Investec : Annual Financial Statements

Alternative performance measures

We supplement our IFRS figures with alternative performance measures used by management internally and which provide valuable, relevant information. These measures are highlighted with the symbol shown here. The description of alternative performance measures and their calculation is provided in the alternative performance measures section.

Audited information

Denotes information in the risk and remuneration reports that forms part of the Group's audited annual financial statements.

Page references

Refers readers to information elsewhere in this report.

Website

Indicates that additional information is available on our website: www.investec.com

Group sustainability

Refers readers to further information in the Investec Group's 2024 sustainability report which is published and available on our website: www.investec.com

Reporting standard

Denotes our consideration of a reporting standard.

Investec annual report 2024

C O N T E N T S

01

02

Annual financial statements

Annexures

Directors' responsibilities	4
DLC Audit Committee report	6
Independent auditor's report to the members of Investec plc	19
Independent auditor's report to the members of Investec Limited	33
Combined consolidated income statement	43
Combined consolidated statement of total comprehensive income	44
Combined consolidated balance sheet	45
Combined consolidated statement of changes in equity	46
Combined consolidated cash flow statement	50
Accounting policies	51
Notes to the annual financial statements	66
Investec plc parent Company - Balance sheet	174
Investec plc parent Company - Statement of changes in	175
shareholders' equity
Notes to Investec plc parent Company	176
Alternative performance measures	187
Definitions	189
Glossary	190
Corporate information	192

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Annual financial statements

Investec annual report 2024

Annual financial statements

01

Annual financial statements

Investec annual report 2024

IN THIS SECTION

• Directors' responsibilities

• DLC Audit Committee report

19 Independent auditor's report to the members of Investec plc

33 Independent auditor's report

to the members of Investec Limited

1. Combined consolidated income statement
2. Combined consolidated statement of total comprehensive income
3. Combined consolidated balance sheet
4. Combined consolidated statement of changes in equity

1. Combined consolidated cash flow statement
2. Accounting policies

66 Notes to the annual financial statements

1. Investec plc parent Company
2. • Balance sheet
3. Investec plc parent Company
4. • Statement of changes in shareholders' equity
5. Notes to Investec plc parent Company

01	Annual financial statements	Investec annual report 2024

DIRECTORS' RESPONSIBILITIES

Directors' responsibilities

The following statement, which should be read in conjunction with the auditor's report set out on pages 19 to 41, is made with a view to distinguishing for shareholders the respective responsibilities of the directors and of the auditors in relation to the accounts.

The directors are required by the UK Companies Act and South African Companies Act to prepare financial statements for each financial year. Under those laws the directors have elected to prepare the Group financial statements in accordance with UK adopted international accounting standards and with International Financial Reporting Standards (IFRS® Accounting Standards) issued by the International Accounting Standards Board (IASB). At

31 March 2024, UK adopted international accounting standards are identical in all material respects to current IFRS Accounting Standards applicable to the Group, with differences only in the effective dates of certain standards. The parent Company financial statements have been prepared in accordance with Section 408 of the UK Companies Act 2006. Under Company law the directors must not approve the Group financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group and the Company for that period.

Under the Financial Conduct Authority's (FCA's) Disclosure Guidance and Transparency Rules (DTR), Group financial statements are required to be prepared in accordance with UK adopted international accounting standards and with IFRS Accounting Standards as issued by the IASB.

In preparing the financial statements the directors are required to:

• Select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently
• Make judgements and accounting estimates that are reasonable and prudent
• Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information

• Provide additional disclosures when compliance with the specific requirements in IFRS Accounting Standards, or in respect of the parent Company financial statements, FRS 101, is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group's financial position and financial performance
• In respect of the Group financial statements, state whether the accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
• In respect of the parent Company financial statements, state whether applicable UK Accounting Standards, including FRS 101, have been followed, subject to any material departures disclosed and explained in the financial statements
• Prepare the financial statements on the going concern basis unless it is appropriate to presume that the Company and/or the Group will not continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the Company and the Group financial statements comply with the UK Companies Act and South African Companies Act. They are also responsible for safeguarding the assets of the parent Company and Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the directors are also responsible for preparing a strategic report, directors' report, directors' remuneration report and corporate governance statement that comply with that law and those regulations.

The directors are accountable for the maintenance and integrity of the certain corporate and financial information on the Company's website.

