Final Results

Investec (comprising Investec plc and Investec Limited) - Unaudited combined consolidated financial results for the year ended 31 March 2023

Group results summary for the year ended 31 March 2023 (FY2023) compared to 31 March 2022 (FY2022)

• The Group achieved strong financial performance amidst a complex macroeconomic backdrop that prevailed throughout the financial year

• Adjusted earnings per share increased 25.0% to 68.9p (FY2022: 55.1p), at the upper end of previous guidance

• Funds under management (FUM) decreased 4.5% to £61.0 billion (FY2022: £63.8 billion) largely reflecting the unfavourable market movements. Net inflows were £377 million, with £810 million inflows in discretionary FUM partly offset by £433 million net outflows in non-discretionary FUM

• Net core loans increased to £30.2 billion (FY2022: £29.9 billion) increasing 7.7% in neutral currency; largely driven by corporate lending and residential mortgage lending in both core geographies

• Customer accounts (deposits) increased 5.8% in constant currency, and decreased by 1.4% to £39.6billion on reported basis

• Revenue grew 14.6%, benefitting from higher global interest rates and loan growth, which was underpinned by client acquisition and increased client activity. Fee and commission income was negatively impacted by the unfavourable market movements and weakening macro backdrop

• The cost to income ratio improved to 59.6% (FY2022: 63.3%) as operating costs grew by 9.5%. Fixed operating expenditure increased by 11.3%, due to inflationary pressures, continued investment in people and technology to support growth, and post-pandemic normalisation in certain discretionary spend

• Pre-provision adjusted operating profit increased 28.0% to £917.0 million (FY2022: £716.2 million), supported by the diversity of our revenue streams

• Asset quality remained strong with exposures well covered by collateral. Expected credit loss (ECL) impairment charges increased to £81.1 million (FY2022: £28.8 million), resulting in a credit loss ratio (CLR) of 23bps (FY2022: 8bps), and approaching the lower end of the Group's through-the-cycle (TTC) range of 25bps to 35bps

• Return on equity (ROE) was 13.7% (FY2022: 11.4%) and return on tangible equity (ROTE) was 14.7% (FY2022: 12.3%)

• Tangible net asset value (TNAV) per share remained broadly flat at 474.3p (FY2022: 476.6p). Net asset value (NAV) per share was 510.0p (FY2022: 510.0p) notwithstanding the return to shareholders of 64p per share through the distribution of a 15% shareholding in Ninety One, dividends, and the share purchase programme

• The Group continued to execute on its strategic priorities to grow with discipline and implemented a number of capital optimisation strategies

• Post the year-end, Investec announced the all-share combination of Investec Wealth & Investment UK (IW&I UK) with Rathbones plc to create the UK's leading discretionary wealth manager with approximately £100 billion in funds under management and administration

• Maintained strong capital and liquidity positions allowing us to navigate the current volatile and uncertain environment, and support identified growth initiatives

• The Board has proposed a final dividend of 17.5p per share, resulting in a full year dividend of 31.0p (FY2022: 25.0p). The payout ratio of 45.0% is within the Group's 30% to 50% payout range.

Fani Titi, Group Chief Executive commented:

"The Group reported strong results in a challenging macro backdrop, with all our client franchises reporting growth in pre-provision adjusted operating profit. Our focused approach to support our clients and the diversified nature of our revenue streams underpinned the financial performance. We achieved adjusted earnings per share of 68.9p, a 25.0% growth on prior year and made significant progress against the strategic goals outlined in 2019, with the Group's ROE well within the 12% to 16% target range set out for achievement in FY2024.

During the period under review, we returned approximately £780 million to shareholders, comprising ordinary dividends, the share purchase programme to optimise the SA balance sheet and the distribution of a 15% shareholding in Ninety One.

The strong capital generation across the Group allows us to maintain robust capital and liquidity levels, deliver improved returns to our shareholders, and support our clients, colleagues, and societies through an uncertain economic environment. We are proud of the progress we are making to entrench sustainability across every aspect of our business."

Key financial data

This announcement covers the results of Investec plc and Investec Limited (together "the Investec Group" or "Investec" or "the Group") for the year ended 31 March 2023 (FY2023). Unless stated otherwise, comparatives relate to the Group's operations for the year ended 31 March 2022 (FY2022). The average Rand/Pound Sterling exchange rate depreciated by c.1% relative to FY2022, and the closing exchange rate depreciated by 14.0%.

Basic earnings per share were positively impacted by a gain of £155.1 million on implementation of the distribution of a 15% shareholding in Ninety One to shareholders on 30 May 2022.

Strategy execution

Combination of Investec Wealth & Investment UK (IW&I UK) with Rathbones

On 4 April 2023, the Group announced it had reached agreement on a proposed all-share combination of IW&I UK with Rathbones to create the UK's leading discretionary wealth manager (the "Enlarged Rathbones Group") (the "Combination"). The Enlarged Rathbones Group will have approximately £100 billion in funds under management and administration ("FUMA"), delivering the scale that will underpin future growth. The Combination establishes a long-term, strategic partnership between the Enlarged Rathbones Group and Investec Group, which will enhance the client proposition across banking and wealth management services for both groups. The Combination represents a significant value creation opportunity for both Investec Group and Rathbones stakeholders. Under the terms of the agreement, Investec will own 41.25% of the Enlarged Rathbones Group in which it will be a long-term strategic shareholder, participating in the anticipated value creation from the combination including identified banking opportunities. The Combination is subject to, among other things, Rathbones shareholder and regulatory approvals. Completion is expected to occur in early Q4 2023 (subject to approvals). The full announcement can be found here www.investec.com/content/dam/investor-relations/presentations-and-announcements/Investec-Announcement.pdf.

