Investec plc · LSE:INVP
Investec — FY1999 Earnings Presentation
112 slides from Investec's earnings presentation, 1999
Slide 1: Investec Analyst Presentation 1999
INVESTEC ANALYST PRESENTATION 1999
Slide 2: Summary of Results
SUMMARY OF RESULTS
Slide 3: Investec Summary of Results
Investec Summary of Results 1999 1998 % Change Headline Attributable 857 572 49.8 Earnings (R’m) Headline EPS (cents) Undiluted 1 077.5 790.1 36.4 Diluted 1 089.9 782.4 39.3 DPS (cents) 475 350 35.7 Assets Under 361 286 196 369 84.0 Administration (R’m)
Slide 4: Inhold Summary of Results
Inhold Summary of Results 1999 1998 % Change Headline Attributable 377 266 41.7 Earnings (R’m) Headline EPS (cents) Undiluted 927.2 699.5 32.6 Diluted 994.5 677.0 46.9 DPS (cents) 425 300 41.7
Slide 5: Headline Earnings & Dividends
Headline Earnings & Dividends 1200 Cents 10 Year CAGR: DPS 1000 Diluted EPS : 31.6 % Diluted EPS DPS : 31.0 % 800 600 400 200 0 1989 1991 1993 1995 1997 1999
Slide 6: Investec in Perspective
INVESTEC IN PERSPECTIVE f—" \\
Slide 7: Financial Services Trends
Financial Services Trends Changing Financial Landscape…. “Bankers have long sought a level playing field, and in one sense, they now have one: everyone is equally uncertain of what banking is evolving toward” - The Banking Journal, Feb ‘99
Slide 8: The Age of the Mega Merger
“The Age of the Mega Merger” “As new banking giants come into being, they are receiving sharp reminders that size does not equate to invulnerability...size alone can’t be viewed as the total answer for building competitiveness and shareholder value - especially in an era of market volatility” - Bank
Slide 9: Implications for Investec
Implications for Investec “As banks get larger and treat more and more people identically, that should open the door for niche players” - The Banking Journal, Feb ‘99
Slide 10: Implications for Investec
Implications for Investec Maintain sharp focus on core areas of strength
Slide 11: Implications for Investec
Implications for Investec ⊕ Control Costs – avoid “niche revenues with bulge -bracket costs” ⊕ Highly selective in terms of geography and product range ⊕ Well managed
Slide 12: Implications for Investec
Implications for Investec ⊕ Strong culture – retain staff ⊕ Tight rein on risk ⊕ Thorough local knowledge
Slide 13: You get bigger by being better
“You get bigger by being better. You don’t get better by being bigger” - The Banking Journal, Feb ‘99
Slide 14: Investec Strategic Focus: Mission
Investec Strategic Focus Mission We aspire to be one of the world’s great specialist banking groups, driven by commitment to our core philosophies and values
Slide 15: International Expansion
INTERNATIONAL EXPANSION
Slide 16: International Strategy
International Strategy “Arguably the most aggressive international strategy is that of Investec…this dynamic group has determined that stockholder value can best be obtained by a major shift in resources and earnings outside South Africa” - SA Banks: Strategy Games, NOMURA, Feb ‘99
Slide 17: Integration Challenges
Integration Challenges “As a result of expansion over the past 7 years, Investec is well placed to develop an efficient and cohesive business on an international scale” - Moody’s, Oct ‘98
Slide 18: Integration Challenges
Integration Challenges Moody’s Oct 2 Gresham Street, London ‘98 “Major challenge facing Investec – assimilation and integration of acquisitions”
Slide 19: International Developments
International Developments ⊕ Concluded Hambros PLC - August 1998 ⊕ Obtained banking license in Botswana - September 1998 ⊕ ACSIS - November 1998 ⊕ Stuart Coleman & Co - January 1999
Slide 20: Response to Developments
Response to Developments “Recent acquisitions raises the Group’s asset management and private banking profile considerably and could be beneficial in the long run” - Moody’s Oct ‘98
Slide 21: Combined Capability & Integration: Private Banking
Combined Capability & Integration Private Banking ⊕ Integration of Guinness Mahon significantly enhances capability : – Merged private banking operations with IBUK – Support services and treasury operations absorbed to maximise synergies with existing IBUK infrastructure – Expanded geographic reach
Slide 22: Review of Investec's Private Banking Capability
