Wealth Accelerator ESP Presentation and FAQ

What is the Investec Wealth Accelerator Equity Structured Product (“ESP”)?

• Issuer:Investec Bank Limited (“IBL”)

• Credit Reference Entity: BnP Paribas SA (“BnP”)

• Current Index price: As at 14 July 2017 = 3525.94

• Bloomberg code: SX5E

100% capital protection in rand on the fullinvestment amount if held to maturity

Minimum investment amount is from R50 000cash and increments of R10 000

A 4 year equity investment where a 63% returnin rand represents an Internal Rate of Return(“IRR”) of 13% per annum in rand –approximately 7.5% above Consumer PriceIndex (“CPI”) inflation of 5.5% is paid to theinvestor if the Euro Stoxx 50® Index (“Index”),is one point higher at maturity than where itstarted on Trade Date

The return will be paid to the investor in randtherefore no currency risk

IBL will target a digital return of 63%, however due tothe volatile nature of the underlying assets, we reservethe right to trade as long as the digital return is 57% orhigher and not to proceed on Trade Date should thedigital return be below 57% (IRR 11.9% - thisrepresents a 6.4% real return per annum (11.9% less5.5% inflation)).

Daily liquidity in normal market conditions.Investec makes an active daily market inthe investment on the JSE with a bid tomid-spread of 1%

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What is the pay-off profile at expiry in rand?

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50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

170%

180%

40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180%

ESP return in rand

SX5E return

Wealth Accelerator ESP 63% return in rand

Index return

Investor initial investment amount is 100% principal protected in rand, at maturity

What returns can investors expect?

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Example of Index returns at maturity* Capital invested ESP returns ESP investment value at maturity

Index returns 75% R1 000 000 63% rand return R1 630 000

Index returns 7% R1 000 000 63% rand return R1 630 000

Index returns –32% R1 000 000 Principal protection R1 000 000

* Theoretical returns for illustrative purposes

Eurozone commentary

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• Euro area economic activity has been strengthening in recent quarters, both in terms of the pace of growth and its breadth acrosssectors and the 19 members of the single currency area. Supporting this has been the continued strength of household spendingand firming investment. We expect this dynamic to continue looking forward and envisage Eurozone expansion averaging around2% over a three to five year horizon. Such an outturn would see the Eurozone recording some of the fastest growth rates amongstthe developed economies and present an attractive macroeconomic backdrop for corporates.

• We also tend to the view that the world growth backdrop will be positive for Euro area exporters given our expectation of a pickupin the global economy in the medium term. Meanwhile the undervaluation of the euro should also help to support thecompetitiveness of Eurozone exports, at least for the time being.

• Monetary policy within the Euro area has been very accommodative in recent years with policy interest rates at record lows andeven negative in the case of the deposit rate (-0.40%). The ECB has also undertaken an asset purchase programme, which todate has bought €1.9trn worth of bonds. Looking across the next 5 years we expect the ECB to undertake a very gradualnormalisation in policy, with the first rise in interest rates not coming until Q2 2019, with a slow pace of tightening thereafter.

• European political risks were a key theme for 2017. However those risks have receded following election results in the Netherlandsand France, where far right parties were defeated. Meanwhile polls ahead of the German Federal Election due in Septembersuggest that Angela Merkel will be returned as Chancellor. We note though that some risks of populist party success remain inAustria and Italy where elections are both due within the next 12 months. Lastly, it is worth noting that the systemic risks that wereposed by countries such as Greece during the depths of the Euro crisis have abated as economic and financial conditions haveimproved, economic reforms have been undertaken and the Euro area now has a permanent rescue fund (the ESM) in place.