Capital optimisation

Investec has made significant progress in its capital optimisation strategy. To date, the Group has acquired c.52 million INL and INP shares or an equivalent of c.5.2% of the shares outstanding before the November 2022 announcement of the share purchase and share buy-back programme; and returned c.R5.5 billion or £245 million to shareholders through this programme. In South Africa, Investec Limited received approval to commence capital measurement for the income producing real estate portfolio under the advanced internal ratings based (AIRB) approach, resulting in 242bps uplift to the CET 1 ratio at implementation.

Investec Equity Partners (IEP) Group restructure

As disclosed to shareholders in the September 2022 interim results:

• The IEP Group and Bud Group shareholders have approved a restructure to facilitate an exit by certain IEP shareholders, including Investec, by way of a share buyback. The restructure entails the transfer of certain assets to a Newco, to facilitate the orderly disposal of those assets

• Newco had entered into binding transaction agreements to dispose of certain chemical assets ("Chemical Asset Sale")

Shareholders are advised that the Chemical Asset Sale closed during the reporting period ended 31 March 2023, and on the back of this transaction as well as additional transactions pursuant to the IEP and Bud Group restructure, c.R810 million cash proceeds were received by Investec Limited in FY2023. Post year end, an additional R183 million has been received. The carrying value of the shareholding in IEP as at 31 March 2023 was R4.7 billion (FY2022: R5.4 billion).

The balance of the asset disposal process is anticipated to conclude over the next 18 months, subject to market conditions.

Investec Property Fund (IPF) internalisation

Post Investec Group's year-end, IPF shareholders approved the internalisation of the management company (Manco) which we believe will position the IPF platform well to unlock shareholder value in the long term This is subject to regulatory approval, including the Competition Authorities. Closing is expected to occur in Q3 2023.

Outlook

The Group is well positioned to continue supporting its clients notwithstanding the uncertain macroeconomic outlook. We have strong capital and robust liquidity levels to navigate the current environment and pursue our identified growth initiatives in our chosen markets.

FY2024 guidance

Based on the macroeconomic outlook for our two core geographies, the Group currently expects:

• Revenue outlook to be underpinned by moderate book growth, continued elevated interest rates and client activity levels

• Overall costs to be contained with cost to income ratio of approximately 60%, despite inflationary pressures and continued investment in the business

• A normalisation of credit loss ratio to inside the through-the-cycle (TTC) range of 25bps to 35bps

• Capital optimisation strategies to continue as well as progress on IEP

• ROE to be around the mid-point of the Group's current target range of 12% to 16%.

Enquiries

Investec Investor Relations

Results: Qaqambile DwayiTel: +27 (0) 11 291 0129

General enquiries:Tel: +27 (0) 11 286 7070 or [email protected]

Brunswick (SA PR advisers)

Graeme CoetzeeTel: +27 (0) 63 685 6053

Lansons (UK PR advisers)

Tom BaldockTel: +44 (0) 78 6010 1715

Presentation/conference call details

Investec management will host its annual results presentation live from Johannesburg on Thursday 18 May at 10h00 (SA)/9h00 (UK) time.

Please register for the presentation at: www.investec.com/investorrelations

A live video webcast of the presentation will be available on www.investec.com

About Investec

Investec partners with private, institutional, and corporate clients, offering international banking, investments, and wealth management services in two principal markets, South Africa, and the UK, as well as certain other countries. The Group was established in 1974 and currently has 8,500+ employees.

Investec has a dual listed company structure with primary listings on the London and Johannesburg Stock Exchanges.

Johannesburg and LondonSponsor: Investec Bank Limited

Group financial performance

Overview

Pre-provision adjusted operating profit increased, supported by continued client acquisition resulting in higher average advances, rising interest rates and increased client activity. Fee and commission income in our Wealth & Investment businesses was negatively impacted by the effects of the market sell off on average FUM.

Fixed operating expenditure reflects inflationary pressures, continued investment in technology and people and post-pandemic normalisation in certain business expenses.

Impairments were driven by updated forward-looking macroeconomic scenarios since FY2022, and Stage 3 ECL charges. A portion of post-model management overlays raised since the onset of COVID-19 for potential risk migration have been released and now catered for in-model. Recoveries of previously written off exposures remained high in South Africa.

Pre-provision adjusted operating profit increased 28.0% to £917 million (FY2022: £716.2 million)

Revenue increased 14.6% to £2 280.4 million (FY2022: £1 990.4 million)

Net interest income increased 37.1% to £1 295.8 million (FY2022: £945.3 million) driven by higher average interest earning assets and rising interest rates.

Non-interest revenue (NIR) decreased 5.8% to £984.7 million (FY2022: £1 045.1 million).