Review of Investec’s Private Banking Capability Today Yesterday Long Ago 1999 1997 1994 Loan Book 11 209 8 610 3 360 (R’m) Staff 679 487 286 No. of clients 54 185 35 880 16 239
Slide 23: The Result... Private Banking
The Result... Private Banking One of a few South African financial services groups with a fully integrated private banking capability
Slide 24: Combined Capability & Integration: Institutional Asset Management
Combined Capability & Integration Institutional Asset Management Merged Investec Asset Management with Guinness Flight Hambro to create Investec Guinness Flight
Slide 25: Review of Investec's Asset Management Capability
Review of Investec’s Asset Management Capability Today Yesterday Long Ago 1999 1997 1994 Institutional Assets 112.6 28.5 2.7 under Management (R’bn) Staff 435 136 24 No. of clients (incl. 1 627 442 300 unit trust funds)
Slide 26: Review of Investec's Asset Management Capability
Review of Investec’s Asset Management Capability Today Yesterday Long Ago 1999 1997 1994 Number of Retail Investors: South Africa 117 685 95 784 3 333 UK 37 000 Offshore 25 000 US 33 816 Jurisdictions: 1999 1997 1994 UK Channel Islands SA Namibia SA Namibia SA USA Hong Kong Ireland Botswana Botswana
Slide 27: Combined Capability & Integration: Private Client Asset Management
Combined Capability & Integration Private Client Asset Management Combined Carr Sheppards and Henderson Crosthwaite to create Carr Sheppards Crosthwaite
Slide 28: Review of Investec's Asset Management Capability
Review of Investec’s Asset Management Capability Today Yesterday Long Ago 1999 1997 1994 Private Client Assets 74.472 39.484 0.3 under Management (R’bn) Staff 583 439 2 No. of clients 70 160 35 120 70
Slide 29: The Result... Asset Management
The Result... Asset Management ⊕ One of S.A.’s first global fund managers – Among the top 25 UK non-life managers – Among the 100 largest non-US international fund management companies
Slide 30: Integration Overall
Integration Overall ⊕ Undergone intensive integration processes with external consultants ⊕ Internationally - “all under one roof” ⊕ Co-operation and collaboration between major financial centres within each business unit ⊕ Management acting in concert
Slide 31: As a Result...International Capabilities
As a Result...International Capabilities United Channel 135 966 Kingdom Islands United Switzerland 12 439 States Hong 19 Kong Mauritius 10
Slide 32: United States
United States Stuart Coleman ⊕ Establishes retail broking presence & Co in the US – 17 000 active accounts – 140 brokers, represented in New York & Chicago – Non-discretionary funds under management of $1bn ⊕ Mutually beneficial gains for Ernst and Stuart Coleman & Co – Clearing done by Ernst – Syne
Slide 33: As a Result...International Capabilities
As a Result...International Capabilities United Channel 135 966 Kingdom Islands United Switzerland 12 439 States Hong 19 Kong Australia 40 Mauritius 10
Slide 34: Australia
Australia ACSIS ⊕ Specialises in domestic and international superannuation and unit trust products as a fund of fund operation ⊕ Excellent performance record ⊕ Currently manages > A$200 million ⊕ Represented in New South Wales, Victoria and South Australia
Slide 35: As a Result...International Capabilities
As a Result...International Capabilities United Channel 135 966 Kingdom Islands United Switzerland 12 439 States Hong Israel 191 19 Kong Australia 40 Mauritius 10
Slide 36: Israel
Israel ⊕ Financial Highlights(R’m) 1998 1997 % Change NIBT 96.4 70.5 37% Total Assets 6 132 5 124 20% ⊕ First Israeli bank to launch comprehensive internet banking facility, including securities trading system ⊕ Continued expansion into capital market activities − Elected onto TASE board, being one
Slide 37: As a Result...International Capabilities
As a Result...International Capabilities United Channel 135 966 Kingdom Islands United Switzerland 12 439 States Hong Israel 191 19 Kong South Africa 1909 Australia 40 Mauritius 10
Slide 38: South Africa Developments
South Africa Developments ⊕ Continue to build core areas of focus – Acquisition of Johannesburg retail brokerage business of HSBC Ð enhances domestic securities operations ⊕ Disinvestment from non-core activities – Sale of DSB to Cadiz in exchange for equity – Sale of SIB to SIB Holdings in exchange
