Trustco — Middle East Investors Summit 2015
20 slides from Trustco's conference presentation, November 2015
Slide 1: Middle East Investors Summit, November 2015 – Dubai
Middle East Investors Summit November 2015 – Dubai JSE Share code: TTO
Slide 2: Our history
Our history Trustco is a JSE-listed Namibian based Insurance and Banking group. The group also has investments in education, property, media and resources. • Established in 1992 • Headquartered in Namibia with operations in South Africa, Namibia and Mauritius • Listed on the main board of the Johann
Slide 3: Economic snapshot of Namibia
Economic snapshot of Namibia • 25th year of independence with 3rd democratically elected president in office • Population of 2.1 million • GDP growth and forecast – 5.5% 12-month lagging as at 30 June 2015 • Inflation remains within target at 3.4% (as at 31 March 2015) • Interest rates remain high f
Slide 4: Other highlights in 2015 included…
Trustco was ranked 2nd in the South African Sunday Times Top 100 Companies 600 500 400 300 200 100 0 0 0 1 1 1 2 2 3 3 3 4 4 4 5 5 5 g -1 c-1 r-1 g-1 c-1 y-1 p-1 n-1 y-1 p-1 n-1 y-1 t-1 b-1 n-1 t-1 e p e a e Ja a e Ja a Oc Fe Ju Oc Au D A Au D M S M S M Other highlights in 2015 included… • Upgraded
Slide 5: Our products
Our products Insurance (short-term & Life) • Free life cover on all non-life products • No blood tests for term life Identify products that can create • Low premiums and one policy usually group synergies covers the whole family (up to 7 insured) • Internet or cell-phone primary contact – no printed
Slide 6: Trustco strives to increase opportunities for customers by creating financial products with vertical integration
Trustco strives to increase opportunities for customers by creating financial products with vertical integration Product Supporting division Sale of serviced land Finance for property developer Finance for ultimate home owner Life insurance for home owner Children attend IOL to obtain diploma/ degre
Slide 7: Selected key data on banking and insurance
Selected key data on banking and insurance Traditional product lines continue to grow and segments are starting to support similar contributions to the group’s earnings Selected metrics FY2015 Insurance premiums per annum USD16 million Insurance claims ratio (incl. provision) 23.6% Clients as a perc
Slide 8: Investment portfolio
Investment portfolio Whilst the investment portfolio - driven by insurance investment spread requirements - remains balanced with rental properties, unlisted investments, smaller business lines contributing, the residential property sales remain a key driver of the non-financial services returns • P
Slide 9: Investment portfolio – real estate investment trust
Investment portfolio – real estate investment trust Whilst property is booming in Namibia, the JSE property segment still continues to deliver excellent returns • The FTSE/JSE South Africa listed property index is up 56% in 3 years • The monthly value traded in listed real-estate investment trusts a
Slide 10: The group recently invested $260m into a diamond mining and cutting operation
Resources The group recently invested $260m into a diamond mining and cutting operation 10
Slide 11: Profits and balance sheet trend
Profits and balance sheet trend NAV and EPS (3 year history) • JSE stock price reached all time high of 22.00 50.00 R5.40 in November 2015 (lowest was R0.25 on 27 August 2010) NAV (cents per share) 45.00 20.00 40.00 18.00 35.00 • Assets have grown through a contribution 30.00 16.00 25.00 of acquisit
Slide 12: Historical earnings and metrics
Historical earnings and metrics FY2013 FY2014 FY2015 USD’00s USD’000s USD’000s USD’000s Revenue 52 816 74 850 90 246 NPAT 3 495 22 420 26 907 Headline earnings 3 005 12 557 24 467 Total Assets 136 018 219 564 280 311 NAV 85 903 108 638 137 548 • Revenues exceeded ZAR 1 billion in FY2015 – approx. $9
Slide 13: Corporate governance
Corporate governance • King III Report on Corporate Governance, 2009 has been adopted by the Group and is committed to the principles of openness, integrity and accountability as advocated in the code. The application of the Code is mandatory for NSX and JSE listed companies. • Each segment has its
Slide 14: The executive team
el => The executive team (> mi \ Nn QUINTON VAN ROOYEN GROUP MANAGING DIRECTOR i) l van mii, FLOORS ABRAHAMS GROUP TREASURER S.\ ~~ \ ~ eee -* ' A Ps NN JAN JONES HEAD EMERGING MARKETS > fo > x Se ow XN aa \ ELMARIE JANSE VAN RENSBURG RYAN McDOUGALL HEAD CORPORATE AFFAIRS. &> SANDRA MILLER GROUP FIN
Slide 15: CSI initiatives
CSI initiatives Through its partnerships with international and local development funders, Trustco remains committed to ES&G and CSI initiatives CSI spend allocation 11% 9% Sports development Education & bursaries NGO’s and Special Causes 81% • In 2015, CSI spend rose to 2.5% of Net Profit after Tax
Slide 16: Investment case
Investment case • STRONG GROUP: Trustco is a well established business in Namibia and has a track record of earnings and asset growth • MARKET DOMINANCE: Trustco has established dominant positions in its target sectors in Namibia where it has capitalized on market opportunities and has been successf
Slide 17: Structure of the capital raise
Structure of the capital raise USD 50 m • Corporate bond/note programme • Listed on JSE / unlisted • Benchmark rate – 3MLIBOR + (325bps-425bps) & USD 50 m • Direct investment into Trustco Property Unit Trust • Property exposure only 17
Slide 18: Structure of the Note
Structure of the Note Facility Senior unsecured Notes (‘SUN’) Issuance Size USD 50 million Currency USD Ranking The SUNs will be senior secured obligations of the issuer and will rank at least parri passu with all existing and future senior unsecured indebtedness Security Guarantees from material su
Slide 19: Structure of the Unit Trust Investment
Structure of the Unit Trust Investment Facility 5% holding in the Trustco Property Unit Trust Issuance Size USD 50 million worth of linked units Currency USD converted to South African Rand and/or Namibian Dollars exposure on investment date Ranking parri passu with existing unit holders and no expo
Slide 20: Like to know more?
Like to know more? www.tgh.na or Ryan McDougall - Group Financial Director Tel: +264 61 275 4501 Email: RyanM@tgh.na 20
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