Corporate Pro le

2018

Specialist Banking | Asset Management | Wealth & Investment About this corporate profile

This corporate profile Additional information Ongoing and statutory serves as a reference The corporate profile should be read information together with other information we publish, In order to present a more meaningful for the investment including the full 2018 integrated annual view of the group’s performance, report and the 2018 integrated annual additional management information is community and review and summary annual financial presented on our ongoing businesses. other interested statements. This additional information excludes items that in management’s view could Our investor relations website contains parties. It provides distort the comparison of performance a wide range of information on us, between periods (for both current and an introduction including financial information, corporate historical information). to Investec and information, share price data, a calendar, dividend information, announcements and Based on this principle, the following items offers a simple yet presentations. are excluded from underlying statutory profit (for both current and historic information To ensure the information is comprehensive, comprehensive where applicable) to derive ongoing we have included the URL addresses for operating profit: handbook of relevant our web pages where readers are able to information to assist access or download additional information. • The results of the businesses sold in the 2015 financial year i.e. Investec Bank https://www.investec.com/en_ anyone wishing to (Australia) Limited, Kensington Group plc int/welcome-to-investec/about- and Start Mortgage Holdings Limited. know more about us/investor-relations/investor- These sales had a significant effect on centre.html us. This report is the comparability of the group’s financial based on our latest position and results; and • The remaining legacy business in the UK. available year-end This basis of presentation is consistent with financial figures the approach adopted for the year ended 31 March 2017. (31 March 2018) and is All information in our corporate profile is updated annually. based on our statutory accounts unless otherwise indicated.

Further information on our ongoing business and a reconciliation between the ongoing and statutory income statement is provided in our 2018 integrated annual report.

Feedback

We value feedback and invite questions and comments on our reporting. To give feedback or request hard copies of our reports, please contact our Investor Relations division.

For queries regarding information in this document Investor Relations Telephone (27) 11 286 7070 (44) 20 7597 5546 e-mail: [email protected] Internet address: www.investec.com/en_za/welcome-to-investec/about-us/investor-relations.html Contents

Introduction Our operational structure 1 About the Investec group 2 Our strategic focus 4

Financial profile Our operational footprint 8 Highlights for 2018 12 Financial review 21 Ten-year review 26

Business profile Group divisional structure 29 Asset Management 30 Wealth & Investment 32 Specialist Banking 34 Business highlights 36

Additional information Risk management 42 Corporate governance 48 Shareholder analysis 51 Contact details 54

Investec corporate profile 2018 Introduction Our operational structure

Introduction Operating structure Introduction

During July 2002 Investec Group Limited (since renamed Investec Limited) implemented Investec Limited, which a dual listed companies (DLC) structure and listed its offshore business on the London houses our Southern Stock Exchange. African and Mauritius A circular on the establishment of our DLC structure was issued on operations, has been 20 June 2002 and is available on our website. In terms of our DLC structure, Investec Limited is the holding company of our businesses in listed in South Africa Southern Africa and Mauritius, and Investec plc is the holding company of our non‑Southern since 1986. African businesses.

Our DLC structure and main operating subsidiaries as at 31 March 2018

Investec plc Investec Limited JSE primary listing LSE primary listing Sharing agreement NSX secondary listing JSE secondary listing BSE secondary listing

Non-Southern African Southern African operations operations

Investec Asset Investec Investec Asset Investec Management Investec Employee Investec Management Investec Bank Property Group Holdings Securities Benefits Bank plc Limited Limited Holdings (Pty) Ltd (Pty) Ltd Holdings 83%* (Pty) Ltd 83%* (Pty) Ltd

Investec Bank Investec Investec Wealth Reichmans Investec (Channel Bank & Investment Holdings Life Islands) (Mauritius) Limited (Pty) Ltd Limited^^ Limited Limited

Investec Investec Investec IEP Group Asset Holdings Import (Pty) Ltd All shareholdings in the ordinary share Finance (Australia) Solutions 45.7%^ plc Limited (Pty) Ltd capital of the subsidiaries are 100%, unless otherwise stated. Investec Investec Bank * 17% held by senior management in the company (31 March 2017: 16%). Irish (Switzerland) ^ 54.3% held by third party investors in the company together branch AG with senior management of the business (31 March 2017: 55.0%). ^^ Previously Investec Employee Benefits Limited.

Salient features of the DLC structure • Investec plc and Investec Limited are separate legal entities and listings, but are bound together by contractual agreements and mechanisms • Investec operates as if it is a single unified economic enterprise • Shareholders have common economic and voting interests as if Investec plc and Investec Limited were a single company • Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross-guarantees between the companies.

Investec corporate profile 2018 1 About the Investec group

Introduction We strive to be a distinctive specialist bank and asset manager, driven by commitment to our core philosophies and values.

Investec (comprising Investec plc and Investec Limited) is an international specialist bank and asset manager that provides a diverse range of financial products and services to a select client base. Who we are

Founded as a In July 2002, we Since inception, we leasing company in created a dual have expanded through Johannesburg in 1974. listed companies a combination of We acquired a banking licence in 1980 (DLC) structure with substantial organic and were listed on the JSE Limited linked companies growth and a series of South Africa in 1986. listed in London and strategic acquisitions. Johannesburg. Today, we have an efficient integrated international business platform, offering A year later, we concluded a significant all our core activities in the UK and empowerment transaction in which South Africa. our empowerment partners collectively acquired a 25.1% stake in the issued share capital of Investec Limited.

Additional information History: https://www.investec.com/en_int/welcome-to-investec/about-us/our-history.html Dual listed companies structure: https://www.investec.com/en_int/welcome-to-investec/about-us/corporate-structure.html Group strategy: https://www.investec.com/en_int/welcome-to-investec/about-us/group-strategy.html

2 Investec corporate profile 2018 About the Investec group (continued) Introduction

Our philosophies We value What we do

–– Single organisation Distinctive performance We are an international –– Meritocracy –– Outstanding talent – specialist bank and asset –– Focused businesses empowered, enabled and manager that provides a inspired –– Differentiated, yet integrated diverse range of financial –– Meritocracy –– Material employee ownership products and services –– Passion, energy, stamina, –– Creating an environment tenacity to a select client base in that stimulates extraordinary performance. –– Entrepreneurial spirit three principal markets, the UK and Europe, South Client focus Africa and Asia/Australia –– Distinctive offering as well as certain other –– Leverage resources countries. –– Break china for the client Investec focuses on delivering distinctive Cast-iron integrity profitable solutions for its clients in three core areas of activity namely, Asset –– Moral strength Management, Wealth & Investment and –– Risk consciousness Specialist Banking.

–– Highest ethical standards Our strategic goals and objectives are based on the aspiration to be recognised Dedicated partnership as a distinctive specialist bank and asset –– Respect for others manager. This distinction is embodied in our entrepreneurial culture, which is balanced –– Embrace diversity by a strong risk management discipline, –– Open and honest dialogue client-centric approach and an ability to be nimble, flexible and innovative. We do not –– Unselfish contribution to seek to be all things to all people and aim to colleagues, clients and society build well-defined, value-added businesses focused on serving the needs of select market niches where we can compete effectively.

Investec corporate profile 2018 3 Our strategic focus

Introduction The Investec distinction

Our strategic goals and objectives are based on our aspiration to be recognised as a distinctive specialist bank and asset manager.

Client focused Specialised strategy Sustainable business Strong culture approach • Serving select market niches • Contributing to society, • Strong entrepreneurial • Clients are at the core of as a focused provider of macro-economic stability culture that stimulates our business tailored structured solutions and the environment extraordinary performance

• We strive to build business • Enhancing our existing • Well-established brand • Passionate and talented depth by deepening existing position in principal people who are empowered • Managing and positioning and creating new client businesses and geographies and committed the group for the long term relationships through organic growth and • Depth of leadership select bolt-on acquisitions. • Balancing operational • High level of service by risk with financial risk • Strong risk awareness being nimble, flexible while creating value for and innovative. • Material employee shareholders ownership. • Cost and risk conscious.

Our strategy

Our long-term strategy is to build a diversified portfolio of Our long-term internationalisation strategy: businesses and geographies to support clients through varying • follow our customer base markets and economic cycles. Since inception we have expanded • gain domestic competence and critical mass in our chosen through a combination of organic growth and strategic acquisitions. geographies In order to create a meaningful and balanced portfolio we need • facilitate cross-border transactions and flow. proper foundations in place which gain traction over time. We have a very deliberate and focused client strategy: • to leverage our unique client profile • to provide the best integrated solution supported by our comprehensive digital offering.

4 Investec corporate profile 2018 Our strategic focus (continued) Introduction Our strategy (continued)

Investec Asset Management Specialist Banking UK • Continue to improve our investment performance • Broaden client base by building franchise while deepening • Maintain strong momentum in the Advisor business globally client relationships • Grow our presence in the large markets, especially • Establishing a high-tech and high-touch domestically relevant North America bank to growth-orientated businesses • Evolve all our capabilities for the future, continue to scale • Private Bank shift in focus from platform development to client Multi-Asset and Quality and build a compelling foundation for acquisition. Alternatives. Specialist Banking South Africa Investec Wealth & Investment • Identify new sources of revenue across our existing client base • Focus on investing in and developing our digital channel • Management of our liquidity ratios with an emphasis on retail including enhancements to our core service funding initiatives • Coordinating and leveraging capabilities across businesses to • Management of our capital to optimise returns enhance our services for clients • Launch of Investec for Business to mid-market corporates. • Providing a global investment offering and building skills in Other objectives alternative investment, fiduciary and tax • Diversity and transformation remain a key focus • Continually improving business processes. • Continually evolving the digital offering.

Our diversified and balanced business model supporting long-term strategy Broadly defined, we operate across three areas of specialisation focused on well defined target clients:

Asset Management Specialist Banking Wealth & Investment

Operating completely independently

Private client (high net worth/high income)/ Corporate/institutional/government charities/trusts

–– Investment management –– Lending –– Investment management services services to external clients –– Transactional banking –– Independent financial planning advice –– Deposit raising activities –– Treasury and trading –– Advisory –– Investment activities

We aim to maintain an appropriate balance between revenue earned from capital light activities and revenue earned from capital intensive activities.

This ensures that we are not over reliant on any one part of our businesses to sustain our activities and that we have a large recurring revenue base that enables us to navigate through varying cycles and supports our long-term strategy.

Capital light activities Capital intensive activities

• Asset management • Lending portfolios • Wealth management • Investment portfolios 56% • Advisory services 44% • Trading income • Transactional banking services – client flows – balance sheet management • Property and other funds Contributed to Contributed to group income group income

Net interest, investment, associate Fee and commission income Types of income and trading income

Investec corporate profile 2018 5 Our strategic focus (continued)

Introduction Integrated client strategy Clients are at the core of our business and we strive to provide them with a high level of service by being nimble, flexible and innovative. In the past few years, we have created an international digital platform for clients with global access to products and services which is both high-tech and high-touch. Our integrated client strategy leverages off the natural linkages within the private client businesses and between the private client and corporate banking businesses, which are all centred around the client. We are continually enhancing and evolving our digital platform to ensure a seamless, integrated client service experience.

Businesses Channel of choice Strong links

Corporate Private client businesses client businesses

Corporate Private Banking Wealth & Investment Corporate clients (including Growth and creation Management and directors, employees) of wealth preservation of wealth Private Equity Investments Banking Wealth Management Manufacturer of funds Property Finance Portfolio Management Retail structured savings Private Capital Stockbroking products Retail

Corporate Private Global client Investment Digital Digital bankers bankers support centre managers

Investec Digital enables our clients to get a real-time consolidated view of their banking and investment accounts, locally and internationally, on one platform with one login. Through this consolidated global dashboard (Investec Online and the App), clients can access and transact on their banking and investment accounts across South Africa, the UK, Channel Islands and more, at no additional fees. To add value to clients’ daily banking and investment experience, we continue to enhance our digital capability through regular innovations.

Initiative Completed in past year OnePlace mobile app ranked joint second place in the MyPrivateBanking awards Rebuild of corporate platform Investec Dotcom Enhancements to the Manage My Life toolset (for clients to manage non financial aspects of their life, legacy management) One Place – global platform Investec Life Limited (Investec Life) launched in October 2017 – more than R1 billion of life policies have been sold in the six months to 31 March 2018 Additional value added services (e.g.: pre-paid electricity) Enhanced mobile payments Self service financial management (e.g.: budgets, cash flow forecasting) – development completed Personal portfolio and in testing phase South African online portfolio Included unit trusts from Wealth & Investment and Investec Asset Management manager Enhanced capability on Tax Free Savings Click & Invest successfully launched to market – won Joint First Robo-Advisor award from UK online portfolio manager MyPrivateBanking

Focus for the financial year ending 31 March 2019 • Private client mobile app refresh • Goal-based investing for South African private clients • Business banking for South Africa and the UK • Click & Invest Self Invested Personal Pensions (SIPPs) • Open application interface (API) – allowing fintech ecosystem to utilise Investec’s digital API (services) and allowing Investec to access Fintech capability more easily – including a revised operating model to create API’s as a new channel for the group • A unified digital interface for financial intermediaries.

6 Investec corporate profile 2018 Financial pro le

^ Permanent employees COI ROE^ net core net core Total loans 17.2% £15.4bn 52.5% 55.9% funds under Total management Actual Investec corporate profile 2018 Investec corporate profile Assets NAV** Operating profit* Founded as a leasing company 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 • • • • • • • 64.3% 57.3% 67.2% As a % of the group Operating profit* of of Operating profit* the Southern African operations increased 9.1% to £408.1 million £19.4bn deposit Total book £53.9bn ** % NAV ROE^ Assets 9 444 Operating profit* £3 750mn £607.5mn £57 617mn Permanent employees Investec in total Our operational footprint Our operational

Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. is tangible shareholders’ equity. NAV COI is cost to income ratio. ROE is the post-tax return on adjustment average shareholders’ equity. * ** ^ COI^ 66.9% 12.1

8

diversity. streams and geographic and geographic streams with diversified revenue revenue with diversified international platform, We have built a solid solid have built a We

Financial profile Financial profile 9 (continued) (continued) Our operational footprint Our operational

^ COI ROE^ ROE^ ongoing Permanent employees net core net core Total loans £9.7bn 78.0% 10.9% 44.1% 6.9% funds under Total management Actual Operating profit* Assets NAV** In 1992 we made our first international acquisition, acquiring Allied Trust internationalIn 1992 we made our first Allied Trust acquisition, acquiring Bank 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; supporting the UK and Other businesses include Offices North America; Luxembourg; Channel Islands; Hong Kong; India; Ireland; the UK. across Switzerland and 18 offices Singapore; Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. intangibles, non-operating items, taxation and after other non-controlling goodwill, acquired Before equity. is tangible shareholders’ NAV equity. on adjusted average shareholders’ COI is cost to income ratio. ROE is the post-tax return UK and Other • • • • • 42.7% 32.8% 35.7% £106.6bn deposit Total book £11.6bn Investec corporate profile 2018 Investec corporate profile ** ^ * As a % of the group Operating profit* (ongoing) of the UK operations (ongoing) of the UK operations Operating profit* 1.2% to £292.9 million increased Operating profit* (statutory) of the UK operations (statutory) of the UK operations Operating profit* 11.4% to £199.4 million decreased

2018: £56.0 billion 2018: £103.9 billion Investec corporate profile 2018 Investec corporate profile Corporate and other clients: £10.9 billion Private clients: £14.2 billion^^ Market positioning under management funds Total 1997: £0.04 billion Market positioning loan portfolio: Global core £25.1 billion^^ • • Global deposit book: £31.0 billion Market positioning under management funds Total 1991: £0.4 billion UK: One of the top five players South Africa: Largest player Good long-term investment performance traction in our distribution with growing channels

Our three distinct business business distinct Our three on focused are activities clients. target well‑defined We offer a broad range of services including a broad offer We and lending, transactional banking, treasury trading, advisory and investment activities. aimed at government, These services are institutional, corporate and high net worth and high-income clients Core client base and client Core what we do Operates independently from Investec’s Investec’s Operates independently from other businesses. Our sole focus is the of investment management provision global services to our predominantly institutional client base client base and Core what we do Core client base and Core what we do Provides investment management services Provides and independent financial planning advice to private clients, charities and trusts Our operational footprint Our operational (continued) Specialist Banking Wealth & Investment Wealth Asset Management Including legacy assets of £0.3 billion. 10 ^^

