – – – 39 (778) Non- 2 165 (1 522) (5 123) 15 872 18 702 29 885 32 050 19 725 43 129 51 730 (15 872) (56 853) (39 835) (18 702) (29 466) 472 989 153 299 509 059 443 582 interests (142 111) controlling (continued) (continued) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 587 587 Tier 1 Other 2 801 (2 801) (4 568) (4 568) 26 031 30 012 30 599 in issue securities Additional – – – – – – – – – – – – – – – 778 non- 4 738 1 522 1 037 6 340 equity (4 660) (2 244) (1 961) Share- 56 216 54 720 63 475 38 896 (37 153) (33 192) (32 816) (61 070) (34 803) (31 934) holders’ 122 692 245 509 154 340 368 456 interests (163 277) (122 637) (179 454) (180 009) (168 486) of changes in equity of changes excluding 3 360 287 3 500 837 3 572 296 controlling – – – – – – – – – – – – – – – – – – – 778 (455) 5 324 4 738 1 522 6 340 9 430 (9 322) (5 989) (2 244) 56 216 63 475 income (58 106) (33 192) (34 803) (66 519) 378 518 245 509 245 860 175 631 368 456 Retained (180 009) (168 486) 2 030 310 1 874 360 1 652 016 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Combined consolidated statement statement consolidated Combined Foreign (56 782) (56 782) reserves currency currency (690 748) (158 673) (158 673) (532 075) (475 293) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 6 051 hedge reserve (31 934) (32 816) (31 934) (76 541) (26 765) (49 776) (108 475) Cash flow – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – risk 333 333 (138) (138) 9 322 (9 430) 39 078 29 423 38 991 reserve general Regulatory Other reserves – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 4 235 1 037 7 858 (1 961) (4 660) (3 623) reserve (34 879) (37 153) (39 114) for–sale Available- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Capital 10 973 10 973 10 973 reserve account –

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – shares 66 519 58 106 (48 603) (85 981) (68 065) (125 717) Treasury (115 758) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 455 Share (4 212) (4 212) 54 718 38 894 (26 438) (74 034) (47 519) (26 438) premium (175 631) 2 239 364 2 473 131 2 258 148 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 153 153 153 share capital Perpetual preference – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 2 2 228 224 226 share capital Ordinary Gains on available-for-sale assets recycled to the income statement assets recycled Gains on available-for-sale to other assets taken directly Fair value movements on available-for-sale income comprehensive operations adjustments on translating foreign currency Foreign of net defined pension asset Remeasurement income comprehensive Total payments adjustments Share-based shareholders Dividends paid to ordinary and shareholders to perpetual preference Dividends declared Other Additional Tier 1 security holders included in shareholders Dividends paid to perpetual preference and Other Additional Tier interests 1 security holders non-controlling interests Dividends paid to non-controlling shares Issue of ordinary Issue of equity by subsidiaries interests Redemption of non-controlling to partial disposal of subsidiaries relating interest Non-controlling Partial sale of subsidiary £’000 At 1 April 2014 2015 2014 – 31 March 1 April Movement in reserves after taxation Profit to other cash flow hedges taken directly Fair value movements on income comprehensive the income statement to assets recycled Gains on available-for-sale to other assets taken directly Fair value movements on available-for-sale income comprehensive operations adjustments on translating foreign currency Foreign of net defined pension asset Remeasurement income comprehensive Total payments adjustments Share-based shareholders Dividends paid to ordinary and shareholders to perpetual preference Dividends declared Other Additional Tier 1 security holders included in shareholders Dividends paid to perpetual preference and Other Additional Tier interests 1 security holders non-controlling interests Dividends paid to non-controlling shares Issue of ordinary Issue of Other Additional Tier 1 securities in issue interests Acquisition of non-controlling to partial disposal of subsidiaries relating interest Non-controlling Partial sale of subsidiary shares Movement of treasury premium share from Transfer general risk reserve regulatory from Transfer shares to treasury payment reserve share-based from Transfer 2015 At 31 March 2016 1 April 2015 – 31 March Movement in reserves after taxation Profit to other Fair value movements on cash flow hedges taken directly income comprehensive Movement of treasury shares Movement of treasury to capital reserve Transfer general risk reserve to regulatory Transfer shares to treasury payment reserve share-based from Transfer 2016 At 31 March AUDIT CONCLUSION financial statements These abridged annual audited the have been extracted from on which Ernstannual financial statements Inc. have LLP and Ernst & Young & Young report. The audit issued an unmodified on the annual combined report auditor’s annual financial consolidated and separate for inspection at the statements is available office. companies registered All subsidiaries or structured entities are entities are All subsidiaries or structured an controls group consolidated when the an investee controls investee. The group rights to variable if it is exposed to, or has with the its involvement returns from those to affect investee and has the ability the investee. its power over returns through are of subsidiaries The financial results annual financial included in the consolidated on the date from statements of the group the date the is obtained until which control control. can no longer demonstrate group of performs a reassessment The group is a change in the whenever there control between substance of the relationship Investec and an investee. A change in the without of a subsidiary, ownership interest is accounted for as an a loss of control, also holds equity transaction. The group investments, in private equity investments, which give rise to significant, but not these voting rights. Assessing majority, voting rights and whether Investec controls judgement that these entities requires the date at which subsidiaries are affects consolidated or deconsolidated. Entities, other than subsidiary undertakings, significant exercises in which the group influence over operating and financial in as interests treated policies, are in associated undertakings. Interests accounted associated undertakings are the date for using the equity method from that significant influence commences until the date that significant influence interests where ceases. In circumstances in associated undertakings or joint venture has no holdings arise in which the group strategic intention, these investments are capital’ holdings and classified as ‘venture designated as held at fair value through are or loss. profit For equity accounted associates, the combined consolidated annual financial statements include the attributable share of associated and reserves of the results in interests undertakings. The group’s included in the associated undertakings are consolidated balance sheet at cost plus the post-acquisition changes in the group’s of the net assets of the associate. share The consolidated balance sheet reflects the associated undertakings net of accumulated impairment losses. balances, transactions All intergroup gains or losses within the and unrealised eliminated in full regarding are group, subsidiaries and to the extent of the interest in an associate. Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Investec plc and Investec Limited – Limited Investec and plc Investec policies accounting significant Certain disclosures required under IAS 24 Related Party Disclosures have been included in the section marked as audited in the remuneration report on pages 96 to 137. FIVE Capital disclosures relating to the nature to the nature relating Capital disclosures and extent of risks have been included in sections marked as audited in the risk 2016 in Investec’s management report integrated annual report. 154 Basis of consolidation Investec consists of two separate legal entities, being Investec plc and Investec Limited that operate under a dual listed (‘group’). company (DLC) structure is that of the DLC structure The effect Investec plc and its subsidiaries and Investec Limited and its subsidiaries operate together as a single economic with neither assuming a dominant entity, as a reported are and accordingly role entity under IFRS. single reporting  Presentation of information Basis of presentation are annual financial statements The group with International in accordance prepared (IFRS), Financial Reporting Standards Union (EU) as adopted by the European as issued by which comply with IFRSs the International Accounting Standards 2016, IFRS (IASB). At 31 March Board identical are as endorsed by the EU IFRS to current in all material respects differences with applicable to the group, certain dates of only in the effective has early the group However, standards. to ensure standards adopted these relevant compliance with both frameworks. annual financial statements have The group on a historical cost basis, been prepared available- except for investment properties, investments, derivative financial for-sale instruments, financial assets and financial profit liabilities held at fair value through subject to hedge accounting or loss or, and liabilities for surpluses at and deficits that have been measured fair value. The accounting policies adopted by the group Standards consistent with the prior year. are during the year didwhich became effective not have an impact on the group.

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 155 58.7 Total group (2 165) 47.0% 66.4% 17.7% 14.9% 45 352 12 090 11 377 (16 529) (35 201) 489 064 505 593 540 794 110 227 170 408 573 769 FIVE (109 516) 1 829 980 1 939 496 1 061 625 (1 287 021)

– – – – – – – – – – – – n/a n/a n/a n/a n/a n/a costs Group (45 805) (45 805) (45 805) (45 805) – 59.9 9 200 (2 165) 44.8% 60.1% 12.7% 12.5% 42 979 10 426 (35 201) 330 880 330 880 366 081 109 911 164 292 337 017 562 535 Banking (715 619) (109 516) 1 083 865 1 193 381 Specialist – – – – 509 316 54.8 1 794 1 193 6 072 7 330 53.8% 73.6% 30.7% Notes to the summary summary to the Notes 85 735 85 735 85 735 187.9% 324 500 324 500 309 080 (238 765) Wealth & Wealth Investment – – – – annual financial statements financial annual 44 579 471 88.3 1 668 3 904 Asset 48.2% 68.0% 79.1% (16 529) 173.1% 118 254 134 783 134 783 421 615 421 615 415 528 (286 832) Management Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Refer to calculation on page 55. balance sheet management and other trading activities customer flow

Total assets (£’million) Total Operating profit per employee (£’000) Operating profit Staff compensation to operating income Staff Cost to income ratio Return on tangible equity (pre-tax)* Selected returns and key statistics Selected returns ROE (pre-tax)* Operating profit/(loss) before goodwill, acquired goodwill, acquired before Operating profit/(loss) intangibles and after interests non-controlling Profit attributable to Asset Management Profit interests non-controlling Operating profit/(loss) before goodwill, acquired goodwill, acquired before Operating profit/(loss) intangibles and after other interests non-controlling Profit attributable to other non-controlling interests attributable to other non-controlling Profit Operating profit/(loss) before goodwill before Operating profit/(loss) intangibles and acquired Depreciation on operating leased assets Depreciation Operating costs Operating income Impairment losses on loans and advances Total operating income before impairment on loans income before operating Total and advances Other operating income – Trading income arising from Trading – Investment income Net fee and commission income Net fee and commission * Combined consolidated Combined consolidated segmental analysis 2016 – Segmental business analysis income statement income Net interest For the year to 31 March £’000 59.7 Total group (1 535) 13.7% 16.4% 67.6% 47.4% 12 236 44 353 (13 424) (11 701) (18 184) 634 977 128 334 106 313 504 858 493 157 474 973 (128 381) 1 089 043 1 957 479 1 829 098 (1 322 705) – – – – – – – – – – – – n/a n/a n/a n/a n/a n/a costs Group (39 312) (39 312) (39 312) (39 312) – 57.4 9 269 (1 535) 10.7% 10.9% 63.1% 45.2% 42 072 (15 483) (11 701) 624 114 360 825 124 189 105 289 316 414 304 713 304 713 Banking (128 381) (761 873) 1 208 203 1 079 822 Specialist – – – – 574 54.0 6 556 4 123 1 024 1 277 1 655 25.5% 74.8% 55.9% 78 781 78 781 78 781 136.1% 299 663 313 217 313 217 (234 436) Wealth & Wealth Investment – – – – 22 626 4 307 1 485 1 690 100.1 Asset 95.2% 65.8% 47.6% (18 184) 236.3% 428 555 436 059 436 059 148 975 148 975 130 791 (287 084) Management (continued) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) Refer to calculation on page 55. FIVE balance sheet management and other trading activities For the year to 31 March £’000 156 2015 – Segmental business analysis income statement income Net interest Net fee and commission income Net fee and commission Investment income income arising from Trading – customer flow –  Other operating income Total operating income before impairment on loans income before operating Total and advances Impairment losses on loans and advances Operating income interests attributable to other non-controlling Profit goodwill, acquired before Operating profit/(loss) intangibles and after other interests non-controlling attributable to Asset Management Profit interests non-controlling Operating costs goodwill before Operating profit/(loss) intangibles and acquired Depreciation on operating leased assets Depreciation goodwill, acquired before Operating profit/(loss) intangibles and after interests non-controlling and key statistics Selected returns Return on equity (pre-tax)* Return on tangible equity (pre-tax)* Cost to income ratio compensation to operating income Staff per employee (£’000) Operating profit Total assets (£’million) Total * Combined consolidated Combined consolidated segmental analysis

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 157 58.7 Total 5 197 group (4 778) (1 577) (2 165) 19.1% 47.0% 66.4% 13.7% 11.5% 12 090 11 377 (16 248) (16 529) (35 201) 45 352 368 456 466 461 489 064 505 593 540 794 110 227 170 408 573 769 (103 202) FIVE (109 516) 1 829 980 1 939 496 1 061 625 (1 287 021)

27 (16) 496 67.1 1 237 Africa (1 771) (1 577) (6 266) 18.7% 36.2% 52.2% 16.8% 16.6% 19 360 17 546 (67 867) (39 704) (25 299) 26 863 245 772 313 143 316 464 322 730 362 434 785 823 811 122 108 288 351 867 312 824 (423 373) Southern (continued) (continued) – 48.1 7.6% 4 701 4 503 Other (4 805) (2 149) (7 983) 19.8% 54.8% 76.7% 10.5% 10 853 92 681 62 120 (35 335) (14 477) (10 263) (84 217) 18 489 UK and 122 684 153 318 172 600 182 863 178 360 709 758 260 945 (863 648) 1 044 157 1 128 374 Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review (continued) Refer to calculation on page 54. Total assets (£'million) Total Effective operational tax rate Effective Operating profit per employee (£’000) Operating profit Staff compensation to operating income Staff Cost to income ratio Return on tangible equity (post-tax)* Selected returns and key statistics Selected returns ROE (post-tax)* Earnings attributable to shareholders Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries on acquired Taxation Taxation on operating profit before goodwill and acquired intangibles goodwill and acquired before on operating profit Taxation Earnings attributable to shareholders before taxation before Earnings attributable to shareholders Net (loss)/gain on disposal of subsidiaries Amortisation of acquired intangibles Amortisation of acquired Impairment of goodwill Operating profit before goodwill, acquired intangibles and after intangibles and after goodwill, acquired before Operating profit interests non-controlling Profit attributable to Asset Management non-controlling interests attributable to Asset Management non-controlling Profit Operating profit before goodwill, acquired intangibles and after other intangibles and after goodwill, acquired before Operating profit interests non-controlling Loss/(profit) attributable to other non-controlling interests attributable to other non-controlling Loss/(profit) Operating profit before goodwill and acquired intangibles goodwill and acquired before Operating profit Depreciation on operating leased assets Depreciation Operating costs Operating income Impairment losses on loans and advances Total operating income before impairment on loans and advances income before operating Total Other operating income – balance sheet management and other trading activities – balance sheet management and other trading Trading income arising from Trading – customer flow Investment income Net fee and commission income Net fee and commission 2016 analysis – income statement Segmental geographic income Net interest * Combined consolidated Combined consolidated segmental analysis For the year to 31 March £’000