• Net fee and commission income decreased 4.7% to £779.4 million (FY2022: £818.2 million), reflecting lower fee income from Wealth & Investment and UK equity capital markets given market volatility and uncertainty during the year, partly offset by higher fees from increased client activity in South Africa

• Investment loss of £17.1 million (FY2022: £28.0 million gain) reflects fair value adjustments of £55.3 million within the Group Investment portfolio, primarily in IPF's investment properties, partly offset by dividends received and realised gains on disposal of investments

• Share of post-taxation profit of associates and joint venture holdings decreased to £29.1 million (FY2022: £79.6 million), largely driven by:

- Lower share of associate earnings following the distribution of Ninety One in May 2022 when it ceased to be classified as an associate, partly offset by

- Higher share of earnings from IEP given improvement in the operational performance of the underlying investee companies within IEP, before it ceased to be classified as an associate on 30 November 2022

• Trading income arising from customer flow increased by 2.3% to £131.2 million from £128.3 million in the prior year. Positively impacted by 31.6% increase in trading income from our banking franchises on the back of increased client activity. This was partly offset by mark-to-market (MTM) loss of £11.3 million on IPF balance sheet hedging activities compared to a gain in the prior year

• Net trading gains arising from balance sheet management and other trading activities were £57.7 million compared to a loss of (£21.1 million) in the prior year. The gains arise from MTM movements in the value of currency and interest rate hedges on the balance sheet

• Other operating income of £4.4 million (FY2022: £12.2 million income) includes fair value movements on instruments held to meet non-equity settled share schemes. The corresponding liability is reflected in other liabilities with changes in the value of the liability expensed through staff expenses in operating costs.

Expected credit loss (ECL) impairment charges increased by £52.3 million to £81.1 million (FY2022: £28.8 million) resulting in a credit loss ratio of 23bps (FY2022: 8bps)

Asset quality remains strong, with exposures to a carefully defined target market well covered by collateral. The ECL increase was primarily driven by the deterioration in forward-looking macroeconomic outlook since March 2022 and Stage 3 ECL impairment charges. The Group has maintained a lower level of post-model management overlays to account for risks assessed as inadequately reflected in the models.

Operating costs increased 9.5% to £1 350.8 million (FY2022: £1 233.9 million)

Fixed operating expenditure increased by 11.3% due to inflationary pressures, investment in technology and people and post-pandemic normalisation in discretionary expenditure. The cost to income ratio improved to 59.6% from 63.3% in FY2022.

Since March 2019, fixed costs increased 3.4%, while revenue grew by 16.7% reflecting the heightened focus on cost discipline whilst growing scale in our chosen franchises.

Taxation

The taxation charge on adjusted operating profit was £179.7 million (FY2022: £143.3 million), resulting in an effective tax rate of 21.9% (FY2022: 22.1%).

In the UK, the effective tax rate is 19.9% (FY2022: 14.7%), the prior period is mainly driven by higher deferred tax assets on the back of higher tax rates.

SA's effective tax rate is 23.7% (FY2022: 26.9%). The prior year higher tax rate in SA relates to a release of certain deferred tax assets held in our property division.

Funding and liquidity

Customer deposits increased by 5.8% in neutral currency and decreased 1.4% to £39.6 billion (FY2022: £40.1 billion) at 31 March 2023 on a reported basis. Customer deposits increased by 4.5% to £19.1 billion for Investec plc and increased by 6.8% to R448.5 billion for Investec Limited. Cash and near cash of £16.4 billion (£8.6 billion in Investec plc and R171.4 billion in Investec Limited) at 31 March 2023 represent approximately 41.4% of customer deposits. Loans and advances to customers as a percentage of customer deposits was 75.6%.

The Group comfortably exceeds Basel liquidity requirements for the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).

• Investec Bank Limited (consolidated Group) ended the period to 31 March 2023 with the three-month average of its LCR at 153.6% and an NSFR of 116.4%

• Investec plc reported a LCR of 383% and a NSFR of 147% at 31 March 2023.

Capital adequacy and leverage ratios

Capital and leverage ratios remain sound, ahead of Board-approved minimum targets and regulatory requirements. The CET1 and leverage ratio were 14.7% and 6.5% for Investec Limited (increased Internal Ratings Based scope) and 12.0% and 9.4% for Investec plc (Standardised approach) respectively.

Segmental performance

Wealth & Investment

Adjusted operating profit from the Wealth & Investment businesses increased 1.1% to £124.6 million (FY2022: £123.1 million), positively impacted by the net inflows in discretionary FUM and rising global interest rates, partly offset by the effects of unfavourable market levels on fees in the year under review.

^ Restated. Following a strategic review, our Swiss operations have been earmarked to play a key role in the Group's strategic expansion of its international wealth services. To ensure strategic alignment, the results of the Switzerland wealth business are now reported as part of the Southern Africa Wealth & Investment business (previously reported as part of the UK & Other Wealth & Investment business). The comparative period has been restated to reflect this change. There has been no change in the legal or ownership structures.

Southern Africa Wealth & Investment (in Rands)

Adjusted operating profit increased by 1.8% to R672 million (FY2022: R660 million).

Total FUM increased by 10.4% to R435.1 billion (FY2022: R394.0 billion) driven by discretionary and annuity net inflows of R5.9 billion, and the net impact from positive foreign currency translation gains. Non-discretionary FUM reported net outflows of R10.6 billion in the current year.

Revenue grew by 5.5% underpinned by inflows into local investment products in the current year and offshore investment products in the prior year in discretionary and annuity portfolios. Non-discretionary brokerage decreased markedly in the current period due to lower trading volumes given market volatility.

Operating costs increased 7.0%, influenced by continued investment in the platform, as well as post-pandemic normalisation of business expenses. Operating margins decreased to 27.3% from 28.2% in FY2022.

UK & Other Wealth & Investment

Adjusted operating profit increased 1.3% to £91.8 million (FY2022: £90.6 million) with higher net interest income from rising global interest rates offset by lower net fees and commission income given unfavourable market levels and subdued net inflows.