Financial profile Financial profile

11

ongoing^ operating margin ROE^ COI^ ROE^ ROE operating margin ROE^ 61.2% 10.2% 13.1% 24.3% 38.7% 33.0% 91.0% (continued) (continued)

employees Operating profit*° NAV** Permanent employees Operating profit*° NAV** Permanent Operating profit*° NAV** Permanent employees % % % As a % of group As a % of group As a % of group 1.5% 3.0% 16.2 62.6 29.3 95.5% 66.1% 17.8% 16.1% Our operational footprint Our operational Total funds Total under management £103.9bn £56.0bn Total funds under Total management £44.7bn £25.1bn £20.5bn Total core core Total loans Non-discretionary Non-discretionary funds under management Mutual funds 5.7% to £98.6 million 8.0% to £178.0 million Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. is tangible shareholders’ equity. NAV COI is cost to income ratio. ROE is the pre-tax return on adjusted average shareholders’ equity. Including legacy assets of £0.3 billion. operating profit. Contributions are larger than 100% due to group costs amounting to £49.6 million which are included in £59.1bn Investec corporate profile 2018 Investec corporate profile * ** ^ ^^ ° Total deposit Total book Operating profit* (ongoing) of Specialist Banking increased 4.3% to £474.0 million increased (ongoing) of Specialist Banking Operating profit* £31.0bn Operating profit* (statutory) of Specialist Banking decreased 2.4% to £380.5 million decreased (statutory) of Specialist Banking Operating profit* Discretionary funds Discretionary under management £35.6bn Operating profit* of Wealth & Investment & Investment of Wealth Operating profit* increased Operating profit* of Asset Management of Asset Management Operating profit* increased Segregated Segregated mandates Investec corporate profile 2018 Investec corporate profile manage down the UK legacy portfolio The legacy portfolio reduced The legacy portfolio reduced £476 million at from to £313 million 31 March 2017 asset sales, through and write-offs. redemptions The legacy business a loss before reported taxation of £93.5 million (2017: £64.6 million) reflecting in impairments for an increase accelerated exits anticipated to occur on certain legacy assets. • • Impairments on the legacy portfolio have Impairments on the legacy in anticipation of accelerated increased exits of certain assets in line with the of managing down this strategy group’s portfolio. account the abovementioned into Taking has achieved factors, the group satisfactory operating performance in its against a challenging backdrop to pages 34 geographies (refer two core 2018 to 39 in volume one of Investec’s for an economic integrated annual report overview of our operating environments), in key underpinned by sound growth earnings drivers and a solid recurring income base. We continued to actively continued We • • 2017 23.0p 2018 24.0p The banking businesses have benefited sound levels of corporate and from loan private client activity driving strong over the year. book growth has continued to invest The group into the business, positioning itself for its client franchise across further growth businesses and ensuring that it remains in the markets competitive and relevant in which it operates. The group’s asset and wealth The group’s management businesses have generated substantial net inflows of £7.3 billion, which together with favourable market levels has supported higher average funds under management. Dividends per share increased 4.3% increased Dividends per share Solid client activity levels activity levels Solid client underlying supporting performance. • • • 2017 2017 2017 48.3p £599.1mn £434.5mn (increase of 4.1% (increase Highlights 2018 2018 2018 53.2p 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 n a currency neutral basis) n a currency £491.1mn £607.5mn 12 ^ * on a currency neutral basis) on a currency Adjusted earnings per share^ 10.1% increased Adjusted attributable earnings^ of 6.9% (increase increased 13.0% o Operating profit* increased 1.4% increased Operating profit* of 3.5% on a currency (decrease neutral basis) Statutory financial performance

Financial profile Financial profile 13 18 18 17 Percentage 16 18

17 15 14 17 (continued) (continued) 13 16 pecialist Banking nvestment ealth sset Management Highlights Loans and advances to customer deposits Excluding group costs. 12 16 ^^ Other 15 Percentage 15 18 14 17 14 16 ealth nvestment ealth 15 13 ore loans and advances to customers ore 13 14 13 12 12 billion – billion – 6.5% to £160.6 Funds under management increased neutral basis of 6.2% on a currency an increase Customer accounts (deposits) increased 6.5% to £31.0 billion – 6.5% to £31.0 billion – Customer accounts (deposits) increased neutral basis of 5.9% on a currency an increase 11.6% to £24.8 billion – loans and advances increased Core neutral basis of 11.0% on a currency an increase U and Other outhern frica 12 sset Management ustomer accounts billion billion utor ccount doit nd on onoin uin We continued to grow our key earnings drivers continued to grow We We have a diversified business model have a diversified business We conriion o operain profi eore aaion operain profi eore aaion conriion o o e onoin ine Percentage und undr nnt 2017 2017 2017 2017 2017 0.29% £487.1mn £663.7mn 72.0% 54.1p of 8.1% of increase (increase of 10.8% (increase 2018 2018 2018 2018 2018 61.3p 76.3% 0.26% Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. Before goodwill, acquired intangibles, non-operating items and after non‑controlling interests and deduction of preference dividends. in these graphs are shown on a Trends currency neutral basis using the closing Rand: Pound Sterling exchange rate applicable at 31 March 2018. £566.2mn £701.0mn Investec corporate profile 2018 Investec corporate profile ^ ** * Credit loss charge as a % of average Credit loans and advances core gross Annuity income as a % of total Annuity income as a % of total operating income Adjusted earnings per share^ ( increased 13.3% neutral basis)on a currency Adjusted attributable earnings^ increased 16.2% on a currency neutral basis) on a currency Operating profit* increased increased Operating profit* of 1.2% on a 5.6% (increase basis) currency neutral Satisfactory the performance from ongoing business 18 18 17 17 16 16 Investec corporate profile 2018 Investec corporate profile 15 15 14 14 13 13 12 12 sset Management nvestment ealth pecialist Banking U legacy business and businesses sold outhern frica U and other ongoing business Permanent headcount and includes acquisitions. Refers to the remaining UK legacy business as well as group assets that Refers to the remaining UK legacy business as well were sold in the 2015 financial year. dcount ^^ umber million ** Increase in impairments largely driven in impairments Increase exits anticipated in the by accelerated legacy portfolio Iirnt 18 18 17 17 16 16 nnuity fees and commissions income et interest operating income otal neutral basis on a currency 15 15 14 14 13 13 Highlights (continued) Operating income Operating costs 12 Operating costs increased reflecting: continued investment into IT and digital initiatives and higher headcount continued investment into IT and digital initiatives and higher reflecting: Operating costs increased notably the build out of the UK private client strategies, activity and growth divisions to support increased across African head by the pending acquisition of the South in South Africa was somewhat offset Cost growth offerings. no longer required. provision building and the related office 12 rading income rading nvestment and associate income Other fees and other operating income Trends in this graph are shown on a currency neutral basis using Trends the average Rand: Pound Sterling exchange rate applicable at 31 March 2018. The trend for this line is shown on a currency neutral basis using the average Rand: Pound Sterling exchange rate applicable at 31 March 2018. million million 14 rtio or t rou onoin uin ^ Costs increased largely due to planned investment across the business due to planned investment across largely Costs increased * ot ortin inco onoin uin ot ortin inco in operating income in operating income Supporting growth

Financial profile Financial profile 15 2.1x 66.3% 16.9% 12.5% March 2017 March Statutory 2.2x 66.9% 10.1% 12.1% (continued) (continued) March 2018 March Highlights n/a 65.8% 11.3% 14.2% March 2017 March Ongoing n/a 66.5% 13.3% 14.1% 18 18 18 March 2018 March 17 17 17 16 16 16 15 15 15 14 14 14 Target: 1.7x – 3.5x Target: Target: < 65% Target: Target: 10% > UKPRI Target: 12% – 16% over a rolling five-year period 12% – 16% over a rolling Target 13 13 13 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 million million million Dividend cover (times) Cost to income Adjusted^ EPS growth ROE (post-tax)

* ^ Progress made on our financial targets Progress perain profi eal neen Resulting in a satisfactory performance from our ongoing business our ongoing satisfactory performance from Resulting in a e anaeen perain profi Investec corporate profile 2018 Investec corporate profile perain profi peciali anin onoin ine perain profi peciali anin 11.0 plc plc 12. Investec Investec 11.0 11. 1.4 Investec corporate profile 2018 Investec corporate profile Investec Investec Bank plc Bank plc 11. 10.2 11.0 s reported Limited Limited Investec Investec 10.2 10. 11.2 Investec Investec 10. ully loaded s reported Bank Limited Bank Limited 4 0 4 0 1 1 12 12 Coon euit tie tios ie tios ercentage ercentage .5 plc plc 15.4 .4 Investec Investec Investec Limited: 77.4% (2017: 75.0%) Investec plc: 83.2% (2017: 78.2%). Liquidity remains strong with cash and near cash balances amounting to strong Liquidity remains £12.8 billion (2017: £12.0 billion). requirements. regulatory in excess of current Capital remained comfortable with our common equity tier 1 ratio target at a 10% level given the are We Limited and and leverage ratios for Investec significant capital light revenues, group’s Investec plc of 7.5% and 8.5% respectively. for the liquidity requirements The banking entities exceed the minimum regulatory coverage ratio and the net stable funding ratio. 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 • • . 1. . Investec Investec Bank plc Bank plc .5 14. s reported Limited Limited .1 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% Leverage ratio: > 6.0% Highlights (continued) . 15.5 .5 Investec Investec ully loaded s reported Bank Limited Bank Limited Maintaining a high level of readily Maintaining a high level of readily available, high-quality liquid assets targeting a minimum cash to customer deposit ratio of ratio at 25.0%, with the year-end 41.4% Diversifying funding sources mix of Maintaining an appropriate term funding Limiting concentration risk. Target Continue to focus on: • • • • 4 0 0 12 12 1 15 1 16 Note: Refer to page 65 in volume one of Investec’s 2018 integrated annual report for further information. 2018 integrated Note: Refer to page 65 in volume one of Investec’s Sound capital and liquidity principles maintained eee tios ercentage Cit euc tios Cit euc Maintained a sound balance sheet Maintained a sound ercentage

Financial profile Financial profile 17 2017 7 054 25 006 25 838 235 854 210 848 216 602 522 984 757 390 (439 962) 242 440 31 March 31 March 1 765 722 1 765 722 1 525 789 2 230 765 (1 550 870) 2018 7 167 28 804 33 527 255 987 227 908 284 791 261 435 550 610 795 420 (continued) (continued) (467 982) 31 March 31 March 1 899 423 1 899 423 1 607 007 2 491 009 (1 730 611) Highlights In the UK, we are progressing towards a more agile environment with flexible agile environment a more towards progressing In the UK, we are appropriate work encouraged where initiatives wellness employee in participated Africa South in employees of 72% costs is 1.9% for the group Learning and development spend as a % of staff (target of >1.5% for the group) Learning and development spend of £22.5 million (2017: £22.9 million) retained in the past year and were the CA programme 21 CAs graduated from in our business turnover staff rate in South Africa is 8.8% and 8.4% in the UK Voluntary holdings) (excluding directors’ held by staff are 5% of Investec shares committed to Participant to the United Nations Global Compact and remain the 10 principles 49% female employees (target of at least 30%) 20% females on the board by the target of 33% females on the board towards Made good progress 2020, per Hampton-Alexander Review Impact For further information download the corporate responsibility For further information website. report available on our  For Investec, corporate responsibility is about building our businesses to ensure we have a we have is about building our businesses to ensure responsibility For Investec, corporate of communities and on the environment, and social progress positive impact on the economic relationships stakeholders’ wealth based on strong clients’ and and preserving while growing and means integrating social, ethical to corporate responsibility of trust. This commitment this is solidinto our day-to-day operations. A key element of considerations environmental a long-term vision. sustainable management with corporate governance that ensures Purpose and priorities a safe and healthy work Providing that values physical as environment well as psychological well-being Investing in our people and growing Investing in our people and growing talent and leadership through Retaining and motivating staff and rewards remuneration appropriate structures Respecting and upholding human a value-driven rights by entrenching the organisation that is through culture ethics and integrity supported by strong diversity and equality at all Promoting levels of the group* We depend on the experience and proficiency of our people to perform and deliver superior of our people to perform and deliver proficiency depend on the experience and We client services. People For additional information regarding our black economic empowerment and diversity initiatives, refer to the corporate For additional information regarding our black economic empowerment and diversity responsibility report.  capital Human £’000 Investec’s corporate responsibility encompasses three key areas of people, planet and profit, including our contribution to the six capitals planet and profit, of people, key areas encompasses three corporate responsibility Investec’s Goals (SDGs). and our commitment to the Sustainable Development Depreciation Retained income for the year Total Dividends paid to ordinary shareholders shareholders Dividends paid to ordinary shareholders Dividends paid to preference expansion and growth Retention for future Corporation, deferred payroll and other taxes payroll Corporation, deferred Shareholders Spend on corporate social initiatives Government Salaries, wages and other benefits Communities Distributed as follows: Employees Other operating expenditure and impairments on loans and impairments on Other operating expenditure Interest payable Interest Other income Net income generated receivable Interest Investec corporate profile 2018 Investec corporate profile Value added statement Value Contributing Contributing - macro to society, and economic stability the environment.

Investec corporate profile 2018 Investec corporate profile Customer accounts (deposits) up 6.5% since 2017 31 March eighth most valuable brand South Africa’s Voted (2017: 1.2%) 1.2% CSI spend as a % of operating profit (target of >1% for the group) CSI spend of £7.2 million (2017: £7.1 million) Financial Sector Investec will be rated under the revised Code for the first time in 2018 Employment One of the first signatories to Youth Service (YES) programme Consistent contribution to the group’s performance to the group’s Consistent contribution businesses of asset and wealth management from on an ongoing (2017: 36.2%) 36.9% of operating profit costs) basis (excluding group of ongoing operating Annuity income as a percentage 72.0%) income is 76.3% (2017: at lower end of its loss ratio remains Ongoing credit at 0.26% (2017: 0.29%) long-term average trend consultants on environmental, 195 frontline Trained social and governance (ESG) practices in South Africa and the UK Impact Impact We use our specialist financial skills and expertise to provide efficient solutions for clients solutions efficient provide financial skills and expertise to use our specialist We in place. process risk management and have a robust Purpose and priorities with our clients and Building deep durable relationships new client relationships creating a high Investing in our distinctive brand and providing level of service by being nimble, flexible and innovative our corporate Unselfishly contributing to society through social investment (CSI) programmes sector Contributing to the transformation of the financial in South Africa Committed to youth employment in South Africa Purpose and priorities portfolio of businesses that Maintaining a diversified varying economic cycles through supports performance Leveraging our expertise in risk management to protect to protect Leveraging our expertise in risk management value lending and investing solid and responsible Ensure activities We leverage key stakeholder relationships to enhance our impact on society and the to enhance leverage key stakeholder relationships We ‑economy. macro Highlights (continued) Voted second most attractive employer by professionals and fourth by second most attractive employer by professionals Voted students in South Africa in the 2017 Universum awards won the Lifetime Achievement Award Investec CEO, Stephen Koseff by the 2018 African Banker Awards presented by Business Charity Awards award Winner of the Business of the Year 2017 (for Beyond Business) 2017 for our flagship Winner of the Community Impact Award the Beyond Business social enterprise incubator we programme by Bow Centre run in partnership with Bromley 2017, in the individual Community Winner of the National CSR Awards (for Beyond Business) Award (Legacy) category Project Dragon Mayor’s Winner in the Lord of the Community Partners award Awards 2017 winner (for Beyond Business) in the Responsible Business Reaccredited Awards 2017 2017 – Innovation in Received the Financial Innovation Awards for our Invest for Success Sustainability or Social Responsibility Awards run in partnership with Arrival Education programme capital capital People recognition • • • • • • • • Social and Intellectual relationship relationship 18

Financial profile Financial profile 19 (continued) (continued) Highlights 88% of our energy lending portfolio relates to clean energy portfolio relates 88% of our energy lending 6.1% by Carbon emissions reduced on our report (Refer to our corporate responsibility targets) website for emission reduction our through reached in number of children 51% increase (approximately Coaching for Conservation programme since 2013) 12 000 reached of Investec Rhino Lifeline has supported the rescue 70 rhino since 2012 R2.5 million spent on water initiatives to ensure during office continuation of business in our Cape Town the 2017/2018 drought Impact Purpose and priorities energy in renewable Funding and participating Limiting our direct operational carbon impact Limiting our direct various conservation biodiversity through Protecting activities in all Ensuring the security of natural resources our operations We support the transition to a low-carbon economy and believe we can make a meaningful believe we can make a meaningful to a low-carbon economy and support the transition We activity that either consider any meaningful change. We climate impact in addressing the life of, our planet. on, or prolongs the negative impact reduces Planet Investec group was awarded a B for the Carbon Disclosure Project Project a B for the Carbon Disclosure was awarded Investec group (CDP) climate scoring 23 of our physical Energy Management System that covers Investec’s and Channel Islands was certified to the buildings in the UK, Ireland ISO 50001 international energy standard retained Management System the Environment In our UK head office, ISO 14001 standard the international environment Cup for its won the top prize – the Chairman’s Our UK head office, Clean in the Corporation of London’s waste management processes Scheme for 2017 City Award of the Investec Coaching for Conservation kids The coordinator Foundation won a silver in the Eco-Logic at Good Work programme in the category ‘Eco-Youth’ Awards capital Natural Planet recognition • • • • • Investec corporate profile 2018 Investec corporate profile Investec corporate profile 2018 Investec corporate profile