59.7 Total group (5 337) (1 535) 19.6% 47.4% 67.6% 12.7% 10.6% 44 353 12 236 (17 574) (99 023) (93 033) (14 497) (18 184) (11 701) (13 424) 245 509 362 106 474 973 493 157 504 858 106 313 128 334 634 977 (128 381) 1 829 098 1 957 479 1 089 043 (1 322 705) – – – 27 (961) 78.2 1 597 Africa (8 131) 18.7% 35.5% 51.4% 18.4% 18.4% 14 762 18 054 (70 661) (28 557) (25 674) 26 384 269 322 339 983 340 917 349 048 377 605 804 724 830 398 130 544 357 946 307 495 (427 119) Southern 38.0 6.9% 4.9% Other (4 376) (1 535) (2 210) 22.3% 56.1% 79.6% 22 123 16 856 10 639 88 259 (17 574) (28 362) (93 060) (14 497) (10 053) (28 186) 17 969 (23 813) UK and 134 056 144 109 127 253 731 097 327 482 (895 586) (102 707) 1 024 374 1 127 081 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) Refer to calculation on page 54. FIVE Total assets (£’million) Total Effective operational tax rate Effective Operating profit per employee (£’000) Operating profit Staff compensation to operating income Staff Cost to income ratio Return on tangible equity (post-tax)* Selected returns and key statistics Selected returns ROE (post-tax)* Earnings attributable to shareholders Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries on acquired Taxation Taxation on operating profit before goodwill and acquired intangibles goodwill and acquired before on operating profit Taxation Earnings attributable to shareholders before taxation before Earnings attributable to shareholders Net (loss)/gain on disposal of subsidiaries Amortisation of acquired intangibles Amortisation of acquired Impairment of goodwill intangibles and after goodwill, acquired before Operating profit non-controlling interests Profit attributable to Asset Management non-controlling interests attributable to Asset Management non-controlling Profit Operating profit before goodwill, acquired intangibles and after other intangibles and after goodwill, acquired before Operating profit interests non-controlling Loss/(profit) attributable to other non-controlling interests attributable to other non-controlling Loss/(profit) Operating profit before goodwill and acquired intangibles goodwill and acquired before Operating profit Depreciation on operating leased assets Depreciation Operating costs Operating income Impairment losses on loans and advances Total operating income before impairment on loans and advances income before operating Total Other operating income – balance sheet management and other trading activities – balance sheet management and other trading Trading income arising from Trading – customer flow Investment income Net fee and commission income Net fee and commission * Combined consolidated segmental analysis segmental analysis Combined consolidated (continued) 2015 analysis – income statement Segmental geographic income Net interest For the year to 31 March £’000 158

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS

159 Total group 11 701 78 781 35 201 85 735 (39 312) (45 805) 493 157 504 858 532 469 304 713 505 593 540 794 148 975 551 398 330 880 134 783 FIVE

Africa (9 264) 21 910 73 484 22 608 57 930 (10 645) 349 048 358 312 262 918 322 730 333 375 252 837 Southern (continued) (continued)

Other 41 795 56 871 75 491 78 043 63 127 76 853 (30 048) (35 160) UK and 144 109 174 157 182 863 218 023

Notes to the summary summary to the Notes (continued) annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review 2015 Segmental geographic and business analysis of operating profit before goodwill, before and business analysis of operating profit Segmental geographic items, taxation and after other non-controlling intangibles, non-operating acquired interests 2016 Other non-controlling interest – equity interest Other non-controlling Operating profit Total group Total Group costs Group Specialist Banking Other non-controlling interest – equity interest Other non-controlling Operating profit Wealth & Investment Wealth Asset Management Total group Total Group costs Group Specialist Banking Wealth & Investment Wealth Asset Management Combined consolidated segmental analysis segmental analysis Combined consolidated For the year to 31 March £’000 Total 1 533 group 55 486 85 650 90 888 192 255 120 851 971 646 957 418 148 280 368 039 938 879 112 135 267 099 160 295 321 617 437 243 660 795 949 950 896 855 466 573 1 134 883 5 845 503 1 802 967 2 299 751 1 582 847 2 397 403 5 847 036 2 092 661 1 119 074 1 580 949 3 208 862 2 497 125 2 498 585 3 007 269 41 492 474 40 357 591 34 510 555 24 044 281 45 351 781 39 504 745 17 681 572 234 1 533 9 730 Africa 21 652 51 296 85 650 24 800 11 045 34 514 27 085 17 394 537 574 484 811 597 653 690 386 730 820 635 345 859 828 409 371 243 512 437 243 209 795 594 730 749 654 556 298 715 490 466 573 369 200 Southern 5 845 503 1 896 144 5 847 036 9 877 970 1 955 871 2 050 171 1 395 387 24 822 214 24 284 640 18 437 604 13 243 613 26 862 697 21 015 661 – – – – – – Other 33 834 79 051 56 374 85 050 23 587 UK and 597 309 140 959 120 617 281 260 226 598 947 502 501 259 123 480 356 994 150 565 304 223 451 000 524 344 831 295 393 652 181 365 446 954 1 318 156 1 702 098 1 683 290 7 803 602 1 252 991 1 103 198 2 638 069 16 670 260 16 072 951 16 072 951 10 800 668 18 489 084 18 489 084

(continued) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE Subordinated liabilities Subordinated Insurance liabilities, including unit-linked liabilities Liabilities to customers under investment contracts Other liabilities Deferred taxation liabilities Deferred Current taxation liabilities Current Liabilities arising on securitisation of other assets Liabilities arising on securitisation of own originated loans and advances Debt securities in issue Customer accounts (deposits) Repurchase agreements and cash collateral on securities lent agreements Repurchase Other trading liabilities Derivative financial instruments Liabilities Deposits by banks Other financial instruments at fair value through profit or loss in respect of liabilities or loss in profit Other financial instruments at fair value through to customers Intangible assets Goodwill Investment properties Investment properties Property and equipment Property Other assets Deferred taxation assets Deferred Interests in associated undertakings Interests Other securitised assets Other loans and advances Own originated loans and advances to customers securitised Own originated loans and advances to customers Loans and advances to customers Investment portfolio Securities arising from trading activities Securities arising from Derivative financial instruments Other debt securities Bank debt securities Sovereign debt securities Sovereign Reverse repurchase agreements and cash collateral on securities borrowed and cash collateral on securities borrowed agreements Reverse repurchase Non-sovereign and non-bank cash placements and non-bank Non-sovereign Loans and advances to banks Loans and advances to 2016 analysis – balance sheet assets and liabilities Segmental geographic Assets banks Cash and balances at central segmental analysis Combined consolidated At 31 March £’000 160

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 161 Total 1 823 group 76 481 40 726 99 301 25 244 201 790 616 909 109 953 885 003 147 227 361 527 617 898 102 354 780 596 574 830 448 647 947 846 627 373 586 400 FIVE 1 178 299 6 335 326 1 845 679 1 709 369 1 284 945 1 544 168 1 908 294 6 337 149 1 741 713 1 086 349 1 580 681 1 161 055 2 958 641 1 812 156 3 045 864 2 529 562 40 312 907 39 134 608 32 797 459 22 614 868 44 353 402 38 016 253 16 740 263

1 823 5 437 3 313 Africa 31 078 97 185 40 726 10 572 39 285 25 683 21 664 581 376 433 952 286 383 109 953 517 383 687 686 633 124 689 921 552 162 424 321 368 613 448 647 546 905 416 051 844 384 404 888 941 713 597 207 586 400 348 320 Southern 6 335 326 1 700 331 6 337 149 9 679 146 1 745 731 1 995 452 (continued) (continued) 24 421 896 23 840 520 17 503 371 12 316 375 26 383 769 20 046 620 – – – – – – – Other 45 403 65 736 63 069 73 618 21 931 UK and 596 923 104 605 330 526 597 259 251 879 854 247 207 963 136 655 356 090 411 983 553 166 400 941 670 298 736 297 222 485 219 342 1 411 727 1 191 986 1 317 392 7 061 117 1 212 910 1 214 949 1 050 412 2 181 242 15 891 011 15 294 088 15 294 088 10 298 493 17 969 633 17 969 633

Notes to the summary summary to the Notes (continued) annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Subordinated liabilities Subordinated Insurance liabilities, including unit-linked liabilities Liabilities to customers under investment contracts Other liabilities Deferred taxation liabilities Deferred Current taxation liabilities Current Liabilities arising on securitisation of other assets Liabilities arising on securitisation of own originated loans and advances Debt securities in issue Customer accounts (deposits) Repurchase agreements and cash collateral on securities lent agreements Repurchase Other trading liabilities Derivative financial instruments Liabilities Deposits by banks Other financial instruments at fair value through profit or loss in profit Other financial instruments at fair value through of liabilities to customers respect Non-current assets classified as held for sale Non-current Intangible assets Goodwill Investment properties Investment properties Property and equipment Property Other assets Deferred taxation assets Deferred Interests in associated undertakings Interests Other securitised assets Other loans and advances Own originated loans and advances to customers securitised Own originated loans and advances to customers Loans and advances to customers Investment portfolio Securities arising from trading activities Securities arising from Derivative financial instruments Other debt securities Bank debt securities Sovereign debt securities Sovereign Reverse repurchase agreements and cash collateral on securities borrowed and cash collateral on securities borrowed agreements Reverse repurchase Non-sovereign and non-bank cash placements and non-bank cash Non-sovereign Loans and advances to banks Loans and advances to segmental analysis Combined consolidated At 31 March £’000 2015 analysis – balance sheet assets and liabilities Segmental geographic Assets banks Cash and balances at central Total group (2 165) 66.4% 47.0% 12 090 11 377 (16 529) (35 201) 573 769 540 794 505 593 489 064 170 408 110 227 (109 516) 1 061 625 1 939 496 1 829 980 (1 287 021) – – – – – – – – – – – – n/a n/a Total (45 805) (45 805) (45 805) (45 805) – – – – – – – – – – – – n/a n/a Africa (10 645) (10 645) (10 645) (10 645) Southern Group costs Group – – – – – – – – – – – – n/a n/a Other UK and (35 160) (35 160) (35 160) (35 160) – Total 9 200 (2 165) 60.1% 44.8% 10 426 (35 201) 330 880 562 535 337 017 366 081 330 880 164 292 109 911 (109 516) (715 619) 1 193 381 1 083 865 – (16) (371) Africa 46.8% 35.0% 17 563 19 075 (25 299) (39 704) 252 837 305 944 147 504 597 704 572 405 292 541 252 837 107 989 (279 848) Southern Specialist Banking – 4 503 Other (2 149) (9 875) 73.4% 54.6% 78 043 10 797 73 540 78 043 56 303 92 348 (84 217) UK and 256 591 189 513 595 677 511 460 (435 771) – – – – 316 509 Total 6 072 1 193 7 330 53.8% 73.6% 85 735 85 735 85 735 324 500 324 500 309 080 (238 765) – – – – 2 (17) 255 273 3 266 Africa 46.3% 66.7% 22 608 22 608 22 608 67 866 67 866 64 087 (45 258) Southern – – – – Wealth & Investment Wealth 333 236 5 817 1 191 4 064 Other 55.8% 75.4% 63 127 63 127 63 127 UK and 256 634 256 634 244 993 (193 507) – – – – 44 471 Total 1 668 3 904 48.2% 68.0% (16 529) 134 783 118 254 134 783 421 615 421 615 415 528 (286 832) – – – – 44 12 1 606 3 614 Africa (6 266) 36.5% 60.2% 57 930 51 664 57 930 (87 622) 145 552 145 552 140 276 Southern – – – – – Asset Management 290 1 656 Other (1 135) 54.3% 72.2% 76 853 66 590 76 853 (10 263) UK and 276 063 276 063 275 252 (199 210) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE balance sheet management and other trading balance sheet management and other trading activities Staff compensation to operating income Staff Selected returns and key statistics Selected returns Cost to income ratio Operating profit/(loss) before goodwill, acquired goodwill, acquired before Operating profit/(loss) intangibles and after interests non-controlling Operating profit/(loss) before goodwill, acquired goodwill, acquired before Operating profit/(loss) intangibles and after other interests non-controlling attributable to Asset Management Profit interests non-controlling (Profit)/loss attributable to other (Profit)/loss interests non-controlling Operating profit/(loss) before goodwill and before Operating profit/(loss) intangibles acquired Operating costs on operating leased assets Depreciation Total operating income before impairment income before operating Total losses on loans and advances Impairment losses on loans and advances Operating income –  Other operating income Investment income income arising from Trading – customer flow Net fee and commission income (continued) (continued) geographic analysis – Segmental business and income statement 2016 income Net interest Combined consolidated Combined consolidated segmental analysis For the year to 31 March £’000 162

