Creating enduring worth

Investec annual report 2023

Investec Limited Group and Company annual financial statements

Page references

Refers readers to information elsewhere in this report.

Website

Indicates that additional information is available on our website: www.investec.com

Group sustainability

Feedback

We value feedback and invite questions and comments on our reporting. To give feedback please contact our Investor Relations division.

For queries regarding information in this document:

Investor relations

Tel: (27) 11 286 7070 (44) 20 7597 5546

Email: investorrelations@investec.com

www.investec.com/en_za/ welcome-to-investec/about-us/

Investec Limited

Group and Company annual financial statements 2023

C O N T E N T S

01

Operational and

Our business at a glance

4

strategic overview

Overview of the Investec Group's and Investec Limited's

organisational structure

5

Overview of the activities of Investec Limited

6

02

INL Audit Committee

INL Audit Committee report

10

report

Refers readers to further information in the Investec Group's 2023 sustainability report which is published and available on our website:

www.investec.com

Reporting standard

Denotes our consideration of a reporting standard

investor-relations.html

Annual financial

03 statements

Directors' report

24

Independent auditors' report to the shareholders of Investec

Limited

30

Income statements

39

Statements of total comprehensive income

40

Balance sheets

41

Statements of changes in equity

42

Cash flow statements

45

Accounting policies

46

Notes to the financial statements

58

Additional unaudited risk information

146

04

Shareholder analysis

Shareholder analysis

152

05

Additional information

Additional information

156

Glossary

160

Corporate information

162

1

01

Operational and strategic

Investec Limited

overview

Group and Company annual financial statements 2023

Operational and strategic overview

01

Operational and strategic

Investec Limited

overview

Group and Company annual financial statements 2023

IN THIS SECTION

  • Our business at a glance
  • Overview of the Investec Group's and Investec Limited's Organisational structure
  • Overview of the activities of Investec Limited

2

3

01

Operational and strategic

Investec Limited

overview

Group and Company annual financial statements 2023

OUR BUSINESS AT A GLANCE

One Investec

Our purpose

Our purpose is to create enduring worth.

Our mission

Investec is a distinctive bank and wealth manager, driven by commitment to our purpose, values, core philosophies and culture. We deliver exceptional service to our clients in the areas of banking and wealth management, striving to create long- term value for all of our stakeholders and contributing meaningfully to our people, communities and the planet.

01

Operational and strategic

Investec Limited

overview

Group and Company annual financial statements 2023

OVERVIEW OF THE INVESTEC GROUP'S AND INVESTEC LIMITED'S ORGANISATIONAL STRUCTURE

Operating structure

Investec Limited, which houses our Southern African operations, has been listed in South Africa since 1986.

During July 2002, Investec Group Limited (since renamed Investec Limited) implemented a dual listed companies (DLC) structure and listed its offshore business on the London Stock Exchange (LSE).

In terms of the DLC structure, Investec Limited is the holding company of our businesses in Southern Africa and Investec plc is the holding company of our non-Southern African businesses. Investec Limited is listed on the Johannesburg Stock Exchange Limited (JSE) (since 1986) and Investec plc is listed on the LSE (since 2002).

Our distinction

The Investec distinction is embodied in our entrepreneurial culture, supported by a strong risk management discipline, client-centric approach and an ability to be nimble, flexible and innovative. We do not seek to be all things to all people. Our aim is to build well- defined, value-adding businesses focused on serving the needs of select market niches where we can compete

Our strategic direction

The One Investec strategy is, first and foremost, a commitment to drawing on the full breadth and depth of relevant capabilities to meet the needs of each client, regardless of specialisation or geography.

One Investec is also about improving internal operating efficiencies; ensuring that investments in infrastructure

In March 2020, the Asset Management business was demerged and separately listed as Ninety One plc on the LSE and Ninety One Limited on the JSE.

All references in this report to the Group relate to Investec Limited, whereas references to Investec, Investec Group or DLC relate to the combined DLC Group comprising Investec plc and Investec Limited.

A circular on the establishment of our DLC structure was

Further information on the demerger can be found on

issued on 20 June 2002 and is available on our website.

our website.

effectively and build scale and relevance.

Our unique positioning is reflected in our iconic brand, our high-touch and high-tech approach and our positive contribution to society, macro-economic stability and the environment. Ours is a culture that values purposeful thinking and stimulates extraordinary performance. We take pride in the strength of our leadership team, our people are empowered and committed to our values and culture.

and technology support our differentiated service offering across the entire Group, not just within specific operating units or geographies.

And in our allocation of capital, the One Investec strategy demands a disciplined approach to optimising returns, not merely for one region or business area but for the Group as a whole.

How we are structured

Non-Southern African operations

Investec plc

Southern African operations

Investec Limited

Our values*

Deep client partnerships, built on trust and out-of-the-ordinary service, are the bedrock of our business

We are dedicated to building meaningful relationships with all our stakeholders

We uphold cast-iron integrity in all we do

We are committed to living in society, not off it

We embrace our responsibility to the environment

We thrive on change and challenge convention with courage, constantly adapting to an ever-changing world

LSE primary listing

JSE secondary listing

Investec Bank plc

Investec Wealth & Investment Limited

JSE primary listing

NSX secondary listing

BSE secondary listing

A2X secondary listing

Investec

Investec

Investec

Investec

Investec

Wealth &

Property

Employee

Property

Bank

Investment

Group

Benefits

Fund

Limited

International

Holdings

Holdings

Limited

Group

(Pty) Ltd

(Pty) Ltd

Investec

Bank

Investec Life

(Mauritius)

Limited

Limited

We believe in open and honest dialogue to test decisions, seek consensus and accept responsibility

We trust our people to exercise their judgement, promoting entrepreneurial flair and freedom to operate within the context of prudent risk parameters and unwavering adherence to our values

We embrace diversity in a deeply caring organisation in which everyone can bring their whole selves.