FUM decreased by 5.0% to £40.7 billion impacted by declining market levels since 31 March 2022 (FY2022: £42.9 billion). Net inflows were £608 million translating to a net organic growth in FUM of 1.4%. The extent of market volatility and the inflationary environment resulted in reduced appetite amongst existing clients to invest new funds, negatively impacting both net inflows and fee income.

Revenue increased by 2.8%, driven by positive net inflows in the current and prior years, along with higher net interest income. Fee income decreased year on year due to lower market levels. Commission based income was also negatively impacted by the market conditions

Operating costs were up 3.3% due to inflationary pressures and the post-pandemic normalisation in certain discretionary expenditure. Operating margin was 25.8% (FY2022: 27.0%).

Specialist Banking

Adjusted operating profit from Specialist Banking increased 33.9% to £727.1 million (FY2022: £543.0 million). Pre-provision adjusted operating profit increased 41.4% to £808.0 million (FY2022: £571.3 million).

Southern Africa Specialist Banking (in Rands)

Adjusted operating profit increased 22% to R8 668 million (FY2022: R7 104 million).

Revenue increased 18.2%, and was positively impacted by higher average interest earning assets, rising interest rates, increased client activity and continued client acquisition in line with our growth strategy. This was augmented by positive investment income.

Net interest income increased 19.1% driven by higher average interest earning assets and rising interest rates.

Non-interest revenue increased 16.4% driven by:

• Higher fee income from increased activity levels in all our client franchises, including utilisation of trade finance facilities and higher investment banking fees.

• Investment income largely benefitted from non-repeat of prior year negative FV adjustments.

• Trading income from customer flow reflects increased client activity given heightened volatility and rising interest rates.

• Balance sheet management and other trading activities reflects net foreign currency translation gains on non-Rand denominated monetary assets and liabilities. This was partly offset by mark-to-market (MTM) losses on certain interest rate, currency swaps.

Partially offset by:

• Other negatively impacted by MTM losses on instruments held to meet non-equity settled share schemes.

ECL impairment charges increased to R289 million from R51 million in the prior year. The credit loss ratio on core loans subject to ECL was 8bps (FY2022: Nil), primarily driven by the idiosyncratic Stage 3 ECL charges on certain exposures. Post-model management overlays of R106 million were released, with R113 million retained to account for emerging risks assessed as inadequately reflected in the forward-looking model. Released overlays were previously held for anticipated migration risk in Private Bank are now catered for in-model. ECL charged was positively impacted by the reversal of impairments and recoveries on previously impaired loans.

The cost to income ratio was 48.2% (FY2022: 51.1%). Operating costs increased 11.4% driven by higher personnel expenses due to salary increases, increased headcount, variable remuneration and the post-pandemic normalisation of discretionary expenditure. Fixed costs increased 14.8%, this follows periods of well contained cost growth, resulting in a 5.5% compounded annual growth rate since 31 March 2019.

Net core loans grew by 7.5% to R320.7 billion (FY2022: R298.4 billion). Corporate lending portfolios grew by 20.7% since 31 March 2022, driven by increased corporate credit demand across our lending specialisations. Advances to private clients reported subdued growth of 2.6% year to date with a reasonable growth in residential mortgages.

UK & Other Specialist Banking

Adjusted operating profit increased by 56.7% to £303.4 million (FY2022: £193.7 million) driven by strong revenue growth across our lending franchises and increased client trading income from customer flow given heightened market volatility during the year.

Net interest income increased 47.5% driven by higher average interest earning assets and the positive effect of rising global interest rates.

Non-interest revenue decreased by 6.3% due to:

• Lower fees from equity capital markets partially offset by higher advisory fees from Growth and Leveraged Finance and Fund Solutions

• Lower investment income of £5.0 million due to fair value adjustments on investments and lower dividend income

Partly offset by

• Trading income from customer flow increased 45.5% over the prior period reflecting strong client activity levels in our interest rate and currency desks given market volatility

• Trading income from balance sheet management and other trading activities increased >100% reflecting the positive positioning in balance management activities.

ECL impairment charges totalled £66.7 million, resulting in a credit loss ratio of 37bps (FY2022: 17bps). The increase in ECL charges was driven by an increase in modelled ECLs due to forward-looking macro-economic assumptions and Stage 3 ECL charges on certain exposures. Post-model management overlay of £11.9 million raised since the onset of the COVID-19 pandemic was released, with £4.9 million retained to account for risks judged as not reflected in-model. Released post-model overlays are now captured in-model..

The cost to income ratio improved to 60.4% (FY2022: 69.6%). Operating costs increased by 12.4% year on year primarily driven by an increase in variable remuneration in line with business performance, inflationary pressures and investment in people and technology. Fixed operating costs increased below the UK inflation rate at 8.4%. The fixed operating costs trajectory since March 2019 reflects the impact of various strategic actions; with FY2023 costs 4.3% below March 2019 costs while revenue is 22.9% higher over the same period.

Net core loans grew by 7.9% to £15.6 billion since 31 March 2022 driven by residential mortgages and strong demand for corporate credit across multiple portfolios which was offset by higher redemptions in the current year. Residential mortgages also had higher redemptions in the second half of the financial year.

Group Investments

Group Investments includes the holding in Ninety One, the IEP Group, Investec Property Fund (IPF) and other equity investments.

Adjusted operating profit from Group Investments decreased by 65.8% to £17.8 million (FY2022: £52.1 million) driven by:

• Lower share of associate earnings from Ninety One following the 15% distribution in May 2022 and consequent derecognition as an investment in associate.

• Net fair value adjustments on IPF's investment property portfolio.

• Negative fair value adjustment to IEP's carrying value to align it with realisable value.