90% of all servers now virtualised reducing our data 90% of all servers now virtualised reducing storage footprint in South Africa by 80% centre to a fully hosted Migration of the UK data centres the energy reducing environment energy efficient footprint Completed a number of enhancements to our digital capability 2018 See page 22 in volume one of Investec’s integrated annual report for further information Click & Invest successfully launched to market were Extensive simulations on various cyber threats comfortable conducted during the period and we are in place with our procedures training on the to do regular required are All staff of cyber crime prevention Our capital light activities contributed 56% to Our capital light activities group income capital income from (target of > 50% of our light activities) Healthy capital and leverage ratios in excess requirements of regulatory (target a leverage ratio > 6%) 41.4% Cash and near cash to customer deposit ratio of (target of > 25%) of 10.1% (2017: 16.9%) Adjusted EPS* growth (target of 10% > UK PRI) cost to income ratio 66.9% Group (target of < 65% in Pounds Sterling) and 14.1% on an ROE of 12.1% overall group ongoing basis five-year (target of 12% – 16% over a rolling period in Pounds Sterling) in dividends per share 4.3% increase Dividend cover of 2.2 times (target of 1.7 – 3.5 times) Impact Impact Adjusted EPS is before goodwill, acquired intangibles, non-operating items and after non-controlling interests and deduction Adjusted EPS is before goodwill, acquired intangibles, of preference dividends. Purpose and priorities and reducing the group across Aligning architecture our application and data footprint an international platform for clients with Creating and services which is both global access to products high-tech and high-touch Investing in technology to deliver exceptional client experience strategy based on a Maintaining a cyber resilient rather than a contemporary approach threat-driven compliance-driven approach * Purpose and priorities business model and resilient Maintaining a balanced liquidity Maintaining a sound capital base and strong our business Organically growing and operational the returns Focusing to improve efficiency value for shareholders Creating We deliver efficient and effective information technology to support our businesses and and effective deliver efficient We facilitate our digital strategy. We create sustained long-term wealth by growing our core businesses. our core wealth by growing sustained long-term create We Highlights (continued) Profit Won the Best Digital Bank in South Africa and most Innovative Digital Won 2017 Bank in Africa in the Best Digital Bank Awards Joint 1st Robo-Advisor for Click & Invest in the MyPrivateBanking 2017 Awards Research 2018 for best newcomer Winner Awards of the Online Personal Wealth capital capital Financial Profit recognition Profit • • • Technological Technological 20

Financial profile Financial profile 21 We may be exposed to country We in sovereign risk i.e. the risk inherent and events in other exposure countries. We may be exposed to investment We risk in our unlisted and listed investment portfolios. Our net interest earnings and net Our net interest asset value may be adversely rate risk. by interest affected Employee misconduct could cause to detect. harm that is difficult 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 pension We risks in our UK operations. Financial review Financial Market, business and general economic conditions and our fluctuations could adversely affect businesses in a number of ways. environmental, social Unintended environmental, and economic risks could arise in our lending and investment activities. Liquidity risk may impair our ability to fund our operations. 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). Compliance, legal and regulatory Compliance, legal and regulatory risks may have an impact on our business. recruit, retain retain may be unable to recruit, We and motivate key personnel. 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. Operational risk (including financial and process crime, cybercrime may disrupt our business or failure) action. in regulatory result Reputational, strategic and business risk could impact our operational 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. Investec corporate profile 2018 Investec corporate profile An overview of the principal risks relating to our operations to the principal risks relating An overview of on our operations, senior management believe could have an impact and significant risks we face, which the board The most material and 2018 integrated in Investec’s further details provided summarised briefly below with are viability and prospects financial performance, of these principal risks. For additional assessment sub-committees, has performed a robust its various through The board, annual report. Investec 2018 integrated annual to volume two of the risks refer the management and monitoring of these principal information pertaining to risk and capital committee at the group and the board made to senior management, the executives of these risks is Regular reporting report. committee (BRCC). risk and capital (GRCC) and board appetite and even with sound recognises on page 46. The board provided risk appetite framework is approved board The group’s assess these necessary to is however, It control. board’s completely outside of the 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 can be done to that assess and plan what events and from but plausible which in theory test extreme, testing scenarios out multiple stress the deem immaterial may in known to us or that we currently and uncertainties not presently mitigate the potential outcome. Additional risks also negatively impact our business operations. future 160.6 491.1 18 18 17 17 16 16 15 15 Investec corporate profile 2018 Investec corporate profile 14 14 13 13 12 12 11 11 10 10 Up 6.5% to £160.6 billion since 31 March 2017 – Up 6.5% to £160.6 billion since 31 March neutral basis* of 6.2% on a currency an increase Net inflows of £7.3 billion Up 13.0% to £491.1 million 09 09 0 0 50 billion million 200 100 150 400 500 100 00 200 it ssets une neent uste enins ttiute to oin uste enins ooi cuie seoes efoe ites intnies n nonoetin 31.0 25.1 53.2 18 18 17 17 16 16 15 15 14 14 13 13 ustomer deposits 12 12 11 11 Financial review Financial (continued) 10 10 Core loans: up 10.7% to £25.1 billion since Core of 10.1% on a 2017 – an increase 31 March neutral basis* currency Deposits: up 6.5% to £31.0 billion since of 5.9% on a 2017 – an increase 31 March neutral basis* currency Up 10.1% to 53.2 pence 09 ore loans ore 09 Currency neutral basis: calculation assumes that the group’s relevant closing exchange rates at 31 March 2018, as reflected on page 24, remain the same Currency neutral basis: calculation assumes that the group’s as those at 31 March 2017. 5 0 0 5 0 50 40 0 20 10 25 15 0 20 10 pence billion uste enins e se uste enins 22 Coe ons n custoe eosits * Track record Track

Financial profile Financial profile 23 0 0 25 20 5 15 10 66.9 47.5 ercentage 18 18 5 428 nvestec plc 17 17 16 16 15 15 (continued) (continued) 14 14 nvestec Limited 13 13 target below 5% 12 12 We have set the following target over have set the following target We the medium to long term: in COI ratio: less than 65% Group Pounds Sterling 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 financial services our return industry focusing on increasing on equity in the medium to long term. We target a capital adequacy ratio range of between 14% and 17% on a consolidated basis for Investec plc and Investec Limited, a minimum tier 1 ratio of 11% and a common equity tier 1 ratio above 10%. target a leverage ratio above 6.0% We also Financial review Financial 11 11 10 10 Refer to page 65 in volume one of Investec’s 2018 Refer to page 65 in volume one of Investec’s integrated annual report for further information.  09 09 otal shareholders equity shareholders otal Target Target 0 0 50 0 20 0 10 40 0 0 ercentage 000 000 ot seoes euit n cit euc tios C 5 000 4 000 000 2 000 1 000 Cost to incoe tio C n stff Cost to incoe tio oetin incoe tio C coenstion to 24.0 53.2 12.1 18 18 17 17 16 16 15 15 14 14 13 13 arget range 12% to 1% 12 12 We have set the following target over have set the following target We the medium to long term: rolling ROE: 12% to 16% over a Group Sterling five-year period in Pounds 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 11 11 D 10 10 09 09 Target Target ROE is post-tax return on adjusted average shareholders’ equity. Adjusted EPS before goodwill, acquired intangibles and non-operating items. numbers have been reported in terms of Basel III since 31 March 2013, and Investec plc has been reporting in terms of Basel III since Investec Limited’s 31 March 2014. 0 0 1 50 40 0 0 20 10 12 15 pence ercentage Investec corporate profile 2018 Investec corporate profile ** *** Note: 31 March, unless otherwise stated. The numbers shown in the financial targets graphs on this page are for the years ended * uste enins e se n iiens e se Financial targets % % n/a 1.75 1.19 1.31 5.3% 6.9% 7.0% 6.0% 5.9% 6.2% 8.1% 6.9% 4.1% 18.42 (3.5%) (4.7%) 12.4% 10.1% Neutral change change Neutral Average currency currency ^ ^^ at n/a 1.64 1.17 1.25 2018 £578 £478 £465 2018 16.77 50.3p 48.4p 31 March 2017 31 March £5 403 454.0p 403.0p Year to Year Neutral Neutral £57 288 £12 763 £30 815 £24 995 Investec corporate profile 2018 Investec corporate profile Year end Year currency £160 138 31 March 31 March currency 31 March 31 March % % 1.72 1.14 1.33 7.6% 6.5% 6.5% 6.5% 5.0% 6.5% 1.4% 0.8% 4.3% 17.21 12.9% 10.7% 14.3% 13.0% 10.1% change change reported Average Average reported Actual as Actual as at 1.83 1.14 1.40 Results in Pounds Sterling Results in Pounds Sterling 2017 £599 £442 £435 2017 16.62 48.3p 50.8p 23.0p 31 March 2018 31 March £4 809 431.0p 377.0p Year to Year £53 535 £22 707 £12 038 £29 109 reported reported £150 735 Year end Year Actual as 31 March Actual as 31 March 31 March at 2018 £608 £506 £491 2018 53.2p 51.2p 24.0p £5 428 452.5p 401.5p Year to Year £57 617 £25 132 £12 825 £30 987 reported reported £160 576 31 March Actual as 31 March Actual as Financial review Financial (continued) For balance sheet items we have assumed that the Rand: Pound Sterling closing exchange rate has remained neutral since 31 March 2017. For balance sheet items we have assumed that the Rand: Pound Sterling closing exchange rate has remained 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. i.e. 18.42. in the prior year, For income statement items we have used the average Rand: Pound Sterling exchange rate that was applied Currency per £1.00 Currency Total assets (million) Total Net asset value per share Net tangible asset value per share equity (million) Total loans and advances (million) Core Cash and near cash balances (million) Customer deposits (million) party assets under management (million) Third 24 ^^ Operating profit before taxation* (million) before Operating profit (million) Earnings attributable to shareholders (million) Adjusted earnings attributable to shareholders** Adjusted earnings per share** ** ^ * Exchange rates impact on statutory results Exchange rates of operations by entities outside the UK. The results conducted Certain of our operations are is Pounds Sterling. currency Our reporting domiciled, of the countries in which they are currencies in the local reported of our individual companies are and the financial position at the then translated into Pounds Sterling are These results and US Dollars. Rands, Australian Dollars, Euros including South African statement, In the case of the income financial results. rates for inclusion in our combined consolidated exchange currency applicable foreign rate is used. closing case of the balance sheet, the relevant period is applied and, in the for the relevant the weighted average rate rates against Pounds Sterling over the year. exchange out the movements in certain relevant The following table sets Basic earnings per share Dividends per share South African Rand Australian Dollar Euro US Dollar the The most significant impact arises from Sterling have fluctuated over the year. and Pounds Exchange rates between local currencies by 6.6% and the closing rate has Sterling exchange rate over the year has appreciated volatility of the Rand. The average Rand: Pound 2017. by 0.9% since 31 March appreciated

Financial profile Financial profile 25 % % 7.8% 6.5% 3.9% 7.2% 4.1% 5.6% 6.7% 9.7% 5.6% 5.5% 5.3% (4.3%) (4.9%) (4.5%) 11.9% change change At 875c 920c 872c 403c 2017 2017 7 228c 6 322c R8 025 R7 880 Year to to Year R10 885 R80 638 R897 749 R380 786 R201 877 R488 149 31 March 31 March (continued) (continued) R2 527 826 Results in Rands Results in Rands At 909c 875c 833c 432c 2018 2018 7 521c 6 674c R8 648 R8 395 Year to to Year R10 412 R90 218 R957 592 R417 695 R213 155 R515 007 31 March 31 March R2 661 492 Financial review Financial % % 1.4% 0.8% 1.0% 4.3% 5.0% 6.5% 7.6% 6.5% 6.5% 6.5% 14.3% 13.0% 10.1% 10.7% 12.9% change change At £442 £435 £599 2017 2017 48.3p 50.8p 48.2p 23.0p £4 809 431.0p 377.0p Year to to Year £53 535 £22 707 £12 038 £29 109 £150 735 31 March 31 March At £506 £491 £608 2018 2018 Results in Pounds Sterling Results in Pounds Sterling 53.2p 51.2p 48.7p 24.0p £5 428 401.5p 452.5p Year to to Year £57 617 £25 132 £12 825 £30 987 £160 576 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. Before goodwill, acquired intangibles, non-operating Investec corporate profile 2018 Investec corporate profile 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 of the group’s a comparison The following table provides * ** Earnings attributable to shareholders (million) Earnings to shareholders attributable Adjusted earnings attributable to shareholders** (million) Adjusted earnings per share** Basic earnings per share Operating profit before taxation* (million) before Operating profit Headline earnings per share Dividends per share Net tangible asset value per share (million) equity Total (million) assets Total loans and advances (million) Core Cash and near cash balances (million) Customer deposits (million) party assets under management (million) Third Net asset value per share ^ ^ ^ ^ nd nd nd nd 3.3 292 nc** 6.2x 42.4 41.2 38.5 36.1 13.0 62.6 2009 13.0x 3 762 2 621 2 297 4 866 308.8 266.3 634.6 713.2 2 083 5 951 13.58 14.83 74.0% 26.0% 55.9% 34.9% 14.8% 17.4% 1.36% 46.6% 53.4% 70.0% 21.1% 43.4% 16.2% 10.1% 14.2% 10.8% 1.08% 3.28% 37 365 16 227 14 573 48 828 103.6% 269 215 261 627 396 766 ^ ^ ^ ^ nd nd nd nd 2.8 539 nc** 5.4x 45.1 40.1 44.0 41.5 16.0 69.7 2010 12.5x 4 362 3 292 2 955 9 117 364.0 324.1 686.3 741.0 3 993 6 123 11.11 12.38 67.2% 32.8% 57.8% 36.1% 13.5% 15.4% 1.33% 37.0% 63.0% 60.4% 20.6% 38.4% 15.9% 11.3% 15.6% 12.0% 1.16% 3.98% 76.2% 46 572 17 891 21 934 74 081 309 710 275 131 432 258 ^ ^ ^ ^ nd nd nd nd 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% 33.6% 34.9% 65.1% 62.3% 15.5% 36.8% 16.8% 11.6% 15.9% 11.9% 50 941 18 758 24 441 88 878 327 897 286 659 434 406 ^ ^ nd nd 1.9 382 4.5x 31.8 26.8 25.7 24.3 17.0 47.8 2012 9.3% 9.3% 7.8% 9.6% 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% 30.2% 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 96 776 257 579 217 253 358 625 ^ ^ nd nd 2.0 459 4.7x 36.1 31.0 31.7 29.8 18.0 53.5 2013 8.8% 8.9% 9.4% 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% 29.1% 35.2% 64.8% 68.6% 18.4% 35.4% 16.7% 11.0% 15.5% 10.8% 52 010 18 415 24 461 309 310 265 227 426 278 110 678 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% 29.9% 33.6% 66.4% 70.7% 17.1% 36.4% 15.3% 10.5% 14.9% 11.0% 47 142 17 157 22 610 326 923 291 561 450 676 109 189 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 5 219 4 040 3 501 9 975 10.2% 0.68% 2.07% 74.0% 70.8% 29.2% 67.6% 47.4% 10.6% 12.7% 1.25% 30.4% 32.4% 67.6% 74.2% 19.6% 38.8% 16.7% 11.9% 14.7% 11.3% 44 353 17 189 22 615 339 532 308 770 493 157 124 106 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% 29.6% 29.6% 70.4% 71.7% 19.1% 40.0% 15.1% 10.7% 14.0% 10.7% 45 352 18 119 10 962 24 044 359 732 334 720 505 593 121 683 4.3 1.4% 7.6% 6.5% 6.5% 6.5% 1.1% 3.5% 1.0% 0.8% 2.0% 5.0% 6.5% 2.6% 2.3% 3.5% 4.4% 0.9% 6.6% 7.5% (4.5%) 10.7% 10.1% 13.0% 11.3% 12.9% % change 2018 vs 2017 2.1 544 9.5x 4.7x 64.1 48.3 48.2 50.8 48.8 23.0 2017 7.8% 9.9% 7.3% 431.0 377.0 900.4 958.3 5 213 9 716 16.77 18.42 6 211 4 809 4 131 62.5% 37.5% 46.1% 42.4% 15.1% 11.5% 11.3% 14.1% 10.7% 0.54% 1.22% 76.2% 18.5% 66.3% 12.5% 14.5% 1.45% 30.1% 29.7% 70.3% 72.0% 53 535 22 707 12 038 29 109 599 121 150 735 434 504 434 425 Investec corporate profile 2018 Investec corporate profile 2.2 550 9.1x 4.6x 53.2 48.7 51.2 49.8 24.0 61.2 2018 8.5% 7.5% 9.6% 452.5 401.5 923.5 980.6 5 393 16.62 17.21 6 911 5 428 4 442 67.2% 32.8% 47.5% 43.6% 15.4% 12.9% 11.0% 14.6% 11.0% 10.2% 0.61% 1.17% 79.6% 66.9% 12.1% 13.7% 1.45% 29.3% 31.1% 68.9% 76.2% 57 617 25 132 12 825 30 987 10 146 607 505 160 576 491 062 449 647 ø # ø ø Financial review Financial (continued) Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. 2018 integrated annual report for of Investec’s Staff compensation ratio has been calculated based on revised definition as per page 245 in volume three financial years 2017 and 2018. Prior year numbers have not been recalculated on this basis. Where nc is not comparable. Where nd is not previously disclosed. plc has been reporting in terms of Basel III since 31 March 2014. numbers have been reported in terms of Basel III since 31 March 2013, and Investec Investec Limited’s For the year ended 31 March For the year ended 31