Euro Area Outlook, Investec (London), June 2017

Euro Stoxx 50® Index return 31 December 1986 (inception) to date

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0

1000

2000

3000

4000

5000

6000De

c 19

86Ju

l 198

7Ja

n 19

88Ju

l 198

8Ja

n 19

89Ju

l 198

9Ja

n 19

90Ju

l 199

0Ja

n 19

91Ju

l 199

1Ja

n 19

92Ju

l 199

2Ja

n 19

93Au

g 19

93Fe

b 19

94Au

g 19

94Fe

b 19

95Au

g 19

95Fe

b 19

96Au

g 19

96Fe

b 19

97Au

g 19

97Fe

b 19

98Au

g 19

98Fe

b 19

99Au

g 19

99M

ar 2

000

Sep

2000

Mar

200

1Se

p 20

01M

ar 2

002

Sep

2002

Mar

200

3Se

p 20

03M

ar 2

004

Sep

2004

Mar

200

5Se

p 20

05M

ar 2

006

Oct

200

6Ap

r 200

7O

ct 2

007

Apr 2

008

Oct

200

8Ap

r 200

9O

ct 2

009

Apr 2

010

Oct

201

0Ap

r 201

1O

ct 2

011

Apr 2

012

Oct

201

2M

ay 2

013

Nov

201

3M

ay 2

014

Nov

201

4M

ay 2

015

Nov

201

5M

ay 2

016

Nov

201

6M

ay 2

017

Inde

x (S

X5E

) ret

urns

Data source: Bloomberg

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00%

Airbus SEAXA SA

ING Groep NVVolkswagen AG

Daimler AGDeutsche Telekom AG

BNP Paribas SABASF SE

Allianz SEBanco Santander SA

Bayer AGL'Oreal SA

SanofiSiemens AG

Industria de Diseno Textil SATOTAL SA

SAP SELVMH Moet Hennessy Louis Vuitton SE

Unilever NVAnheuser-Busch InBev SA/NV

1.88%1.91%1.94%

2.25%2.30%

2.58%2.59%2.59%2.59%

2.89%3.21%

3.43%3.49%3.51%

3.65%3.69%3.71%3.72%

4.80%6.66%

Euro Stoxx 50® Index Top 20 companies

Data source: Bloomberg 7

Euro Stoxx 50® Index industry sector weightings

The Index covers 50 stocks from 11 Eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain

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0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

Real EstateFood & Staples Retailing

MediaDiversified Financials

Technology Hardware & EquipmentTransportation

Semiconductors & Semiconductor EquipmentHealth Care Equipment & Services

RetailingSoftware & Services

UtilitiesMaterials

Consumer Durables & ApparelInsurance

EnergyTelecommunication ServicesAutomobiles & Components

Pharmaceuticals, Biotechnology & Life SciencesFood Beverage & Tobacco

Household & Personal ProductsCapital Goods

Banks

0.76%0.80%0.83%

1.03%1.09%

1.27%1.68%

2.21%3.71%3.81%

4.70%4.76%4.88%

5.28%5.36%

5.58%6.29%

6.79%8.33%8.41%

11.11%11.31%

Data source: Bloomberg

How would the ESP have performed in the past?

Summary of findings (daily back-testing of 4 year rolling returns since inception of the Index)

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Inde

x (S

X5E

) 4 y

ear r

ollin

g re

turn

s

-75%-50%-25%

0%25%50%75%

100%125%150%175%200%225%250%

Dec

199

0Ju

l 199

1Ja

n 19

92Ju

l 199

2Ja

n 19

93Ju

l 199

3Ja

n 19

94Ju

l 199

4Ja

n 19

95Ju

l 199

5Ja

n 19

96Ju

l 199

6Ja

n 19

97Au

g 19

97Fe

b 19

98Au

g 19

98Fe

b 19

99Au

g 19

99Fe

b 20

00Au

g 20

00Fe

b 20

01Au

g 20

01Fe

b 20

02Au

g 20

02Fe

b 20

03Au

g 20

03M

ar 2

004

Sep

2004

Mar

200

5Se

p 20

05M

ar 2

006

Sep

2006

Mar

200

7Se

p 20

07M

ar 2

008

Sep

2008

Mar

200

9Se

p 20

09M

ar 2

010

Oct

201

0Ap

r 201

1O

ct 2

011

Apr 2

012

Oct

201

2Ap

r 201

3O

ct 2

013

Apr 2

014

Oct

201

4Ap

r 201

5O

ct 2

015

Apr 2

016

Oct

201

6M

ay 2

017

• Produced positive returns 70.5% of the time, i.e. paid a 63% return in rand• Offered principal protection 29.5% of the time