Investor Relations, Company Secretarial and Group Sustainability are respectively responsible for the maintenance and integrity of the general corporate, financial, governance, and sustainability- related information as well as any obligations to the various exchanges of

Investec Group and its principal subsidiaries on the Investec website. With regards to specific corporate information, processes are in place within the business units and at a Group level to ensure that all information published on the website is substantively correct, accurate and in line with corporate governance and compliance requirements. Group Marketing and various divisions are responsible for the above.

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01	Annual financial statements	Investec annual report 2024

DIRECTORS' RESPONSIBILITIES CONTINUED

Directors' responsibility statement

The directors, whose names and functions are set out on pages 146 to 149 of Investec Group's 2024 integrated and strategic annual report, confirm to the best of their knowledge:

• That the consolidated financial statements, prepared in accordance with UK adopted international accounting standards and with IFRS Accounting Standards as issued by the IASB, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company, Group and the undertakings included in the consolidation taken as a whole
• That the annual report, including the strategic report (as contained in the Investec Group's 2024 integrated and strategic report), includes a fair review of the development and performance of the business and the position of the Company, Group and undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face

• The internal financial controls are adequate and effective and can be relied upon in compiling the annual financial statements, having fulfilled our role and function as executive directors with primary responsibility for implementation and execution of controls
• Where we are not satisfied, we have disclosed to the Audit Committee and the auditors any deficiencies in design and operational effectiveness of the internal financial controls, and have taken steps to remedy the deficiencies
• We are not aware of any fraud involving directors.

Signed by the CEO and the Financial Director

Fani Titi

Chief Executive

24 June 2024

Signed on behalf of the Boards of Investec plc and Investec Limited

Philip Hourquebie

Chair

24 June 2024

Fani Titi

Chief Executive

24 June 2024

Declaration by the

Company secretary

In terms of Section 88(2)(e) of the South African Companies Act, I hereby certify that, to the best of my knowledge and belief, Investec Limited has lodged with the Companies and Intellectual Property Commission, for the financial year ended 31 March 2024, all such returns and

• That they consider that the annual report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position, performance, business model and strategy.

Chief Executive and Group Finance Director responsibility statement

Each of the directors, whose names are stated below, hereby confirm that:

• The annual financial statements set out on pages 43 to 184, fairly present in all material respects the financial position, financial performance and cash flows of the issuer in terms of International Financial Reporting Standards (IFRS Accounting Standards)
• To the best of our knowledge and belief, no facts have been omitted or untrue statements made that would make the annual financial statements false or misleading
• Internal financial controls have been put in place to ensure that material information relating to the issuer and its consolidated subsidiaries have been provided to effectively prepare the financial statements of the issuer

Nishlan Samujh

Group Finance Director

24 June 2024

Financial results

The combined consolidated results of Investec plc and Investec Limited are set out in the annual financial statements and accompanying notes for the year ended 31 March 2024.

The preparation of these combined results was supervised by the Group Finance Director, Nishlan Samujh.

Approval of annual financial statements

The directors' report and the annual financial statements of the companies and the Group, which appear on pages 166 to 175 in Investec Group's 2024 integrated and strategic annual report, and pages 43 to 184 of the Investec Group's 2024 annual financial statements, respectively were approved by the Board of Directors on

24 June 2024.

notices as are required in terms of the Act and that all such returns and notices are true, correct and up to date.

Niki van Wyk

Company secretary, Investec Limited

24 June 2024

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01	Annual financial statements	Investec annual report 2024

DLC AUDIT COMMITTEE REPORT

High quality audit and assurance services are essential for trusted financial information.

Zarina Bassa

Chair of the DLC Audit Committee

Introduction

I am pleased to present the DLC Audit Committee (the Committee) report for the financial year ended 31 March 2024 which provides details on how we accomplished our statutory obligations, as well as the Key Audit and Other Matters we considered.

The Committee has further discharged its responsibilities and provided assurance on the integrity of the 2024 annual report and financial statements.

Role of the Committee

We provide independent challenge and oversight across the Group's financial reporting and internal control practices.