  • We have recently realigned our values through extensive consultation and dialogue, across the organisation, with all business areas and geographies, ensuring that they reflect our steadfast beliefs and our aspirations. The processes has been bottom up and top down and then aggregated the wisdom of the organisation to reflect the depth of our thinking and the way we conduct ourselves

4

  • NSX - Namibian stock exchange; BSE - Botswana stock exchange

All shareholdings in the ordinary share capital of the subsidiaries shown are 100%.

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 Group 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.

5

01

Operational and strategic

Investec Limited

overview

Group and Company annual financial statements 2023

OVERVIEW OF THE ACTIVITIES OF INVESTEC LIMITED

Specialist Banking

01

Operational and strategic

Investec Limited

overview

Group and Company annual financial statements 2023

OVERVIEW OF THE ACTIVITIES OF INVESTEC LIMITED

CONTINUED

Wealth & Investment

Our specialist teams are well positioned

What makes us distinct?

to provide solutions to meet private,

• Voted 'Best Private Bank & Wealth Manager' by London's

business, corporate and institutional

Financial Times for ten years in a row (2013 to 2022) and

recognised as 'Best performing Bank in South Africa' by

clients' needs. Each business provides

The Banker (2022) and the 'Bank of the Year' at the inaugural

specialised products and services to

News24 Business Awards (2023)

• High-quality specialist banking solutions to private and

defined target markets.

corporate clients with leading positions in selected areas

• Provision of high-touch personalised service with the ability

to execute quickly

• Ability to leverage international, cross-border platforms

• Well positioned to capture opportunities between the

developed and the emerging world

• Strong ability to originate, manufacture and distribute

• Balanced business model with good business depth

and breadth.

Focus on helping our clients

A highly valued partner and adviser to our clients

create and preserve wealth

High-income and high net worth

Corporates/government/institutional clients

private clients

Private client

Corporate, investment banking and other activities

banking activities

Investec Wealth & Investment (IW&I) manages the wealth of leading private investors in South Africa including families, charities, pension funds and trusts.

Our international investment management capabilities have sustainability at their core and extend across asset classes and funds. This, together with our global and holistic approach to wealth management, enables our clients to navigate the complexities of being global citizens whilst being aligned to achieving their wealth and investment management goals.

Sustainability is core to our fundamental investment approach by integrating environmental, social and governance considerations as well as actively engaging with the businesses that we invest in on behalf of our clients. As signatories of the United Nations PRI (Principles for Responsible Investment), our commitment to sustainability recognises the interconnected nature of our business, the

Investec has established investment operations in the United Kingdom, Switzerland, Mauritius and South Africa, offering our clients a deep understanding of developed and emerging markets.

Our offering is built on the foundation of enduring client relationships and international investment expertise. We partner with our clients in the active management of their wealth based on an understanding of their investment needs. We have a rigorous approach to investments, ensuring the optimal allocation of our clients' funds, both locally and internationally. We have a responsibility to preserve and grow the wealth that is entrusted to us over the long term.

Private Banking

Corporate and Institutional

Banking

• Transactional banking

• Business transactional

• Lending

banking

•

Specialised lending

• Property finance

• Treasury and trading

Investec for Business

• Import and trade

finance lending

• Cash flow lending

• Asset finance.

Investment Banking and

Principal Investments

• Principal investments

• Advisory

• Debt and Equity Capital

Markets.

economy, the environment and society.

The Group manages approximately R1.3 trillion assets globally. IW&I South Africa manages approximately R398.4 billion of assets.

• Savings

solutions

• Life assurance and

• Institutional research,

investment products.

sales and trading

• Fixed income, currency

and commodities

(FICC).

What makes us distinct?

• Internationally recognised for excellence in wealth

management by London's Financial Times ten years in a row

(2013 - 2022) and for philanthropy services (2022)

• Unique One Place™ offering, enabling our clients to

seamlessly bank and invest locally and internationally, all in

One Place™

• Investment performance and track record supported by

a rigorous global investment process and the deep expertise

of our people

• Access to unique alternative investment opportunities as

well as tax and estate planning services

• Deep personal relationships and consistent engagement

with our clients

Natural linkages between the private client and corporate business

Group Investments

• Our expanded international investment universe provides

clients access to a broad range of international investment

opportunities together with the proximity to our globally

integrated investment process

• Purpose aligned to creating enduring worth, living in, not off

society and extending this to our clients through our

Philanthropy offering.

We have separated these assets from our core banking activities to make a more meaningful assessment of the underlying performance and value of the franchise businesses, while providing transparency over the standalone values of the assets classified as Group Investments.

The assets include a 47.4% stake in the Investec Equity Partners (IEP) Group, 24.3% held in the Investec Property Fund (IPF) and unlisted equity investments.

6

Our service offering

IW&I operates from nine offices across South Africa and provides portfolio management, wealth management and stockbroking services with SA, UK and Swiss custody for private clients, charities, pension funds and trusts.

7

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Investec Limited published this content on 19 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2023 10:20:34 UTC.