26 ** ^ º ø # Market capitalisation (£’million) (including temps and contractors) Number of employees in the group Closing ZAR:£ exchange rate ZAR:£ exchange rate Average Net tangible 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 Diluted earnings per share (pence) Diluted earnings per share (pence) Dividends per share Dividend cover (times) (pence) Net asset value per share Salient financial features and key statistics Salient financial features (pence) Adjusted earnings per share (pence) Headline earnings per share (pence) Basic earnings per share Gearing ratio (assets excluding assurance assets to total equity) loans to equity ratio Core Loans and advances to customers: customer deposits Leverage ratio: Investec Limited – currentº loans core loss ratio (income statement impairment charge as a % of average gross Credit and advances) loans and advances collateral) as a % of net core Defaults (net of impairments and before to customers Leverage ratio: Investec plc – currentº Capital adequacy ratio: Investec Limitedº Capital adequacy tier 1 ratio: Investec Limitedº Common equity 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 Common equity 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’ Net interest income as a % of operating income Net interest income as a % of operating income Non-interest Annuity income as a % of total operating income operational tax rate Effective Return on average adjusted tangible shareholders’ equity (post-tax) Return on average adjusted tangible shareholders’ Return on average risk-weighted assets & Investment businesses and Wealth Operating margin of the combined Asset Management per employee (£’000) Operating profit Operating profit: UK and Other (% of total) UK and Other Operating profit: Cost to income ratio compensation to operating income ratio Staff equity (post-tax) Return on average adjusted shareholders’ Headline earnings (£’000) non-operating items and taxation (£’000) intangibles, goodwill, acquired before Operating profit Southern Africa (% of total) Operating profit: Income statement and selected returns Income statement and goodwill, acquired before shareholders Adjusted earnings attributable to ordinary items (£’000) intangibles and non-operating Ten-year review Ten-year Salient features

Financial profile Financial profile 27 ^ ^ ^ ^ nd nd nd nd 3.3 292 nc** 6.2x 62.6 42.4 41.2 38.5 36.1 13.0 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 34.9% 14.8% 17.4% 1.36% 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% 37 365 16 227 14 573 48 828 103.6% 269 215 261 627 396 766 ^ ^ ^ ^ nd nd nd nd 2.8 539 nc** 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% 36.1% 13.5% 15.4% 1.33% 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% (continued) (continued) 46 572 17 891 21 934 74 081 309 710 275 131 432 258 ^ ^ ^ ^ nd nd nd nd 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% 40.7% 11.2% 13.2% 1.23% 33.6% 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% 50 941 18 758 24 441 88 878 Financial review Financial 327 897 286 659 434 406 ^ ^ nd nd 1.9 382 4.5x 31.8 26.8 25.7 24.3 17.0 47.8 2012 9.3% 7.8% 9.6% 9.3% 67.8x 11.3x 392.0 317.0 809.6 874.0 3 340 7 781 12.27 11.85 5 505 4 013 3 716 43.0% 0.91% 30.2% 36.2% 63.8% 67.7% 18.1% 35.4% 17.5% 11.6% 16.1% 11.6% 1.12% 3.31% 80.7% 19.3% 64.7% 10 251 51 550 18 226 25 344 96 776 257 579 217 253 358 625 ^ ^ nd nd 2.0 459 4.7x 36.1 31.0 31.7 29.8 18.0 53.5 2013 8.9% 9.4% 8.8% 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 71.5% 43.9% 11.7% 1.06% 29.1% 35.2% 64.8% 68.6% 18.4% 35.4% 16.7% 11.0% 15.5% 10.8% 0.84% 2.73% 67.5% 32.5% 65.7% 52 010 18 415 24 461 110 678 309 310 265 227 426 278 2.0 485 4.3x 37.9 33.8 34.3 32.3 19.0 54.9 2014 9.4% 7.8% 7.4% 8.8% 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 72.0% 36.4% 15.3% 10.5% 14.9% 11.0% 0.68% 2.30% 46.3% 10.0% 12.3% 1.14% 29.9% 33.6% 66.4% 70.7% 17.1% 66.0% 34.0% 67.6% 47 142 17 157 22 610 109 189 326 923 291 561 450 676 2.0 561 9.4x 4.3x 39.4 35.8 24.4 23.1 20.0 59.7 2015 9.6% 8.1% 7.7% 364.9 308.1 862.7 899.4 5 045 8 254 17.97 17.82 5 219 4 040 3 501 9 975 74.0% 38.8% 16.7% 11.9% 14.7% 11.3% 0.68% 2.07% 47.4% 10.6% 12.7% 1.25% 30.4% 32.4% 67.6% 74.2% 19.6% 10.2% 70.8% 29.2% 67.6% 44 353 17 189 22 615 124 106 339 532 308 770 493 157 2.0 513 4.7x 41.3 38.5 38.5 36.7 21.0 58.7 2016 9.6% 6.9% 9.7% 7.0% 10.2x 21.13 20.72 352.3 294.3 870.5 908.8 4 662 8 966 4 994 3 859 3 360 73.6% 10.7% 0.62% 1.54% 40.0% 15.1% 10.7% 14.0% 71.7% 19.1% 47.0% 11.5% 13.7% 1.34% 29.6% 29.6% 70.4% 63.8% 36.2% 66.4% 10 962 24 044 45 352 18 119 121 683 359 732 334 720 505 593 Investec corporate profile 2018 Investec corporate profile 4.3 1.4% 1.0% 0.8% 2.0% 4.4% 1.1% 5.0% 6.5% 2.6% 2.3% 3.5% 0.9% 6.6% 3.5% 6.5% 7.6% 6.5% 6.5% 7.5% (4.5%) 10.1% 13.0% 10.7% 11.3% 12.9% % change 2018 vs 2017 2.1 544 9.5x 4.7x 48.3 48.2 50.8 48.8 23.0 64.1 2017 7.8% 7.3% 9.9% 9 716 431.0 377.0 900.4 958.3 5 213 16.77 18.42 6 211 4 809 4 131 62.5% 37.5% 46.1% 1.22% 76.2% 18.5% 66.3% 12.5% 14.5% 1.45% 30.1% 29.7% 70.3% 72.0% 42.4% 15.1% 11.5% 11.3% 14.1% 10.7% 0.54% 53 535 22 707 12 038 29 109 599 121 434 504 434 425 150 735 2.2 550 9.1x 4.6x 53.2 48.7 51.2 49.8 24.0 61.2 2018 9.6% 8.5% 7.5% 452.5 401.5 923.5 980.6 5 393 16.62 17.21 6 911 5 428 4 442 67.2% 32.8% 47.5% 1.17% 79.6% 66.9% 12.1% 13.7% 1.45% 29.3% 31.1% 68.9% 76.2% 43.6% 15.4% 12.9% 11.0% 14.6% 11.0% 10.2% 0.61% 10 146 57 617 25 132 12 825 30 987 607 505 491 062 449 647 160 576 ø # ø ø Before goodwill, acquired intangibles, non-operating items, taxation and after other non-controlling interests. 2018 integrated annual report for of Investec’s Staff compensation ratio has been calculated based on revised definition as per page 245 in volume three financial years 2017 and 2018. Prior year numbers have not been recalculated on this basis. Where nc is not comparable. Where nd is not previously disclosed. plc has been reporting in terms of Basel III since 31 March 2014. numbers have been reported in terms of Basel III since 31 March 2013, and Investec Investec Limited’s For the year ended 31 March For the year ended 31

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 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 ** ^ º ø # Ten-year review Ten-year Salient features selected returns Income statement and goodwill, acquired before shareholders Adjusted earnings attributable to ordinary items (£’000) intangibles and non-operating Headline earnings (£’000) 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: Cost to income ratio compensation to operating income ratio Staff equity (post-tax) Return on average adjusted shareholders’ equity (post-tax) Return on average adjusted tangible shareholders’ Return on average risk-weighted assets & Investment businesses and Wealth Operating margin of the combined Asset Management per employee (£’000) Operating profit income as a % of operating income Net interest income as a % of operating income Non-interest Annuity 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 plcº Leverage ratio: Investec plc – currentº Capital adequacy ratio: Investec Limitedº Capital adequacy tier 1 ratio: Investec Limitedº Common equity tier 1 ratio: Investec Limitedº Leverage ratio: Investec Limited – currentº loans core loss ratio (income statement impairment charge as a % of average gross Credit and advances) Business pro le Business profile 29 ø

Hendrik du Toit Glynn Burger Ciaran Whelan Kim McFarland Specialist Banking Where we operate Where Southern Africa UK Europe Australia Mauritius Hong Kong India USA What we do Private Banking activities Corporate and Institutional Banking activities Investment activities activities Property Services and Other activities Group

uman resources and organisational Human resources development Kahn Marc Corporate governance and compliance Bradley Tapnack finance Group Nishlan Samujh schemes and company Share secretarial Les Penfold marketing Group Malcolm Fried investor relations Group Ursula Nobrega financial risk businesses. This ensures that This ensures financial risk businesses. of on any one part not over reliant we are our activities and our business to sustain base revenue that we have a large recurring varying through that enables us to navigate long-term growth cycles and to support our objectives. include strategic objectives Our current of our non- the proportion increasing we largely base which lending revenue continued the intend to achieve through of our and development strengthening and Asset Management businesses. Wealth SUPPORT STRUCTURES SUPPORT Group divisional structure divisional Group Executive director Executive director risk and finance director Group From 1 April 2019* From risk director Group finance and Group operations director Asset Management Wealth & Investment Wealth Hendrik du Toit^ Steve Elliott What we do Portfolio management Stockbroking Alternative investments Investment advisory services trading services Electronic portfolios Retirement we operate Where South Africa UK Europe Hong Kong Mauritius Wealth & Investment Wealth 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 pursuit international scale through competencies of clearly established core Our core areas. in our principal business build well-defined, philosophy has been to focused on serving value-added businesses we niches where the needs of select market can compete effectively. balance seek to maintain an appropriate We operational earned from between revenue earned from risk businesses and revenue Stephen Koseff^^ Kantor^^ Bernard Fani Titi Hendrik du Toit Specialist Banking Ciaran Whelan** David van der Walt Investec is a Investec is all that it does. all that it does. bank and asset bank and South Africa Glynn Burger Wainwright Richard United Kingdom David van der Walt Steve Elliott For further information on the management succession changes announced by the group on 6 FebruaryFor further information on the management succession changes announced by the group 2018, refer to pages 49 and 50.  Asset Management

manager striving manager striving Subject to regulatory approval as per the group’s announcement made on 6 February 2018. Subject to regulatory approval as per the group’s Whelan as joint head of the Specialist Bank. has replaced Ciaran As from 1 April 2018 Richard Wainwright Glynn Burger will retire as a group executive director on 31 March 2019. Per the group’s announcement made on 6 February from 2018, John Green and Mimi Ferrini will be deputy CEOs of Investec Asset Management Per the group’s and from 1 October 2018 will become joint CEOs of the business. 1 April 2018, Stephen Koseff and Bernard Kantor will become non-executive directors of the group on 1 April 2019. Managing director 1 October 2018* From Joint chief executive officers As at 31 March 2018 As at 31 March Chief executive officer GEOGRAPHICAL BUSINESS LEADERS BUSINESS GEOGRAPHICAL Where we operate Where Africa Americas Asia Pacific UK Europe What we do Equities Fixed Income Multi-Asset Alternatives

focused specialist focused specialist to be distinctive in to be distinctive

Global roles Integrated global management structure Integrated global management

Investec corporate profile 2018 Investec corporate profile ^ ^^ ø * ** Investec corporate profile 2018 Investec corporate profile Investing Client base Operations platform – – – Organically build an independent global an emerging market base platform from 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 • • • • • • •

by 8.0% to Operating profit before before Operating profit (2017: £95.3 billion) Assets under management £103.9 billion £178.0 million contributing 29.3% to group profit contributing 29.3% to group controlling interests increased increased interests non-controlling It all began in South Africa in 1991. than twenty-seven years, we After more to become a successful global have grown the investment management firm from continue to develop emerging markets. We committed to and are an owner culture building a long-term intergenerational business. Our investment team, of over 200 applies investment professionals, clear investment philosophies and multiple asset classes. across processes five is organised across Our client group geographically defined units serving our the globe. These teams are clients around supported by our global investment and operational structure. Net flows of 33.0% funds to sophisticated clients. Our clients include some of clients include some clients. Our funds to sophisticated (2017: 33.1%) Operating margin capabilities through active segregated mandates or mutual mandates or mutual active segregated through capabilities At Investec Asset Management, we believe in investing in a believe in investing Asset Management, we At Investec the world’s largest private and public sector pension funds, largest private and public the world’s Asset Management intermediaries serving individual investors. Our business is to intermediaries serving £5.4 billion retire with dignity or meet their financial objectives by offering by offering financial objectives with dignity or meet their retire long-term business offering organically-developed investment investment organically-developed offering long-term business (2017: £(0.6) billion) by exceeding their investment and client service expectations. by exceeding their investment better tomorrow. We want to assist people around the globe to the globe people around want to assist We better tomorrow. Annual highlights financial institutions, corporates, foundations, central banks and financial institutions, corporates, specialist, active investment expertise. We are a patient, organic, a patient, are We investment expertise. specialist, active manage our clients’ investments to the highest standard possible to the highest standard manage our clients’ investments This information reflects the Investec Asset Management global executive committee before the changes announced on 6 February 2018. Chief executive officer Hendrik du Toit Chief operating officer Kim McFarland Global head of client group John Green Co-chief investment officer Domenico (Mimi) Ferrini Co-chief investment officer John McNab 30 * Global executive committee* 2018 at 31 March

Business profile Business profile 31 2018 Europe 2017 2 n Commodities Private equity Real estate Infrastructure debt Africa – – – – – – – – Alternatives £1 393 mn (continued) (continued) 1 00 n Asia Pacific Europe (including UK) £61 mn Global solutions Income solutions – – – – Multi-Asset 1 n Asia Paci c (including Middle East) Americas Asset Management Investments Client groups £(1 308) mn Credit Sovereign Money Market Organisational structure Organisational – – – Global operations platform – – – 2 0 n Africa Fixed Income £(718) mn Americas Long-only Equity – – United Kingdom Equities What we do Financial years to 31 March 2017 and 31 March 2018 Note: The net flows exclude a historic low value cash plus account which is subject to volatile net flows. Where we operate Where Net flows by geography Investec corporate profile 2018 Investec corporate profile Investec corporate profile 2018 Investec corporate profile Investec Wealth & Investment has been Investec Wealth built via the acquisition and integration over of businesses and organic growth a long period of time platforms in the UK, Well-established South Africa, Switzerland, Republic of and Guernsey Ireland The business has five distinct channels: intermediaries, charities, direct, international and digital Strategy to internationalise within the Investec group jurisdictions where has an established business already in our key Focus is on organic growth markets and enhancing our range of services for the benefit of our clients. • • • • • Our value proposition

increased by 5.7% to increased Operating profit before before Operating profit interest non-controlling (2017: £54.8 billion) £56.0 billion £98.6 million Assets under management contributing 16.2% to group profit contributing 16.2% to group Investec Wealth & 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. The business specialises in wealth management, portfolio management, and private office services for stockbroking individuals, families, trusts and charities. Net flows of 24.3% (2017: 25.9%) Operating margin Wealth & Investment Wealth (2017: £1.2 billion) £2.0 billion Further detail on the Wealth & Investment management structure is Further detail on the Wealth available on our website: www.investec.com Annual highlights  Global head Steve Elliott UK head Jonathan Wragg South Africa head Henry Blumenthal Switzerland head Peter Gyger head Ireland Eddie Clarke 32 Africa. and the largest in South private client investment managers private client investment & Investment is one of the UK’s leading leading is one of the UK’s & Investment investment processes. Investec Wealth Wealth processes. Investec investment international reach and depth of reach and depth international offers its clients comfort in its scale, comfort in its offers its clients Investec Wealth & Investment Investec Wealth

Business profile Business profile 33 (continued) (continued) South Africa and Mauritius and brand Strong positioning Largest player in the South African market & Developing Wealth Investment capability in Mauritius Estate planning planning Retirement Bespoke advice and independent financial reviews. Financial planning • • • Wealth & Investment Wealth UK and Other Brand well recognised Established platforms and distribution in the UK, Switzerland, Republic of Guernsey and Ireland, Hong Kong leading One of the UK’s private client investment managers to attract ability Proven investment and recruit managers Newly launched digital investment offering, Investec Click & Invest Discretionary investment Discretionary pension management for company and Self Invested Personal Pensions (SIPPs) Advice and guidance on pension schemes. The UK operation is conducted through Investec Wealth & Investment Limited. The other Wealth Investec The UK operation is conducted through Investec Bank Switzerland, Investec conducted through & Investment operations are Wealth Islands and in Hong & Investment Channel Investec Wealth & Investment Ireland, Wealth Investec Capital Asia Limited. Kong, through the above jurisdictions, located throughout offices operate from Over 1 300 staff & Investment is billion. Investec Wealth with combined funds under management of £36.9 management services. of private client investment 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 and management and stockbroking billion of discretionary South Africa with R115.3 across eight offices trusts. Operating from and annuity managed assets and a further R202.6 billion of funds under various other forms of administration. Pensions and retirement • • South Africa UK and Other Discretionary and advisory portfolio and advisory portfolio Discretionary for private management services 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. What we do Investec corporate profile 2018 Investec corporate profile • • • • Investment and savings Where we operate Where Investec corporate profile 2018 Investec corporate profile High-quality specialist banking solution to corporate and private clients with leading positions in selected areas high-touch personalised service Provide – ability to execute quickly Ability to leverage international, cross- platforms border opportunities positioned to capture Well between the developed and the emerging world – internationally mobile ability to originate, manufacture Strong and distribute Balanced business model with good business depth and breadth. Our value proposition • • • • • •

10.2% (2017: 12.8%) down 2.4% -tax) (statutory) ROE (pre £31.0 billion Operating profit (statutory) Operating profit £380.5 million Customer deposits (statutory) and energy. Our specialist teams are Our specialist teams are well positioned to provide services for both personal and business needs across Corporate and Institutional Banking, Investment and Private Banking activities.