Slide 39: As a Result...Assets By Geography
As a Result...Assets By Geography 6% 4% 3% 25% 62% UK South Africa Israel US Other
Slide 40: As a Result...NIBT by Geography
As a Result…NIBT by Geography 9.1% 2.8% 11.7% 49.5% 26.9% South Africa UK Other Israel US
Slide 41: As a Result...Foreign vs Domestic Income
As a Result...Foreign vs Domestic Income 80 70 60 Domestic 50 Foreign 51% 40 30 33% 35% 26% 29% 20 10 0 1995 1996 1997 1998 1999
Slide 42: Group Performance
GROUP PERFORMANCE
Slide 43: Salient Financial Information
Salient Financial Information 1999 1998 Market Capitalisation on a R21.18bn R20.45bn Diluted Basis Interest Income / Total 37.1% 46.6% Income Operating Expenses / Total 58.9% 54.7% Income Return on Average 18.8% 17.8% Shareholders’ Funds Return on Core Capital 28.4% 22.2% Employed Return on Risk Wei
Slide 44: Salient Financial Features: Balance Sheet
Salient Financial Features Balance Sheet (R’m) 31 March 31 March % 1999 1998 Increase Total Shareholders’ 8 757 7 194 21.7 Funds Total Assets 112 906 83 049 36.1 Advances 21 936 16 777 32.7
Slide 45: Salient Financial Information: Income Statement
Salient Financial Information Income Statement (R’m) 31 March 31 March % 1999 1998 incr. Net Interest Income 1 298 861 50.8 Provision for Bad & 223 104 114.4 Doubtful Debts Other Income 2 204 985 123.8 Operating Expenses 2 064 1 010 104.4 Net Income before 1 193 730 63.4 Taxation Attributable Earnin
Slide 46: Growth in Net Tangible Assets Per Share
Growth in Net Tangible Assets Per Share Cents 9000 8000 10 year CAGR : 34.8 % 7000 6000 5000 4000 3000 2000 1000 0 1989 1991 1993 1995 1997 1999
Slide 47: Growth in Total Assets
Growth in Total Assets R’bn 120 100 10 year CAGR : 61.9 % 80 60 40 20 0 1989 1991 1993 1995 1997 1999
Slide 48: Growth in Assets Under Management
Growth in Assets Under Management R’bn 400 350 10 year CAGR : 68.2 % 300 250 200 150 100 50 0 1989 1991 1993 1995 1997 1999
Slide 49: Operating Income by Type
Operating Income by Type For the year ended 31 Mar ‘99 5.2% 12.8% 50% 32% Commission and Fees Margin Investment Income Trading
Slide 50: Trading as a % of Total Income
Trading as a % of Total Income 18 16 14 15.3 12 11.6 10 11.9 8 6 6.7 7.5 5.2 4 2 0 1994 1995 1996 1997 1998 1999
Slide 51: Annuity as a % of Total Income
Annuity as a % of Total Income 90 80 83.2 81.1 70 77.4 69 73 60 67 50 53 40 30 20 10 0 1993 1994 1995 1996 1997 1998 1999
Slide 52: Divisional Performance
DIVISIONAL PERFORMANCE
Slide 53: Contribution Analysis
Contribution Analysis 7% 8% 35% 14% 17% 19% Corporate and Investment Private Banking Banking Group Services & Other Activities Asset Management Securities Activities Insurance
Slide 54: Corporate and Investment Banking Trends
Corporate and Investment Banking Trends ⊕ Notwithstanding emerging market crisis, corporate activity buoyant following world-wide trend ⊕ Cross border activity increasing ⊕ Infrastructural development continues
Slide 55: Corporate Finance Developments
Corporate Finance Developments ⊕ Completed Transactions South Africa - 109 – 20 Listings/Capital Raisings – 62 M & A’s – 27 Unbundlings/Restructurings United Kingdom - 40 – 22 IPO’s/Capital Raisings – 16 M & A’s – 2 Other
Slide 56: Ernst & Young SA M&A League Tables
Ernst & Young SA M&A League Tables Investec’s Positioning 1998 1997 1996 1995 1994 Number of 56 46 24 16 7 Transactions Ranking 3 2 3 3 5 Value of transactions 38 806 3 068 2 044 1 683 396 (R’m) Ranking 2 4 7 7 8
Slide 57: Specialised Finance
Specialised Finance ⊕ Excellent profit performance ⊕ Cross border transactions a significant contributor to performance ⊕ Expansion of certain activities into the UK ⊕ Substantial market penetration into top 50 corporate market
Slide 58: Growth in Specialised Finance Book
Growth in Specialised Finance Book R’bn % ROA 6 4.0% Assets ROA 5 3.0% 4 3 2.0% 2 1.0% 1 0 0.0% 1996 1997 1998 1999
Slide 59: Specialised Finance
Specialised Finance ⊕ Structured Finance transactions completed - R2,1bn ⊕ Public Sector Finance advisory mandates - R6bn ⊕ Appointed advisor to British Football Association for acquisition of Wembley Stadium ⊕ Awarded one of 25 Top Global Finance Teams - Global Finance, Oct ‘98 – Rated no. 1 in Tra