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 163 FIVE

(continued) (continued) Total group (2 165) 66.4% 47.0% 11 377 12 090 (16 529) (35 201) 540 794 505 593 489 064 573 769 170 408 110 227 (109 516) 1 939 496 1 829 980 1 061 625 (1 287 021) – – – – – – – – – – – – n/a n/a Total (45 805) (45 805) (45 805) (45 805) Notes to the summary summary to the Notes – – – – – – – – – – – – n/a n/a Africa (10 645) (10 645) (10 645) (10 645) Southern annual financial statements financial annual Group costs Group – – – – – – – – – – – – n/a n/a Other UK and (35 160) (35 160) (35 160) (35 160) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review – Total 9 200 (2 165) 60.1% 44.8% 10 426 (35 201) 366 081 330 880 330 880 562 535 337 017 164 292 109 911 (715 619) (109 516) 1 193 381 1 083 865 – (16) (371) Africa 46.8% 35.0% 17 563 19 075 (39 704) (25 299) 597 704 572 405 292 541 252 837 252 837 305 944 147 504 107 989 (279 848) Southern Specialist Banking – 4 503 Other (2 149) (9 875) 73.4% 54.6% 78 043 78 043 73 540 10 797 56 303 92 348 (84 217) UK and 595 677 511 460 256 591 189 513 (435 771) – – – – 509 316 Total 6 072 7 330 1 193 73.6% 53.8% 85 735 85 735 85 735 309 080 324 500 324 500 (238 765) – – – – 2 (17) 273 255 3 266 Africa 66.7% 46.3% 22 608 64 087 67 866 67 866 22 608 22 608 (45 258) Southern – – – – Wealth & Investment Wealth 236 333 5 817 4 064 1 191 Other 75.4% 55.8% 63 127 63 127 63 127 UK and 244 993 256 634 256 634 (193 507) – – – – 44 471 Total 1 668 3 904 68.0% 48.2% (16 529) 118 254 415 528 421 615 421 615 134 783 134 783 (286 832) – – – – 12 44 3 614 1 606 Africa (6 266) 60.2% 36.5% 51 664 57 930 57 930 (87 622) 140 276 145 552 145 552 Southern – – – – – Asset Management 290 1 656 Other (1 135) 72.2% 54.3% 66 590 76 853 76 853 (10 263) UK and 275 252 276 063 276 063 (199 210) balance sheet management and other trading balance sheet management and other trading activities Operating profit/(loss) before goodwill, acquired goodwill, acquired before Operating profit/(loss) intangibles and after interests non-controlling and key statistics Selected returns Cost to income ratio compensation to operating income Staff For the year to 31 March £’000 Combined consolidated segmental analysis (continued) geographic analysis – Segmental business and income statement 2016 income Net interest Net fee and commission income Investment income income arising from Trading – customer flow –  Other operating income impairment income before operating Total losses on loans and advances Impairment losses on loans and advances Operating income Operating costs on operating leased assets Depreciation goodwill and before Operating profit/(loss) intangibles acquired attributable to other (Profit)/loss interests non-controlling goodwill, acquired before Operating profit/(loss) intangibles and after other interests non-controlling attributable to Asset Management Profit interests non-controlling Total group (1 535) 67.6% 47.4% 12 236 (18 184) (13 424) (11 701) 474 973 634 977 128 334 106 313 504 858 493 157 (128 381) 1 089 043 1 957 479 1 829 098 (1 322 705) – – – – – – – – – – – – n/a n/a Total (39 312) (39 312) (39 312) (39 312) – – – – – – – – – – – – n/a n/a Africa (9 264) (9 264) (9 264) (9 264) Southern Group costs Group – – – – – – – – – – – – n/a n/a Other (30 048) (30 048) (30 048) (30 048) UK and – Total 9 269 (1 535) 63.1% 45.2% (15 483) (11 701) 304 713 624 114 360 825 124 189 105 289 316 414 304 713 (128 381) (761 873) 1 208 203 1 079 822 – – 42 Africa 47.2% 34.6% 17 925 14 560 (25 674) (28 557) 262 918 303 141 135 500 129 885 601 053 575 379 291 475 262 918 (283 904) Southern Specialist Banking – 9 227 Other (5 696) (1 535) 78.9% 55.6% 41 795 87 364 24 939 16 856 41 795 (30 043) UK and 320 973 225 325 607 150 504 443 (102 707) (477 969) – – – – 574 Total 6 556 4 123 1 024 1 277 55.9% 74.8% 78 781 78 781 78 781 313 217 313 217 299 663 (234 436) – – – – 1 347 637 129 218 Africa 45.3% 64.9% 21 910 21 910 21 910 62 334 62 334 61 002 (40 424) Southern – – – – Wealth & Investment Wealth 895 356 6 209 3 486 1 276 Other 58.5% 77.3% 56 871 56 871 56 871 UK and 250 883 250 883 238 661 (194 012) – – – – 22 Total 4 307 1 485 1 690 47.6% 65.8% (18 184) 148 975 148 975 130 791 436 059 436 059 428 555 (287 084) – – – – 22 (16) 4 007 1 554 Africa (8 131) 34.9% 56.0% 73 484 73 484 65 353 (93 527) 167 011 167 011 161 444 Southern – – – – – Asset Management 300 136 1 501 Other 55.4% 71.9% 75 491 75 491 65 438 (10 053) UK and 269 048 269 048 267 111 (193 557) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE balance sheet management and other trading balance sheet management and other trading activities Staff compensation to operating income Staff Operating profit before goodwill and acquired goodwill and acquired before Operating profit intangibles Selected returns and key statistics Selected returns Cost to income ratio Profit attributable to Asset Management Profit interests non-controlling goodwill, before Operating profit and after acquired intangibles interests non-controlling Operating profit before goodwill, acquired goodwill, acquired before Operating profit intangibles and after other non-controlling interests (Profit)/loss attributable to other (Profit)/loss interests non-controlling Operating income Operating costs on operating leased assets Depreciation Total operating income before impairment losses income before operating Total on loans and advances Impairment losses on loans and advances –  Other operating income Investment income income arising from Trading – customer flow Net fee and commission income (continued) (continued) geographic analysis – Segmental business and income statement 2015 income Net interest Combined consolidated Combined consolidated segmental analysis For the year to 31 March £’000 164

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 165 FIVE

(continued) (continued) Total group (1 535) 67.6% 47.4% 12 236 (18 184) (13 424) (11 701) 493 157 474 973 634 977 128 334 106 313 504 858 (128 381) 1 089 043 1 957 479 1 829 098 (1 322 705) – – – – – – – – – – – – n/a n/a Total (39 312) (39 312) (39 312) (39 312) Notes to the summary summary to the Notes – – – – – – – – – – – – n/a n/a Africa (9 264) (9 264) (9 264) (9 264) Southern annual financial statements financial annual Group costs Group – – – – – – – – – – – – n/a n/a Other (30 048) (30 048) (30 048) (30 048) UK and Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review – Total 9 269 (1 535) 63.1% 45.2% (11 701) (15 483) 304 713 304 713 624 114 360 825 316 414 124 189 105 289 (761 873) (128 381) 1 208 203 1 079 822 – – 42 Africa 47.2% 34.6% 17 925 14 560 (28 557) (25 674) 262 918 262 918 303 141 135 500 601 053 575 379 291 475 129 885 (283 904) Southern Specialist Banking – 9 227 Other (1 535) (5 696) 78.9% 55.6% 41 795 41 795 24 939 16 856 87 364 (30 043) UK and 607 150 504 443 320 973 225 325 (102 707) (477 969) – – – – 574 Total 4 123 1 024 6 556 1 277 74.8% 55.9% 78 781 78 781 78 781 299 663 313 217 313 217 (234 436) – – – – 1 218 637 129 347 Africa 64.9% 45.3% 21 910 61 002 62 334 62 334 21 910 21 910 (40 424) Southern – – – – Wealth & Investment Wealth 356 895 3 486 6 209 1 276 Other 77.3% 58.5% 56 871 56 871 56 871 UK and 238 661 250 883 250 883 (194 012) – – – – 22 Total 1 485 4 307 1 690 65.8% 47.6% (18 184) 130 791 428 555 436 059 436 059 148 975 148 975 (287 084) – – – – 22 (16) 4 007 1 554 Africa (8 131) 56.0% 34.9% 65 353 73 484 73 484 (93 527) 161 444 167 011 167 011 Southern – – – – – Asset Management 300 136 1 501 Other 71.9% 55.4% 65 438 75 491 75 491 (10 053) UK and 267 111 269 048 269 048 (193 557) balance sheet management and other trading balance sheet management and other trading activities Operating profit before goodwill, before Operating profit and after acquired intangibles interests non-controlling and key statistics Selected returns Cost to income ratio compensation to operating income Staff For the year to 31 March £’000 Combined consolidated segmental analysis (continued) geographic analysis – Segmental business and income statement 2015 income Net interest Net fee and commission income Investment income income arising from Trading – customer flow –  Other operating income impairment losses income before operating Total on loans and advances Impairment losses on loans and advances Operating income Operating costs on operating leased assets Depreciation goodwill and acquired before Operating profit intangibles attributable to other (Profit)/loss interests non-controlling goodwill, acquired before Operating profit intangibles and after other non-controlling interests attributable to Asset Management Profit interests non-controlling – £ – – – – – – price 2015 Total group 24 943 41 904 59 885* 59 885 51 061 51 061 average exercise Weighted 2015 – 87 083 options Number of share 1 844 1 844 2 446 2 446 2016 costs Group (1 253 909) 29 344 36 634 10 719 215 44 475 185 41 633 973 (12 306 518) £ – – – – – – – price average exercise Weighted South African schemes 45 122 45 122 35 403 35 403 – 2016 Banking Specialist 10 878 options Number of share 8 431 958 (1 314 979) 41 633 973 37 773 545 (10 977 407) £ – – 9 133 9 133 9 964 9 964 0.16 0.04 0.28 0.06 0.02 price Wealth & Wealth Investment average exercise Weighted 2015 – Asset 3 786 3 786 3 248 3 248 options Number 137 197 of share 6 721 210 (1 605 255) 42 877 067 32 430 764 (15 562 258) Management – £ – 0.12 0.06 0.07 0.01 0.44 UK schemes price average exercise Weighted – 2016 70 987 options Number of share 6 810 928 (9 203 122) (1 278 091) 32 430 764 28 760 479 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) Further information on the group share options and long-term incentive plans is provided in the remuneration report on plans is provided in the remuneration the group share options and long-term incentive Further information on website. page 116 and on our  

The weighted average share price for options exercised during the year was £5.34 (2015: £5.41) for the UK schemes and R108.32 (2015: R96.84) for theThe weighted average share price for options exercised during the year was £5.34 (2015: £5.41) for the UK South African schemes. Of the £59.9 million charge in 2015, £56.0 million is included in operating costs and £3.9 million is an accelerated share-based payments charge that is Of the £59.9 million charge in 2015, £56.0 million is restructuring and partial disposal of costs arising from integration, of subsidiaries and operating included in the income statement in net loss on disposal subsidiaries respectively. FIVE

Total income statement charge income Total 2015 Equity-settled Total income statement charge income Total Share-based payment expense Share-based 2016 Equity-settled ^ Vested and exercisable Vested at the end of the year Options forfeited during the year Outstanding at the end of the year Exercised during Exercised the year^ during the year Expired Granted during the year For the year to 31 March £’000 Weighted average fair value of options granted in the year average fair value of options granted in the Weighted UK schemes South African schemes * For the year to 31 March £’000 Outstanding at the beginning of the year Details of options outstanding during the year 166 Included in the above income statement charge is an accelerated share-based payment charge as a result of modifications to certain payment charge as a result is an accelerated share-based Included in the above income statement charge £0.02 million (2015: £0.01 million). options granted. This expense for the year was Share-based payments Share-based basis. on an equity-settled the majority of which are incentive plans for employees, long-term share option and operates share The group of Investec’s an awareness create an esprit de corps within the organisation, is to promote schemes share The purpose of the staff of in the risks and rewards to share by allowing all staff performance incentive to maximise individual and group an performance and provide the group.

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 167 n/a n/a Rnil Rnil 2015 R69.52 FIVE 2.15 years 1 – 5 years

25.24% – 30% 4.45% – 4.62% 6.78 % – 7.18% R90.00 – R100.57 n/a n/a Rnil Rnil 30% (continued) (continued) 2016 R84.62 South African schemes 2.04 years 4 – 5 years 4.02% – 4.19% 7.49 % – 7.66% R109.98 – R120.88 £nil 2015 £3.71 2.07 years 1.80 years Notes to the summary summary to the Notes £3.20 – £5.72 £5.16 – £5.72 25.24% – 30% 4.86% – 5.04% 1.36% – 1.70% 4.5 – 5.25 years £nil, £5.16 – £5.72 annual financial statements financial annual £nil 30% UK schemes 2016 £4.31 2.09 years 1.77 years 3 – 5.5 years £3.29 – £6.00 £5.68 – £6.00 4.50% – 4.67% 1.28% – 1.31% Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review £nil, £5.68 – £6.00 (continued)

Options with strike prices price range Exercise Additional information relating to options relating Additional information Long-term incentive grants with no strike price Long-term incentive grants price range Exercise Weighted average remaining contractual life average remaining Weighted Weighted average remaining contractual life contractual average remaining Weighted average fair value of options and long- Weighted date term grants at measurement The fair values of options granted were The fair values of options granted were calculated using a Black-Scholes option pricing the model. For options granted during the year, as follows: inputs into the model were price at date of grant – Share – Exercise price – Exercise – Expected volatility – Option life – Expected dividend yields – Risk-free rate – Risk-free Share-based payments Share-based Expected volatility was determined based on the implied volatility levels quoted by the equity derivatives trading desk. The expected volatility the implied volatility levels quoted by the equity derivatives trading desk. The expected volatility Expected volatility was determined based on last six months, but also includes an element of forward expectation. price movement over the share is based on the respective data with an adjustment to actual attrition on final vesting. based on historical group determined The expected attrition rates used were

(413) 2015 24.4 23.1 39.4 £’000 5 337 £’000 (1 211) 17 574 93 033 14 497 (34 803) (34 803) 339 523 245 509 245 509 210 706 31 March 47 937 173 (34 815 248) 897 466 433 862 651 185 910 588 358 –

2016 36.7 41.3 38.5 7 062 £’000 1 577 4 778 £’000 (5 197) 16 248 (33 192) (33 192) 359 732 368 456 368 456 335 264 31 March 42 748 491 (35 964 483) 906 490 426 870 525 943 913 274 434 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) on declaration by the liability arises, i.e. on declaration by the In accordance with IFRS, dividends attributable to equity holders are accounted for when a constructive is best reflected by adjusting for earnings that board of directors and approval by the shareholders where required. Investec is of the view that EPS are attributed to equity instruments (other than ordinary shares) on an accrual basis and therefore adjusts the paid dividend on such instruments to accrued in arriving at adjusted EPS. FIVE * Earnings per share Earnings per For the year to 31 March Adjusted earnings attributable to ordinary shareholders before goodwill, before shareholders Adjusted earnings attributable to ordinary intangibles and non-operating items acquired Preference dividends paid Preference Accrual adjustment on earnings attributable to other equity holders* hedge attributable to perpetual equity instruments* Currency Taxation on acquired intangibles and acquisition/disposal/integration of subsidiaries on acquired Taxation Diluted earnings per share – pence Diluted earnings per share shareholders by dividing the earnings is calculated Diluted earnings attributable to the ordinary per share by potential shares, of dilutive ordinary for the effects of Investec plc and Investec Limited, adjusted during the year plus the weighted average number of in issue the weighted average number of shares during the potential shares that would be issued on conversion of the dilutive ordinary shares ordinary year – pence Adjusted earnings per share deducting goodwill impairment by dividing the earnings is calculated Adjusted earnings before per share after taking into account earnings shareholders, and non-operating items attributable to the ordinary in shares by the weighted average number of ordinary shareholders, attributable to perpetual preference issue during the year Earnings attributable to shareholders Impairment of goodwill intangibles Amortisation of acquired Net loss on disposal of subsidiaries Earnings Earnings to shareholders attributable dividends paid Preference Earnings shareholders diluted earnings and to ordinary attributable in issue number of shares Weighted in issue during the year of shares total average number Weighted shares average number of treasury Weighted in issue during the year average number of shares Weighted dilutive potential shares future from resulting average number of shares Weighted in issue potentially Adjusted weighted number of shares – pence Earnings per share shareholders dividing the earnings is calculated by Basic earnings to the ordinary attributable per share during in issue shares average number of ordinary in Investec plc and Investec Limited by the weighted the year 168