13.1% Specialist expertise expertise Specialist up 4.3% to (2017: 15.3%) Specialist Banking Specialist -tax) (ongoing) ROE (pre £25.1 billion Operating profit (ongoing) Operating profit Annual highlights £474.0 million Further detail on the Specialist Banking management structureFurther detail on the Specialist Banking management is available on our website: www.investec.com  Loans and advances (statutory) delivered with dedication with delivered As from 1 April 2018 Richard Wainwright has replaced Ciaran Whelan as joint head of the Specialist has replaced Ciaran As from 1 April 2018 Richard Wainwright Bank. Global heads at 31 March 2018 Global heads at 31 March David van der Walt Ciaran Whelan* UK heads David van der Walt Ciaran Whelan South Africa head Wainwright Richard 34 *

Business profile Business profile 35

Hong Kong Investment activities Distribution platform Australia Experienced local teams in place with industry expertise Focus is on entrenching position as a boutique operation (continued) (continued) Southern Africa UK and Europe Australia Hong Kong India USA – – – – – – Corporate and Institutional banking and trading services Treasury Specialised lending, funds and debt capital markets sales and Institutional research trading Advisory – – – – – – Mauritius Established in 1997 Focus on corporate, institutional and private client banking activities UK and Europe Brand well established Sustainable business on the back of client activity Specialist Banking Specialist South Africa Strong brand and positioning Leading position in corporate, institutional and private client banking activities North America Distribution platform India Established a presence in 2010 Facilitates the link between India, UK and South Africa Corporates/government/institutional clients Southern Africa UK and Europe Australia Hong Kong – – – – Investment activities Principal investments investment fund Property management – – – – worth private clients Southern Africa UK and Europe High income and high net – – Investec corporate profile 2018 Investec corporate profile Where we operate Where – Transactional banking and banking and Transactional exchange foreign Lending Deposits Investments – Private Banking activities What we do 2012 2012 8.8% 8.7% (5.3%) (7.4%) 35.7% 19.7% 0.62% 0.61% 16.3% 0.80% 28.5% 0.39% 31 March 31 March 2013 2013 6.7% 2.0% 1.3% 34.5% 20.3% 0.62% 0.66% 17.3% 0.86% 31.3% 13.9% 0.37% 31 March 31 March Investec corporate profile 2018 Investec corporate profile 2014 2014 3.7% 3.5% 5.1% 34.7% 22.9% 0.60% 0.71% 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% 0.60% 0.72% 22.7% 0.89% 35.1% 0.41% 31 March 31 March 2016 2016 4.1% 4.5% 4.5% 32.0% 26.4% 0.55% 0.71% 24.6% 0.87% 33.1% 10.4% 0.45% 31 March 31 March 2017 2017 2.7% 4.2% 8.1% (0.8%) 33.1% 25.9% 0.58% 0.72% 23.5% 0.85% 33.8% 0.47% 31 March 31 March 2018 2018 5.6% 3.6% 5.0% 4.6% 33.0% 24.3% 0.54% 0.73% 22.0% 0.87% 32.3% 0.49% 31 March 31 March Business highlights Business A large portion of the funds under management are non-discretionary funds. as a percentage of the average of opening The average income yield on funds under management represents the total operating income for the period impact of market movements throughout the period on funds under and closing funds under management. This calculation does not take into account the management or the timing of acquisitions and disposals during the respective periods. & of Ireland, the Channel Islands, and Hong Kong. Excluding ‘Other’, Investec Wealth operations in Switzerland, the Republic ‘Other’ comprises the Wealth Investment UK has an operating margin of 23.2% (2017: 26.8%). Global business (in Pounds Sterling) Global business (in Pounds Sterling) Global business (in Pounds 36 * ^ ^^ Wealth & Investment Wealth Asset Management Key income drivers in our core businesses in our core Key income drivers businesses. our key income drivers in our core reflects The information below Operating margin Operating margin Net inflows in funds under management as a Net inflows in funds under management % of opening funds under in funds under Net organic growth management as a % of opening funds under management Average income yield earned on funds under Average management^ income yield earned on funds under Average management^ UK and Other^^ (in Pounds Sterling) Operating margin^^ Net organic growth in funds under Net organic growth management as a % of opening funds under management Average income yield earned on funds under Average management^ South Africa (in Rands) Operating margin Net organic growth in discretionary funds in discretionary Net organic growth under management as a % of opening funds under management discretionary Average income yield earned on funds under Average management^*

Business profile Business profile 37 – – – 2012 9.6% 1.5% 4.6% 0.3% 5.1% 6.6% (2.8%) (1.8%) 1.12% 55.2% 3.31% 1.65% 4.10% 0.65% 2.73% 11.9% 62.4% 68.3% 31 March – – – 2013 4.7% 1.0% 7.7% 6.6% 6.4% 1.7% 10.0% 0.84% 55.5% 2.73% 1.16% 3.75% 0.61% 1.89% 16.5% 63.1% 10.2% 69.0% 31 March (continued) (continued) – 2014 0.4% 7.9% 3.6% (6.0%) (6.8%) (0.3%) 12.5% 0.68% 51.0%* 2.30% 0.99% 3.21% 0.42% 11.9% 1.46% 10.9% 11.0% 63.2%* 10.6% 72.5%* 31 March 2015 8.6% 9.6% 8.3% 2.1% 15.2% 0.68% 47.2%* 0.2%^^ 2.07% 1.16% 3.00% 0.28% 12.8% 1.43% 63.1%* 16.1% 78.9%* 14.8% (4.9%)^^ Business highlights Business (15.5%)^^ (14.1%)^^ 31 March 2016 2.2% 5.4% 6.7% 5.5% 15.1% 0.62% 46.5%* 1.54% 1.13% 2.19% 0.26% 13.0% 10.5% 1.05% 10.1% 11.4% 15.1% 60.1%* 19.7% 73.4%* 15.2% 31 March 2017 8.4% 6.2% 7.0% 8.4% 12.7% 0.54% 46.9%* 1.22% 0.90% 22.2% 25.3% 1.55% 0.29% 12.6% 10.5% 1.02% 10.5% 11.5% 60.6%* 74.8%* 15.3% 31 March 2018 5.6% 8.2% 9.2% 8.5% 3.0% 3.2% 8.7% 12.8% 0.61% 47.1%* 1.17% 1.14% 10.7% 2.16% 0.28% 11.7% 12.4% 0.56% 61.2%* 76.9%* 14.1% 31 March (in Pounds Sterling) # ## Includes UK, other non-Southern African jurisdictions and the legacy businesses. Divisional ROEs are reported on a pre-tax basis. For the purpose of this calculation we have applied the group’s effective tax rate in its respective group’s Divisional ROEs are reported on a pre-tax basis. For the purpose of this calculation we have applied the tax rate of 18%. Capital allocated to the geographies to derive post-tax numbers. For 31 March 2018 in South Africa we have applied a ‘normalised’ Specialist Bank as at 31 March 2018 was c.£1.5 billion in the UK and c.R35 billion in South Africa. Impacted by sale of assets. Excludes group costs. Refer to pages 109 and 110 in volume one of Investec’s 2018 integrated annual report for further information on the group’s investment activities in 2018 integrated annual report for further information on the group’s Refer to pages 109 and 110 in volume one of Investec’s South Africa.

Global business (in Pounds Sterling) Global business (in Pounds

ROE post-tax (excluding investment activities) UK and Other ROE post-tax^ Credit loss ratio on core loans loss ratio on core Credit Southern Africa (in Rands) Cost to income ratio Defaults (net of impairments as a % of Defaults (net of impairments loans) core Credit loss ratio on core loans loss ratio on core Credit Growth in risk-weighted assets Growth Growth in net core loans in net core Growth Defaults (net of impairments as a % of loans) core Credit loss ratio on core loans loss ratio on core Credit Growth in risk-weighted assets Growth ROE post-tax (ongoing business)^ ROE post-tax (ongoing Growth in net core loans in net core Growth Defaults (net of impairments as a % of loans) core ROE post-tax^ ROE post-tax (ongoing business)^ Growth in risk-weighted assets Growth Cost to income ratio ROE post-tax^ Growth in net core loans in net core Growth Cost to income ratio Investec corporate profile 2018 Investec corporate profile ^^ * # ## ^ Specialist Banking – statutory basis Specialist Banking (8.1%) (8.1%) 62.6% 16.2% 29.3% 27.5% 15.6% 65.0% 108.1% 100.0% 108.1% 100.0% % of total % of total 5.7% 8.0% 6.5% 8.8% 1.4% 1.4% (1.7%) (2.4%) 22.3% 17.8% 17.5% 18.5% % change % change Investec corporate profile 2018 Investec corporate profile Total Total 1.4% group group group group 52 288 98 565 35 201 93 243 (49 598) (48 776) 100.0% 100.0% 657 103 607 505 659 793 380 493 178 045 647 897 599 121 659 360 164 824 389 830 9.1% Africa Africa 67.2% 62.5% 29 296 74 127 28 053 73 562 (15 809) (12 613) 423 958 408 149 320 535 386 841 374 228 285 226 Southern Southern Other Other 32.8% 37.5% 59 958 69 269 65 190 91 262 (11.4%) (33 789) (36 163) UK and UK and 233 145 199 356 103 918 261 056 224 893 104 604 Business highlights Business (continued) For the year to 31 March 2017 For the year to 31 March £’000 For the year to 31 March 2018 2018 For the year to 31 March £’000 38 Group costs Group group Total Operating profit before goodwill, acquired intangibles, non-operating items and after other non-operating items and after intangibles, goodwill, acquired before Operating profit interests non-controlling increased interests and after other non-controlling intangibles, non-operating items, taxation acquired goodwill, before Our operating profit million. million to £607.5 £599.1 from by 1.4% after intangibles, non-operating items, taxation and acquired goodwill, before out information on operating profit The following tables set and by division for the year under review. by geography interests other non-controlling Other non-controlling interest – equity interest Other non-controlling Operating profit % change % of total Group costs Group group Total Other non-controlling interest – equity interest Other non-controlling Operating profit % of total Specialist Banking Asset Management & Investment Wealth Wealth & Investment Wealth Specialist Banking Asset Management

Business profile Business profile 39 % 8.0% 7.0% 9.5% 6.7% 5.2% 4.1% 6.7% 6.9% (4.4%) (0.4%) 13.3% 29.8% 17.4% 11.6% 11.8% 11.7% 16.2% (40.6%) (13.2%) (16.1%) (12.5%) >100% (>100%) change % change

(252) 983c 2017 7 951 (7 689) (3 526) (6 741) (2 120) (5 909) 79 069 52 990 33 768 29 343 27 933 89 623 79 562 R8 849 Year to Year (12 404) (19 762) 150 182 156 923 R12 075 (continued) (continued) (120 587) Variance 31 March Results in Rand 54.1 2018 2017 900.4 8 078 65.8% (2 169) 1 049c R9 689 13 158 18 890 Year to Year (25 838) (20 291) (60 239) (57 149) R12 022 487 146 643 422 723 952 158 006 135 631 680 539 (130 438) 31 March 31 March 31 March 2 228 744 2 285 893 1 271 591 (1 502 623) Business highlights Business % 61.3 2018 5.6% 923.5 16.2% 13.3% 66.5% (2 421) (4 326) 11 038 46 823 change (33 527) (77 448) (23 817) (52 288) (63 890) 566 215 677 190 753 295 138 244 129 722 760 101 31 March 31 March 2 378 926 2 442 816 1 361 214 (1 623 210) 2017 54.1p £663.7 £487.1 Year to Year 31 March Results in Pounds Sterling 2018 61.3p £701.0 £566.2 Year to Year 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. Before goodwill, acquired intangibles, non-operating balance sheet management and other trading activities balance sheet management and other trading customer flow For the year to £’000 Cost to income ratio Number of weighted average shares (million) Number of weighted average shares Adjusted earnings per share (pence) Adjusted earnings per share Adjusted attributable earnings to ordinary shareholders Adjusted attributable earnings to ordinary Preference dividends accrued Preference Taxation Operating profit before taxation before Operating profit Profit attributable to Asset Management non-controlling interests attributable to Asset Management non-controlling Profit Profit attributable to other non-controlling interests attributable to other non-controlling Profit Operating profit before goodwill, acquired intangibles and goodwill, acquired before Operating profit 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 on loans income before operating Total and advances Other operating income – Trading income arising from Trading – Share of post taxation profit of associates of post taxation profit Share Investment income Operating profit before taxation* (million) before Operating profit Adjusted earnings attributable to (million) shareholders** Adjusted earnings per share** Net fee and commission income Net interest income Net interest Investec corporate profile 2018 Investec corporate profile Consolidated summarised ongoing income statement Consolidated summarised ongoing * ** Ongoing information information on our ongoing results. The tables that follow provide % % (7.1%) (7.3%) (9.3%) 14.0% 67.6% 24.8% 68.5% 25.4% 14.1% (44.8%) (42.7%) 107.1% of total of total 100.0% 107.3% 100.0% % change % % 1.7% 8.8% 4.3% 5.3% 8.0% 5.7% 6.5% 5.6% 2017 11.0% 22.3% 13.1% 13.7% (64 592) change change 104 604 169 196 Investec corporate profile 2018 Investec corporate profile 31 March 2018 Total Total Total 5.6% group group 59 958 (93 502) 52 288 93 243 98 565 60 239 100.0% 100.0% 153 460 (49 598) (48 776) 454 422 712 489 701 007 753 295 473 995 750 605 663 713 723 952 178 045 164 824 31 March 31 March 9.1% Africa Africa 58.2% 56.4% 28 053 29 296 74 127 73 562 (15 809) (12 613) 408 149 285 226 320 535 423 958 386 841 374 228 Southern Southern 1.2% Other Other 41.8% 43.6% 65 190 69 269 91 262 UK and UK and (33 789) (36 163) 169 196 292 858 153 460 326 647 325 648 289 485 103 918 Business highlights Business (continued) £’000 For the year to 31 March 2017 For the year to 31 March £’000 2018 For the year to 31 March £’000 40 Total UK and Other Specialist Banking per statutory accounts Total Total group Total – equity interest Other non-controlling Operating profit % change % of total Specialist Banking Group costs Group & Investment Wealth Wealth & Investment Wealth Specialist Banking costs Group group Total – equity interest Other non-controlling Operating profit % of total UK legacy remaining Asset Management Asset Management Total ongoing UK and Other Specialist Banking per above Total A reconciliation of the UK and Other Specialist Banking’s operating profit: ongoing vs statutory basis ongoing vs operating profit: of the UK and Other Specialist Banking’s A reconciliation Segmental geographical and business analysis of operating profit before goodwill, acquired goodwill, acquired before operating profit and business analysis of Segmental geographical – interests other non-controlling items, taxation and after intangibles, non-operating ongoing business

