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 Date: 11/12/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.