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS –

169 35.8 2015 £’000 5 337 (4 660) 93 033 20 666 (34 803) (16 312) 308 770 245 509 FIVE

–

38.5 2016 5 092 1 577 4 778 £’000 (1 961) (33 192) (10 030) 334 720 368 456 (continued) (continued) Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review (continued)

Taxation on headline earnings adjustments amounted to £1.9 million (2015: £7.2 million) with an impact of £9.4 million (2015: £7.4 million) on earnings million (2015: £7.2 million) with an impact of £9.4 million (2015: £7.4 million) on earnings on headline earnings adjustments amounted to £1.9 Taxation attributable to non-controlling interests. ** For the year to 31 March share Earnings per Headline earnings attributable to ordinary shareholders** Headline earnings attributable to ordinary Loss on write down of non-current assets classified as held for sale** assets classified Loss on write down of non-current Headline earnings per share – pence Headline earnings per share with the JSE Listings in accordance has been calculated and is disclosed Headline earnings per share of Chartered 2/2013 issued by the South African Institute and in terms of circular Requirements, Accountants Earnings to shareholders attributable Impairment of goodwill Net loss on disposal of subsidiaries on acquisition/disposal/integration of subsidiaries Taxation dividends paid Preference interests** net of taxation and non-controlling revaluation, Property the income statement** through instruments recycled Gains on available-for-sale

Total £’000 72 849 95 637 168 486 2015 8.5 19.5 11.0 share Pence per

Total £’000 97 896 82 113 180 009 2016 9.5 21.0 11.5 share Pence per Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) For Investec Limited shareholders, through a dividend payment Investec by Limited of 266 cents per ordinary share For Investec plc non-South African shareholders, through a dividend pence paidper Investec by ordinary plc of 11.5 share For Investec plc South African shareholders, through a dividend payment Investec by pence plc of 2.0 per ordinaryshare and through a dividend payment on the SA share DAS pence of 9.5 per ordinary share. FIVE The directors have proposed a final dividend in respect of the financial year ended 31 March 2016 of 11.5 pence per ordinary share (31 share per ordinary 2016 of 11.5 pence of the financial year ended 31 March a final dividend in respect have proposed The directors 2015: 11.5 pence). March This will be paid as follows: • • • of the members of Investec plc and Investec to the approval on 29 July 2016 is subject registered The final dividend to shareholders will be paid on 10 August 2016. to take place on 4 August 2016 and, if approved, Limited at the general meeting which is scheduled recognised in current financial year in current recognised Dividends dividend Ordinary year Final dividend for prior

For the year to 31 March shareholders ordinary dividend attributable to Total Interim dividend for current year Interim dividend for current 170

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS

171 Total £’000 9 081 9 596 1 598 18 677 14 528 34 803 FIVE 2015

Total £’000 9 424 2 801 10 910 20 334 33 192 33 192 10 057 2016 (continued) (continued)

Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review

(continued)

Perpetual preference share dividends from Investec Limited, Investec Bank Limited and Investec plc. Perpetual preference share dividends from Investec For the year to 31 March The €200 000 000 fixed/floating rate guaranteed, non-voting, non-cumulative perpetual preferred securities paid dividends of 7.075% in non-voting, non-cumulative perpetual preferred The €200 000 000 fixed/floating rate guaranteed, both years as set out in note 47. Total perpetual preference dividend and Other Additional Tier 1 securities preference perpetual Total Dividends attributable to Additional Tier 1 securities in issue Dividends attributable to Additional Tier 1 Dividend attributable to perpetual preferred securities Dividend attributable to perpetual preferred The R550 000 000 Other Additional Tier JIBAR plus 4.25% on a 1 floating rate notes pay dividends at a rate equal to the three-month quarterly basis as set out in note 46. For the year to 31 March The directors have declared a final dividend in respect of the financial year ended 31 March 2016 of 7.52055 pence (Investec plc shares 2016 of 7.52055 pence (Investec plc shares year ended 31 March of the financial a final dividend in respect have declared The directors Island Stock Exchange), 470.250000 cents traded on the Channel (Investec plc shares traded on the JSE Limited) and 7.52055 pence cents (Investec Limited) and 412.48350 cents (Investec Bank Limited) per perpetual 384.96150 (Investec plc Rand-denominated shares), 10 June 2016. at the close of business on Friday, on the register dividend will be payable to shareholders The final share. preference * Dividends Perpetual preference dividend Perpetual preference year Final dividend for prior year Interim dividend for current in recognised shareholders perpetual preference dividend attributable to Total financial year current Total 1 533 55 486 90 888 85 650 267 099 112 135 938 879 368 039 148 280 957 418 971 646 120 851 192 255 466 573 896 855 949 950 660 795 437 243 321 617 160 295 1 582 847 5 845 503 3 208 862 1 580 949 1 119 074 5 847 036 2 397 403 2 299 751 1 802 967 1 134 883 3 007 269 2 498 585 2 497 125 2 092 661 24 044 281 34 510 555 40 357 591 41 492 474 17 681 572 39 504 745 45 351 781 – – – – – – – – – – – – – – – – – – – – – – – – – – 55 486 90 888 267 099 112 135 938 879 368 039 148 280 192 255 570 797 818 538 818 538 818 538 495 486 2 420 806 2 420 806 or scoped instruments out of IAS 39 Non-financial – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 1 533 linked related 5 845 503 5 847 036 5 847 036 5 847 036 5 847 036 Insurance- at fair value instruments – – – – – – – – – – – – – – – – – cost Total 85 650 12 705 698 738 175 953 548 537 258 295 466 415 437 243 321 617 2 397 403 1 707 826 1 199 976 1 134 883 3 006 146 2 349 107 1 058 916 1 215 965 23 473 530 29 563 123 29 563 123 30 698 006 26 865 861 26 865 861 17 014 962 instruments at amortised – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – cost 85 650 698 738 Financial 2 397 403 1 707 826 1 199 976 1 134 883 amortised 23 473 530 29 563 123 29 563 123 30 698 006 liabilities at – – – – – – – – – – – – – – – – – – – – – – – – – – – – 12 705 251 680 245 809 466 415 437 243 321 617 3 006 146 2 349 107 1 058 916 1 215 965 Loans and 26 380 565 26 380 565 17 014 962 receivables – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Held- 12 486 175 953 296 857 485 296 485 296 to-maturity – – – – – – – – – – – – – – – – 158 Total 1 123 32 194 957 418 272 908 570 751 591 925 120 851 149 478 348 318 691 655 660 795 666 610 147 590 381 210 3 032 909 1 119 074 1 438 209 1 580 949 1 582 847 4 128 894 4 128 894 4 128 894 10 218 078 10 218 078 at fair value instruments – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 61 128 for-sale 241 205 550 168 1 664 170 2 516 671 2 516 671 Available- – – – – – – – – – – – – – – – – – – – – – – – – 49 350 203 093 570 751 591 925 120 851 149 478 107 113 141 476 599 667 666 610 147 590 1 368 739 3 433 116 3 433 116 1 283 527 1 283 527 1 283 527 at inception Designated – – – – – – – – – – – – – – – – – – – – – – – – – 11 158 profit or loss profit 1 123 32 194 957 418 272 908 915 981 331 860 Trading At fair value through At fair value through 1 438 209 1 580 949 1 582 847 2 845 367 2 845 367 4 268 291 4 268 291 2 845 367 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) Derivative financial instruments have been classified as held-for-trading and include derivatives held as hedges. Derivative financial instruments have been classified as held-for-trading FIVE Subordinated liabilities Subordinated Liabilities to customers under investment contracts Insurance liabilities, including unit-linked liabilities Current taxation liabilities Current taxation liabilities Deferred Other liabilities Debt securities in issue Liabilities arising on securitisation of own originated loans and advances Liabilities arising on securitisation of other assets Other trading liabilities and cash collateral on securities lent agreements Repurchase Customer accounts (deposits) Liabilities Deposits by banks Derivative financial instruments* Other financial instruments at fair value through profit or loss profit Other financial instruments at fair value through of liabilities to customers in respect Property and equipment Property Investment properties Goodwill Intangible assets Interests in associated undertakings Interests taxation assets Deferred Other assets Loans and advances to customers securitised Own originated loans and advances to customers Other loans and advances Other securitised assets Derivative financial instruments* trading activities Securities arising from Investment portfolio Sovereign debt securities Sovereign Bank debt securities Other debt securities Loans and advances to banks Loans and advances to and non-bank cash placements Non-sovereign and cash collateral on agreements Reverse repurchase securities borrowed 2016 Assets banks Cash and balances at central At 31 March £’000 assets and liabilities Analysis of financial financial instruments by category of During the year ended 31 March 2009, the group reclassified certain financial instruments out of fair value through profit or loss. These assets were originallyDuring the year ended 31 March 2009, the group reclassified certain financial instruments out of fair value 172 *

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 173 Total 1 533 90 888 85 650 55 486 896 855 949 950 466 573 660 795 437 243 321 617 160 295 957 418 971 646 120 851 267 099 112 135 938 879 368 039 148 280 192 255 FIVE 3 208 862 2 497 125 1 119 074 2 092 661 5 847 036 2 397 403 1 582 847 2 299 751 1 802 967 5 845 503 1 134 883 1 580 949 3 007 269 2 498 585 39 504 745 45 351 781 24 044 281 34 510 555 40 357 591 41 492 474 17 681 572

– – – – – – – – – – – – – – – – – – – – – – – – – – (continued) (continued) 90 888 55 486 financial assets at the date 818 538 818 538 818 538 267 099 112 135 495 486 938 879 368 039 148 280 192 255 570 797 2 420 806 2 420 806 or scoped instruments out of IAS 39 Non-financial – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 1 533 linked related 5 847 036 5 845 503 5 847 036 5 847 036 5 847 036 Insurance- at fair value instruments Notes to the summary summary to the Notes – – – – – – – – – – – – – – – – – cost Total 12 705 85 650 annual financial statements financial annual 548 537 258 295 175 953 466 415 437 243 321 617 698 738 2 397 403 1 707 826 1 199 976 1 134 883 1 058 916 1 215 965 3 006 146 2 349 107 26 865 861 26 865 861 29 563 123 29 563 123 30 698 006 23 473 530 17 014 962 instruments at amortised – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review cost 85 650 698 738 Financial 1 199 976 1 134 883 2 397 403 1 707 826 amortised 29 563 123 29 563 123 30 698 006 23 473 530 liabilities at – – – – – – – – – – – – – – – – – – – – – – – – – – – – 12 705 251 680 245 809 466 415 437 243 321 617 1 215 965 1 058 916 3 006 146 2 349 107 Loans and 26 380 565 26 380 565 17 014 962 receivables – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Held- 12 486 485 296 485 296 175 953 296 857 to-maturity classified as held-for-trading but the group’s intentions in regard to these assets changed and the group reclassified £112.3 million and £7.8 million to the intentions in regard to these but the group’s classified as held-for-trading the fair value of the The amount reclassified reflected classifications, respectively. loans and receivables and available-for-sale of reclassification. As the majority of these assets have been written down by the current year end, the group does not deem it material to undertake anyof reclassification. As the majority of these assets have been written down by the current year end, the group The carrying value of the assets reclassified is £9.3 million (2015: further disclosure in the annual financial statements for the current year and the prior year. £21.2 million) and the fair value is £5.9 million (2015: 21.1 million). – – – – – – – – – – – – – – – – 158 Total 1 123 32 194 957 418 272 908 570 751 591 925 120 851 381 210 149 478 348 318 691 655 660 795 666 610 147 590 1 582 847 1 119 074 1 438 209 3 032 909 1 580 949 4 128 894 4 128 894 4 128 894 10 218 078 10 218 078 at fair value instruments – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 61 128 for-sale 241 205 550 168 1 664 170 2 516 671 2 516 671 Available- – – – – – – – – – – – – – – – – – – – – – – – – 49 350 570 751 591 925 120 851 203 093 149 478 107 113 141 476 599 667 666 610 147 590 1 368 739 1 283 527 1 283 527 3 433 116 3 433 116 1 283 527 at inception Designated – – – – – – – – – – – – – – – – – – – – – – – – – 11 158 profit or loss profit 1 123 32 194 957 418 272 908 915 981 331 860 Trading At fair value through At fair value through 1 582 847 1 438 209 1 580 949 2 845 367 2 845 367 4 268 291 4 268 291 2 845 367 Derivative financial instruments have been classified as held-for-trading and include derivatives held as hedges. Derivative financial instruments have been classified as held-for-trading Derivative financial instruments* Other trading liabilities and cash collateral on securities lent agreements Repurchase Customer accounts (deposits) Debt securities in issue Liabilities arising on securitisation of own originated loans and advances Liabilities arising on securitisation of other assets taxation liabilities Current taxation liabilities Deferred Other liabilities Liabilities to customers under investment contracts Insurance liabilities, including unit-linked liabilities liabilities Subordinated At 31 March £’000 assets and liabilities Analysis of financial financial instruments by category of 2016 Assets banks Cash and balances at central banks Loans and advances to and non-bank cash placements Non-sovereign and cash collateral on agreements Reverse repurchase securities borrowed debt securities Sovereign Bank debt securities Other debt securities Derivative financial instruments* trading activities Securities arising from Investment portfolio Loans and advances to customers securitised Own originated loans and advances to customers Other loans and advances Other securitised assets in associated undertakings Interests taxation assets Deferred Other assets and equipment Property Investment properties Goodwill Intangible assets or loss profit Other financial instruments at fair value through of liabilities to customers in respect Liabilities Deposits by banks * Total 1 823 76 481 25 244 99 301 40 726 885 003 109 953 616 909 586 400 627 373 947 846 448 647 574 830 780 596 102 354 617 898 361 527 147 227 201 790 6 337 149 1 908 294 1 544 168 1 284 945 1 709 369 6 335 326 1 178 299 2 529 562 3 045 864 1 812 156 2 958 641 1 161 055 1 580 681 1 086 349 1 741 713 1 845 679 38 016 253 22 614 868 32 797 459 39 134 608 40 312 907 16 740 263 44 353 402 – – – – – – – – – – – – – – – – – – – – – – – – – – 76 481 25 244 99 301 40 726 102 354 617 898 361 527 147 227 201 790 470 426 748 697 748 697 748 697 354 092 1 748 369 1 748 369 or scoped instruments out of IAS 39 Non-financial – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 1 823 linked related related 6 337 149 6 335 326 6 337 149 6 337 149 6 337 149 Insurance- at fair value instruments – – – – – – – – – – – – – – – – – – cost Total 731 215 109 953 586 240 852 795 675 525 131 846 448 647 574 830 152 668 197 743 1 908 294 1 236 332 1 239 985 1 178 299 2 528 260 2 866 957 1 305 644 21 690 785 26 916 564 26 916 564 28 094 863 16 032 887 26 354 042 26 354 042 instruments at amortised – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – cost 731 215 109 953 Financial 1 908 294 1 236 332 1 239 985 1 178 299 amortised 21 690 785 26 916 564 26 916 564 28 094 863 liabilities at – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 101 118 586 240 852 795 206 721 448 647 574 830 152 668 2 528 260 2 866 957 1 305 644 Loans and 25 656 767 16 032 887 25 656 767 receivables – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Held- 30 728 697 275 197 743 468 804 697 275 to-maturity – – – – – – – – – – – – – – – – – 160 Total 1 302 81 977 885 003 553 730 627 928 924 083 473 037 616 909 178 907 959 361 485 530 495 527 947 846 707 376 135 268 9 913 842 9 913 842 1 580 681 1 544 168 5 132 198 5 132 198 5 132 198 2 760 898 1 086 349 at fair value instruments – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 54 790 for-sale 468 823 186 880 2 173 053 2 173 053 1 462 560 Available- – – – – – – – – – – – – – – – – – – – – – – – – 26 692 35 763 35 696 219 339 627 928 924 083 473 037 616 909 178 907 298 650 893 056 707 376 4 286 049 4 286 049 2 049 725 2 049 725 2 049 725 1 298 338 at inception Designated – – – – – – – – – – – – – – – – – – – – – – – – – – 12 160 profit or loss profit 1 302 46 214 99 572 885 003 553 730 959 361 867 010 Trading Trading At fair value through At fair value through 3 454 740 3 454 740 1 544 168 3 082 473 3 082 473 3 082 473 1 580 681 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) Derivative financial instruments have been classified as held-for-trading and include derivatives held as hedges. Derivative financial instruments have been classified as held-for-trading FIVE * liabilities Subordinated Other liabilities Liabilities to customers under investment contracts Insurance liabilities, including unit-linked liabilities Liabilities arising on securitisation of other assets taxation liabilities Current taxation liabilities Deferred Repurchase agreements and cash collateral on securities lent agreements Repurchase Customer accounts (deposits) Debt securities in issue Liabilities arising on securitisation of own originated loans and advances Derivative financial instruments* Other trading liabilities Liabilities Deposits by banks Intangible assets assets classified as held for sale Non-current or loss in respect profit Other financial instruments at fair value through of liabilities to customers Other assets and equipment Property Investment properties Goodwill Other securitised assets in associated undertakings Interests taxation assets Deferred Investment portfolio Loans and advances to customers securitised Own originated loans and advances to customers Other loans and advances Bank debt securities Other debt securities Derivative financial instruments* trading activities Securities arising from Reverse repurchase agreements and cash collateral on agreements Reverse repurchase securities borrowed debt securities Sovereign Loans and advances to banks and non-bank cash placements Non-sovereign (continued) 2015 Assets Cash and balances at central banks At 31 March £’000 assets and liabilities Analysis of financial financial instruments by category of 174