Business profile Additional information Investec corporate profile 2018 Investec corporate profile mmary of the year in A summary of the year a risk perspective w from revie integrally Our executive management are involved in ensuring stringent management capital and conduct. The of risk, liquidity, primary aim is to achieve a suitable balance in our business, between risk and reward particularly in the context of prevailing strategy. market conditions and group executive Succession of the group’s management team has been an ongoing with the group’s for the board focus area made in initial announcement in this regard November 2015. Since that date, the board has implemented a number of processes management an orderly to ensure Leadership and talent succession process. for high priority areas development remain and management of Investec. the board succession orderly As part of the group’s founding members to plan to move from the next generation of leadership, a number and management changes have of board disclosed on been announced. These are has been pages 49 and 50. The process has been no well managed and there operations. negative impact on the group’s continues Although the macro-environment was able challenges, the group to present to maintain sound asset performance and the year in review. risk metrics throughout Our risk appetite framework as set out on page 46 continues to be assessed in light market conditions and group of prevailing strategy. the UK continued In the year under review, to negotiate the terms under which it Union. The UK would leave the European reflected economy continues to be resilient, in the levels of client activity we continue of the UK economy to see. Certain areas beginning to signal signs of pressure. are to adjust our risk appetite are able We and closely monitor any new lending in in the that may come under pressure areas closely monitoring are medium-term. We to political developments with respect have continued to evaluate any Brexit and changes we may need to make to adapt landscape to the new legal and regulatory that emerges. In September 2017, Investec Bank plc’s long-term deposit rating was upgraded by Fitch to BBB+ (stable outlook) and Moody’s changed both the outlook on the bank to We believe that the risk management We in place we have systems and processes strategy adequate to support the group’s are and 5) and allow(as explained on page 4 risk appetite to operate within its the group page 46.tolerance as set out on phy and approach to Philosophy and approach risk management risk and capital committee The board and non- (comprising both executive times meets six executive directors) overall the per annum and approves group. risk appetite for the Investec risk and capital committee, The group and comprising of executive directors by the executive management is chaired CEO. All members and chairman of this risk appointed by the board committee are risk and capital committee. The group’s parameters appetite statement sets broad expectations around to the board’s relating performance, business stability and risk management. The that there ensures board to manage the risk resources appropriate are running our businesses. arising from risk management Our comprehensive involves identifying, quantifying, process managing and mitigating the risks associated with each of our businesses. and compliance control Risk awareness, in all our day-to-day activities. are embedded As fundamental to our values, we have and embedded risk and capital a strong management culture. risk management monitors, manages Group that they on our risks to ensure and reports within the stated risk appetite mandated are the board through of directors by the board risk and capital committee. risk exposure monitor and control We market, liquidity, independent credit, through operational, legal risk, internal audit and to is core compliance teams. This approach profile, assuming a tolerable risk and reward growth helping us to pursue controlled our business. across risk management operates within Group an integrated geographical and divisional in line with our management structure, ensuring that the appropriate approach, all risks used to address are processes specialist are There the group. across divisions in the UK and Southern Africa and smaller risk divisions in other regions sound risk tasked with promoting management practices. locally Risk management units are This helps yet globally aware. responsive that all initiatives and businesses to ensure operate within our defined risk parameters and objectives, continually seeking new ways to enhance techniques. from the Statement from risk group chairman of the and capital committee Risk management Ensure adherence to our risk adherence Ensure management culture within the business operates Ensure risk appetite the board-approved sustainability Support the long-term an by providing of the group framework established, independent monitoring for identifying, evaluating, 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. 42 • • • • • • • • Group risk management to: objectives are

Additional information Risk management (continued)

positive (A2, positive outlook) and also the The group has minimal exposure to the Market risk within our trading portfolio Additional information outlook on Investec plc’s ratings to positive agriculture and construction sectors in South remains modest with value at risk and (Baa1, positive outlook). Africa, and our overall group exposure to stress testing scenarios remaining at mining and resources amounts to 2% of our prudent levels. Proprietary risk is limited. In South Africa the economy faced major credit and counterparty exposures. headwinds throughout 2017, driven by We continue to spend much time and escalating political risks, which had negative Overall net defaults of the group are at effort focusing on conduct, reputational, effects on the real economy. Concerns a manageable level, amounting to 3.8% operational, recovery and resolution risks. over the South African economy persisted and 11.2% of our tier 1 equity in Investec Financial and cyber crime remain high throughout the year and peaked ahead Limited and Investec plc respectively, with priorities, and Investec continually aims to of the ANC National Elective Conference total impairments amounting to 19.6% of strengthen its systems and controls in order in December 2017. Subsequent to the group’s pre-provision operating profit. to manage cyber risk as well as meet its that, Cyril Ramaphosa was elected The percentage of default loans (net of regulatory obligations to combat money President of the ANC, the ruling party. The impairments but before taking collateral laundering, bribery and corruption. announcement of a change of leadership into account) to core loans and advances Investec has continued to maintain a sound within the ruling party was favourably amounted to 1.17% (2017: 1.22%). balance sheet with a low gearing ratio of received by investors. In response to these The ratio of collateral to default loans (net 9.1 times and a core loans to equity ratio developments, Moody’s left Southern of impairments) remains satisfactory at of 4.6 times. Our current leverage ratios Africa’s international long-term credit ratings 1.72 times (2017: 1.35 times). for Investec Limited and Investec plc are at unchanged at investment grade (Baa3), We reported an increase in the level of 7.5% and 8.5% respectively, ahead of the upgrading the sovereign’s outlook from impairments taken on our South African group’s minimum 6% target level. negative to stable, ending the review for portfolio, but remain comfortable with downgrade that started in November 2017. We have always held capital well in excess the overall performance of the book, as of regulatory requirements and we intend Investec Bank Limited’s ratings continued the credit loss ratio amounted to 0.28% to perpetuate this philosophy. Investec to track rating adjustments to the South (2017: 0.29%). Default loans (net of plc’s common equity tier 1 ratio is at 11.0% African sovereign rating during the course impairments) as a percentage of core loans at 31 March 2018 and Investec Limited’s of the year. The bank’s national long-term and advances improved from 1.02% to improved to 10.2% ahead of our group ratings remain sound at Aa1.za from 0.56% with absolute levels of defaults CET 1 target of greater than 10% and in Moody’s, AA(zaf) from Fitch and za.AA- decreasing year on year due to asset write- excess of regulatory minimums. Capital from Standard & Poor’s. offs mainly in the corporate portfolio. continued to grow and we are comfortable Our core loan book growth over the year In the UK, ongoing asset quality continues that credit growth is in line with our risk in home currencies was 8.7% in South to reflect the solid performance of the appetite framework and supported by Africa, and 12.4% in the UK. Growth in book. The credit loss ratio on an ongoing sound risk metrics. We believe that a our books has been well diversified across basis amounted to 0.24% (2017: 0.27%). common equity tier 1 ratio in excess of our residential owner-occupied mortgage The legacy portfolio makes up 3.2% of net 10% is appropriate for our businesses, portfolios, private client and corporate core loan exposures at 31 March 2018 given our sound leverage ratios and client lending portfolios as well as selective (31 March 2017: 5.5%). Gross defaults significant capital light revenues, and we lending collateralised by property, with loan on the overall UK book including legacy will continue to build our business in a to values at conservative levels. and ongoing totalled £360.6 million manner that achieves this target. at 31 March 2018 (31 March 2017: Our credit exposures are to a select target In South Africa, we have applied to the £260.3 million) largely due to legacy loans. market, comprising high-income and South African Prudential Authority (previously Defaulted exposures are well covered high net worth individuals, established known as the Banking Supervision Division by impairments. The credit loss ratio on corporates, and medium-sized enterprises. of the South African Reserve Bank) for the overall UK book amounted to 1.14% Our risk appetite continues to favour lower approval to implement the Foundation (2017: 0.90%, 2016: 1.13%) in anticipation risk, income-based lending, with exposures Internal Ratings-Based (FIRB) approach for of accelerated exits on certain assets in the well collateralised and credit risk taken over certain wholesale portfolios, a transitional legacy portfolio. a short to medium term. step to implementing the Advanced Internal Legacy exposures have reduced by 34.3% Ratings-Based (AIRB) approach. Subject to Our focus over the past few years to to £313 million (net of impairments) at approval from the South African Prudential realign and rebalance our portfolios in 31 March 2018. Non-performing exposures Authority, we expect to implement FIRB line with our risk appetite framework is are well covered by impairments and total in 2019 in the calculation of credit risk reflected in the relative changes in asset net defaults in the legacy book amounted regulatory capital. Through the preparation classes on our balance sheet; showing to £90 million. process for the application Investec has an increase in private client and corporate enhanced a number of rating systems and and other lending, and a reduction in Our client-driven private equity portfolios risk quantification models. In addition, once lending collateralised by property as a in the UK and Southern Africa delivered approved, we are expecting a positive proportion of our book. Our core loan book a sound performance. Overall, we remain impact on capital ratios in applying this remains well diversified with commercial comfortable with the performance of our approach. rent producing property loans comprising investment and equity risk exposures which approximately 12% of the book, other comprise 4.1% of total assets. lending collateralised by property 6%, high net worth and private client lending 39.5% and corporate lending 43% (with most industry concentrations well below 5%).

Investec corporate profile 2018 43 Risk management (continued)

Additional information In December 2017, the Bank of England from R303 billion to R322 billion as at growth; and a potential domestic political (BoE) re-confirmed the preferred resolution 31 March 2018. Cash and near cash and household shock. strategy for Investec Bank plc as the balances amounted to R116.5 billion bank insolvency (special administration) at 31 March 2018 (31 March 2017: The board, through its various risk and procedure under the Investment Bank R117.6 billion). capital committees, continued to assess the Special Administration Regulations 2011 – impact of its principal risks and the above otherwise known as ‘modified insolvency’. Investec Bank Limited (solo basis) ended mentioned stress scenarios on its business. As the resolution strategy is ‘modified the financial year with the three-month The board has concluded that the group insolvency’, the BoE has therefore set average of its LCR at 133.9%, which is has robust systems and processes in place Investec Bank plc’s minimum requirement well ahead of the minimum regulatory level to manage these risks and that, while under for own funds and eligible liabilities (MREL) of 90% required. The NSFR has become a severe stress scenario business activity requirement as equal to its regulatory a regulatory requirement as of January would be very subdued, the group would capital requirements. 2018. The NSFR for Investec Bank Limited continue to maintain adequate liquidity and (solo basis) amounted to 108.4% as at capital balances to support the continued Holding a high level of readily available, 31 March 2018, comfortably above the operation of the group. high quality liquid assets remains 100% regulatory minimum. paramount in the management of our  For our viability statement refer to balance sheet. We continue to maintain On 11 December 2017 the group released pages 163 to 165 in volume one of a low reliance on interbank wholesale an announcement on the Johannesburg Investec’s 2018 integrated annual funding to fund core lending asset growth. Stock Exchange in relation to its exposures report. Cash and near cash balances amounted to Steinhoff International Holdings NV (Steinhoff), its subsidiaries and related IFRS 9 is effective from 1 April 2018. to £12.8 billion at year end, representing IFRS 9 replaces IAS 39 and sets out the 41.4% of customer deposits. entities. Trading and investment losses incurred in respect of these exposures new requirements for the recognition and In the UK, a strong liquidity position has amounted to R220 million (approximately measurement of financial instruments. continued to be maintained throughout £13 million) in the current financial year, These requirements focus primarily on the year with liabilities growing to support less than the estimate referred to in the the classification and measurement of strong asset growth. Funding rates have December announcement. As noted in financial instruments and measurement of continued to reduce as we benefitted that announcement, Investec has credit impairment losses based on an expected from additional cost-effective term funding exposures largely to Steinhoff Africa Holdings credit loss (ECL) model. Investec plc including drawings on the BoE’s Term Proprietary Limited subsidiaries and Steinhoff confirmed to the PRA and Investec Funding Scheme. For Investec plc and Africa Retail Limited, which represent a Limited confirmed to the South African Investec Bank plc (solo basis), the Liquidity small portion of the group’s balance sheet. Prudential Authority that each will use the Coverage Ratio (LCR) is calculated Based on the information currently available transitional arrangements to absorb the full using our own interpretations of the EU to the group, Investec is not expecting to impact permissible of IFRS 9 in regulatory Delegated Act. The LCR reported to the suffer any losses on these exposures. capital calculations. Further information Prudential Regulation Authority (PRA) at on the impact of IFRS 9 is provided in the 31 March 2018 was 306% for Investec Investec’s stress testing framework is accounting policies section on page 39 plc and 301% for Investec Bank plc well embedded in its operations and in volume 3 of Investec’s 2018 integrated (solo basis) which is well ahead of the is designed to identify and regularly test annual report. In addition, the group regulatory minimum of 100%. Ahead of the group’s key ‘vulnerabilities under has published its detailed transitional the implementation of the final Net Stable stress’. A fundamental part of the stress disclosures on 29 June 2018 separately Funding Ratio (NSFR) rules, the group has testing process is a full and comprehensive from its annual report and these can be applied its own interpretations of regulatory analysis of all the group’s material business found on the group’s website. guidance and definitions from the Basel activities, incorporating views from risk, Committee of Banking Supervision (BCBS) the business and the executive – a process Conclusion final guidelines, to calculate the NSFR called the ‘bottom-up’ analysis. Resulting from the ‘bottom-up’ analysis, the Investec- The group has achieved a satisfactory which was 142% for Investec plc and operating performance, supported by 133% for Investec Bank plc (solo basis), specific stress scenarios are designed to specifically test the unique attributes of the solid levels of client activity and a robust well ahead of the future regulatory minimum recurring income base. We are comfortable of 100%. The reported LCR and NSFR group’s portfolio. The key is to understand the potential threats to our sustainability that we have robust risk management may change over time with regulatory processes and systems in place. Whilst developments and guidance. and profitability and thus a number of risk scenarios are developed and assessed. the complexities of Brexit continue to In South Africa, we maintained a strong These Investec specific stress scenarios cause uncertainty in the UK economy, the liquidity position and continued to hold form an integral part of our capital planning underlying book continues to perform well high levels of surplus liquid assets. process. The stress testing process also and in line with our risk appetite tolerance. During the past financial year Investec informs the risk appetite review process and The final quarter of the 2018 financial year Bank Limited responded to external the management of risk appetite limits and has started to see an uplift in the South political uncertainty by concluding its is a key risk management tool of the group. African economic outlook. $600 million long-term foreign currency This process allows the group to proactively Signed on behalf of the board funding programme in September 2017. identify underlying risks and manage them It raised a further $550 million using a accordingly. combination of repos, sub-debt issuances and long-term cross currency swaps. During the year, a number of stress The majority of our foreign currency scenarios were considered and funding is used to augment our already incorporated into our processes. Stephen Koseff strong cash balances. Investec grew These included, for example, the impact Chairman of the group risk and capital its total customer deposits by 6.1% of a corporate stress and protracted weak committee

Additional information: Refer to volume two of the 2018 integrated annual report for detailed information on risk management, internal audit and compliance. https://www.investec.com/about-investec/investor-relations/financial-information.htm/.

44 Investec corporate profile 2018 Risk management (continued)

Salient features Additional information A summary of key risk indicators is provided in the table below.