Data source: Bloomberg

Opportunity to capture the Eurostoxx 50 Index’s low volatility

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The index’s implied volatility (a key pricing variable in the 63% Rand return) is near its all-time low (currently 11.62%) vs the peak of the credit crisis when it was 92%. The lower the volatility the cheaper the option price, hence the high 63% digital return which may not be obtainable if this market variable move out of favour.

Data source: Bloomberg

What dividends am I forfeiting by investing in this product as opposed to the Index?

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The db x-trackers (“DBXEU”) has been used as the benchmark for this analysis as it tracks the European economy

• Net dividend forfeiture is 9.16% in Euro

• ETF trackers provide no capital protection, unlike the ESP

DBXEU trackers

Current 12m Dividend Yield 3.63%

Less Annual Management Fee -0.86%

Net 2.77%

Less 20% tax -0.55%

Net Dividend 2.22%

Compounded for 4 years 9.16%

Data source: Bloomberg as at 6 June 2017 (ticker: DBXEU SJ Equity)

Immunization against the rand strengthening to the Euro

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The benefit of this investment is the immunization against the rand strengthening to the Euro, which has happened in numerousoccasions in the past.

Data source: Bloomberg - 01 April 1999 to 14 August 2017

Rand – Euro interest rate differential locked into the offering

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The digital level of 63% is a result of the ZAR and EUR yield curve differential which is shown below. The 4 year EUR swap rate isvirtually zero versus the 4yr ZAR swap rate of 7.14%.

Data source: Bloomberg

-2

0

2

4

6

8

10

ZAR SWAP Euro Swap

EUR/ZAR forward curve for 4 years

14Data source: Bloomberg - 14 August 2017 to 14 August 2020

The Euro vs ZAR forward rates over the term of the offering can be seen below. The EUR/ZAR forward depreciation rate is approximately 26.54% over the projected 4 year term. The digital level of 63% is a result of this upward sloping forward curve.

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15

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19

20

Aug

-17

Aug

-18

Aug

-19

Aug

-20

Stress testing

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Simulated return of the investment over the 4 year investment term under the scenario of a positive and negative 40% EuroStoxx 50® Index move, shown below. The simulation has been done under the assumptions of constant:

• Volatility (assuming that the volatility surface remains the same in the future as it is today, i.e. exclusion of forward volatility on the index)

• Interest rates

• Dividends

Index level

ESP inception value

ESP end of Year 1

ESP end of Year 2

ESP end of Year 3

ESP at maturity end of Year 4

+ 40% 100% 123% 135% 148% 163%

0% 100% 104% 113% 124% 100%

- 40% 100% 84% * 88% 93% 100%

• The largest drop in the investment for a - 40% Index move is -16%* at the end of Year 1

• The lowest investment amount is - 18% at the end of Year 1 if the Index drops to -100% i.e. the equity option is worthless

Simulated returns for illustrative purposes

Product Break-even due to currency and index returns

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Investec have simulated a matrix showing various returns of a market linked investment of the Euro Stoxx 50 Index (ETF) in Euro (incl.of the net dividend) converted back into rand at three currency scenarios and to what the Investec product would have returned.

The current Euro/ZAR spot is 15.67

Scenario 3 shows the index only needs to go up by 0.01% for the investor to receive a 63% return in randSimilarly, if the Index were to return 0.01% in a market linked investment of the Euro Stoxx 50 Index in Euro (incl. the net dividend), the rand wouldneed to depreciate by some 63% to break even with the Investec product to produce the same 63% return in rand.

Scenario 4 shows that if the Index returns +19.66% and the rand depreciates 26.5% against the Euro, the Index (incl. of the dividend) breaks evenwith the product to produce a 63% return in rand.