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 175 Total 1 823 25 244 99 301 40 726 76 481 FIVE 627 373 102 354 617 898 361 527 147 227 201 790 885 003 109 953 616 909 586 400 947 846 448 647 574 830 780 596 2 958 641 1 161 055 6 335 326 3 045 864 1 741 713 6 337 149 1 908 294 1 544 168 1 284 945 1 709 369 1 845 679 1 178 299 2 529 562 1 812 156 1 580 681 1 086 349 38 016 253 44 353 402 32 797 459 39 134 608 40 312 907 22 614 868 16 740 263

– – – – – – – – – – – – – – – – – – – – – – – – – – (continued) (continued) 76 481 25 244 99 301 40 726 354 092 102 354 617 898 361 527 147 227 201 790 470 426 748 697 748 697 748 697 1 748 369 1 748 369 or scoped instruments out of IAS 39 Non-financial – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 1 823 linked related related 6 337 149 6 335 326 6 337 149 6 337 149 6 337 149 Insurance- at fair value instruments Notes to the summary summary to the Notes – – – – – – – – – – – – – – – – – – cost Total annual financial statements financial annual 197 743 675 525 131 846 731 215 109 953 586 240 852 795 448 647 574 830 152 668 2 866 957 1 305 644 1 908 294 1 236 332 1 239 985 1 178 299 2 528 260 26 354 042 26 354 042 21 690 785 26 916 564 26 916 564 28 094 863 16 032 887 instruments at amortised – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review cost 731 215 109 953 Financial 1 239 985 1 178 299 1 908 294 1 236 332 amortised 26 916 564 26 916 564 28 094 863 21 690 785 liabilities at – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 101 118 206 721 586 240 852 795 448 647 574 830 152 668 1 305 644 2 866 957 2 528 260 Loans and 25 656 767 25 656 767 16 032 887 receivables – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Held- 30 728 697 275 697 275 197 743 468 804 to-maturity – – – – – – – – – – – – – – – – – 160 Total 1 302 81 977 885 003 553 730 924 083 473 037 616 909 135 268 959 361 495 527 178 907 485 530 947 846 707 376 627 928 9 913 842 1 544 168 5 132 198 5 132 198 5 132 198 1 580 681 9 913 842 1 086 349 2 760 898 at fair value instruments – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 54 790 for-sale 468 823 186 880 2 173 053 2 173 053 1 462 560 Available- – – – – – – – – – – – – – – – – – – – – – – – – 35 696 26 692 35 763 924 083 473 037 616 909 219 339 178 907 298 650 893 056 707 376 627 928 4 286 049 2 049 725 2 049 725 2 049 725 4 286 049 1 298 338 at inception Designated – – – – – – – – – – – – – – – – – – – – – – – – – – 12 160 profit or loss profit 1 302 99 572 46 214 885 003 553 730 959 361 867 010 Trading Trading At fair value through At fair value through 3 454 740 1 544 168 3 082 473 3 082 473 3 082 473 1 580 681 3 454 740 Derivative financial instruments have been classified as held-for-trading and include derivatives held as hedges. Derivative financial instruments have been classified as held-for-trading Liabilities Deposits by banks Derivative financial instruments* Other trading liabilities and cash collateral on securities lent agreements Repurchase Customer accounts (deposits) Debt securities in issue Liabilities arising on securitisation of own originated loans and advances Liabilities arising on securitisation of other assets taxation liabilities Current taxation liabilities Deferred Other liabilities Liabilities to customers under investment contracts Insurance liabilities, including unit-linked liabilities liabilities Subordinated * At 31 March £’000 assets and liabilities Analysis of financial financial instruments by category of (continued) 2015 Assets Cash and balances at central banks Loans and advances to banks and non-bank cash placements Non-sovereign and cash collateral on agreements Reverse repurchase securities borrowed debt securities Sovereign Bank debt securities Other debt securities Derivative financial instruments* trading activities Securities arising from Investment portfolio Loans and advances to customers securitised Own originated loans and advances to customers Other loans and advances Other securitised assets in associated undertakings Interests taxation assets Deferred Other assets and equipment Property Investment properties Goodwill Intangible assets assets classified as held for sale Non-current or loss in respect profit Other financial instruments at fair value through of liabilities to customers – – – – – – – – – – – – 1 355 7 456 10 930 50 159 87 270 Level 3 120 617 121 972 690 903 812 875 147 590 509 470 – – – – – – 158 32 194 39 253 23 234 31 250 Level 2 570 751 591 925 272 908 690 844 180 142 579 340 133 653 3 088 523 3 779 367 1 581 492 1 530 790 1 300 800 Fair value category – – – – – – – – – 234 1 123 Level 1 918 399 918 165 381 210 500 583 120 075 149 478 214 665 137 409 4 707 437 5 625 836 1 088 384 3 032 909 158 Total 1 123 32 194 570 751 591 925 120 851 957 418 272 908 147 590 381 210 691 655 660 795 666 610 149 478 348 318 4 128 894 6 089 184 1 582 847 1 580 949 1 119 074 1 438 209 3 032 909 10 218 078 at fair value investments Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or either directly for the asset or liability, observable prices included within level 1 that are inputs other than quoted prices) (i.e. derived from indirectly FIVE Customer accounts (deposits) Debt securities in issue Liabilities arising on securitisation of other assets Other liabilities Net financial assets at fair value Liabilities Derivative financial instruments Other trading liabilities and cash collateral on securities lent agreements Repurchase Derivative financial instruments trading activities Securities arising from Other securitised assets Other assets Other debt securities Investment portfolio Loans and advances to customers Loans and advances to banks and non-bank cash placements Non-sovereign and cash collateral on securities agreements Reverse repurchase borrowed debt securities Sovereign Bank debt securities Cash and balances at central banks At 31 March £’000 2016 Assets 176 Fair value hierarchy and financial liabilities. These fair value measurements for financial assets fair value measurements recurring The table below analyses levels are technique used. The different based on the inputs to the valuation hierarchy levels in the fair value categorised into different are identified as follows: or liabilities prices in active markets for identical assets Level 1 – quoted (unadjusted) Level 2 –  market data (unobservable inputs) not based on observable asset or liability that are Level 3 – inputs for the the analysis as the to policyholders have been excluded from the long-term assurance business attributable to Assets and liabilities related all classified as level 1. assets is attributable to policyholders. These are change in fair value of related note 32 in the Investec 2016 integrated annual report. properties included in the investment are on investment properties Fair value disclosures

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS – – – – – – – – – – – – – 177 2 666 18 044 43 521 36 000 Level 3 745 785 627 928 851 703 619 575 616 909 FIVE 1 471 278

– – – – 67 160 1 106 2 393 97 793 70 279 44 356 38 403 Level 2 959 361 293 061 671 376 553 730 181 233 924 083 473 037 1 332 534 3 428 130 1 213 288 3 246 897 (continued) (continued) Fair value category – – – – – – – – 1 302 81 910 96 865 Level 1 178 907 192 469 379 690 131 782 204 626 328 214 840 647 2 759 792 1 083 956 5 014 434 3 748 708 1 265 726 160 Total 1 302 Notes to the summary summary to the Notes 81 977 178 907 959 361 485 530 495 527 947 846 707 376 627 928 885 003 553 730 924 083 473 037 616 909 135 268 2 760 898 1 580 681 1 086 349 9 913 842 1 544 168 4 781 644 5 132 198 at fair value instruments annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review

(continued) At 31 March £’000 2015 Assets banks Cash and balances at central Loans and advances to banks and non-bank cash placements Non-sovereign and cash collateral agreements Reverse repurchase on securities borrowed Sovereign debt securities Sovereign Bank debt securities Other debt securities Investment portfolio Loans and advances to customers Derivative financial instruments trading activities Securities arising from Other securitised assets Other assets

Liabilities Derivative financial instruments

Other trading liabilities Repurchase agreements and cash collateral on securities lent agreements Repurchase Net financial assets at fair value Customer accounts (deposits) Debt securities in issue Liabilities arising on securitisation of other assets Other liabilities TRANSFERS BETWEEN LEVEL 1 AND LEVEL 2 from transferred were million respectively During the year derivative financial assets and liabilities to the value of £116.9 million and £210.3 the level of modelling which is now being used to arrive at the fair value. level 1 to level 2 to reflect Fair value hierarchy Fair value hierarchy Yield curves, risk free rate, volatilities, forex rate, volatilities, forex curves, risk free Yield rate points and spot rates, interest forward curves swap curves and credit curves Yield curves Yield curves Yield curves Yield curves Yield Yield curves Yield curves Yield Volatilities curves Yield NCD curves curves, external curves and NCD Yield quotes prices, broker rate, volatilities, forex curves, risk free Yield rate points and spot rates, interest forward curves swap curves and credit rate curves, implied bond spreads, Interest equity volatilities Discount rate and fund unit price, net assets curves Yield Main assumptions Discounted cash flow model Discounted cash flow model, Hermite interpolation Discounted cash flow model Discounted cash flow model Discounted cash flow model Discounted cash flow model, Hermite derivative interpolation, industry standard pricing models including Black-Scholes Discounted cash flow model Discounted cash flow model, Hermite interpolation Black-Scholes Discounted cash flow model Discounted cash flow model Discounted cash flow model, Hermite derivative interpolation, industry standard pricing models including Black-Scholes industry derivative pricing model Standard Discounted cash flow model, relative valuation model Comparable quoted inputs Discounted cash flow model Valuation basis/techniques Valuation (continued)

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE Other trading liabilities and cash agreements Repurchase collateral on securities lent Customer accounts (deposits) Debt securities in issue Other liabilities Derivative financial instruments LIABILITIES ASSETS and non-bank cash Non-sovereign placements Reverse repurchase agreements and cash agreements Reverse repurchase collateral on securities borrowed Bank debt securities Other debt securities Derivative financial instruments trading activities Securities arising from Investment portfolio Loans and advances to customers 178 The following table sets out the group’s principal valuation techniques as at 31 March 2016 used in determining the fair value of its financial 2016 used in determining the fair value of March principal valuation techniques as at 31 out the group’s The following table sets value hierarchy. classified within level 2 of the fair that are assets and financial liabilities Fair value hierarchy ASSETS AND FINANCIAL LIABILITIES LEVEL 2 FINANCIAL

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS – – – – 179 426 (272) 1 827 1 401 5 418 3 165 3 437 8 944 2 736 3 224 (2 457) 25 145 29 883 42 129 50 770 55 519 (37 203) (16 429) (10 863) for-sale FIVE Available- instruments

