Investec Limited · JSE:INL
Investec — H1 2005 Earnings Presentation
23 slides from Investec's earnings presentation, November 2004
Slide 1: Investec a distinctive specialist banking group - Interim results
Investec a distinctive specialist banking group Interim results For the six months ended 30 September 2004
Slide 2: Summary of results
Summary of results 30 Sep % 30 Sep 31 Mar UK GAAP 2004 Change 2003 2004 Attributable earnings* (£’000) 66 208 40.9 47 003 106 203 EPS* (pence) - restated 61.7 31.3 47.0 103.8 EPS* (pence) – as previously 61.7 25.4 49.2 reported DPS (pence) 30.0 7.1 28.0 58.0 Dividend cover (times) 2.06 1.68 1.79 Tot
Slide 3: Financial objectives: EPS growth target
Financial objectives EPS* growth target: RPI +10% Result: 31.3% pence 120 Annualised Actual 100 80 60 40 20 0 Mar-95 Mar-97 Mar-99 Mar-01 Mar-03 1H05 *Before exceptional items and amortisation of goodwill
Slide 4: Financial objectives: ROE target
Financial objectives ROE* target: 20% Result: 18.7% % 25 20 target 15 10 5 0 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 1H05 *Return on adjusted equity shareholders’ funds (inclusive of compulsorily convertible instruments).
Slide 5: Financial objectives: Cost ratio target
Financial objectives Cost ratio target: 65% Result: 68.6% % 90 80 70 target 60 50 40 30 20 10 0 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 1H05
Slide 6: Financial objectives: Annuity income target
Financial objectives Annuity income target: 70 -75% Result: 69.2% % 100 80 min target 60 40 20 0 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 1H05 Net interest income Net annuity fees and commissions
Slide 7: Financial objectives: CAR target
Financial objectives CAR target: 13 -16% Result: Ltd 15.0% plc 17.0% • Maintain CAR ratio AND • Deliver required ROE • Across all businesses and geographies
Slide 8: Operational review
Operational review Oo Investec
Slide 9: Private Client Activities
Private Client Activities Partner of choice – from wealth creation to wealth management • Operating profit* 63.1% to £40.9 million • Loan book 19.5% to £3.8 billion • Retail deposit book 17.5% to £3.0 billion • FUM 1.8% to £8.6 billion • Non-interest income 30.8% *Before exceptional items and amorti
Slide 10: Treasury and Specialised Finance
Treasury and Specialised Finance Specialist service, advisory focused • Operating profit* 39.5% to £21.5 million • Net interest income 16.8% • Non-interest income 16.0% *Before exceptional items and amortisation of goodwill
Slide 11: Investment Banking
Investment Banking Super-boutique strategy targeting specific clients and market niches • Operating profit* 10.4% to £18.0 million • Agency and advisory profit 51.6% to £9.6 million • DI and PE profit 38.8% to £8.4 million *Before exceptional items and amortisation of goodwill NOTE: DI and PE refers
Slide 12: Asset Management
Asset Management Investment specialist focused on performance and client needs • Operating profit* 37.0% to £14.9 million • FUM 7.2% to £22.1 billion • Net inflows £302 million • Investment performance *Before exceptional items and amortisation of goodwill
Slide 13: Other Activities
Other Activities • Assurance profit* 60.3% to £3.5 million • Property Activities profit* 68.9% to £6.7 million • Central Funding* 35.3% to -£4.6 million *Before exceptional items and amortisation of goodwill
Slide 14: General
General • Exceptional items -£14.7 million • Effective tax rate From 21.8% to 26.3% • Weighted shares From 100.1 to 107.4
Slide 15: Divisional performance
Divisional performance Operating profit* £’mn 50 40.9 40 30 25.1 21.5 20.0 18.0 20 15.4 14.9 10.9 10 0 -10 PC TSF IB AM Other** -6.6 -20 -13.5 Sep-03 Sep-04 *Before taxation, exceptional items and amortisation of goodwill **Includes Group Services and Other Activities and Assurance Activities. PC=Pr
Slide 16: Diversified portfolio
Diversified portfolio % Contribution to operating profit 100 80 60 40 20 0 2000 2001 2002 2003 2004 1H05 Investment Banking Treasury and Specialised Finance Asset Management Private Client Activities
Slide 17: Outlook
Outlook © Investec
Slide 18: Outlook: Third party assets under management
Outlook Key growth drivers UK Aus SA Third party assets under management ¸ ¸ ¸ £’bn 30 20 10 0 1995 1997 1999 2001 2003 1H05
Slide 19: Outlook: Loans and advances
Outlook Key growth drivers UK Aus SA Loans and advances ¸ ¸ ¸ £’mn 5000 4000 3000 2000 1000 0 1995 1997 1999 2001 2003 1H05
Slide 20: Outlook: Transactional activity
Outlook Key growth drivers UK Aus SA Transactional activity ¸ ¸ µ
Slide 21: Outlook: Stock market activity
Outlook Key growth drivers UK Aus SA Stock market activity ¸ ¸ µ
Slide 22: Outlook: General economic conditions
Outlook Key growth drivers UK Aus SA General economic conditions ¸ ¸ µ
Slide 23: Outlook - Out of the Ordinary
Private Banking | lnvestrnent Banking | Asset Management | Securities | Treasury & Specialised Finance Individual flair. We have a distinctive approach. Sng core! and Outlook Out of the Ordinery © Investec