The Board has delegated the following key functions to the Committee:

• Overseeing and ensuring the integrity of the Group's financial reporting process. This includes additional scrutiny of the accounting for significant transactions and assessing the impact and cause of restatements of prior year financial statements
• Satisfying itself that significant judgements made by management during the Group's financial reporting process are sound and reasonable
• Dealing with concerns, if any, from outside the Group regarding the application of accounting principles and external reporting
• Review the effectiveness of the Group's internal control environment and assurance processes

• Managing and overseeing the performance, conduct, quality and effectiveness of the Group's internal audit functions
• Reviewing the annual work plan, capacity, scope and staffing and independence of internal audit
• Overseeing Group compliance functions
• Overseeing the Group's subsidiary audit committees, including in remote locations
• Appointing, managing and overseeing the relationship with the Group's external auditors, including the audit scope, fees, quality control, effectiveness and independence of the external audit function
• Managing the policy, fees and the nature of non-audit services provided by the external auditors
• Managing the appropriateness of the design and effectiveness of the combined assurance model which incorporates the various disciplines of Risk Management, Operational Risk, Legal, Regulatory, Compliance, internal audit, external audit and other assurance providers
• Oversight of the processes in the Group that culminate in the Group Chief Executive (Group CE) and Group Financial Director (Group FD) control attestation to the JSE.

The Committee's terms of reference can be found at www.investec.com.

Committee composition, skills, experience and operation

The Committee is comprised entirely

of independent Non-Executive Directors who meet predetermined skills, competency and experience requirements as determined by the DLC Nomdac.

The members continuing independence, as well as their required skill, competencies and experience is assessed annually.

Philisiwe Sibiya has not made herself available for re-election to the Board at the August 2024 AGM, in order to focus on her own businesses.

In March 2024, Diane Radley was appointed to the Committee following her appointment as a Non-Executive Director to the DLC Board. Following my retirement at the August 2024 AGM, Diane will assume the role of Chair of the Committee.

Further details of the experience of the members can be found in their biographies on pages 146 to 149 of the Investec Group's 2024 integrated and strategic report.

The Group CE, Group FD, Group Chief Operating Officer (Group COO), Group Chief Risk Officer (Group CRO), Heads of Internal Audit, Chief Compliance Officers and representatives from the joint external auditors are invited to attend all meetings.

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01	Annual financial statements	Investec annual report 2024

DLC AUDIT COMMITTEE REPORT

CONTINUED

Other members of management, including Tax and business unit heads, are invited to attend meetings to provide the Committee with greater insights into specific issues or areas of the Group.

The Chair has regular contact with the Group Executive Team to discuss and gain broader insight on relevant matters directly.

The internal and external auditors have direct access to the Chair, including closed sessions with the Committee without management present, on any matter that they regard as relevant to the fulfilment of the Committee's responsibilities.

	Meetings attended /
Members	Eligible to attend
Zarina Bassa	11/11
(Chair)
Vanessa Olver	11/11
Diane Radley1	1/1
Philisiwe Sibiya	11/11

1. Diane Radley was appointed as a member of the Committee effective 06 March 2024

Structure of the Investec Group Audit Committees

In terms of the DLC structure, the DLC Board has mandated authority to the DLC Audit Committee to be the Audit Committee of the Group. The DLC Audit Committee oversees and considers Group audit-related matters. It has responsibility for audit-related matters that are common to Investec plc and Investec Limited and works in conjunction with these two committees to address all Group reporting.

The Investec plc Board, Investec Limited Board, Investec Wealth & Investment International Board, Investec Bank plc Board and Investec Bank Limited Board have mandated authority to their respective audit committees to be the audit committees for the respective companies and their subsidiaries.

The Committee receives regular reports from the Group's subsidiary audit committees as part of the oversight of subsidiary audit committees.

The Chair is also the Chair of the following audit committees:

• Investec plc
• Investec Limited
• Investec Bank Limited
• Investec Bank Mauritius (IBM)
• Investec Wealth and Investment International.

The Chair is also a member of the following audit committees:

• Investec Bank plc
• Investec Life
• Investec Wealth and Investment UK (up to the date of the Rathbones transaction).

The Chair attends the following committee meetings:

• Operational Risk Committee, as a white card holder
• DLC IT Risk and Governance Committee.