The value of a 100% capital protection at maturity, in rand will cost an investor an upfront premium of 14% (achieved by purchasing a four year100% put - commercial value of an option on the Euro Stoxx 50 Index in rand). By deduction, the investor has the potential to receive a fixed 63%return in rand in this offering if the index, at maturity, is one point greater than it started versus taking all the downside risk on the live index in Euroor paying 14% upfront for protection.

Index performance at maturity

Net dividend Total Index return

Euro/Rand 26.5% depreciation i.e. R19.83

Euro/Rand at current spot of R15.67

Euro/Rand 26.5% appreciation i.e. R11.51

Investec Product Return

Scenario 1 -40.00% 9.20% -30.80% -12.48% -30.84% -49.20% 0%Scenario 2 -20.00% 9.20% -10.80% 12.82% -10.84% -34.50% 0%Scenario 3 0.01% 9.20% 9.20% 38.13% 9.16% -19.80% 63%Scenario 4 19.66% 9.20% 28.80% 63.00% 28.81% -5.30% 63%Scenario 5 40.00% 9.20% 49.20% 88.74% 49.16% 9.60% 63%

How do I access this payoff if I own Euro Stoxx 50® db x-trackers or ETFs?

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Investors are able to transfer their db x-trackers or ETF’s (with a minimum value of R200,000.00 and increments ofR10 000 thereafter) into the Wealth Accelerator ESP.

The trackers must be transferred and settled into the Equity Structured Product Trust pledged account, held with Investec SecuritiesProprietary Limited ESP Trust, free of value via your stockbroker/wealth manager.

The closing date to transfer db x-trackers or ETF’s is 4 September 2017.

Investors are able to retain beneficial ownership of their trackers and have the ability to access the Wealth Accelerator pay-off andprincipal protection through a derivative issued by IBL.

It is important to note the ESP is in rand.

What tax will investors pay?

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The information provided in this brochure is general information and should not be construed as tax advice. Taxation legislation and itsinterpretation may change. For as long as an investor is the holder of an ESP, they will be the owner of ETFs. Section 9C of the Actdeems receipts and accruals arising from the disposal of ETFs to be of a capital nature if the taxpayer was the owner of the equityshare for a continuous period of at least 3 years immediately prior to the sale.

The tax consequences for investors who elect to sell their ETFs before a period of 3 years has elapsed will be dependent uponindividual circumstances and any profit realised from the sale may be subject to Income Tax/CGT.

It is recommended that prospective investors seek independent professional legal, tax and accounting advice and consider theinvestment in the light of the Investor’s particular circumstances. No responsibility is accepted by IBL for the treatment of any court oflaw, tax, banking or other authority in any jurisdiction of the investment and no undertaking, warranty or representation is given withregard to the outcome of any such investment.

All opinions, statements and analysis expressed are based on information, which was current at the time of writing and from sources,which ISP believes to be authentic and reliable.

What fees will investors pay?An annual distribution fee of 0.75% of the investment amount (inclusive of VAT) will be paid annually in advance to IBL and theFinancial Advisor/Stockbroker/Wealth Manager for the 4 year investment term.

Financial Services Board (“FSB”) licence categories

CAT1 license holders

1.8 Securities and Instruments: Shares

1.11 Securities and instruments: warrants, certificates andother instruments acknowledging, conferring or creatingrights to subscribe to acquire, dispose of or convertsecurities and instruments referred to in subcategories1.8, 1.9 and 1.10

1.13 Securities and instruments: Derivative instrumentsexcluding warrants

1.14 Participatory interests in CIS’s (Collective InvestmentSchemes)

FSB Category 1 (“CAT1”) and Category 2 (“CAT2”) license holders qualifying criteria to write structured products:

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CAT2 license holders

2.5 Securities and instruments: Shares

2.8 Securities and instruments: warrants, certificates andother instruments acknowledging, conferring orcreating rights to subscribe to acquire, dispose of orconvert securities and instruments referred to insubcategories 2.5, 2.6 and 2.7 above