– – 545 profit 4 437 3 475 (6 996) 21 416 22 841 22 841 11 520 28 626 (52 553) (50 860) through through 844 027 120 412 120 412 123 092 163 611 635 384 516 570 (253 447) (861 332) and loss 800 933 Fair value (continued) (continued) instruments 426 545 (272) 9 855 3 475 (6 996) 26 278 63 545 26 006 11 520 31 362 (68 982) (47 636) 121 813 869 172 122 239 152 975 851 703 172 555 690 903 505 707 financial (290 650) (863 789) Total level 3 Total instruments Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review (continued)

Balance at 1 April 2014 for fair value through profit or loss instruments and available-for-sale instruments have been adjusted by (£60) million and instruments have been adjusted by (£60) million and Balance at 1 April 2014 for fair value through profit or loss instruments and available-for-sale £60 million respectively. ˜ For the year to 31 March £’000 Balance at 1 April 2014* IFRS 13 due to application of Transfers or losses gains Total – In the income statement income – In the statement of comprehensive Purchases Sales Issues Settlements into level 3 Transfers out of level 3 Transfers exchange adjustments Foreign Balance at 31 March 2015 Balance at 31 March or losses gains Total – In the income statement income – In the statement of comprehensive Purchases Sales Issues out of level 3 Transfers 2016 Balance at 31 March Settlements into level 3 Transfers exchange adjustments Foreign For the year ended 31 March 2016, £16.1 million of assets were transferred from level 3 into level 2. The valuation methodologies were were level 3 into level 2. The valuation methodologies from transferred 2016, £16.1 million of assets were For the year ended 31 March level 2 as a result into used to determine the fair value. In addition, (£4.6) million has been transferred and observable inputs are reviewed level 2 to the level 3 category to the value of transfers from were observable. There of the inputs to the valuation methods becoming more significantly to warrant a transfer. increased £31.3 million because the significance of the unobservable inputs used to determine the fair value the the level 2 to the level 3 category to the value of £62.7 million because transfers from were 2015, there For the year ended 31 March transfers, For the remaining to warrant transfer. sufficiently significance of the unobservable inputs used to determine the fair value increased change or if the valuation when the significance of the unobservable inputs transfers between levels within the fair value hierarchy the group methods change. * The following table is a reconciliation of the opening balances to the closing balances for fair value measurements in level 3 of the fair value in balances for fair value measurements of the opening balances to the closing reconciliation The following table is a hierarchy: Fair value hierarchy LEVEL 3 INSTRUMENTS – – – – 704 (272) (974) (272) 426 426 7 910 (1 252) 19 325 13 999 39 008 (127 741) (127 037) Unrealised – – – – (51) 238 877 4 938 3 437 3 437 (9 863) 1 401 1 401 81 979 82 805 158 002 153 315 Realised (97) 238 (272) 426 Total 4 938 3 437 3 165 7 859 (9 159) (1 252) 1 401 1 827 30 261 26 278 13 999 101 304 121 813 (continued)

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE Fee and commission income Investment income/(loss) customer flow (loss)/income arising from Trading instruments or (losses) on available-for-sale gains Total the income statement through recycled assets of available-for-sale Gains on realisation to other comprehensive assets taken directly Fair value movements on available-for-sale income 2015 or (losses) included in the income statement for the year gains Total Fee and commission income/(expense) For the year to 31 March £’000 2016 in the income statement for the year gains or (losses) included Total income Net interest Investment income customer flow income arising from Trading balance sheet management and other trading activities (loss)/income arising from Trading Other operating loss Total gains or (losses) on available-for-sale instruments or (losses) on available-for-sale gains Total the income statement through recycled assets of available-for-sale Gains on realisation to other comprehensive assets taken directly Fair value movements on available-for-sale income 180 Fair value hierarchy The following table quantifies the gains or (losses) included in the income statement and other comprehensive income recognised on level 3 income recognised statement and other comprehensive the gains or (losses) included in the income The following table quantifies financial instruments:

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 181 (7) (47) (472) (324) (355) (987) (790) (796) (797) £’000 (1 015) (1 701) (2 738) (1 050) (4 006) (3 917) (8 413) (1 727) (1 149) (1 254) (5 501) (9 400) (2 876) (41 066) FIVE (49 344) (71 018) changes Unfavourable

– – 6 47 statement 525 834 232 525 £’000 2 471 4 953 5 084 3 971 1 550 1 569 1 256 1 661 8 305 1 380 1 550 2 825 1 667 1 356 55 408 64 695 82 303 changes (continued) (continued) Reflected in the income Reflected in the income Favourable ^ ^^ (1%) – 1% (5%) – 5% (2%) – 2% (1%) – 1% (1%) – 1% (5%) – 5% (5%) – 5% (1%) – 1% (1%) – 1% (1%) – 1% (2%) – 2% (1%) – 1% (10%) – 10% (10%) – 10% (10%) – 10% (10%) – 10% Range which unobservable input has been stressed Notes to the summary summary to the Notes annual financial statements financial annual Cash flow adjustments Other Volatilities Cash flow adjustments Net asset value Other Cash flow adjustments Price earnings multiple Price earnings multiple EBITDA Other^ Discount rates Other Cash flow adjustments Other Cash flow adjustments Volatilities Cash flow adjustments Significant unobservable input changed Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review value £’000 sheet 1 355 7 456 10 930 50 159 87 270 Balance 120 617 659 287 477 854 147 590 (continued)

The sensitivity of the fair value of liabilities arising on securitisation of other assets has been considered together with other securitised assets. The sensitivity of the fair value of liabilities arising on securitisation of other assets has been considered together has been assessed by adjusting various inputs Other – The valuation sensitivity for the private equity and embedded derivatives (profit share) portfolios It is deemed appropriate to reflect the outcome on a portfolio such as expected cash flows, discount rates, earnings multiples rather than a single input. through the adjustment of a single input. basis for the purposes of this analysis as the sensitivity of the investments cannot be determined a favourable and unfavourable valuation. The price earnings multiple has been determined on an investment by investment basis in order to obtain Assets Other debt securities At 31 March 2016 At 31 March ^ ^^ * Derivative financial instruments Securities arising from trading activities Securities arising from Investment portfolio Loans and advances to customers Other securitised assets* Liabilities Derivative financial instruments Liabilities arising on securitisation of other assets* Net level 3 fair value through or loss assets profit Fair value hierarchy es to reasonably possible alternative 3 instrument type assumptions by level es to reasonably Sensitivity of fair valu not are techniques that incorporate assumptions that using valuation measured instruments in level 3 are The fair value of financial possible the sensitivity of these fair values to reasonably market data. The following table shows observable evidenced by prices from alternative determined at a transactional level assumptions, – (6) (60) (17) (457) (128) (283) (692) (167) (960) (167) (205) £’000 £’000 (4 074) (2 710) (1 536) (1 363) (1 210) (2 640) (8 665) (1 347) (1 340) (1 442) (2 300) (1 347) (1 442) (54 829) (17 988) (11 328) (13 582) (11 121) (85 332) (11 495) (73 318) (13 749) changes changes (124 691) Unfavourable Unfavourable 7 14 28 statement 114 626 358 156 £’000 £’000 3 816 2 505 4 867 3 227 1 279 1 517 6 958 5 407 1 093 1 830 5 228 5 228 6 500 1 830 2 418 3 250 5 668 87 971 18 296 45 613 11 328 13 793 16 685 16 556 19 021 Reflected in other 100 880 173 264 234 012 changes changes comprehensive income comprehensive Reflected in the income Favourable Favourable (10%) – 10% (10%) – 10% ^ (11%) – 10% ** (5%) – 5% (2%) – 3% (6%) – 5% (4%) – 3% (25%)/40% (50bps)/50bps (3%) – 8% (5%) – 5% ** 5x EBITDA ^ (10%) – 10% (10%) – 10% or (5%) – 5% (9%) – 3% Range which unobservable input has been stressed Range which unobservable input has been stressed (2%) – 1% -6 months/+12 month adjustment to CDR curve (5%) – 5% EBITDA Other Significant unobservable input changed Other Other Price-earnings multiple Discount rates spreads Credit Other Volatilities Volatilities spreads Credit Cash flow adjustments Discount rates Price-earnings multiple EBITDA Other Other Price-earnings multiple Cash flows Other Significant unobservable input changed Cash flow adjustments Other Credit spreads spreads Credit Credit default rates, Credit Loss severity, rates prepayment Other £’000 £’000 2 666 Balance 43 521 18 044 31 616 36 000 Balance 616 909 690 903 706 843 627 928 812 761 sheet value sheet value (continued)

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE Investment portfolio Derivative financial instruments Assets Other debt securities Available-for-sale level 3 assets Available-for-sale Investment portfolio Loans and advances to customers Other securitised assets* At 31 March 2016 At 31 March Liabilities arising on securitisation of other assets* Liabilities Derivative financial instruments At 31 March 2015 At 31 March Total net level 3 assets net Total Net level 3 fair value through or loss assets profit 182 Fair value hierarchy

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 183 £’000 (2 058) (2 058) FIVE (126 749) changes Unfavourable

£’000 2 658 2 658 Reflected in other 236 670 changes comprehensive income comprehensive (continued) (continued) Favourable (10%) – 10% or 5x EBITDA Range which unobservable input has been stressed Notes to the summary summary to the Notes annual financial statements financial annual EBITDA Significant unobservable input changed Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review £’000 38 942 Balance 851 703 sheet value (continued)

The sensitivity of the fair value of liabilities arising on securitisation of other assets has been considered together with other securitised assets. The sensitivity of the fair value of liabilities arising on and embedded derivatives (profit share) portfolios has been assessed by adjusting various inputs Other – The valuation sensitivity for the private equity to reflect the outcome on a portfolio It is deemed appropriate multiples rather than a single input. such as expected cash flows, discount rates, earnings the adjustment of a single input. through of the investments cannot be determined basis for the purposes of this analysis as the sensitivity Total net level 3 assets net Total 2015 level 3 assets Available-for-sale Investment portfolio At 31 March 2015 At 31 March The price-to-earnings in the valuation ratio is an equity valuation multiple used in the adjustment of underlying market prices. It is a key driver of unlisted investments. EBITDA and amortisation. This is the main input into a price-earnings multiple valuation method. taxes, depreciation interest, Earnings before PRICE EARNINGS MULTIPLE Cash flows relate to the future cash flows which can be expected from the instrument and requires judgement. Cash flows are inputs into judgement. Cash flows are the instrument and requires cash flows which can be expected from to the future Cash flows relate a discounted cash flow valuation. CASH FLOWS VOLATILITIES of the variability or uncertainty in is a measure Volatility containing optionality. products is a key input in the valuation of derivative Volatility estimate of how much a particular underlying instrument, parameter or index will an returns for a given derivative underlying. It represents a key input into the Black-Scholes valuation method. are change in value over time. Volatilities DISCOUNT RATES cash flows in a discounted cash flow valuation method. The discount rate takes rates used to discount future the interest Discount rates are of cash flows. into account time value of money and uncertainty CREDIT SPREADS risk of an instrument. to the credit additional yield that a market participant would demand for taking exposure the reflect spreads Credit a significant increase for an instrument forms part of the yield used in a discounted cash flow calculation. In general, spread The credit that is unfavourable for the holder of a financial instrument. It is an in a movement in fair value in isolation will result spread in a credit valuation. unobservable input into a discounted cash flow In determining the value of level 3 financial instruments, the following are the principal inputs that can require judgement: the principal inputs that can require the following are In determining the value of level 3 financial instruments, ^ * Fair value hierarchy – 485 4 840 1 930 8 866 1 502 5 094 4 076 6 249 14 200 44 441 44 926 208 358 736 887 107 165 410 884 428 276 105 923 120 123 289 916 139 677 553 792 fair value (546 325) Negative 1 544 168 1 057 250 965 485 3 640 9 332 1 502 9 761 4 959 4 433 30 072 58 975 59 460 15 332 51 754 2015 (39 728) 162 200 403 966 115 279 685 085 304 384 355 051 265 829 270 788 177 541 453 727 Positive fair value 1 580 681 89 016 27 815 234 362 867 835 101 076 111 234 735 070 principal amounts Notional 1 221 378 7 103 760 5 593 003 1 412 395 3 370 609 4 238 444 1 055 609 6 360 209 1 110 144 10 241 995 23 173 120 30 312 219 17 341 257 49 182 702 11 755 338 – – 726 680 8 981 3 466 1 413 1 271 55 517 93 361 34 126 41 587 42 267 20 071 535 334 532 032 337 819 352 405 127 487 352 743 196 454 677 955 (632 734) fair value Negative 1 122 883 1 582 847 230 879 321 680 3 525 5 456 1 869 83 591 40 059 18 894 44 698 45 378 17 188 43 802 (72 800) 449 114 222 163 755 098 263 982 313 901 287 510 306 404 169 788 478 382 2016 Positive fair value 1 580 949 4 733 6 153 16 413 13 497 470 038 364 936 199 574 683 279 696 776 993 176 principal amounts Notional 2 384 726 5 742 300 2 979 226 4 268 192 1 501 432 5 769 624 6 095 067 21 265 914 29 409 363 25 958 666 29 418 816 12 429 201 (continued)

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) Mainly includes profit shares received as part of lending transactions. FIVE At 31 March £’000 Derivative financial instruments * Foreign exchange derivatives Foreign exchange contracts foreign Forward Currency swaps Currency OTC options bought and sold Other foreign exchange contracts Other foreign OTC derivatives Interest rate derivatives Interest Caps and floors Swaps Forward rate agreements Forward OTC options bought and sold Other interest rate contracts Other interest OTC derivatives Equity and stock index derivatives OTC options bought and sold Equity swaps and forwards OTC derivatives Exchange traded futures Exchange traded options Warrants Commodity derivatives OTC options bought and sold Commodity swaps and forwards OTC derivatives Credit derivatives Credit Embedded derivatives* Cash collateral Derivatives per balance sheet 184 Derivative financial instruments Derivative financial exchange foreign purposes and as customer for hedging for derivatives both as principal for trading enters into various contracts The group The risks associated with rate agreements. options, swaps and forward include financial futures, These rate exposures. and interest the product across also measured Risks are in the same manner as for the underlying instruments. monitored derivative instruments are possible correlations. to take into account range in order date and do not of business outstanding at the balance sheet notional principal amounts indicate the volume In the tables that follow value of positive or negative cash flows present the of a derivative financial instrument represents amounts at risk. The fair value represent market in an orderly instrument been closed out by the group that had the rights and obligations arising from which would have occurred sheet date. transaction at balance

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 185 14 338 1 330 6 332 8 189 3 690 2 241 75 288 21 562 13 431 19 763 84 700 18 648 19 240 55 001 92 889 FIVE 104 463 liabilities assets and Fair value of