UK and Other Southern Africa Investec group

2018 2017 2018 2017 2018 2017 Year to 31 March £ £ R R £ £

Net core loans and advances (million) 9 687 8 621 256 702 236 225 25 132 22 707 Total assets (excluding assurance assets) (million) 20 547 18 652 476 639 456 836 49 129 45 807 Total risk-weighted assets (million) 14 411 13 312 338 484 329 808 34 777^ 32 979^ Total equity (million) 2 341 2 032 51 279 46 571 5 428 4 809 Cash and near cash (million) 5 813 5 026 116 533 117 586 12 825 12 038 Customer accounts (deposits) (million) 11 624 11 013 321 823 303 470 30 987 29 109 Gross defaults as a % of gross core loans and advances 3.67% 2.98% 1.11% 1.52% 2.10% 2.08% Defaults (net of impairments) as a % of net core loans and advances 2.16% 1.55% 0.56% 1.02% 1.17% 1.22% Net defaults (after collateral and impairments) as a % of net core loans and advances – – – – – – Credit loss ratio* 1.14% 0.90% 0.28% 0.29% 0.61% 0.54% Credit loss ratio – ongoing book 0.24% 0.27% 0.28% 0.29% 0.26% 0.29% Structured credit as a % of total assets** 1.34% 1.87% 0.24% 0.40% 0.70% 1.00% Banking book investment and equity risk exposures as a % of total assets** 2.98% 3.33% 4.87% 4.75% 4.07% 4.15% Level 3 (fair value assets) as a % of total assets** 3.64% 3.65% 0.60% 0.83% 1.87% 1.99% Traded market risk: one-day value at risk (million) 0.5 0.5 3.4 4.5 n/a n/a Core loans to equity ratio 4.1x 4.2x 5.0x 5.1x 4.6x 4.7x Total gearing ratio^^ 8.8x 9.2x 9.3x 9.8x 9.1x 9.5x Loans and advances to customers to customer deposits 83.2% 78.2% 77.4% 75.0% 79.6% 76.2% Capital adequacy ratio## 15.4% 15.1% 14.6% 14.1% n/a n/a Tier 1 ratio## 12.9% 11.5% 11.0% 10.7% n/a n/a Common equity tier 1 ratio## 11.0% 11.3% 10.2% 9.9% n/a n/a Leverage ratio – current## 8.5% 7.8% 7.5% 7.3% n/a n/a Return on average assets# 0.71% 0.92% 1.28% 1.04% 1.03% 1.02% Return on average risk-weighted assets# 1.00% 1.36% 1.79% 1.46% 1.45% 1.45%

* Income statement impairment charge on core loans as a percentage of average advances. ** Total assets excluding assurance assets. ^ The group numbers have been ‘derived’ by adding Investec plc and Investec Limited (Rand converted into Pounds Sterling) numbers together. ^^ Total assets excluding assurance assets to total equity. # Where return represents operating profit after taxation and non-controlling interests and after deducting preference dividends, but before goodwill, acquired intangibles and non-operating items. Average balances are calculated on a straight-line average. ## The capital adequacy disclosures follow Investec’s normal basis of presentation so as to show a consistent basis of calculation across the jurisdictions in which the group operates. For Investec plc and IBP this does not include the deduction of foreseeable charges and dividends when calculating the CET 1 ratio as required under the Capital Requirements Regulation and European Banking Authority technical standards. The impact of this deduction totalling £65 million for Investec plc and £18 million for IBP would lower the CET 1 ratio by 45bps and 13bps respectively.

Certain information is denoted as n/a as these statistics are not applicable at a consolidated group level and are best reflected per banking entity.

Investec corporate profile 2018 45 Risk management (continued) Additional information Overall group risk appetite The group has a number of board-approved risk appetite statements and policy documents covering our risk tolerance and approach to our principal aspects of risk. In addition, a number of committees and forums identify and manage risk at a group level. The group risk appetite statement and framework sets out the board’s mandated risk appetite. The group risk appetite framework acts as a guide to determine the acceptable risk profile of the group by the owners of the group’s capital. The group risk appetite statement ensures that limits/targets are applied and monitored across all key operating jurisdictions and legal entities. The group risk appetite statement is a high-level, strategic framework that supplements and does not replace the detailed risk policy documents at each entity and geographic level. The group risk appetite framework is a function of business strategy, budget and capital processes, our stress testing reviews and the regulatory and economic environment in which the group is operating. The group risk appetite framework is reviewed (in light of the above aspects) and approved at least annually or as business needs dictate. A documented process exists where our risk profile is measured against our risk appetite and this positioning is presented to the group risk and capital committee, board risk and capital committee and the board. The table below provides a high-level summary of the group’s overall risk tolerance framework. Risk appetite and tolerance metrics Positioning at 31 March 2018 • We seek to maintain an appropriate balance between revenue earned from Capital light activities contributed 56% to total capital light and capital intensive activities. Ideally capital light revenue should operating income and capital intensive activities exceed 50% of total operating income, dependent on prevailing market contributed 44% conditions • We have a solid annuity income base supported by diversified revenue Annuity income amounted to 76.2% of total operating streams, and target an annuity income ratio in excess of 65% income. • We seek to maintain strict control over fixed costs and target a group cost to The cost to income ratio amounted to 66.9%. income ratio of below 65% • We aim to build a sustainable business generating sufficient return to The return on equity amounted to 12.1% and our shareholders over the longer term, and target a long-term return on equity return on risk-weighted assets amounted to 1.45%. ratio range of between 12% and 16%, and a return on risk-weighted assets in excess of 1.2% • We are a lowly leveraged firm and target a leverage ratio in all our banking We achieved this internal target. subsidiaries in excess of 6.0% • We intend to maintain a sufficient level of capital to satisfy regulatory Investec plc and Investec Limited meet all these requirements and our internal target ratios. We target a capital adequacy targets. Capital has grown over the period. ratio range of between 14% and 17% on a consolidated basis for Investec plc and Investec Limited and we target a minimum tier 1 ratio of 11% and a common equity tier 1 ratio above 10% • We target a diversified loan portfolio, lending to clients we know and We maintained this risk tolerance level in place understand. We limit our exposure to a single/connected individual or throughout the year. company to 7.5% for Investec plc total common equity tier 1 and 5% of tier 1 capital for Investec Limited (up to 10% if approved by the relevant board committee). We also have a number of risk tolerance limits and targets for specific asset classes • There is a preference for primary exposure in the group’s main operating Refer to page 17 in volume two of Investec’s 2018 geographies (i.e. Southern Africa and UK). The group will accept exposures integrated annual report for further information. where we have a branch or local banking subsidiary and tolerate exposures to other countries where we have developed a local understanding and capability or we are facilitating a transaction for a client who requires facilities in a foreign geography • We target a credit loss ratio on core loans of less than 0.5% of average core The credit loss ratio on core loans amounted to 0.61% advances, and we target defaults net of impairments less than 2% and 1.5% (0.26% excluding the legacy portfolio) and defaults net of total net core loans for Investec plc and Investec Limited respectively of impairments amounted to 1.17% of total core loans (1.02% excluding the legacy portfolio). • We carry a high level of liquidity in all our banking subsidiaries in order to Total cash and near cash balances amounted to be able to cope with shocks to the system, targeting a minimum cash £12.8 billion at year end representing 41.4% of to customer deposit ratio of 25% customer deposits. • We have modest market risk as our trading activities primarily focus on We meet these internal limits; one-day 95% VaR supporting client activity and our appetite for proprietary trading is limited. was £0.5 million for Investec plc and R3.4 million for We set an overall tolerance level of a one-day 95% VaR of less than Investec Limited at 31 March 2018. R15 million for Investec Limited and less than £5 million for Investec plc • We have moderate appetite for investment risk, and set a risk tolerance Our unlisted investment portfolios amounted to of less than 30% of common equity tier 1 capital for our unlisted principal R3 940 million and £417 million for Investec Limited investment portfolio for Investec plc. For Investec Limited, a risk tolerance (excluding the IEP group) and Investec plc respectively, of less than 12.5% has been set, excluding the group’s holding in the IEP representing 10.6% of total tier 1 for Investec Limited Group Proprietary Limited (IEP Group) and 27.4% of common equity tier 1 for Investec plc. • Our operational risk management teams focus on improving business Refer to pages 74 to 77 in volume two of Investec’s performance and compliance with regulatory requirements through review, 2018 integrated annual report for further information. challenge and escalation. We have heightened focus on financial and cyber crime • We have a number of policies and practices in place to mitigate reputational, Refer to pages 77 to 78 in volume two of Investec’s legal and conduct risks 2018 integrated annual report for further information.

46 Investec corporate profile 2018 Risk management (continued)

Credit ratings Additional information In terms of our dual listed companies structure, creditors are ring-fenced to either Investec Limited or Investec plc as there are no cross- guarantees between the companies. Capital and liquidity are prohibited from flowing between the two entities and thus capital and liquidity are not fungible. As a result the ratings agencies have assigned separate ratings to the significant banking entities within the group, namely Investec Bank plc and Investec Bank Limited. Rating agencies have also assigned ratings to the holding companies, namely, Investec plc and Investec Limited. Our ratings at 12 June 2018 are as follows:

Investec Investec Bank Limited Bank plc – – a subsidiary a subsidiary Investec of Investec Investec of Investec Rating agency Limited Limited plc plc Fitch

Long-term ratings Foreign currency BB+^ BB+^ BBB+ National AA(zaf) Short-term ratings Foreign currency B^ B^ F2 National F1+(zaf)

Viability rating bb+^ bb+^ bbb+ Support rating 5 3 5

Moody’s

Long-term ratings Foreign currency Baa3 Baa1 A2 National Aa1.za Short-term ratings Foreign currency P-3 P-2 P-1 National P-1(za) Baseline Credit Assessment (BCA) and adjusted BCA baa3 baa2 S&P

Long-term ratings Foreign currency BB^ National za.AA– Short-term ratings Foreign currency B^ National za.A-1+

Global Credit Ratings

Local currency Long-term rating AA(za) BBB+ Short-term rating A1+(za) A2

^ Negatively impacted by the downgrade of the South African sovereign rating to non-investment grade.

Investec corporate profile 2018 47 Investec corporate profile 2018 Investec corporate profile Independent non-executive director BAcc, BCom (Hons), CA(SA) Charles R Jacobs (51) Independent non-executive director LLB Kantor (68) Bernard Executive CTA Ian R Kantor (71) Non-executive director BSc. Eng (Elec.), MBA (66) Stephen Koseff Executive MBA BCom, CA(SA), H Dip BDP, KCMG (64) Malloch-Brown Lord Independent non-executive director BSc. Eng (Elec.), MBA Khumo L Shuenyane (47) Independent non-executive director BEcon, CA (England and Wales) We operate under a DLC structure, and operate under a DLC structure, We consider the corporate governance principles South of both the UK and and regulations adopting the appropriate Africa before which also complies for the group standard in both jurisdictions. with requirements All international business units operate in with the above determined accordance in corporate governance requirements, jurisdiction, but addition to those of their to group at all times with clear adherence values and culture. (65) Phillip A Hourquebie F Titi stepped down as chairman of the board on 15 May 2018. stepped down as chairman of the board F Titi PKO Crosthwaite was appointed as chairman of the board on 15 May 2018. lues and philosophies values and philosophies culture, Investec’s we conduct the framework for how provide and behaviour our business and measure that we demonstrate practices to ensure governance.the characteristics of good and that directors Our values require and strength employees act with moral and conduct themselves to the integrity, and to promote highest ethical standard maintain trust. Sound corporate governance is therefore processes, implicit in our values, culture, functions and organisational structure. that our designed to ensure are Structures embedded in all businesses values remain these continually refine We and processes. and a written statement of structures values serves as our code of ethics. Independent non-executive director BA (Law), Honorary doctorate in Law (56) Hendrik J du Toit Executive BCom (Hons) (cum laude), BCom Law, MCom (cum laude), MPhil (Cambridge) David Friedland (65) Independent non-executive director BCom, CA(SA) * ** Zarina BM Bassa (54) Senior independent non-executive director BAcc, DipAcc, CA(SA) Bowden (53) C Laurel Independent non-executive director Engineering, MBA (INSEAD), BSc Electronic HND Eng Glynn R Burger (61) Executive MBL BAcc, CA(SA), H Dip BDP, (60) Cheryl A Carolus Directorate of Investec plc and Investec Limited of Investec plc and Investec Directorate details as at 12 June 2018 Fani Titi (56)* Former Chairman BSc (cum laude), BSc Hons (cum laude) in Mathematics, MA in Mathematics, MBA (69)** Perry KO Crosthwaite Chairman MA (Hons) (Oxon) in modern languages structure processes, Corporate governanceCorporate governance is governance is functions and functions and implicit in our implicit in our organisational organisational values, culture, values, culture, Sound corporate Sound corporate 48

Additional information Corporate governance (continued)

Management and board Kim McFarland, chief operating officer Chairman of Investec Bank Additional information (COO) and chief financial officer (CFO) Limited and Investec Bank plc succession of Investec Asset Management since Fani Titi has stepped down as Stephen Koseff (chief executive officer December 1993, will take over as group chairman of Investec Bank Limited with of the Investec group), Bernard Kantor finance and operations director on Khumo Shuenyane assuming this position (managing director (MD) of the Investec 1 April 2019. Kim will continue with her on 15 May 2018. Khumo has been a group) and Glynn Burger (risk and finance duties as COO and CFO of Investec director of Investec Bank Limited since director of the Investec group) are part of Asset Management until 31 March 2019 August 2014. the “founding members” of Investec and for to support an orderly transition in this almost 40 years, together with the board business. Fani Titi has stepped down as chairman and the group’s senior management team, Ciaran Whelan, who has held various of Investec Bank plc with Brian Stevenson have steered the group to becoming an senior positions globally with the Investec assuming this position on 15 May 2018. internationally recognised specialist bank group over the past 30 years, and who is Brian has been a director of Investec Bank and asset manager. currently global joint head of the Specialist plc since September 2016. As part of the group’s succession plan Bank and Global Head of Private Banking, Global divisional management and orderly transition from the founding will succeed Glynn Burger as director of members to the next generation of risk on 1 April 2019. Ciaran will remain John Green and Mimi Ferrini became leadership, the following management the global head of the Private Bank until deputy CEOs of Investec Asset and board succession changes have and 31 March 2019. Management on 1 April 2018 and from shall be implemented subject to regulatory 1 October 2018, will assume the roles of During the transition period Stephen, approval: Joint CEOs of the business. Bernard and Glynn will work closely with Investec Limited and Investec the new executive designates to ensure a David van der Walt and Richard Wainwright smooth and orderly transition. remain CEOs of Investec Bank plc and plc board – executive director Investec Bank Limited, respectively. changes Investec Limited and Investec David van der Walt will remain joint global Stephen Koseff and Bernard Kantor plc board – non-executive head of the Specialist Bank together will step down from their roles on director changes with Richard Wainwright who replaced 1 October 2018. From that date until Ciaran Whelan in this role on 1 April 2018. Fani Titi has stepped down as group 31 March 2019 they will continue to serve chairman. Steve Elliott remains global head of Investec as executive directors and be available to Wealth & Investment. provide support and advice to the incoming Perry Crosthwaite, the Investec group’s executives. As from 1 April 2019 they will senior independent non-executive director Nishlan Samujh, the current global group become non-executive directors. has been appointed as chairman of the CFO, will remain in his role. group on 15 May 2018. Perry Crosthwaite Glynn Burger, group risk and finance was appointed as a non-executive director, will retire on 31 March 2019. director of the board in June 2010. Glynn remains available and willing to assist Perry’s biography follows later in this report. in any capacity that the new management team require him for. Perry Crosthwaite has stepped down as chairman of the remuneration Fani Titi who has been a non-executive committee with Philip Hourquebie director on the Investec group board assuming the position on 1 April 2018. since January 2004 and chairman of Philip was appointed as a non-executive the group since November 2011, and director of the board in August 2017. Hendrik du Toit the founding CEO of Philip’s biography follows later in this report. Investec Asset Management and an executive director of the group since Zarina Bassa has been appointed December 2010, have been appointed as the group’s senior independent as Joint CEO designates on 1 April 2018. non‑xecutive director on 1 April 2018. On 1 October 2018 they will become Zarina was appointed as a non-executive joint CEOs of the group and will be held director of the board in November 2014. jointly accountable and responsible Zarina’s biography follows later in this for the leadership and management of report. the Investec group. Hendrik will remain CEO of Investec Asset Management until 30 September 2018 to ensure an orderly transition in this business.

