INVESTEC LIMITED - Investec (comprising Investec Limited and Investec plc) exposures to the Steinhoff Group of companies

Investec (comprising Investec Limited and Investec plc) exposures to the Steinhoff Group of companies

Investec Limited                                 Investec plc

Incorporated in the Republic of South Africa     Incorporated in England and Wales
Registration number 1925/002833/06               Registration number 3633621
JSE share code: INL                              LSE share code: INVP
NSX share code: IVD                              JSE share code: INP
BSE share code: INVESTEC                         ISIN: GB00B17BBQ50
ISIN: ZAE000081949


Investec (comprising Investec Limited and Investec plc) exposures to the Steinhoff
Group of companies

11 December 2017

Investec wishes to clarify its exposure to Steinhoff International holdings NV (Steinhoff) and
its subsidiaries, including Steinhoff Africa (PTY) Ltd (Steinhoff Africa) and Steinhoff Africa
Retail Ltd (STAR), it’s separately listed African retail activities.

Investec has credit exposures to the Steinhoff Group of companies, which represent a small
portion of the group’s balance sheet as explained in detail below. Based on the information
currently available to the group, Investec is not expecting to suffer any losses on these credit
exposures.

The exposures are largely to Steinhoff Africa’s subsidiaries, with an immaterial exposure to
Steinhoff. The majority of the transactions have been undertaken by Investec Bank Limited
(South Africa), with Investec plc having an insignificant exposure to Steinhoff. The exposures
to Steinhoff Africa largely comprise lending exposures and overnight facilities, and are
secured by guarantees from certain of the Steinhoff Africa and STAR subsidiaries.

Exposures to client share covered loans where reliance is placed on value being accorded to
the Steinhoff share price to support repayment is negligible.

Investec Bank Limited (South Africa) does have certain derivative exposures linked to the
Steinhoff share price, where a trading loss could materialise. The loss could be zero but the
maximum potential loss could be approximately 3% of the Investec group’s post-tax
operating profit.

In addition to the above, Investec Bank Limited (South Africa) holds Steinhoff convertible
bonds in it’s available for sale portfolio. The carrying value of these bonds represents less
than 0.3% of the group’s consolidated tier one capital.

The group’s associate investment, The IEP Group, has no exposure to the Steinhoff Group
of companies, and Markus Jooste who was a director on their board resigned last week.

Investec manages credit exposures within strict risk parameters to avoid any specific
concentrations in its credit portfolios. Thus, any one particular exposure would represent a
small portion of the group’s total credit and counterparty exposures, as is the case with the
group’s exposure to Steinhoff.

As at 30 September 2017 (the group’s last reporting period) Investec Limited (South Africa)
had cash and near cash balances of R102.6 billion and tier one capital of R36.6 billion. The
South African banking business reported solid results for the six months to 30 September
2017 as announced on 16 November 2017.
Furthermore, the group’s total post-tax operating profit (adjusted earnings) for the year
ended 31 March 2017 amounted to R7.9 billion (GBP435 million). As at 30 September 2017
the group’s consolidated tier one capital amounted to R64.8 billion (GBP3.6 billion) and the
group’s cash and near cash assets amounted to R193.4 billion (GBP10.7 billion)

The group’s exposures to the Steinhoff Group of companies are summarised in the table
below:

Counterparty                   As a % of South            As a % of the          As a % of South       As a % of the
                               Africa’s total credit      Investec group’s       Africa’s total tier   Investec group’s
                               and counterparty           consolidated total     one capital           consolidated total
                               exposures                  credit and             (which was            tier one capital
                               (which were R464.8bn       counterparty           R36.6bn at 30 Sept    (which was
                               at 30 Sept 2017)           exposures              2017)                 GBP3.6bn at 30
                                                          (which were                                  Sept 2017)
                                                          GBP43.1bn at 30
                                                          Sept 2017)

Steinhoff Africa* - loans      Less than 0.25%            Less than 0.2%         Less than 3.0%        Less than 1.5%

Steinhoff Africa* – other      Less than 0.05%            negligible             Approximately 0.5%    Less than 0.5%
credit and counterparty
exposures

STAR - other credit and        Less than 0.1%             Less than 0.1%         Less than 1.5%        Less than 1%
counterparty exposures

Steinhoff - loans              immaterial                 immaterial             immaterial            immaterial

Steinhoff – available for      negligible                 negligible             Less than 0.5%        Less than 0.3%
sale investment

* Secured by guarantees from certain of the Steinhoff Africa and STAR subsidiaries.


For queries:
Investor Relations:
+27 11 286 7070
+44 207 597 5546
 investorrelations@investec.com

NOTE:
The financial information on which this statement is based has not been reviewed and
reported on by the group’s auditors.

Sponsor: Investec Bank Limited

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