Investec Plc · LSE:INVP
Investec — Non-Deal Roadshow (September 2012)
16 slides from Investec's roadshow presentation, Sep 13, 2012
Slide 1: Investor pre-close briefing
Investor pre-close briefing 13 September 2012 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 standards and
Slide 2: Operational review
Operational review • Proviso: unless otherwise stated, figures and trends discussed in the operational review relate to the five month period to 31 Aug 2012 and compare 1H2013 vs 1H2012 • References to operating profit relate to normalised* operating profit. Trends within the divisional sections rel
Slide 3: Overview of the six months to 30 Sep 2012
Overview of the six months to 30 Sep 2012 • Operating profit* is expected to be in line with that recorded in the first half of the prior financial year • The Asset Management and Wealth Management businesses experienced net inflows • The proportion Th ti off revenues derived d i d ffrom our non-len
Slide 4: Overview of the six months to 30 Sep 2012
Overview of the six months to 30 Sep 2012 • It has been difficult to grow revenue in the current environment and we expect operating income to decline marginally in Pounds arising from: – A decline in investment and trading income – A marginal decrease in net interest income – A solid increase in ne
Slide 5: Cash balances remain strong; Capital ratios
Cash balances remain strong • Continue to focus on: Cash and near cash – diversifying funding sources – limiting concentration risk £'mn – reducing cost of liabilities 10 000 10,000 Average 8,000 • Advances as a percentage of customer deposits at 31 Aug 2012 6,000 is at 67 67.6% 6% (31 Mar 2012: 67
Slide 6: Impairment trends
Impairment trends Impairment p analysis y • Impairments on core loans are £’mn expected to be approximately 24% 250 lower than 1H2012, with a 200 significant decrease compared to 2H2012 150 • Impairments in the South African 100 and UK core books are expected to 50 be in line with 1H2012 • Impairmen
Slide 7: Asset Management; Wealth & Investment
Asset Management • Competitive long term Assets under management: performance across Since 31 Mar 2012: down 1% to £61.1bn; investment capabilities currency neutral ^ up 3% £’bn • Positive net inflows of £1.1bn 70 60 • Financial performance should 50 be in line with 1H2012 40 30 20 10 0 2005 2006 20
Slide 8: Specialist Banking
Specialist Banking • The Specialist Bank is performing marginally behind 1H2012. Key aspects include: Net interest margin Net fees and commissions • Moderate book growth, mainly in South • General corporate banking activity Africa levels remain low • Improved margins in South Africa • Private client
Slide 9: Additional aspects
Additional aspects Other information • Effective tax rate: expected to be approximately 19.2% • Weighted number of shares in issue for the six months to 30 Sep 2012 expected to be approximately 857mn 18
Slide 10: Conclusion
Conclusion Conclusion • Whilst the overall level of impairments are expected to decline meaningfully, activity levels are low and revenue from principal and customer flow activities is difficult to generate • We have continued to benefit from solid net inflows in our asset management and wealth and
Slide 11: Appendices
Investor pre-close briefing 13 September 2012 Appendices
Slide 12: Operating environment; Normalised operating profit
Operating environment % move 31 Aug 2012 31 Mar 2012 30 Sep 2011 since Mar 2012 JSE ALSI 35,737 33,554 29,674 6.5% FTSE ALSI 2,986 3,003 2,654 -0.6% Australian All Ord 4,382 4,420 4,070 -0.9% SA Prime 8.50% 9.00% 9.00% -0.50% UK Cl Clearing i B Banks k 0 50% 0.50% 0 50% 0.50% 0 50% 0.50% - RBA cash
Slide 13: Investec Asset Management: assets under management
Investec Asset Management: assets under management* % Change 31 Aug 31 Mar 30 Sep 31 Mar 30 Sep 31 Mar YTD vs £'million 2012 2012 2011 2011 2010 2010 Mar 2012 UK and international 35,360 36,154 29,171 30,765 23,727 21,666 -2.2% Mutual funds , 15,978 17,490 , 14,031 , 15,402 , 12,451 , 11,064 , -8.6%
Slide 14: Wealth & Investment funds under management
Wealth & Investment Non-SA: funds under management % Change 31 Aug 31 Mar 30 Sep 31 Mar 30 Sep 31 Mar YTD vs £' illi £'million 2012 2012 2011 2011 2010 2010 M 2012 Mar IWI (previously RS) - Discretionary 10,112 9,804 8,924 9,571 8,818 8,517 3.1% - Non-discretionary 3,080 3,033 2,826 3,164 3,077 3,08
Slide 15: Private Client deposits; Corporate Client loans and advances
Private Client: deposits % Change 31 Aug 31 Mar 30 Sep 31 Mar 30 Sep 31 Mar YTD vs £'million 2012 2012 2011 2011 2010 2010 Mar 2012 UK and Europe 6,782 6,528 6,063 6,100 6,127 6,308 3.9% South Africa 4 995 4,995 5 079 5,079 4 749 4,749 5 154 5,154 4 902 4,902 4 607 4,607 -1.7% 1 7% Australia 1,426 1
Slide 16: Contact details
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@investec.com 31 Investor pre-close briefing 13 September 20