2.10 Securities and instruments: Derivative instrumentsexcluding warrants

2.11 Participatory interests in CIS’s (Collective InvestmentSchemes)

• Listed products are exempt under the Financial Advisory and Intermediary Services Act (“FAIS”), however financialadvisors/stockbrokers/wealth managers should be aware of their FAIS compliance responsibilities under the Johannesburg StockExchange(“JSE”) rules for listed products;

• Where advice is being given, financial advisors/stockbrokers/wealth managers should ensure that they understand the underlyinginstruments and are able to provide advice on a "look through" basis; and

• The onus is on the financial advisor/stockbroker/wealth manager to ensure that they have the appropriate license to advise onstructured products – e.g. Investec Wealth Accelerator ESP

Contact us

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Please contact one of our product specialists for further information

Brian McMillan +27 11 291 3180 Brian.Mcmillan@investec.co.za

Kate Langlois +27 11 286 9450 Kate.Langlois@investec.co.za

Japie Lubbe +27 21 416 3307 Japie.Lubbe@investec.co.za

Carlo Accolla +27 21 416 3316 Carlo.Accolla@investec.co.za

Lynn Bell +27 21 416 3328 Lynn.Bell@investec.co.za

Recent accolade

> Best Distributor, Capital Protected > Best Performance, Africa 2016Products in Africa 2016 > Best Distributor, South Africa 2016 > Best Distributor, Africa 2016

> Best Performance, South Africa 2016 > Best Distributor, Africa 2016

Disclaimer

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The information contained in this communication is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment,accounting, tax, legal or regulatory advice. As product supplier, Investec is not in a position to have regard to the specific investment objectives, financial situation or particularneeds of any specific recipient. The material is based upon information that we consider to be reliable, but we do not represent that it is accurate or complete, and it should notbe relied upon as such. Investors should seek their own independent professional advise regarding the suitability of this ESP for their own particular investment purposes

All illustrations, forecasts or hypothetical data are for illustrative purposes only and are not guaranteed. The sender accepts no liability whatsoever for any loss or damage of anykind arising out of the use of all or any part of this communication. Investec does not make representation that the information provided is appropriate for use in all jurisdictionsor by all investors or other potential investors. Parties are therefore responsible for compliance with applicable local laws and regulations. Prospective investors should be fullyaware of the risks involved in trading investment related products. Profits and benefits are dependent on the performance of underlying assets and other variable market factorsand are not guaranteed.

This product is not sponsored, endorsed, sold, or promoted by the Index or indices, as specified herein, or the relevant Index sponsor, being the corporation or other entity that(a) is responsible for setting and reviewing the rules and procedures and the methods of calculation and adjustments, if any, related to the relevant Index and (b) announces(directly or through an agent) the level of the relevant Index on a regular basis. No Index sponsor makes any representation whatsoever, whether express or implied, either as tothe results to be obtained from the use of the Index and/or the levels at which the Index stands at any particular time on any particular date or otherwise. No Index or Indexsponsor shall be liable (whether in negligence or otherwise) to any person for any error in the Index and the Index Sponsor is under no obligation to advise any person of anyerror therein. No Index sponsor is making any representation whatsoever, whether express or implied, as to the advisability of purchasing or assuming any risk in connectionwith entering into any transaction in respect of this product. Neither Investec nor the investor shall have any liability to the other for any act or failure to act by the Index sponsorin connection with the calculation, adjustment or maintenance of the Index. Investec has no affiliation with or control over the Index or Index sponsor or any control over thecomputation, composition or dissemination of the indices. Although Investec will obtain information concerning the indices from publicly available sources it believes reliable, itwill not independently verify this information. Accordingly, no representation, warranty or undertaking (express or implied) is made and no responsibility is accepted by Investecas to the accuracy, completeness and timeliness of information concerning the indices.

Corporate and Institutional Banking, a division of Investec Bank Limited. Reg. No. 1969/004763/06. An Authorised Financial Services Provider (FSP 11750) and registeredCredit Provider (NCRCP9). A member of the Investec Group.

Ref: SPIB19 – 14 August 2017