Sustainability at InvestecJSE, 23 August 2012Tanya dos SantosSetlogane Manchidi

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Our Sustainability Journey

2002

• Passive philanthropic

• Broad-based CSI focus

• Limited environmental focus

2003 – 2006

• More focused CSI effort

• Big transformation and entrepreneurial effort in South Africa:

– Empowerment deal

– The Business Place

• Environmental considerations

• Compliance approach

• Internal operational impacts

2007 – 2011

• Revised CSI strategy

– Strong emphasis on education and entrepreneurship

• Deeper environmental focus

– Carbon footprint exercises in Australia, South Africa and UK

– Staff campaigns in energy, waste and water

2012

• Maintain internal momentum

• Increased external focus on capturing opportunities within our businesses

Entrenched culture of corporate responsibility

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Sustainability – Our Approach

To manage and position the group for the long term

• Building a sustainable business model• Developing a strong, diverse and talented workforce• Growing and preserving and clients and stakeholders’ wealth based on strong

relationships of trust

Guided by our purpose to create sustained long-term wealth,

We seek to be a positive influence on society

• By empowering communities through entrepreneurship and education

• And leveraging the diversity of our people

We recognise the challenges of climate change and will consider any meaningful activity that either reduces the negative impact or prolongs the life of our planet

Our Philosophy

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Profit Financial strength and resilience (of the business and the economy)• Balanced and resilient

business model

Risk management and compliance• Strong risk consciousness• Responsible banking

practices• Responsible lending and

investing

Governance• Strong culture and values

to underpin our processes, functions and structures

Sustainability – Three-pronged Approach

Endurance and the interdependence of three key areas

PeopleInternal employees:• Strong, diverse and capable workforce• Provide a progressive work

environment

External CSI initiatives:• Education• Entrepreneurship• Environment

Engage | Develop | Retain

Planet

Internal• Reduce operational impacts

External• Embed environmental considerations

into business activitiesEnergy | Water | Waste

Sustainability at Investec

Asset ManagementWealth & InvestmentSpecialist Banking

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Sustainability – Governance

• We have a strong culture of risk consciousness with high ethical standards• Responsible banking, lending and investing efforts are guided by our values

Strong culture and embedded values guide how we operate

Values

Distinctive performance

• Outstanding talent – empowerment, enabled and inspired

• Meritocracy• Passion, energy, stamina, tenacity• Entrepreneurial spirit

Dedicated partnership

• Respect for others• Embrace diversity• Open and honest dialogue• Unselfish contribution to colleagues,

clients and society

Client focus

• Distinctive offering• Leverage resources• Break china for the client

Cast-iron integrity

• Moral strength• Risk consciousness• Highest ethical standards

• Moral strength• Risk consciousness• Highest ethical standards

Philosophies

• Single organisation

• Meritocracy

• Focused businesses

• Differentiated, yet integrated

• Material employee ownership

• Creating an environment that stimulates extraordinary performance

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Sustainability – Profit

• Our strategy for over 20 years has been to build a diversified portfolio of businesses and geographies • To support clients (institutional, corporate and private individuals) through varying markets and economic cycles

Building financial strength and resilience

Specialist bank and asset manager

Since

1992Assets:₤19.9bn

Since

1974Assets:₤28.3bn

Since

1997Assets:₤3.4bn

Origination channels

Core infrastructure

Distribution channels

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Sustainability – Profit

• To ensures that we are not over reliant on any one part of our businesses to sustain our activities • We have a large recurring revenue base that enables us to navigate through varying cycles and supports

our long-term growth objectives

Maintaining a balanced and resilient business model

Balanced mix of businesses

Contribution to operating profit before taxation%

52%

48%

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

10

20

30

40

60

50

70

80

90

100

Specialist Banking Wealth & Investment Asset Management

Average recurring income since 2003 of 63%

Contribution to operating profit before taxation₤’million

%2 000

1 750

1 500

1 250

1 000

750

500

250

0 0

10

20

30

40

50

60

70

₤1 932m

Trading income Investment income Other fees and other operating income

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

₤1 955m

Annuity fees and commissions Net interest income Recurring income as a % of total income (RHS)

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Sustainability – Planet: Direct operational impact