Partially offset by

• Continued improvement in the operational performance of the underlying investee companies within IEP.

Further information

Additional information on each of the business units is provided in the Group interim results analyst book published on the Group's website: http://www.investec.com.

On behalf of the boards of Investec plc and Investec Limited

Notes to the commentary section above

Presentation of financial information

Investec operates under a Dual Listed Companies (DLC) structure with primary listings of Investec plc on the London Stock Exchange and Investec Limited on the JSE Limited.

In terms of the contracts constituting the DLC structure, Investec plc and Investec Limited effectively form a single economic enterprise from a shareholder perspective, in which the economic and voting rights of ordinary shareholders of the companies are maintained in equilibrium relative to each other. Creditors, however, are ring-fenced to either Investec plc or Investec Limited as there are no cross-guarantees between the companies.The directors of the two companies consider that for financial reporting purposes, the fairest presentation is achieved by combining the results and financial position of both companies.

Accordingly, these year end results reflect the results and financial position of the combined DLC Group under UK adopted International Financial Reporting Standards (IFRS) which comply with IFRS as issued by the International Accounting Standards Board (IASB) and the (EC) No. 1606/2022 as it applies in the European Union, denominated in Pounds Sterling. In the commentary above, all references to Investec or the Group relate to the combined DLC Group comprising Investec plc and Investec Limited.

Following a review of the liquidity, capital position, profitability, the business model and operational risks facing the business, the directors have a reasonable expectation that the Investec Group will be a going concern for a period of at least 12 months. The results for the year ended 31 March 2023 have accordingly been prepared on the going concern basis.

Unless the context indicates otherwise, all comparatives included in the commentary above relate to the year ended 31 March 2022.

Amounts represented on a neutral currency basis for income statement items assume that the relevant average exchange rates for the year ended 31 March 2023 remain the same as those in the prior year. Amounts represented on a neutral currency basis for balance sheet items assume that the relevant closing exchange rates at 31 March 2023 remain the same as those at 31 March 2022.

Neutral currency information is considered as pro-forma financial information as per the JSE Listings Requirements and is therefore the responsibility of the Group's Board of Directors. Pro-forma financial information was prepared for illustrative purposes and because of its nature may not fairly present the issuer's financial position, changes in equity, or results of operations.The external auditors of Investec Limited performed a review of the pro-forma financial information and the opinion is available for inspection at the registered offices of Investec Limited and Investec plc upon request.

Foreign currency impact

The Group's reporting currency is Pounds Sterling. Certain of the Group's operations are conducted by entities outside the UK. The results of operations and the financial condition of these individual companies are reported in the local currencies in which they are domiciled, including Rands, Australian Dollars, Euros, US Dollars and Indian Rupee. These results are then translated into Pounds Sterling at the applicable foreign currency exchange rates for inclusion in the Group's combined consolidated financial statements. In the case of the income statement, the weighted average rate for the relevant period is applied and, in the case of the balance sheet, the relevant closing rate is used.

The following table sets out the movements in certain relevant exchange rates against Pounds Sterling over the period:

Profit Forecast

The following matters highlighted in this announcement contain forward-looking statements:

• Revenue outlook is underpinned by book growth, elevated interest rates and client activity levels

• Overall costs to be contained with cost to income of approximately 60%, despite inflationary pressures and continued investment in the business

• A normalisation of ECL charges to inside the through-the-cycle (TTC) range of 25bps to 35bps

• Capital optimisation strategies to continue and progress on IEP expected

• ROE to be around mid-range of the Group's current target range of 12% to 16%.

The basis of preparation of this statement and the assumptions upon which it was based are set out below. This statement is subject to various risks and uncertainties and other factors - these factors may cause the Group's actual future results, performance or achievements in the markets in which it operates to differ from those expressed in this Profit Forecast.

Any forward-looking statements made are based on the knowledge of the Group at 17 May 2023.

This forward-looking statement represents a profit forecast under the Listing Rules. The Profit Forecast relates to the year ending 31 March 2024.

The financial information on which the Profit Forecast was based is the responsibility of the Directors of the Group and has not been reviewed and reported on by the Group's auditors.

Basis of preparation

The Profit Forecast has been properly compiled using the assumptions stated below, and on a basis consistent with the accounting policies adopted in the Group's 31 March 2022 audited annual financial statements, which are in accordance with IFRS.

Assumptions

The Profit Forecast has been prepared on the basis of the following assumptions during the forecast period:

Factors outside the influence or control of the Investec Board:

• There will be no material change in the political and/or economic environment that would materially affect the Investec Group

• There will be no material change in legislation or regulation impacting on the Investec Group's operations or its accounting policies

• There will be no business disruption that will have a significant impact on the Investec Group's operations, whether for the economic effects of increased geopolitical tensions or otherwise

• The Rand/Pound Sterling, Euro/Pound, INR/Pound and US Dollar/Pound Sterling exchange rates and the tax rates remain materially unchanged from the prevailing rates detailed above

• There will be no material changes in the structure of the markets, client demand or the competitive environment

• There will be no material change to the facts and circumstances relating to legal proceedings and uncertain tax matters.

Estimates and judgements

In preparation of the Profit Forecast, the Group makes estimations and applies judgement that could affect the reported amount of assets and liabilities within the reporting period. Key areas in which judgement is applied include:

• Valuation of unlisted investments primarily in private equity, direct investments portfolios and embedded derivatives. Key valuation inputs are based on the most relevant observable market inputs, adjusted where necessary for factors that specifically apply to the individual investments and recognising market volatility

• The determination of ECL against assets that are carried at amortised cost and ECL relating to debt instruments at fair value through other comprehensive income (FVOCI) involves the assessment of future cash flows which is judgmental in nature

• Valuation of investment properties is performed by capitalising the budget net income of the property at the market related yield applicable at the time.