Slide 60: Treasury Developments
Treasury Developments ⊕ Solid performance from all trading areas ⊕ Restructure and consolidation of divisions – Synergies and significant cost savings – Enhancement of range of value-added specialist products ⊕ Launch of MarketMaker - first real time Internet Treasury desk
Slide 61: Private Banking Trends
Private Banking Trends ⊕ Industry highly fragmented, with all banks competing for piece of pie: – By 2000, global market: $25 trillion – Annual average growth rate: 8% ⊕ Huge market not well served – Lack of a clear-cut strategy and disciplined product methodology
Slide 62: Private Banking
Private Banking ⊕ Differentiation of Investec Private Banking offering through: – Consultant skills and emphasis on value added – Unique and innovative approach to advisory services - “integrated financial solutions” – Appropriate technology to facilitate offering - “Investec Connect”
Slide 63: The Client...The Target Trust
The Client…The Target Unit Trusts P Sy rop tail ry nd er Re asu And ica ty r e pport M tio n T Su idd leo and Se ffic g rvic e ti n e t Len te uc rke Trust Pr Pr iva od ofe lie te Ma ding C i va Pr ss nt Pr ion al Co E m - Client Ce mm m e Admin. er Head n tr Co ce Office Ca i t Sto ing Internationa
Slide 64: What did your money do today?
What did your money do today?
Slide 65: Investment Management Services Developments
Investment Management Services Developments ⊕ Return to profitability – Systems stabilised – Several new and innovative products – Recognised as one of the best linked product providers ⊕ Book value at 31 March 1999: ± R8bn ⊕ Strategy to continue concentrating on top end of the market
Slide 66: Asset Management Trends
Asset Management Trends ⊕ Consolidation continues ⊕ Global move towards defined contribution schemes ⊕ Market moving towards international standards – Need to be an international player, a priority
Slide 67: Asset Management
Asset Management ⊕ Redefined presence in market place ⊕ Global third party assets under management: £23bn – strong new institutional business inflows ⊕ Challenges going forward: – Continued growth in SA – Strengthen UK domestic presence – Expansion of pension market products and distribution arrange
Slide 68: Growth of Unit Trusts
Growth of Unit Trusts 40 R’bn 35 4 year CAGR : 145.2 % 30 25 20 15 10 5 0 1995 1996 1997 1998 1999
Slide 69: Comparative Unit Trust Market Value of Assets
Comparative Unit Trust Market Value of Assets - March ‘99 35 R’bn 30 Non - South African 25 South African 20 15 10 5 0 Investec Sanlam BOE Old Mutual Coronation NIB Source: Investec Securities
Slide 70: Highlights of the Past Year: Performance
Highlights of the Past Year Performance Highlights ⊕ SA Institutional: – Ranked 1st in 3 & 5yrs by Alexander Forbes Large Manager Watch (Mar ‘99) ⊕ SA Unit trusts: – 1yr - 3 funds in top 5 out of 151 funds – 3yr - 2 funds in top 5 out of 86 funds ⊕ Global Fixed Income & Currency Funds: – >70% of fun
Slide 71: Securities Activities Developments
Securities Activities Developments ⊕ Dramatic improvement of Investec’s position in the equities market over the past year ⊕ Streamlined and restructured activities to derive greater focus: – Private Client Portfolio Management Ö Private Banking – Institutional Broking and Research Ö Stronger ties w
Slide 72: Securities Activities Financial Mail Ratings
Securities Activities Financial Mail Ratings 1999 1998 1997 Equities sector only – 4 7 8 weighted by market capital Best dealing – equities 7 10 - Number of top rated 4 3 2 analysts per sector No. of analysts in top 17 14 11 six across sectors
Slide 73: Securities Activities International Developments
Securities Activities International Developments ⊕ Further integration of the London team with Henderson Crosthwaite Institutional Broking – Enhances Investec’s distribution capabilities in the UK and Europe ⊕ Conclusion of a distribution strategy at Ernst & Co for SA and Israeli Equities
Slide 74: Property Developments
Property Developments ⊕ Negative impact of high interest rates, shrinking investor appetite and institutional overhang – Last quarter witnessed the return of investors to market ⊕ Remain a highly selective niche player seeking quality, limited risk property opportunities ⊕ Investment in Investec Pro