• We recognise the challenge that climate change presents to the global economy• We will consider any meaningful activity that either reduces the negative impact on, or prolongs the life

of, our planet

Concerned about our environment

Banking on energy saving, Investec Sandton has an energy efficient lighting plan

Our Gresham Street office was awarded the Carbon Trust Standard for the period April 2010 to March 2012. This achievement demonstrates that we have taken real action on climate change by reducing our emissions consistently over the last three years

Investec partnered with Greenpop to help build a sustainable vegetable garden at a

school in Cape Town

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Sustainability – Planet: Indirect operational impact

• We recognise the significant opportunities for our clients and our various businesses in areas such as cleaner and renewable energy sources, energy efficiency and responsible lending and investing

Looking for opportunities

“As lead investor in the consortium, Investec was very supportive of management’s growth strategy and gave clear and objective guidance

throughout the investment period. This enabled rapid response times to opportunities that arose in the market and ensured that JoJo continued to

grow its dominant position in the local market as well as to expand selectively into Southern Africa.”

Rod Cairns, Managing Director, JoJo Tanks

Partnered with BirdLife South Africa to fund research on the impact of renewable energy on local birdlife

Solar water geysers funded through Investec Private Bank, offered staff a way of reducing their electricity bill by half and

decreasing their carbon footprint

Investec has become a key player in the early stage development clean energy projects,

starting with wind farms and now moving to gas fired and solar projects

EUR100 million boost for green electricity in South Africa –Fani Titi commented “This facility aims to support our

government's stated aims to build a greener and more energy efficient economy.”

EIB vice president Plutarchos Sakellaris and Fani Titi, joint chairman of Investec

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Sustainability – People: Employees

• We are able to attract and retain the best people and have a strong, diverse and talented workforce• We are continuously developing their skills and building loyalty by providing a workplace that stimulates

and rewards distinctive performance

Engage / Develop / Retain

Wellness Days are hosted for Investec staff to raise awareness and education around health issues which focus on physical and mental health and wellbeing

R154 millionSpent on training staff around the

world in FY2012

1stin BANKSETA’s skills@work ‘large employers’ category in 2011

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JSE SRI index criteriaEnvironment Employees Governance StakeholdersEnvironmental impact • Low impact

Training & development• Spent £13.0mn in FY2012

Board practice• Independence of non-

executives• Social and Ethics

Committee

Stakeholder engagement• Extensive engagement

takes place at all levels

Environmental policy• UK policy - May 2011• SA policy - May 2012

Trade unions and employee participation• Meet all criteria

Code of ethics• Strong organisational

culture of entrenched values

• Culture and Values process during 2012/2013

Stakeholder reporting• Integrated Annual report

and Sustainability report• External verification 2013

Environmental management• Environmental manager

appointed May 2012• Internal training• Automated system implemented,

targets being set

Equal opportunities• EE Committee developing

4th EE plan

Indirect impacts, business value and risk management• Strong culture of risk and

compliance

Community involvement• Spent £4.5mn in FY2012

Environmental reporting• Integrated Annual report and

Sustainability report• External verification 2013

Health and Safety• OHS policy in place• Reviewing implementation

Broader economic issues• Committed to broader

economic agenda

Climate change• Hosted post-COP17 public debate

on climate change• 2011 Global Investor Statement

on Climate Change

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“Promaths made me! I learnt beyond the spheres of

maths and science. Through many programmes which they offered, I

realised that life offers infinite possibilities. We are supposed to work hard in order to claim what we are destined for. A key factor

which was instilled in me was discipline, especially in the part of time keeping. Halala Promaths!”

Bhekisisa Nyembe, ProMaths Top Performer 2011

Sustainability – People: Corporate Social Investment

• Our approach to CSI has historically placed a strong emphasis on EDUCATION and ENTREPRENEURSHIP• We believe this is the most effective way to create opportunities for employment, wealth creation and stimulate

economic growth

Passionate about our communities

High SchoolMaths and

ScienceEntrepreneurial

thinkingExposure to careers

Tertiary

Access to tertiary Support performance

WorkplaceTransition to workplace Invite as alumni

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Money isn’t everything

Questions

JSE, 23 August 2012Tanya dos SantosSetlogane Manchidi