• The Group's income tax charge and balance sheet provision are judgmental in nature. This arises from certain transactions for which the ultimate tax treatment can only be determined by final resolution with the relevant local tax authorities. The Group recognises in its tax provision certain amounts in respect of taxation that involve a degree of estimation and uncertainty where the tax treatment cannot finally be determined until a resolution has been reached by the relevant tax authority. The carrying amount of this provision is often dependent on the timetable and progress of discussions and negotiations with the relevant tax authorities, arbitration processes and legal proceedings in the relevant tax jurisdictions in which the Group operates. Issues can take many years to resolve and assumptions on the likely outcome would therefore have to be made by the Group

• Where appropriate, the Group has utilised expert external advice as well as experience of similar situations elsewhere in making any such provisions

• Determination of interest income and interest expense using the effective interest rate method involves judgement in determining the timing and extent of future cash flows.

Accounting policies, significant judgements and disclosures

These reviewed condensed combined consolidated financial results have been prepared in terms of the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and the presentation and disclosure requirements of IAS 34, "Interim Financial Reporting" and IFRS as adopted by the UK which comply with IFRS' as issued by the IASB. At 31 March 2023, UK adopted IFRS are identical in all material respects to current IFRS applicable to the Group, with differences only in the effective dates of certain standards.

The accounting policies applied in the preparation of the results for the year ended 31 March 2023 are consistent with those adopted in the audited financial statements for year ended 31 March 2022.

The financial results have been prepared under the supervision of Nishlan Samujh, the Group Finance Director. The preliminary financial statements for the year ended 31 March 2023 are available on the Group's website:

www.investec.com

Proviso

• Please note that matters discussed in this announcement may contain forward-looking statements which are subject to various risks and uncertainties and other factors, including, but not limited to:

- changes in the political and/or economic environment that would materially affect the Investec Group

- changes in the economic environment caused by worsening of the energy supply crisis

- changes in legislation or regulation impacting the Investec Group's operations or its accounting policies

- changes in business conditions that will have a significant impact on the Investec Group's operations

- changes in exchange rates and/or tax rates from the prevailing rates outlined in this announcement

- changes in the structure of the markets, client demand or the competitive environment

• A number of these factors are beyond the Group's control

• These factors may cause the Group's actual future results, performance or achievements in the markets in which it operates to differ from those expressed or implied.

• Any forward-looking statements made are based on the knowledge of the Group at 17 May 2023

• The information in the Group's announcement for the year ended 31 March 2023, which was approved by the Board of Directors on 17 March 2023, does not constitute statutory accounts as defined in Section 435 of the UK Companies Act 2006. The 31 March 2022 financial statements were filed with the registrar and were unqualified with the audit report containing no statements in respect of sections 498(2) or 498(3) of the UK Companies Act

• The financial information on which forward-looking statements are based is the responsibility of the Directors of the Group and has not been reviewed and reported on by the Group's auditors.

This announcement is available on the Group's website: www.investec.com

Definitions

• Adjusted operating profit refers to operating profit before goodwill, acquired intangibles and strategic actions and after adjusting for earnings attributable to other non-controlling interests. Non-IFRS measures such as adjusted operating profit are considered as pro-forma financial information as per the JSE Listing Requirements. The pro-forma financial information is the responsibility of the Group's Board of Directors. Pro-forma financial information was prepared for illustrative purposes and because of its nature may not fairly present the issuer's financial position, changes in equity or results of operations.

• Adjusted earnings is calculated by adjusting basic earnings attributable to shareholders for the amortisation of acquired intangible assets, non-operating items including strategic actions, and earnings attributable to perpetual preference shareholders and other additional tier 1 security holders.

• Adjusted basic earnings per share is calculated as adjusted earnings attributable to shareholders divided by the weighted average number of ordinary shares in issue during the year

• Headline earnings is adjusted earnings plus the after tax financial effect of strategic actions (£169.6 million) and the amortisation of acquired intangible assets (£16.7 million). Headline earnings is an earnings measure required to be calculated and disclosed by the JSE and is calculated in accordance with the guidance provided in Circular 1/2021

• Headline earnings per share (HEPS) is calculated as headline earnings divided by the weighted average number of ordinary shares in issue during the year

• Basic earnings is earnings attributable to ordinary shareholders as defined by IAS33 Earnings Per Share

• Dividend payout ratio is calculated as the dividend per share divided by adjusted earnings per share

• Pre-provision adjusted operating profit is calculated as: Total operating income before expected credit loss impairment charges, net of operating costs and net of operating profits or losses attributable to other non-controlling interests

• The credit loss ratio is calculated as expected credit loss (ECL) impairment charges on gross core loans as a percentage of average gross core loans subject to ECL

• The cost to income ratio is calculated as: operating costs divided by operating income before expected credit loss impairment charges (net of operating profits or losses attributable to other non-controlling interests)

• Return on average ordinary shareholders' equity (ROE) is calculated as adjusted earnings attributable to ordinary shareholders divided by average ordinary shareholders' equity

• Return on average tangible ordinary shareholders' equity (ROTE) is calculated as adjusted earnings attributable to ordinary shareholders divided by average tangible ordinary shareholders' equity

• Core loans is defined as net loans to customers plus net own originated securitised assets

• NCI is non-controlling interests.

