Investec Plc · LSE:INVP
Investec — Corporate Update (March 2013)
16 slides from Investec's corporate update, Mar 14, 2013
Slide 1: Investor pre-close briefing
Investor pre pre-close close briefing 14 March 2013 1 Proviso • Please note that matters discussed in today’s presentation may contain forward looking statements which are subject to various risks and uncertainties and other factors, including, but not limited to: ‒ the further development of standa
Slide 2: Operational review
Operational review 3 • Proviso: unless otherwise stated, figures and trends discussed in the operational review relate to the eleven month period to 28 Feb 2013 and compare 1H2013 vs 2H2013 • References to operating profit relate to normalised* operating profit. T d within Trends ithi th the divisio
Slide 3: Overview of the year ending 31 Mar 2013
Overview of the year ending 31 Mar 2013 • Operating profit* is expected to be approximately 20% - 23% ahead of the prior year • The asset management and wealth management businesses have experienced strong net inflows in excess of £4bn and are expected to report results ahead of the prior year • The
Slide 4: Overview of the year ending 31 Mar 2013; funding and liquidity
Overview of the year ending 31 Mar 2013 • For the period 31 Mar 2012 to 28 Feb 2013: – Third party assets under management increased 13% to £110.0bn – an increase of 18% on a currency neutral^ basis – Customer accounts (deposits) decreased 2% to £25.0bn - an increase of 4% on a currency neutral^ bas
Slide 5: Capital ratios and impairment trends
Capital ratios • We have implemented Basel 3 in our South African and Australian businesses, with moderate impact on our ratios • Our UK business is reporting in terms of Basel 2.5 and capital ratios remain stable • All ratios are expected to be within the group’s target capital range 9 Impairment t
Slide 6: Divisional review: Asset Management
Divisional review 11 Asset Management • Competitive long term Assets under management: performance across Since 31 Mar 2012: up 12% to £69.2bn; p investment capabilities currency neutral^ up 18% • Positive net inflows of £’bn 80 £3.2bn 70 60 • Financial performance 50 should be marginally ahead 40 o
Slide 7: Wealth & Investment and Specialist Banking
Wealth & Investment • Performing well ahead of the prior year ‒ Higher average funds under management ‒ Net inflows of £0.9bn ‒ Inclusion of Williams de Broë and NCB (in Ireland) • Integration of acquisitions progressing well - excess costs will however,, still reflect in our 2013 results UK offices
Slide 8: Additional aspects
Additional aspects 15 Other information • Effective tax rate: expected to be approximately 18% - 19% • Weighted number of shares in issue for the year ending 31 March 2013 expected to be approximately 856mn 16
Slide 9: Investec Asset Management and Investec – sale of shareholding to management
Investec Asset Management (IAM) and Investec – sale of shareholding to management 17 Overview DETAILS on transaction BENEFITS of transaction • Management would acquire a 15% interest in IAM • Transaction will underpin Participants’ long-term • Option to acquire an additional 5% over the next seven c
Slide 10: Conclusion
Conclusion 19 Conclusion • We have continued to record positive net inflows into our asset management and wealth and investment businesses • Loan growth in the professional finance, asset finance, structured and project finance businesses, together with an expected improvement in the cost of funds,
Slide 11: Contact details
Investec pre pre-close close briefing 14 March 2013 21 Contact details For further information please refer to the Investor Relations section of www.investec.com Or contact the Investor Relations team: • Telephone: – UK: +44 (0) 207 597 5546 – SA: +27 (0) 11 286 7070 • E-mail: investorrelations@inve
Slide 12: Appendices: operating environment
Appendices 23 Operating environment 28 Feb 30 Sep 31 Mar % move since 2013 2012 2012 Mar 2012 JSE ALSI 39,710 , 35,758 , 33,554 , 18.3% FTSE ALSI 3,349 2,999 3,003 11.5% Australian All Ord 5,120 4,406 4,420 15.8% SA Prime 8.50% 8.50% 9.00% (0.50%) UK Clearing Banks 0.50% 0.50% 0.50% - RBA cash rate
Slide 13: Normalised operating profit
Normalised* operating profit: For the six months ended 30 September 2012 £’000 UK & Southern Australia Total Europe p Africa g group p Asset Management 28,081 39,116 - 67,197 Wealth & Investment 14,223 8,628 - 22,851 Specialist Banking 47,264 87,352 4,755 139,371 Total group 89,568 135,096 4,755 229
Slide 14: Assets under management and funds under management
Investec Asset Management: Assets under management* £’million 28 Feb 30 Sep 31 Mar 30 Sep 31 Mar % change YTD 2013 2012 2012 2011 2011 vs Mar 2012 UK and international 40,825 36,034 36,154 29,171 30,765 12.9% - Mutual funds 17,137 16,150 17,490 14,031 15,402 (2.0%) - Segregated mandates 23,688 19,88
Slide 15: Wealth & Investment funds under management
Investec Wealth & Investment Non-SA: Funds under management £’million 28 Feb 30 Sep 31 Mar 30 Sep 31 Mar % change YTD 2013 2012 2012 2011 2011 vs Mar 2012 Total IWI - Discretionary 15,962 14,605 14,187 8,924 9,571 12.5% - Non-discretionary 5,686 5,128 5,316 2,826 3,164 7.0% - Other* 348 407 453 - -
Slide 16: Total group customer deposits
Total group customer deposits £’million 28 Feb 30 Sep 31 Mar 30 Sep 31 Mar % change YTD 2013 2012 2012 2011 2011 vs Mar 2012 UK and Europe 9,715 9,673 9,459 9,106 8,812 2.7% Southern Africa 13,581 13,371 14,348 13,633 14,207 (5.3%) Australia 1,664 1,644 1,537 1,446 1,422 8.3% Total deposits p 24,960