Investec corporate profile 2018 49 1 April 2019 Will join the group Limited (Investec board and Investec plc) as non-executive directors Will risk group become director Will become group finance and operations director Stephen Koseff and Stephen Koseff Bernard Kantor • Ciaran Whelan • Kim McFarland • Investec corporate profile 2018 Investec corporate profile 31 March 2019 31 March Will as step down of executive directors Investec Limited and Investec plc Will as step down risk and finance group director Will step down as Global Head of Private Bank Future changes Future Stephen Koseff and Stephen Koseff Bernard Kantor • Glynn Burger • Ciaran Whelan • 1 October 2018 Will as step down (remains CEO group an executive director of Investec Limited and Investec plc) Will as step down an MD (remains group of executive director Investec Limited and Investec plc) Will assume Joint CEO roles Will become Joint CEOs of Investec Asset Management Stephen Koseff • Bernard Kantor • Fani Titi and Hendrik du Toit • Mimi Ferrini and John Green • 15 May 2018 Stepped down as and IBL** IBP* group, chairman and chairman of DLC nomdac (15 May 2018) Became chairman of Investec group (15 May 2018) and chairman of DLC nomdac Became chairman of IBP* and chairman of IBP* nominations committee (15 May 2018) Became chairman of IBL** (15 May 2018) Fani Titi • Perry Crosthwaite • Brian Stevenson • Khumo Shuenyane • Current changes Current Corporate governanceCorporate (continued) 1 April 2018 Investec Bank plc. Investec Bank Limited. Became chairman of DLC Became chairman of DLC committee remuneration senior Became group independent non- executive director Stepped down as chairman of DLC committee remuneration Became Joint Global Head of the Specialist Bank with David van der Walt Stepped down as Joint Global Head of the Specialist Bank but Global Head of remains the Private Bank Appointed as Joint CEO designates Philip Hourquebie • Zarina Bassa • Perry Crosthwaite • Wainwright Richard • Ciaran Whelan • Fani Titi and Hendrik du Toit • 50 * ** Timeline of board and management changes and management Timeline of board

Additional information Additional information 51 0.2% 0.3% 1.3% 0.9% 4.8% 4.1% 0.5% 0.6% 1.9% 0.9% 3.6% 2.9% 88.4% 89.6% 100.0% 100.0% % of issued % of issued share capital share share capital share 8.0% 1.9% 2.4% 62.3% 15.0% 10.4% 697 644 991 581 3 985 673 2 836 314 3 066 804 3 921 349 6 322 860 14 952 706 12 757 948 12 820 080 24 032 663 19 574 644 Number of Number of 274 500 878 310 722 744 600 100 295 669 838 695 shares in issue shares shares in issue shares Shareholder analysis Shareholder outh frica and anada est of urope sia ther countries and unknown nese iie 4.6% 7.6% 2.2% 3.9% 2.9% 3.4% 2.0% 0.9% 44.6% 15.7% 21.4% 54.5% 17.1% 19.2% 100.0% 100.0% % of total % of total shareholders shareholders 5.0% 1.8% 3.2% 52.7% 22.8% 14.5% 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 outh frica and anada est of urope sia ther countries and unknown 870 275 615 378 626 181 317 5 148 5 789 1 034 3 655 1 286 1 759 8 202 16 451 30 182 nese pl Number of Number of shareholders shareholders Investec corporate profile 2018 Investec corporate profile eorpil olin enefiil orinr sreoler s r eorpil olin enefiil orinr sreoler s Spread of ordinary shareholders as at 31 March 2018 as at 31 March shareholders of ordinary Spread issue in shares Investec plc ordinary Investec ordinary shares Investec ordinary in issue respectively. shares 310.7 million ordinary and Investec Limited had 669.8 million and 2018 Investec plc As at 31 March Investec Limited ordinary shares in issue shares Investec Limited ordinary – 4.7% 1.0% 5.7% 2.5% 1.8% 2.5% 2.7% 2.7% 3.3% 3.1% 3.4% 4.5% 3.4% 5.1% 3.9% 5.7% 4.2% 6.1% 4.7% 7.4% 94.3% 11.4% 10.7% 12.4% 50.3% 51.2% 100.0% % holding % holding % holding 325 shares shares shares Limited Investec corporate profile 2018 Investec corporate profile Investec 5 547 362 8 276 719 3 495 157 18 170 090 16 865 642 17 073 903 17 766 926 10 186 937 20 537 935 10 492 686 30 358 867 10 554 623 34 052 783 12 223 803 38 477 035 13 123 570 40 553 224 14 674 608 49 462 280 35 492 302 71 494 791 38 471 349 Number of Number of Number of 14 674 608 336 643 386 159 043 959 310 722 744 292 552 654 2.0% 1.6% 0.2% 3.8% 96.2% 100.0% % holding shares 1 144 683 Number of 13 168 245 10 651 547 24 964 475 Investec plc 669 838 695 644 874 220 Shareholder analysis Shareholder (continued) Cumulative total State Street Corporation (US & UK) State Street Cumulative total Entrepreneurial Development Trust (ZA) Development Trust Entrepreneurial T Rowe Price Associates (UK) Dimensional Fund Advisors (UK) Investec Asset Management* (ZA) Fund Managers (ZA) Coronation The Vanguard Group, Inc (US & UK) Group, The Vanguard Inc (US & UK) Group, The Vanguard Prudential Group (ZA) Prudential Group (ZA) Sanlam Group Old Mutual (ZA) BlackRock Inc (US & UK) BlackRock Inc (US & UK) Old Mutual (ZA) Public Investment Corporation (ZA) Scheme (ZA) Share Investec Staff Coronation Fund Managers (ZA) Coronation Public Investment Corporation (ZA) Allan Gray (ZA) Allan Gray (ZA) As per the JSE Listings Requirements. In custody, held on behalf of clients. In custody, 9. 9. 8. 8. 7. 7. 6. 6. 5. 5. 4. 4. 3. 3. 2. 2. 1. 1. Shareholder analysis by manager group Shareholder Shareholder analysis by manager group analysis by manager Shareholder 52 10. 10. The top 10 shareholders account for 50.3% of the total shareholding in Investec plc. This information is based on a threshold of 20 000 is based on a threshold in Investec plc. This information account for 50.3% of the total shareholding The top 10 shareholders to be marginally understated. figures below this, which may cause the above Some major fund managers hold additional shares shares. The top 10 shareholders account for 51.2% of the total shareholding in Investec Limited. This information is based on a threshold of in Investec Limited. This information is based on a threshold account for 51.2% of the total shareholding The top 10 shareholders to be marginally below this, which may cause the above figures Some major fund managers hold additional shares 20 000 shares. understated. Total Investec staff share schemes share Investec staff Executive directors of Investec plc/Investec Limited Executive directors Non-executive directors of Investec plc/Investec Limited Non-executive directors Non-public Public* * Shareholder classification as at 31 March 2018 classification as at 31 March Shareholder Investec Limited * Investec plc Largest ordinary shareholders as at 31 March 2018 as at 31 March shareholders Largest ordinary Companies Act 2006 and section 56 of the South African for in section 793 of the UK Companies with the terms provided In accordance (including nominee and shares holders of its ordinary has conducted investigations into the registered the group Act, 2008, as amended, as disclosed below. are and the results asset management companies)

Additional information Additional information 53 1.9 4.5 8.3 12.0 3.82 5.22 3.18 3 340 598.3 2 286 276.0 1 683 1 033 47.16 57.36 42.00 2012 2012 41 232 31 March 31 March 2.0 3.9 7.9 980 12.7 4.59 5.14 3.10 4 061 605.2 2 778 279.6 1 305 64.26 69.89 41.31 2013 2013 56 857 31 March 31 March (continued) (continued) 2.0 3.9 7.8 810 12.8 4.85 5.08 3.66 4 325 608.8 2 953 282.9 1 985 84.84 85.04 59.00 2014 2014 75 652 31 March 31 March 2.0 3.5 7.0 739 14.2 5.61 6.06 4.91 2015 2015 5 045 613.6 3 442 285.7 2 170 86.02 90 388 100.51 107.35 31 March 31 March Shareholder analysis Shareholder 2.0 4.1 8.1 963 12.4 5.13 6.47 4.03 2016 2016 4 662 617.4 3 167 291.4 1 474 93.91 99 886 109.91 121.90 31 March 31 March 31 March 31 March 2.1 4.2 8.9 11.3 5.44 6.19 4.19 2017 2017 5 213 657.1 3 575 301.2 1 149 1 618 91.46 81.46 87 646 112.11 31 March 31 March 31 March 31 March 2.2 4.4 9.7 10.3 5.50 6.49 4.61 2018 2018 5 393 310.7 669.8 3 684 1 031 1 807 92.28 85.00 90 486 105.62 31 March 31 March 31 March 31 March 3 1 3 3 1 2 2 2 2 The LSE only include the shares in issue for Investec plc, i.e. currently 669.8 million, in calculating market capitalisation, as Investec Limited is not The LSE only include the shares in issue for Investec incorporated in the UK. consolidated earnings per share before goodwill, acquired intangibles and non-operating items; and dividends per Calculations are based on the group’s share as prepared in accordance with IFRS and denominated in Pounds Sterling. plc and Investec Limited, in calculating market The JSE have agreed to use the total number of shares in issue for the combined group, comprising Investec capitalisation, i.e. currently a total of 980.6 million shares in issue. For the year ended For the year ended Investec corporate profile 2018 Investec corporate profile 1 2 3 Investec Limited Share statistics Share Investec plc Dividend yield (%) Earnings yield (%) traded (’000) Daily average volume of shares Market capitalisation (£’million) Market capitalisation (£’million) traded (’000) Daily average volumes of share Dividend cover (times) Market capitalisation (R’million) Closing market price per share (Rands) Closing market price per share – year ended Closing market price per share share Closing market price per (Pounds Sterling) – year ended Price earnings ratio – highest – highest – lowest – lowest Number of ordinary shares in issue (million) shares Number of ordinary Number of ordinary shares in issue (million) shares Number of ordinary Investec corporate profile 2018 Investec corporate profile (65) 6653 5550 (65) 6653 5551 (27 21) 416 1000 (27 21) 416 1001 (27 31) 575 4000 (27 865) 009 901 (27 43) 709 5700 (27 43) 748 1548 (352 264) 979 8000 (352 264) 979 8888 (230) 207 4000 (230) 207 4002 (264 61) 389 500 (264 61) 249 689 25 Duxton Hill #03-01 089608 Singapore Telephone Facsimile e-mail [email protected] 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 Luxembourg d’Avranche 32/36 Boulevard L-1160 Luxembourg 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 (353 21) 237 3800 (39 02) 3658 1590 (44) 1534 512 650 (44) 1534 285 174 (852) 3187 5000 (852) 2524 3360 (852) 2861 6888 (852) 2861 6861 (91) 226 136 7400 (353 1) 421 0000 (353 1) 421 0500 One Albert Quay Cork Ireland Telephone e-mail [email protected] Milan Italy, 44 Corso Venezia 20121, Milano Italy Telephone Jersey One The Esplanade, St Helier Jersey JE2 3QA Channel Islands Telephone Facsimile e-mail [email protected] 607-A, The Capital A – Wing, Bandra Kurla Complex Bandra East, 400051 India Telephone Dublin Ireland, Building The Harcourt 2 Street, Harcourt Dublin Ireland Telephone Cork Ireland, Suite 3609 36/F International Centre Finance Two 8 Finance Street Central Hong Kong Telephone Facsimile e-mail [email protected] Gateway 2 The Suites 2604 – 06 Tower Kowloon Harbour City Tsimshatsui Hong Kong Telephone Facsimile India, Mumbai Facsimile e-mail [email protected] Hong Kong Contact details Contact (267) 318 0112 (267) 318 0114 +(44) 1481 706 950 +(44) 1481 741 147 (61) 2 9293 6300 (61) 2 9293 6301 (61) 7 3018 8106 54 Guernsey Glategny Court Glategny Esplanade, GY1 1WR Channel Islands Telephone Facsimile e-mail [email protected] Facsimile e-mail [email protected] Botswana, Gaborone Plot 64511, Unit 5 Gaborone Fairgrounds Telephone Level 23, The Chifley Tower 2 Chifley Square Sydney Phillip Street GPO Box 4411 NSW 2000 Australia Telephone Australia, Sydney Facsimile e-mail [email protected] Australia, Melbourne Level 13 120 Collins Street Melbourne GPO Box 2280 VIC 3001 (61) 2 9293 6300 Telephone Facsimile (61) 2 9293 6301 e-mail [email protected] Australia, Brisbane Level 36, Riparian Plaza 71 Eagle Street Brisbane QLD 4001 Australia Telephone e-mail [email protected]

Additional information Contact details (continued)

South Africa, Johannesburg Switzerland, Lausanne United Kingdom, Guildford Additional information 100 Grayston Drive Rue Pèpinet 1 Unit 4, The Billings, 3 Walnut Tree Close Sandown Sandton 2196 1003 Lausanne, Switzerland Guildford, GU1 4UL, UK PO Box 785700 Telephone (41 21) 644 2130 Telephone (44148) 330 4707 Sandton 2146 Facsimile (41 44) 226 1010 Facsimile (44148) 345 5271 Telephone (27 11) 286 7000 e-mail [email protected] United Kingdom, Leeds Facsimile (27 11) 286 7777 Switzerland, Zurich e-mail, South African offices Quayside House, Canal Wharf Leeds, LS11 5PU, UK • Recruitment queries: Loewenstrasse 29 Telephone (44113) 245 4488 [email protected] Zurich, CH-8001 Switzerland Facsimile (44113) 245 1188 • Client queries: Telephone (41 44) 226 1000 United Kingdom, Liverpool – Asset management: Facsimile (41 44) 226 1010 [email protected] e-mail [email protected] The Plaza 100 Old Hall Street Liverpool – Institutional Securities: United Kingdom, Bath [email protected] L3 9AB, UK Royal Mead, Railway Place Telephone (44 151) 227 2030 – Private Client Securities: Bath, BA1 1SR, UK Facsimile (44 151) 227 2444 [email protected] Telephone (44122) 534 1580 United Kingdom, London – Property Group: Facsimile (44122) 534 1581 [email protected] 30 Gresham Street, London Northern Ireland, Belfast – Private Bank: EC2V 7QP, UK [email protected] 5th Floor Centrepoint Telephone (44 207) 597 4000 Facsimile (44 207) 597 4070 – Capital Markets: 58-60 Bedford Street, Belfast BT2 7DR, Northern Ireland [email protected] 30 Gresham Street, London Telephone (44 2890) 321 002 EC2V 7QN, UK South Africa, Knysna Facsimile (44 2890) 244 852 Telephone (44 207) 597 1234 TH24/TH25 Long Street Ext United Kingdom, Birmingham Facsimile (44 207) 597 1000 Thesen Harbour Town Knysna 6571 Colmore Plaza, Colmore Circus 25 Basinghall Street, London Telephone (27 44) 302 1800 Birmingham, B4 6AT, UK EC2V 5HA, UK Facsimile (27 44) 382 4954 Telephone (44121) 232 0700 Telephone (44 207) 597 1900 South Africa, Pietermaritzburg Facsimile (44121) 232 0701 Facsimile (44 207) 597 1919 48 Bush Shrike Close United Kingdom, Bournemouth United Kingdom, Manchester Victoria Country Club Estate Midland House, 2 Poole Road 3 Hardman Street Spinningfields Montrose Bournemouth, BH2 5QY, UK Manchester M3 3HF UK Pietermaritzburg 3201 Telephone (44120) 220 8100 Telephone (44 161) 832 6868 PO Box 594 Pietermaritzburg 3200 Facsimile (44120) 220 8101 Facsimile (44 161) 832 1233 Telephone (27 33) 264 5800 Facsimile (27 33) 342 1561 United Kingdom, Cheltenham United Kingdom, Reading South Africa, Port Elizabeth Festival House Investec Asset Finance plc Jessop Avenue Cheltenham Reading International Business Park Waterfront Business Park, Pommern Street GL50 3SH, UK RG2 6AA, UK Humerail, Port Elizabeth, 6045 Telephone (44 1242) 514 756 Telephone (03 30) 123 9613 PO Box 13434 Facsimile (44 1242) 583 936 Humewood, Port Elizabeth 6057 United Kingdom, Reigate Telephone (27 41) 396 6700 United Kingdom, Edinburgh 43 London Road Reigate, Surrey Facsimile (27 41) 363 1667 Quartermile One, 15 Lauriston Place RH2 9PW, UK South Africa, Pretoria Edinburgh Telephone (44 173) 722 4223 EH3 9EN, UK Facsimile (44 173) 722 4197 Corner Atterbury and Klarinet Streets Telephone (44 131) 226 5000 Menlo Park Facsimile (44 131) 226 5700 United Kingdom, Sheffield Pretoria 0081 Beech House PO Box 35209 United Kingdom, Exeter 61 Napier Street Sheffield Menlo Park 0102 S11 8HA, UK Telephone (27 12) 427 8300 Keble House, Southernhay Gardens Telephone (44 114) 275 5100 Facsimile (27 12) 427 8310 Exeter, EX1 1NT, UK Telephone (44139) 220 4404 Facsimile (44 114) 270 1109 South Africa, Stellenbosch Facsimile (44139) 242 6176 United States, New York Office 401, Mill Square, 4th Floor United Kingdom, Glasgow 10 East 53rd Street 12 Plein Street, Stellenbosch 7600 22nd Floor PO Box 516 Stellenbosch 7599 4th Floor, 5 George Square New York, NY 10022 Telephone (27 21) 809 0700 Glasgow, G2 1DY, UK United States of America Facsimile (27 21) 809 0730 Telephone: (44141) 333 9323 Facsimile (44141) 332 9920 Telephone (212) 259 5610 Facsimile (917) 206 5103

Investec corporate profile 2018 55 Investec corporate profile 2018 Investec corporate profile Notes 56

Additional information Additional information 57 Notes Investec corporate profile 2018 Investec corporate profile Investec corporate profile 2018 Investec corporate profile Notes 58

Additional information

Corporate Pro le

2018

Specialist Banking | Asset Management | Wealth & Investment