Investec Limited Operational Risk Committee

The Investec Limited Operational Risk Committee is mandated by the DLC Board Risk and Capital Committee (BRCC) to review, challenge and report matters related to operational risk. The Committee also approves and recommends operational risk policies including issues relating to non- compliance. The detailed Operational Risk reports are tabled at the DLC BRCC but the head of Operational Risk is a standard attendee at the Investec Limited and DLC Audit Committee meetings to highlight areas of concern, if any, pertaining to the internal control environment.

The DLC IT Risk and

Governance Committee

The DLC IT Risk and Governance Committee is responsible for ensuring that technology risk management processes, investments, operations and governance, including control enhancement matters, support the purpose, values and strategic goals of the Group. The DLC IT Risk and Governance Committee reports to both the DLC BRCC and the DLC Audit Committee and is attended by the DLC Audit Committee and DLC BRCC Chairs.

Investec Limited Customer Market and Conduct Committee (CMCC)

The Investec Limited CMCC ensures that the best standards of market conduct, in its broadest form, are applied and monitors reports thereon. The CMCC is chaired by the Head of Compliance of Investec Limited and Investec Bank Limited and reports to the Investec Limited Audit Committee.

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01	Annual financial statements	Investec annual report 2024

DLC AUDIT COMMITTEE REPORT

CONTINUED

Areas covered by the DLC Audit Committee

Key audit matters (KAM)

KAM are those matters that in the view of the Committee:

• Required significant focus from the Committee
• Were considered to be significant or material in nature, requiring exercise of judgement; or
• Matters which were otherwise considered to be subjective or complex from an accounting or auditing perspective.

Common membership of the DLC, Investec plc and Investec Limited Audit Committees ensures that KAM and matters of mutual interest are communicated and addressed, where applicable. The members of the Committee may also attend other Audit Committee meetings, as appropriate.

The following key audit matters were deliberated by the Committee during the year:

Key audit matters	What we did
Expected credit losses (ECL)		• Challenged the level of ECL, model methodology and assumptions
assessment		applied to calculate the ECL provisions held by the Group
• The appropriateness of the allowance for		• Reviewed the appropriateness of the ECL models and approved the
	forward-lookingmacro-economic scenarios applied in the UK and South
ECL is highly subjective and judgemental.
	Africa
		• Reviewed and monitored the Group's calculation of ECLs, trends in
		staging changes, model changes, scenario updates, post-model
		adjustments, Significant Increase in Credit Risk (SICR), and volatility
		• Reviewed and satisfied ourselves on in-model adjustments and the
		release of overlays
		• Reviewed and satisfied ourselves on staging of key exposures
		• Reviewed for reasonableness the benchmarking of macro-economic
		scenarios, ECLs, Credit Loss Ratio (CLR) and coverage ratios against
		relevant South African and UK peers
		• Assessed the appropriateness of the ECL model overlays maintained for
		emerging risks for which there was insufficient data available to model
		the existing credit risk. Specific consideration was given to the
		methodology and assumptions applied to calculate the overlay. We
		further evaluated the appropriateness of the releases of the ECL model
		overlays
		• Assessed ECL experienced against forecasts and considered whether
		the level of ECL was appropriate
		• Assessed the appropriateness of the ECL provision raised by the Group
		for large exposures in entities publicly perceived to be in financial
		distress, in conjunction with BRCC
		• Evaluated the International Financial Reporting Standard (IFRS®
		Accounting Standards), as issued by the International Accounting
		Standards Board (IASB) 9 disclosures for relevance and compliance with
		IFRS® Accounting Standards
		• Evaluated the impact of ECL on the interim and annual results.
Fair value of level 3 instruments and		• Received presentations on the material investments across the Group,
the resulting IFRS® Accounting		including an analysis of the key judgements, assumptions and valuation
Standards 13 fair value measurement		methodology applied and approved the valuation adjustments proposed
	by management for the year ended 31 March 2024
(IFRS 13) disclosure
	• Challenged and debated significant subjective exposures and
• For level 3 instruments such as unlisted
	assumptions including:
investments in private equity businesses,		• The valuation principles applied for the valuation of level 3
investment properties, fair value loans and
	investments (unlisted and private equity investments) and fair value
large bespoke derivative structures, there is a
	loans
large degree of subjectivity surrounding the
inputs to the valuations and valuations		• The appropriateness of the IFRS 13 disclosures regarding fair value.
methodology. With the lack of observable
liquid market inputs, determining appropriate
valuations continues to be highly judgemental.

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