(continued) (continued) Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Other assets and equipment Property Intangible assets taxation assets Current Assets taxation liabilities Deferred Other liabilities Liabilities Net fair value of assets acquired Investec Import Solutions held in Fair value of existing 48.5% equity interest Issue of Investec Limited shares Loan eliminated on consolidation Fair value of consideration Goodwill Loans and advances to banks Investment portfolio taxation assets Deferred £'000 For the post-acquisition period of 1 July 2015 to 31 March 2016, the operating income of Investec Import Solutions was £9.5 million and For the post-acquisition period of 1 July 2015 to 31 March 2016, goodwill has not been impaired. taxation amounted to £3.2 million. At 31 March before the profit to note 28. in associated undertakings. For further information on the associate refer an interest acquired the group During the year, DISPOSALS a of Kensington Group plc, 2016. As part of the sale no significant disposals of subsidiaries during the year ended 31 March were There taxation of £4.8 million of this payment, a further loss before As a result 2015 year-end. final net settlement was paid after the 31 March during the 2016 financial year. was recognised ACQUISITIONS of the Investec Import and shareholders with the management Bank Limited concluded transaction agreements On 1 July 2015, Investec owned by it. not already the Blue Strata group, 51.5% of for the acquisition of the remaining group, Blue Strata previously Solutions group, in 2002. founding 13 years since Blue Strata’s have had a fruitful partnership over the past Investec and Blue Strata to clients by simplifying a compelling value proposition Investec Import Solutions offers increase, and complexities As import regulations of Investec’s services to more Import Solution’s Investec exciting benefits unfolding in offering foresees and Investec the import process, to unlock substantial the opportunity into Investec offers believes that the full integration of the business group existing client base. The to accelerate its growth. benefits and will allow Investec Import Solutions shown below: goodwill arising and total consideration paid are The assets and liabilities at the date of acquisition, quisitions and disposals Acquisitions and 2016 74 530 180 332 559 559 6 527 2 396 9 453 5 824 2 484 7 062 (7 062) 2 926 7 062 (6 503) liabilities assets and Fair value of – – 74 530 332 559 523 2 396 2 484 2 926 3 449 liabilities Book value of assets and (continued)

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE Fair value of net assets acquired

Other liabilities Current taxation liabilities Current

Goodwill Intangible assets Property and equipment Property Other assets Deferred taxation assets Deferred Loans and advances to banks Loans and advances to The net loss on sale of subsidiaries of £93 million in the income statement arises from the sale of Investec Bank (Australia) Limited and the the sale of Investec Bank (Australia) Limited The net loss on sale of subsidiaries of £93 million in the income statement arises from The net cash plc (Kensington) companies and subsidiaries as described below. sale of the Start Mortgage Holdings and Kensington Group disposed of was £75 million. inflow on these items amount to £226 million. Cash and cash equivalents in the subsidiaries businesses and its deposit Finance and Asset Finance and Leasing (IBAL) Professional The sale of Investec Bank (Australia) Limited’s of in the derecognition of £122 million. This resulted 31 July 2014 for cash proceeds book to Bank of Queensland Limited was effective £1.7 billion of liabilities associated with the businesses sold. £1.7 billion of assets and approximately approximately Irish intermediated mortgage business, Start Mortgage Holdings Limited, together with certain other Irish mortgage The sale of the group’s on 4 December 2014. The sale of the UK intermediated mortgage business of Lone Star Funds was effective assets to an affiliate Opportunities Advisors Tactical Kensington together with certain other Investec mortgage assets to funds managed by Blackstone in the of £170 million. This has resulted on 30 January 2015 for cash proceeds L.L.C. and TPG Special Situations Partners was effective £2 billion of external associated with these businesses. liabilities £4.1 billion of assets and approximately of approximately derecognition DISPOSALS Fair value of cash consideration £’000 Loans and advances to banks at acquisition Fair value of cash consideration Net cash outflow before MIF totalled £7.5 million and profit 2015, the operating income of to 31 March For the post-acquisition period of 8 April 2014 if the acquisition had profit between this and the operating income and difference is no material taxation amounted to £0.9 million. There been on 1 April 2014 as opposed to 8 April 2014. 186 ACQUISITIONS of Mann Island Finance (the parent (Automotive) Limited capital of Robert Smith Group share entire the acquired On 8 April 2014, the group business. (MIF)), a vehicle finance brokerage group quisitions and disposals Acquisitions and 2015

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 187 Total 68 488 51 464 95 565 47 540 (93 033) 226 291 175 778 113 464 238 552 311 660 372 094 342 045 FIVE (129 532) liabilities 3 736 412 2 103 959 1 914 167 1 616 003 1 212 467 5 840 371 1 981 729 1 185 465 1 764 469 assets and Book value of

– – – 7 087 47 540 71 173 95 565 42 141 (128 979) 171 435 311 660 755 270 liabilities and Start (continued) (continued) 2 041 292 1 616 003 4 114 797 1 981 729 1 185 465 assets and Kensington Book value of – – – – – – IBAL 4 343 42 291 68 488 44 377 367 531 372 094 299 904 liabilities 1 695 120 1 212 467 1 725 574 1 009 199 Book value of assets and Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review (continued) Reflected as movements in operating assets and operating liabilities within the cash flow (note 49). Reflected as movements in operating assets and operating Net assets and liabilities sold relationships* in settlement of pre-existing Cash received on sale of subsidiaries Proceeds Goodwill and other adjustments on sale Loss on disposal of subsidiaries Total liabilities Total Combined other liability lines Subordinated debt Subordinated Liabilities arising on securitisation of other assets Liabilities arising on securitisation of own originated loans and advances Liabilities arising on securitisation of own originated Debt securities in issue Customer accounts Deposits by banks Total assets Total Combined other asset lines Other securitised assets Other loans and advances Own originated loans and advances securitised Loans and advances to customers Derivatives Debt securities The breakdown of significant balance sheet line items derecognised are shown below: are balance sheet line items derecognised of significant The breakdown banks Loans and advances to During the 2015 year the group had a net cash inflow of £42.2 million due to transactions with the non-controlling interests of Investec interests had a net cash inflow of £42.2 million due to transactions with the non-controlling During the 2015 year the group Fund Limited. Property * £’000 disposals Acquisitions and

2015 68 267 260 760 997 568 382 774 1 709 369

2016 229 272 151 758 742 082 1 176 639 2 299 751 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE Debt securities in issue Debt securities At 31 March £’000 Bonds and medium-term notes repayable: Bonds and medium-term months Less than three months to one year Three One to five years than five years Greater 188

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS

* * *

1 1 1 1 1 189 56 57 122 123 2015 £’000 £’000 £’000 £’000 £’000 Number Number Number Number Number FIVE 4 853 299 2 814 094 608 756 343 613 609 642 282 934 529 285 748 623

* * *

1 1 1 1 1 57 58 123 124 2016 £’000 £’000 £’000 £’000 £’000 Number (continued) (continued) Number Number Number Number 3 809 222 5 615 083 613 609 642 617 418 864 285 748 623 291 363 706 Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Less than £1 000. Investec plc paid Issued, allotted and fully * Nominal value of special voting share At the beginning and end of the year At the beginning of the year At the beginning of the Issued during the year Number of special voting shares At the beginning and end of the year Number of ordinary shares Number of ordinary Ordinary share capital Ordinary share At the end of the year shares Nominal value of ordinary At the beginning of the year Nominal value of UK DAS share At the beginning and end of the year Issued during the year At the end of the year Number of special converting shares At the beginning of the year Issued during the year Number of UK DAS shares At the beginning and end of the year At the end of the year Nominal value of special converting shares At the beginning of the year Nominal value of UK DAN share At the beginning and end of the year Issued during the year At the end of the year Number of UK DAN shares At the beginning and end of the year At 31 March

* * * 5 1 5 46 46 2015 £’000 £’000 £’000 Number Number Number 2 814 094 4 853 299 282 934 529 285 748 623 608 756 343 613 609 642 * * * 5 1 5 46 46 2016 £’000 £’000 £’000 Number Number Number 5 615 083 3 809 222 285 748 623 291 363 706 613 609 642 617 418 864 (continued)

Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) Less than £1 000. FIVE * Ordinary share capital Ordinary share Investec Limited Authorised 960 002), comprising of Investec Limited is R1 960 002 (2015: R1 capital The authorised share 47 000 000) of R0.0002 each, 48 091 681 (2015: shares 000 000) ordinary 450 000 000 (2015: 450 with a par value of R0.01 each, 408 319 (2015: shares non-participating preference redeemable, 000 of R0.01 each, 1 500 shares non-participating preference 408 319) class ILRP1 redeemable, of R0.01 each, shares non-participating preference ILRP 2 redeemable, (2015: 1 500 000) Class each, of R0.01 shares non-participating preference 000 000) non-redeemable, 20 000 000 (2015: 20 of R0.60 each, 100 shares cumulative preference 50 000 (2015: 50 000) variable rate redeemable 000 000 of shares non-participating preference non-cumulative, (2015: 100 000 000) non-redeemable, share preference redeemable African resident) R0.01 each, 1 (2015: 1) Dividend Access (South of share preference redeemable African resident) of R1.1 (2015: 1) Dividend Access (non-South of R0.0002 shares preference convertible redeemable R1 700 000 000 (2015: 700 000 000) special each (special converting shares). Issued, allotted and fully paid shares Number of ordinary At the beginning of the year Issued during the year At the end of the year shares Nominal value of ordinary At the end of the year At the beginning of the year Issued during the year Number of special converting shares At the beginning of the year Issued during the year At the end of the year Number of SA DAN shares Nominal value of SA DAN share At the beginning and end of the year Nominal value of special converting shares At the end of the year At the beginning and end of the year At the beginning of the year Issued during the year At 31 March 190

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 191 2015 * 1 Number FIVE (2) (3) 000 (2 859 164) 231 226 87 352 252 17 440 425 74 064 737 2015 (27 868 776) £’

Number 2016 * 1 Number (continued) (continued) (2) (3) 233 228 (2 593 070) 15 242 886 66 534 024 (20 180 529) 74 064 737 2016 £’000 Number Notes to the summary summary to the Notes annual financial statements financial annual Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review (continued)

The extent of the directors' and staff interests in the incentive scheme is detailed on pages 116 and 134 to 137. The extent of the directors' and staff interests in the incentive scheme is detailed on pages  Less than £1 000. Opening balance Issued during the year Exercised Lapsed Closing balance Ordinary share capital Ordinary share At the beginning and end of the year At the beginning and end share Nominal value of SA DAS of the year At the beginning and end of Investec plc capital allotted and fully paid called up share Nominal value of issued, and Investec Limited: capital up share called Total Number of SA DAS shares Less: held by Investec Limited Less: held by Investec plc capital up share called Total For the year to 31 March At 31 March within the organisation, create an awareness of Investec’s of Investec’s an awareness within the organisation, create an esprit de corps scheme is to promote share The purpose of the staff of in the risks and rewards to share all staff performance by allowing an incentive to maximise individual and group performance and provide the group. time to time varies from trusts. The particular instrument used members via the underlying share available to staff makes awards The group chosen, its underlying Nevertheless, whatever the instrument structure. the group depending on taxation legislation and factors affecting price. share value depends solely on the performance of the groups’ allocation based on their annual package after members a share is to grant all permanent staff the practice of the group At present, vest over awards these share incentive for staff, a long-term completing six months of employment. In line with the objective of providing four to five years. periods varying from management and of group members at the discretion made to staff to above, additional allocations are After the initial allocation referred members. staff depending on the individual performance and contribution made by the respective The group operates a share option and a share purchase scheme for employees. The number of ordinary shares conditionally allocated to shares scheme for employees. The number of ordinary purchase option and a share operates a share The group disclosed in note 7. employees are as follows: are employees of one share) to (each option is in respect options issued Movements in the number of share STAFF SHARE SCHEME STAFF * to historic calculated by reference above were Rand. The amounts recorded issued in South African were The Investec Limited shares economic and voting rights as if Investec have common shareholders of the DLC structure Pounds Sterling: Rand exchange rates. In terms basis, joint electorate and class right These include equivalent dividends on a per share a single company. Limited and Investec plc were have been issued to and the special converting shares the SA DAN share SA DAS share, UK DAN share, variations. The UK DAS share, achieve this. until the next annual general meeting. of the directors under the control are The unissued shares (83) (694) 147 202 2015 2015 4 409 6 062 9 069 1 218 8 512 (1 876) 37 215 14 461 19 245 33 472 25 734 25 734 (10 024) (27 261) (27 668) (35 537) 698 262 (449) (248) (481) 2016 2016 8 512 3 748 8 401 1 024 3 870 (6 775) 34 062 21 317 29 450 37 215 11 330 (12 189) (35 537) (25 711) Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Notes to the summary summary to the Notes statements financial annual (continued) FIVE Guarantees At the beginning of the year Additional guarantees granted Guarantees cancelled Exchange adjustment At the end of the year Repayment of loans Exchange adjustment At the end of the year Exchange adjustment in deposits Decrease Increase in loans Increase in deposits Increase Transactions, arrangements and agreements involving directors and others: directors involving arrangements and agreements Transactions, and connected persons with directors directors involving arrangements and agreements Transactions, as follows: were of the company, them, and with officers by and companies controlled by them connected persons and companies controlled key management and Directors, Loans year At the beginning of the At the end of the year Deposits At the beginning of the year The loan arises from Investec’s portion of funding in relation to the 15% acquisition of Investec Asset to the 15% acquisition of Investec Asset portion of funding in relation Investec’s The loan arises from Management by senior management of the business. made an investment in a private equity vehicle in which one of the Investec During the period the group group made an investment of £30.5 million during the year has significant influence. The Directors of the and have committed further funding of £69.5 million to the vehicle. The terms and conditions favourable than those available, or which might be expected to be available on no more transaction were length basis. entities on an arm’s similar transactions to non-related with associates Transactions associates Amounts due from loans to associates income from Interest associates Fees and commission income from For the year to 31 March £’000 Transactions with other related parties with other related Transactions Point Two Investec Bank (Mauritius) Limited to Forty Two Loan from At 31 March £’000 192 The above transactions were made in the ordinary course of business and on substantially the same terms, including interest rates and of business and on substantially the same terms, including interest course made in the ordinary The above transactions were applicable, with other employees. The transactions did where or, as for comparable transactions with persons of a similar standing security, of these loans have been impaired. None than the normal risk of repayment. not involve more rates course of business and on substantially the same terms, including interest the ordinary from The above outstanding balances arose party counterparties. as for comparable transactions with third and security,