Slide 75: Fedsure Investment
Fedsure Investment ⊕ Salient Financial Information: – Operational earnings per share × 38% – Dividends per share × 33% – Share price Ø 40% ⊕ Continue historical relationship with each party remaining focused and niched despite proliferation of bancassurance trend
Slide 76: Organic vs Purchased Growth
ORGANIC vs PURCHASED GROWTH
Slide 77: Argument for Acquisitions
Argument for Acquisitions “A merger that supports the overall strategy of the acquirer strengthens its product portfolio, helps it establish local market power and builds up its dominance in strategic market segments” - McKinsey Quarterly, No 1, ‘99
Slide 78: Organic Growth in Income
Organic Growth in Income R’m 2800 37.3% 2400 2000 32.2% 1600 1200 34.7% 41.3% 800 400 25.4% 18.8% 30.7% 0 1993 1994 1995 1996 1997 1998 1999
Slide 79: Organic Growth in Expenses
Organic Growth in Expenses R’m 1600 35.6% 1400 1200 1000 20.1% 800 28.1% 600 38.2% 400 21.9% 15.3% 16.6% 200 0 1993 1994 1995 1996 1997 1998 1999
Slide 80: Organic Growth in Net Income
Organic Growth in Net Income R’m 1400 54.9% 1200 1000 71.3% 800 600 46.2% 58.9% 400 57.6% 200 54.5% 60% 0 1993 1994 1995 1996 1997 1998 1999
Slide 81: Organic vs. Purchased Growth - Advances
Organic vs. Purchased Growth - Advances R’m 4500 4000 Organic 3500 Purchased 3000 2500 2000 1500 1000 500 0 1996 1997 1998 1999
Slide 82: Organic vs. Purchased Growth - Asset Management
Organic vs. Purchased Growth - Asset Management R’bn 140 Organic 120 Purchased 100 80 60 40 20 0 1994 1995 1996 1997 1998 1999
Slide 83: Risk Management/Asset Quality
RISK MANAGEMENT/ASSET QUALITY
Slide 84: Move over buddy, before we crash
“Move over buddy, before we crash” …said the Risk Manager to the Trader
Slide 85: Risk Management Developments
Risk Management Developments ⊕ Purchase of Ricos – First phase testing - implementation Sept ‘99 ⊕ Implementation of RiskWatch on all major trading books ⊕ Value added risk management across all divisions
Slide 86: Loan Portfolio 1999 By Client
Loan Portfolio 1999 By Client 8.2% 15.3% 43.2% 33.3% Private Client and Medium Corporate Corporate Professional Other
Slide 87: Loan Portfolio 1999 By Geography
Loan Portfolio 1999 By Geography 8.4% 9.9% 12.5% 52.1% 17.1% South Africa UK Other Israel USA
Slide 88: Bad Debt Charge % of Average Advances
Bad Debt Charge % of Average 1.2 Advances 1 1.1 0.94 1.1 0.8 0.8 0.6 0.71 0.58 0.53 0.4 0.2 0 1993 1994 1995 1996 1997 1998 1999
Slide 89: Total Non Performing Loans
Total Non Performing Loans % Total Loans 3 and Advances 3 2.5 2.7 2.6 2 2 1.8 1.5 1 0.5 0 1995 1996 1997 1998 1999
Slide 90: Specific Provisions
Specific Provisions % Non Performing 100 Loans 80 77.1 68.9 60 72.7 59.3 51.5 40 20 0 1995 1996 1997 1998 1999
Slide 91: Value at Risk
Value at Risk Rands Value at Limit Risk SA Operations 21 466 000 40 800 000 UK Operations 1 753 850 2 650 000 US Operations 4 402 678 5 300 000 Israeli Operations 478 876 985 000 28 101 404 49 735 000 Total Value at Risk - stress tested to 15 standard deviations: R163 706 126
Slide 92: Operational Issues
OPERATIONAL ISSUES
Slide 93: Operational Gains
Operational Gains “Unlike past merger booms, however, this endgame is less about empire building and more about deploying capital productively, lowering costs and locking in continuous productivity gains ….. and increasing annuity revenue as a means to increase shareholder value” - National Associat
Slide 94: Deploying Capital Productivity Overview
Deploying Capital Productivity Overview ⊕ Shift in focus from strengthening capital base to more effective utilisation of capital ⊕ Emphasis on increasing ROE versus increasing nominal value
Slide 95: Deploying Capital Productivity
Deploying Capital Productivity... Capital Ratios 31 Mar 31 Mar Targets ‘99 ‘98 Return on Average 18.8% 17.8% 25% Shareholders’ Funds Return on Core 28.4% 22.2% 30% Capital Employed Return on Risk 2.5% 2.5% 2.5% Weighted Assets
Slide 96: Capital Adequacy Specifics
Capital Adequacy Specifics ⊕ Risk Weighted Ratio : Rand Value (m) Percentage Tier One 4 886 14.4 Tier Two 283 0.9 Total 5 169 15.2
Slide 97: Lowering Costs...
