Investec Limited · JSE:INL
Investec — Investor Presentation (July 2024)
19 slides from Investec's investor presentation, July 2024
Slide 1: Investec Rand Nikkei 225 Autocall and Dollar Euro Stoxx 50 Autocall
Investec Rand Nikkei 225 Autocall Investec Dollar Euro Stoxx 50 Autocall JULY 2024
Slide 2: Product terms summary
Underlying Issuer Currency Term to maturity Enhanced Capital Credit Advisor Minimum return protection reference fees investment Nikkei 225 100% capital Maximum 5 years, but protection in Investment may be subject to Rand provided Upfront: 2% Profile 1 of the Investec ZAR earlier redemption at 17% p.
Slide 3: The Nikkei 225 Index
Launch Date 09 July 1950 The Nikkei 225 Index Domicile/Currency Japan/JPY 2% Number of Stocks 225 The Nikkei 225 remains an attractive investment 3% opportunity even after the recent rally due to Price Weighted Weighting Method several factors. 9% P/E Ratio 20.95 Japan is expected to maintain a mode
Slide 4: The Nikkei 225 Index
The Nikkei 225 Index Global Investors Underweight to Japanese Stocks Room for Japan to “Equitize” US Japan 10 Year Dividend Pay-out Ratio 70% 30% Cash % of Market Capitalization 7% 21% Share of companies trading below book value 4% 50% Corporate buybacks as % of Market Capitalization 2.0% - 3.5% 0.7
Slide 5: Back Testing
Back Testing Call in Year 1 Call in Year 2 Call in Year 3 Call in year 4 Call in year 5 No call & Capital Protected Barrier breach Nikkei 225 59.1% 14.9% 8.2% 2.6% 4.8% 3.00% 7.5% (First call in year 1) Index Performance History 45000 40000 Nikkei225 Index 35000 30000 25000 20000 15000 10000 5000 0
Slide 6: Payoff Profile: Nikkei 225
Payoff Profile: Nikkei 225 Expiry Year 1 Year 2 Year 3 Year 4 – Year 5 4 Opportunities to Capital Protection call, in year 1, 2, 3 only available at 1 2 2 or 4, before maturity. Notional + 1 Notional + 3 Notional + 5 maturity in year 5 x enhanced x enhanced x enhanced 3 return return return Initial
Slide 7: Rand Nikkei 225 Autocall
Rand Nikkei 225 Autocall • The Investec Rand Nikkei 225 Autocall is a Flexible Investment Note “FIN” inward listed on the JSE. The FIN is a long-dated note that can offer new investment profiles on each Reset Date. • The FIN offers investors exposure to the performance of a series of structured prod
Slide 8: Rand Nikkei 225 Autocall
Rand Nikkei 225 Autocall • Holders of the FIN who wish to invest in the subsequent Investment Profile must provide a new signed application form confirming acceptance of the subsequent Investment Profile. • Accepting holders will not be redeemed on the Reset Date and will be invested into the subseq
Slide 9: The Euro Stoxx 50 Index
Launch Date 26 Feb 1998 The Euro Stoxx 50 Index Domicile/Currency Eurozone/EUR Number of Stocks 50 Optimism about growth prospects in the Eurozone have increased with the European Central . Bank Weighting Method Free-Float market cap (ECB) being the first developed market to cut rates as inflation s
Slide 10: Back Testing
Back Testing Call in Year 3 Call in year 4 Call in year 5 No call & Capital Protected Barrier breach Euro Stoxx 58.8% 14.7% 2.3% 12.8% 11.4% (First call in year 3) Index Performance History Euro Stoxx 50 Index 6000 5000 4000 3000 2000 1000 0 10 Confidential | Investec
Slide 11: Payoff Profile: Euro Stoxx 50
Payoff Profile: Euro Stoxx 50 Trade Date Initial Index level Year 3 Year 4 Year 5 2 Opportunities to Capital Protection 2 call, in year only available at 1 Notional + 4 x Notional + 5 3 or 4, before maturity. Notional + 3 enhanced x enhanced x enhanced return return 3 maturity in year 5 return 100%
Slide 12: Credit Risk
Credit Risk As the Investec Euro Stoxx 50 Autocall is credit linked to Bank of America Corp, should a Credit Event (bankruptcy, failure to pay, • obligation default, repudiation/moratorium and restructuring or government intervention) occur in respect of Bank of America Corp, the return would be red
Slide 13: Autocall Performance History
Autocall Performance History IBL Issued Autocalls Average Historic Autocall Returns (IRR) – JSE Listed 18% 17.0% 16% 15.2% 14% 13.0% 12.8% 12% ZAR IRR 10% 8.5% 8% 6% 4% 1.6% 2% 0% EuroStoxx50 Index FTSE100 Index S&P500 Index Autocall IRR Index IRR 13 Confidential | Investec
Slide 14: Dollar Euro Stoxx 50 Autocall
Dollar Euro Stoxx 50 Autocall • The Investec Dollar Euro Stoxx 50 Autocall is a listed instrument under Investec’s US$1,500,000,000 Note Issuance Programme (“the Programme”). Investors take full credit risk on IBL as Issuer as well as on Bank of America Corp as the Credit Reference Entity. • When th
Slide 15: Procedure to Invest
Procedure to Invest Financial advisors need one of the following FSCA licenses: FSP category Financial Products Important Dates: 1.11 Warrants, Certificates and other instruments or Closing Date 08 August 2024 Category I 1.13 Derivative Instruments or 1.24 Structured Deposits Trade Date 15 August 20
Slide 16: Tax Implications
Tax Implications The information provided in this brochure is general information and should not be construed as tax advice. On redemption or disposal (or partial disposal) of the Flexible Investment Note a tax event will be triggered in the hands of an investor and the tax consequences thereof will
Slide 17: Contacts
Contacts Please contact one of our specialists for further information Brian McMillan +27 11 291 3180 brian.mcmillan@investec.com Japie Lubbe +27 21 416 3307 japie.lubbe@investec.com John Sherry +27 11 384 5307 john.sherry@investec.com Sonia Lynch +27 11 263 9450 sonia.lynch@investec.com James Cook
Slide 18: Disclaimer
DISCLAIMER: This document is not a prospectus, nor does it before participating in any transaction in respect of the securities constitute an offer to the public in respect of the Autocall. Completion referred to in this document. Any opinions, forecasts or estimates and signature of the Application
Slide 19: Thank you
Thank you Investec