Financial assistance

Shareholders are referred to Special Resolution number 30, which was approved at the annual general meeting held on 4 August 2022, relating to the provision of direct or indirect financial assistance in terms of Section 45 of the South African Companies Act, No 71 of 2008 to related or inter-related companies. Shareholders are hereby notified that in terms of S45(5)(a) of the South African Companies Act, the Boards of Directors of Investec Limited and Investec Bank Limited provided such financial assistance during the period 1 April 2022 to 31 March 2023 to various Group subsidiaries.

Johannesburg and London

Sponsor: Investec Bank Limited

Exchange rates between local currencies and Pounds Sterling have fluctuated over the period. The most significant impact arises from the volatility of the Rand. The average Rand: Pound Sterling exchange rate over the period has depreciated by 0.8% against the comparative year ended 31 March 2022, and the closing rate has depreciated by 14.0% since 31 March 2022. The following tables provide an analysis of the impact of the Rand on our reported numbers.

^ For income statement items we have used the average Rand: Pound Sterling exchange rate that was applied in the prior period, i.e. 20.28.

^^ For balance sheet items we have assumed that the Rand: Pound Sterling closing exchange rate has remained neutral since 31 March 2022.

• Restated as detailed below.

Condensed combined consolidated income statement

Earnings per share

Combined consolidated statement of total comprehensive income

^ These amounts are net of taxation of £6.4million taxation expense (31 March 2022: £3.5 million taxation expense).

Combined consolidated balance sheet

^ Restated as detailed below.

Condensed consolidated statement of changes in equity

Condensed consolidated cash flow statement

^ Restated as detailed below.

Cash and cash equivalents is defined as including: cash and balances at central banks, on demand loans and advances to banks and non-sovereign and non-bank cash placements (all of which have a maturity profile of less than three months).

Combined consolidated segmental analysis

Segmental geographical and business analysis of adjusted operating profit before goodwill, acquired intangibles, non-operating items, taxation and after non-controlling interests.

* Profit attributable to non-controlling interests predominantly relates to the Investec Property Fund Limited.

^ Following a strategic review, our Swiss operations have been earmarked to play a key role in the Group's strategic expansion of its international wealth services. To ensure strategic alignment, the operational results of the Switzerland wealth business are now reported as part of the Southern Africa Wealth & Investment division (previously reported as part of UK & Other Wealth & Investment). The comparative period has been restated to reflect this change. There has been no change in the legal or ownership structures.

^^ Restated as detailed below.

Net fee and commission income

* Trust and fiduciary fees amounted to £0.4 million and are included in Private client transactional fees.

** Included in Group Investments and Specialist Banking is fee and commission income of £78.0 million for operating lease income which is out of the scope of IFRS 15 - Revenue from contracts with customers.

# Included within Group Investments fee and commission income is a net contribution from rental activities resulting from the consolidation of IPF of £56.0 million comprising property revenue of £90.3 million and property expenses of £34.3 million.

Financial impact of strategic actions

^ In the prior year included within the balance are fair value gains of £0.7 million.

^^ Includes transaction costs relating to the proposed combination of Investec Wealth & Investment UK and Rathbones Group. Refer to the events after reporting date note below.

Net gain on distribution of associate to shareholders

On 30 May 2022, c.15% shareholding in Ninety One DLC was distributed to ordinary shareholders. The distribution resulted in the shareholding in Ninety One DLC being reduced from 25% to c.10%. The reduction in shareholding resulted in the loss of significant influence and the remaining stake in Ninety One DLC will be accounted for at fair value through other comprehensive income.

Balance sheet restatements

Derivative financial instruments to other assets

As at 31 March 2022, £70.7 million and 31 March 2021, £72.2 million, initial margin on collateral, which is not available as an offset to individual exposures, was recorded in derivative financial instruments liabilities instead of other assets.

In addition, certain derivative financial assets and liabilities that are managed by the Group's trading desks were previously presented on a gross basis, while the IAS 32 on-balance sheet netting requirements were met. Due to an upgrade of the internal reporting processes, the intent to net settle was evidenced. The derivative transactions, totalling £14.1 million at 31 March 2023 (31 March 2022: £26.7 million, 31 March 2021: £31.5 million) satisfied the legally enforceable right of set off in terms of IAS 32. These positions are also operationally net settled through the use of the Continuous Linked Settlement (CLS) system.

The comparative balance sheets have been restated for the reclassifications above. This change has no impact on the comparative income statements. The impact of these changes on the 31 March 2022 and 31 March 2021 balance sheets and 31 March 2022 cash flows are:

The impact of this change on the 31 March 2022 cash flow statement is:

Historical German dividend tax arbitrage transactions

Investec Bank plc has previously been notified by the Office of the Public Prosecutor in Cologne, Germany, that it and certain of its current and former employees may be involved in possible charges relating to historical involvement in German dividend tax arbitrage transactions (known as cum-ex transactions). Investigations are ongoing and no formal proceedings have been issued against Investec Bank plc by the Office of the Public Prosecutor. In addition, Investec Bank plc received certain enquiries in respect of client tax reclaims for the periods 2010-2011 relating to the historical German dividend arbitrage transactions from the German Federal Tax Office (FTO) in Bonn. Since issuing our 31 March 2022 Annual Report, the FTO has provided more information in relation to their claims and Investec Bank plc has sought further information and clarification.

Investec Bank plc is co-operating with the German authorities and continues to conduct its own internal investigation into the matters in question. A provision is held to reflect the potential financial outflows that could arise as a result of this matter. There are factual issues to be resolved which may have legal consequences, including financial penalties.