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 193 FIVE Definitions TOTAL CAPITAL RESOURCES CAPITAL TOTAL subordinated equity, Includes shareholders’ interests liabilities and non-controlling EQUITY TOTAL equity including shareholders’ Total interests non-controlling RETURN ON RISK-WEIGHTED RETURN ON RISK-WEIGHTED ASSETS Adjusted earnings divided by average risk-weighted assets ASSETS RISK-WEIGHTED of risk-weighted Is calculated as the sum and Investec Limited assets for Investec plc Sterling) (converted into Pounds TO COMPENSATION STAFF INCOME RATIO OPERATING as a costs expressed All employee-related of operating income percentage ASSETS UNDER THIRD PARTY ADMINISTRATION party assets under Includes third administration managed by the Wealth & Investment, Asset Management and businesses Property Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Net interest income plus net annuity Net interest as a fees and commissions expressed of total operating income percentage RETURN ON AVERAGE ADJUSTED SHAREHOLDERS’ EQUITY Refer to calculation on page 53 RETURN ON AVERAGE ADJUSTED TANGIBLE SHAREHOLDERS’ EQUITY Refer to calculation on page 53 Reflects profits and/or losses on and/or losses Reflects profits disposal of or termination, restructuring made operations and acquisitions group PROFIT OPERATING administrative Operating income less for bad and expenses, impairments of tangible doubtful debts and depreciation is before fixed assets. This amount and intangibles goodwill, acquired non-operating items RECURRING INCOME NON-OPERATING ITEMS NON-OPERATING Refer to calculation on page 51 NET TANGIBLE ASSET VALUE ASSET VALUE NET TANGIBLE PER SHARE Total number of shares in issue (including of shares number Total Investec plc and Investec Limited) multiplied price of Investec plc on by the closing share the London Stock Exchange MARKET CAPITALISATION EFFECTIVE OPERATIONAL EFFECTIVE OPERATIONAL TAX RATE activities on ordinary on profit Tax (excluding non-operating items) divided by operating profit Adjusted earnings per ordinary share before before share Adjusted earnings per ordinary goodwill and non-operating items divided share by dividends per ordinary DIVIDEND COVER COST TO INCOME RATIO COST TO INCOME by operating Operating costs divided leased on income (net of depreciation leased on operating assets). Depreciation against off assets has been netted operating income ADJUSTED SHAREHOLDERS’ ADJUSTED SHAREHOLDERS’ EQUITY page 53 Refer to calculation on (27 21) 416 1000 (27 21) 416 1001 (27 31) 575 4000 (27 865) 009 901 (27 43) 709 5700 (27 43) 748 1548 (230) 207 4000 (230) 207 4002 (264 61) 389 500 (264 61) 249 689 (65) 6653 5550 (65) 6653 5551 SOUTH AFRICA, CAPE TOWN 36 Hans Strijdom Avenue 8001 Town Cape Foreshore 8000 PO Box 1826 Cape Town Telephone Facsimile SOUTH AFRICA, DURBAN 5 Richefond Circle Park Ridgeside Office Umhlanga Durban 4319 PO Box 25278 Gateway Durban 4321 Telephone Facsimile SOUTH AFRICA, EAST LONDON Cube 1 Cedar Square Bonza Bay Road Beacon Bay East London 5241 Telephone Facsimile MAURITIUS, PORT LOUIS 6th Floor Dias Pier Building Caudan Le Caudan Waterfront Port Louis Telephone Facsimile e-mail [email protected] NAMIBIA, WINDHOEK floor 1 Ground Office Building Heritage Square Windhoek100 Robert Mugabe Avenue Telephone Facsimile e-mail [email protected] SINGAPORE 25 Duxton Hill #03-01 089608 Singapore Telephone Facsimile e-mail [email protected] (353 21) 237 3800 (44) 1534 512 650 (44) 1534 285 174 (352 264) 979 8000 (352 264) 979 8888 (852) 3187 5000 (852) 2524 3360 (852) 2861 6888 (852) 2861 6861 (91) 226 136 7410 (353 1) 421 0000 (353 1) 421 0500 LUXEMBOURG d’Avranche 32/36 Boulevard L-1160 Luxembourg Telephone IRELAND, CORK One Albert Quay Cork Ireland Telephone e-mail [email protected] JERSEY One The Esplanade, St Helier Jersey JE2 3QA Channel Islands Telephone Facsimile e-mail [email protected] Facsimile 902, The Capital Plot No. C-70 Block Bandra Kurla Complex Bandra (East) Mumbai 400051 India Telephone IRELAND, DUBLIN Building The Harcourt 2 Street, Harcourt Dublin Ireland Telephone Suite 3609 36/F International Centre Finance Two 8 Finance Street Central Hong Kong Telephone Facsimile e-mail [email protected] Gateway 2 The Suites 2602 – 06 Tower Kowloon Harbour City Tsimshatsui Hong Kong Telephone Facsimile INDIA, MUMBAI Facsimile e-mail [email protected] HONG KONG Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Contact details Contact +(44) 1481 723 506 +(44) 1481 741 147 (86 10) 8535 6200 (86 10) 8535 6299 (267) 318 0112 (267) 318 0114 (61) 2 9293 6300 (61) 2 9293 6301 (61) 7 3106 8970 (61) 2 9293 6301 FIVE 194 GUERNSEY Glategny Court Glategny Esplanade, GY1 1WR Channel Islands Telephone Facsimile e-mail [email protected] Room 11 5/F West Tower Tower Room 11 5/F West Finance Centre World Ring Middle Road No. 1 East 3rd Chaoyang District China Beijing 10 002 P.R. Telephone Facsimile CHINA, BEIJING Plot 64511, Unit 5 Gaborone Fairgrounds Telephone Facsimile e-mail [email protected] BOTSWANA, GABORONE BOTSWANA, AUSTRALIA, SYDNEY Level 23, The Chifley Tower 2 Chifley Square Sydney Phillip Street GPO Box 4411 NSW 2000 Australia Telephone Facsimile e-mail [email protected] AUSTRALIA, MELBOURNE Level 13 120 Collins Street Melbourne GPO Box 2280 VIC 3001 (61) 3 8660 1000 Telephone Facsimile (61) 3 8660 1010 e-mail [email protected] AUSTRALIA, BRISBANE Level 36 Riparian Plaza Brisbane 71 Eagle Street QLD 4001 Australia Telephone Facsimile e-mail [email protected]

SUMMARY ANNUAL FINANCIAL STATEMENTS SUMMARY ANNUAL FINANCIAL STATEMENTS 195 FIVE (continued) (continued) (44113) 245 4488 (44113) 245 1188 (44 151) 227 2030 (44 151) 227 2444 (44 207) 597 4000 (44 207) 597 4070 (44 207) 597 1234 (44 207) 597 1000 (44 207) 597 1900 (44 207) 597 1919 (44139) 220 4404 (44139) 242 6176 (44141) 333 9323 (44141) 332 9920 (44148) 330 4707 (44148) 345 5271 UNITED KINGDOM, LEEDS Quayside House, Canal Wharf Leeds, LS11 5PU, UK Telephone Facsimile UNITED KINGDOM, LIVERPOOL Liverpool 100 Old Hall Street L3 9AB, UK Telephone Facsimile UNITED KINGDOM, LONDON London Street, 2 Gresham UK EC2V 7QP, Telephone Facsimile London Street, 30 Gresham EC2V 7QN, UK Telephone Facsimile London 25 Basinghall Street, EC2V 5HA, UK Telephone Facsimile UNITED KINGDOM, EDINBURGH UNITED KINGDOM, Place Quartermile One, 15 Lauriston Edinburgh EH3 9EN, UK (44 131) 226 5000 Telephone 5700 Facsimile (44 131) 226 EXETER UNITED KINGDOM, Keble House, Southernhay Gardens UK EX1 1NT, Exeter, Telephone Facsimile UNITED KINGDOM, GLASGOW 5 George Square 4th Floor, UK G2 1DY, Glasgow, Telephone: Facsimile UNITED KINGDOM, GUILDFORD Close Tree Unit 4, The Billings, 3 Walnut GU1 4UL, UK Guildford, Telephone Facsimile Contact details Contact (44121) 232 0700 (44121) 232 0701 (44120) 220 8100 (44120) 220 8101 (27 21) 809 0700 (27 21) 809 0730 (41) 22 807 2000 (41) 22 807 2005 (886 2) 8101 0800 (886 2) 8101 0900 (44122) 534 1580 (44122) 534 1581 Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Midland House, 2 Poole Road UK Bournemouth, BH2 5QY, Telephone UNITED KINGDOM, CHELTENHAM Festival House Cheltenham Jessop Avenue GL50 3SH, UK (44 1242) 514 756 Telephone Facsimile (44 1242) 583 936 UNITED KINGDOM, BIRMINGHAM Circus Plaza, Colmore Colmore UK Birmingham, B4 6AT, Telephone Facsimile UNITED KINGDOM, BOURNEMOUTH Facsimile Unit B 20F Taipei 101 Tower Unit B 20F Taipei 110 Taiwan Rd Sec 5 Taipei 7 Xin Yi Telephone UNITED KINGDOM, BATH Royal Mead, Railway Place Bath, BA1 1SR, UK Telephone NORTHERN IRELAND, BELFAST 5th Floor Centrepoint Belfast Street, 58-60 Bedford BT2 7DR, Northern Ireland (44 2890) 321 002 Telephone Facsimile (44 2890) 244 852 Office 401, Mill Square Office Stellenbosch 7600 12 Plein Street, 7599 PO Box 516 Stellenbosch Telephone Facsimile SWITZERLAND, GENEVA 3 Place des Bergues Geneva 1201 Switzerland Telephone Facsimile e-mail [email protected] TAIWAN Facsimile Facsimile SOUTH AFRICA, STELLENBOSCH

(27 12) 427 8300 (27 12) 427 8310 (27 41) 396 6700 (27 41) 363 1667 (27 33) 264 5800 (27 33) 342 1561 (27 44) 302 1800 (27 44) 382 4954 (27 11) 286 7000 (27 11) 286 7777 Capital Markets: [email protected] Private Bank: [email protected] Property Group: Group: Property [email protected] Private Client Securities: [email protected] Institutional Securities: [email protected] Asset management: [email protected] –  –  –  –  –  [email protected] –  Facsimile Cnr Atterbury and Klarinet Streets 0081 Menlo Park Pretoria PO Box 35209 Menlo Park 0102 Telephone SOUTH AFRICA, PRETORIA SOUTH AFRICA, PORT ELIZABETH Business Park, Pommern Street Waterfront Facsimile Humerail, Port Elizabeth, 6045 PO Box 13434 Humewood, Port Elizabeth 6057 Telephone Acacia House Redlands Estate 1 George MacFarlane Lane Pietermaritzburg 3201 PO Box 594 Pietermaritzburg 3200 Telephone Facsimile SOUTH AFRICA, PIETERMARITZBURG TH24/TH25 Long Street Ext TH24/TH25 Long Street Knysna 6571 Thesen Harbour Town Telephone Facsimile SOUTH AFRICA, KNYSNA

• Client queries: SOUTH AFRICA, JOHANNESBURG 100 Grayston Drive Sandown Sandton 2196 PO Box 785700 Sandton 2146 Telephone Facsimile e-mail, South African offices • Recruitment queries: Investec integrated annual review and summary financial statements 2016 and summary Investec integrated annual review Contact details Contact (continued) (212) 259 5610 (917) 206 5103 (44 161) 832 6868 (44 161) 832 1233 FIVE 196 1270 Avenue of the Americas 1270 Avenue 29th Floor NY 10020 New York, United States of America Telephone Facsimile UNITED STATES, NEW YORK NEW UNITED STATES, Beech House Sheffield 61 Napier Street S11 8HA, UK (44 114) 275 5100 Telephone Facsimile (44 114) 270 1109 UNITED KINGDOM, SHEFFIELD UNITED KINGDOM, REIGATE 43 London Road Reigate, Surrey UK RH2 9PW, (44 173) 722 4223 Telephone Facsimile (44 173) 722 4197 UNITED KINGDOM, READING UNITED KINGDOM, plc Investec Asset Finance Reading International Business Park RG2 6AA, UK (0844) 243 4111 Telephone UNITED KINGDOM, UNITED KINGDOM, MANCHESTER Spinningfields Street 3 Hardman Manchester M3 3HF UK Telephone Facsimile

SUMMARY ANNUAL FINANCIAL STATEMENTS Corporate information

Investec plc and Investec Limited

SECRETARY AND REGISTERED TRANSFER SECRETARIES IN OFFICE SOUTH AFRICA

Investec plc Computershare Investor Services (Pty) Ltd 70 Marshall Street David Miller Johannesburg 2001 2 Gresham Street PO Box 61051 London EC2V 7QP Marshalltown 2107 United Kingdom Telephone (27) 11 370 5000 Telephone (44) 20 7597 4000 Facsimile (44) 20 7597 4491 DIRECTORATE

Investec Limited Executive directors Stephen Koseff (chief executive officer) Niki van Wyk Bernard Kantor (managing director) 100 Grayston Drive Glynn R Burger (group risk and finance Sandown Sandton 2196 director) PO Box 785700 Sandton 2196 Hendrik J du Toit (chief executive officer, Telephone (27) 11 286 7000 Investec Asset Management) Facsimile (27) 11 286 7966 Non-executive directors INTERNET ADDRESS Fani Titi (chairman) www.investec.com Zarina BM Bassa Laurel C Bowden REGISTRATION NUMBER Cheryl A Carolus Perry KO Crosthwaite (senior independent Investec plc director) David Friedland Registration number 3633621 Charles R Jacobs Ian R Kantor Investec Limited Lord Malloch-Brown KCMG Khumo L Shuenyane Registration number 1925/002833/06 Peter RS Thomas

AUDITORS Bradley Fried resigned effective 31 March 2016 and Haruko Fukuda OBE resigned Ernst & Young LLP effective 6 August 2015. Ernst & Young Inc. For contact details for Investec REGISTRARS IN THE UK offices internationally refer to pages 194 to 196. Computershare Investor Services plc The Pavilions Bridgwater Road Bristol BS99 6ZZ United Kingdom Telephone (44) 370 707 1077 2016 ANNUAL REPORT Investec integrated annual review and summary 20 nancial statements

16 Investec integrated annual review and summary nancial statements Investec integrated annual review and summary

Specialist Banking Asset Management Wealth & Investment