Lowering Costs... “Investec reports one of the best efficiency levels, with non-interest expense hovering around 55% for the last 5 years” - Moody’s, Oct ‘98 ⊕ Current Cost to Income higher than normal - will decrease as integration progresses ⊕ Target Cost to Income Ratios: – Domestic: 40% – Intern
Slide 98: Expenses as a % of Income
Expenses as a % of Income 80 70 60 50 40 30 20 10 0 1993 1994 1995 1996 1997 1998 1999
Slide 99: Cost to Income Ratio (%) By Geography
Cost to Income Ratio (%) 80 By Geography Group Ratio: 58.9 % 1998 1999 70 60 50 40 30 20 10 0 SA UK Other
Slide 100: Cost to Income Ratio (%): Banking versus Non Banking
Cost to Income Ratio (%) Banking versus 80 Non Banking Group Ratio: 58.9 % 70 1998 1999 60 50 40 30 20 10 0 Banking Non Banking
Slide 101: Information Technology Developments
Information Technology Developments ⊕ Philosophy to make IT a core competence within a strict cost control environment – Introduction of Spend and Risk Forum ⊕ Internationalisation of IT a priority – Global infrastructure designed – Roll out throughout the Group
Slide 102: Y2K: Time for an Upgrade
Y2K “Time for an Upgrade”
Slide 103: Y2K Situation
Y2K Situation ⊕ All Core Systems Complete – Except new systems being installed which are certified Y2K compliant • Project Installation Complete July 1999 ⊕ PC Testing • SA Complete • International Initiated July 1999 ⊕ All Critical Connectivity Tested
Slide 104: Y2K Situation
Y2K Situation ⊕ Business Risk – Ongoing Y2K assessment of all new transactions and existing exposures ⊕ Contingency Management Initiated – Prime focus of Y2K Project from all aspects: • Internal = Systems and Facilities • External = Clients, Suppliers, Vendors, Counterparties ⊕ Total Y2K expenditure
Slide 105: Corporate Social Investment
Corporate Social Investment ⊕ Creation of a dedicated forum to oversee focused investment on: – Education – Business and entrepreneurial development – Crime Prevention ⊕ Percentage of SA post tax profits dedicated towards meaningful and relevant initiatives
Slide 106: People: Staff Complement
People Staff 4000 Complement 3500 3000 2500 2000 1500 1000 500 0 1993 1994 1995 1996 1997 1998 1999
Slide 107: Staff Turnover
Staff Turnover 35 Percent 30 25 20 15 10 5 0 1989 1991 1993 1995 1997 1999
Slide 108: Contribution Per Employee
Contribution Per Employee 350 R’000 300 250 200 150 100 50 0 1993 1994 1995 1996 1997 1998 1999 Based on income before minority interests and average number of employees
Slide 109: Looking Forward
LOOKING FORWARD
Slide 110: 1999 Milestones
1999 Milestones ⊕ 1999 was a year in which substantial strategic developments took place: – Crystallised global asset management and private banking offering – Enhanced cross border investment banking capability – Well down the road of successful integration of acquisitions – Streamlined business op
Slide 111: In Conclusion
In Conclusion “The companies that will prosper and outpace their competitors during the next two decades will be those that will be able to outthink their competitors strategically, not outmuscle them operationally” - Management Today, May ‘98
Slide 112: In Conclusion
In Conclusion “Investec’s strategy is an interesting useful example of successful strategic positioning” - SA Banks : Strategy Games, NOMURA, Feb ‘99