In relation to potential civil claims; whilst Investec Bank plc is not a claimant nor a defendant to any civil claims in respect of cum-ex transactions, Investec Bank plc has received third party notices in relation to two civil proceedings in Germany and may elect to join the proceedings as a third party participant. Investec Bank plc has itself served third party notices on various participants to these historic transactions in order to preserve statute of limitation on any potential future claims that Investec Bank plc may seek to bring against those parties, should Investec Bank plc incur any liability in the future. Investec Bank plc has also entered into standstill agreements with some third parties in order to suspend the limitation period in respect of the potential civil claims. While Investec Bank plc is not a claimant nor a defendant to any civil claims at this stage, it cannot rule out the possibility of civil claims by or against Investec Bank plc in future in relation to the relevant transactions.

The Group has not provided further disclosure with respect to these historical dividend arbitrage transactions because it has concluded that such disclosure may be expected to seriously prejudice its outcome.

Events after the reporting date

Proposed sale of the Investec Property Fund Limited (IPF) asset management function in South Africa and Europe

Investec entered into an agreement with IPF on 1 March 2023 to sell its real estate asset management function across South Africa and Europe, for a maximum purchase consideration of R975 million.

Investec has carved out R125 million of the consideration in the form of an earn-out provision, linked to the growth in the existing IPF assets under management as at 31 March 2023, in excess of a minimum annual growth threshold over three years.

The IPF circular relating to the proposed transaction was posted to IPF shareholders on 17 April 2023, with the transaction being approved at a general meeting held on 17 May 2023. The transaction is further subject to the approval of the Competition Commission.

At the completion date of the sale, Investec will deconsolidate its c.24.3% investment in IPF. Going forward the investment in IPF will be equity accounted. At the date of this report, the transaction has not yet become effective. The financial effect of the deconsolidation will be dependent on the net asset value and fair value of the IPF share on the date of deconsolidation, a reliable estimate cannot be made at this point.

Proposed combination of Investec Wealth & Investment UK and Rathbones Group

It was announced on 4 April 2023 that Investec plc and Rathbones Group Plc (Rathbones) have entered into a definitive agreement regarding an all-share combination of Investec Wealth & Investment Limited (IW&I UK) and Rathbones.

Under the terms of the combination, Rathbones will issue new Rathbones shares in exchange for 100% of Investec W&I UK's share capital. On completion, Investec Group will own 41.25% of the economic interest in the enlarged Rathbones Group's share capital, with Investec Group's voting rights limited to 29.9%.

The combination is conditional, among other things, on:

i. Approval by Rathbones' shareholders (by ordinary resolution) at a general meeting of Rathbones expected to be held during quarter two of 2023,

ii. The Financial Conduct Authority and London Stock Exchange agreeing to admit the ordinary share element of the consideration shares to the premium listing segment of the Official List and to trading on the London Stock Exchange's Main Market for listed securities,

iii. No material adverse change having occurred in respect of either Rathbones or Investec IW&I UK,

iv. The Competition and Markets Authority (CMA) confirming in response to a briefing note that it has no further questions, or alternatively, CMA approval, and

v. Relevant financial and other regulatory approvals and notifications being obtained, including in the UK, Jersey, Guernsey and South Africa

At the completion date of the sale, Investec will deconsolidate its 100% investment in IW&I UK. Going forward the investment in the enlarged Rathbones Group will be equity accounted.

At the date of this report, the transaction has not yet become effective. The financial effect of deconsolidation will be dependent of the net asset value of the IW&I UK business, and the fair value of the Rathbones shares on the date of deconsolidation and a reliable estimate cannot be made at this point.

Analysis of assets and liabilities by measurement category

Financial instruments at fair value

The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to the valuation technique used.

The different levels are identified as follows:

Level 1 - quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Transfers between level 1 and level 2

There were no transfers between level 1 and level 2 in the current year.

Measurement of financial assets and liabilities at level 2

The table below sets out information about the valuation techniques used at the end of the reporting period in measuring financial instruments categorised as level 2 in the fair value hierarchy:

Level 3 financial instruments

The following tables show a reconciliation of the opening balances to the closing balances for level 3 financial instruments. All instruments are at fair value through profit or loss.

^ The IEP Group and Bud Group shareholders have approved a restructure to facilitate an exit by certain IEP shareholders, including the Investec Group, by way of a share buyback. The restructure entails the transfer of certain assets to a Newco, to facilitate the orderly disposal of those assets. As a result the nature of the holding in IEP has changed to that of a debt instrument and has been transferred to the investment portfolio line on the balance sheet, where it is measured at fair value through profit or loss.

For the year to 31 March 2023, investment portfolio of £6.3 million, derivatives financial instruments assets of £4.7 million were transferred from level 2 to level 3. The valuation methodologies were reviewed and unobservable inputs were used to determine the fair value.

Derivative financial instrument liabilities of £8 000 were transferred from level 3 to level 2.

The Group transfers between levels within the fair value hierarchy when the significance of the unobservable inputs change or if the valuation methods change. Transfers are deemed to occur at the end of each semi-annual reporting period.

The following table quantifies the gains or (losses) included in the income statement and statement of other comprehensive income recognised on level 3 financial instruments:

Sensitivity of fair values to reasonably possible alternative assumptions by level 3 instrument type

The fair value of financial instruments in level 3 are measured using valuation techniques that incorporate assumptions that are not evidenced by prices from observable market data. The following table shows the sensitivity of these fair values to reasonably possible alternative assumptions, determined at a transactional level: