Firstrand Limited · JSE:FSR
Firstrand — FirstRand Bank Limited (WesBank) – Nitro Programme (RF) — Debt Investor Presentation (July 2025)
36 slides from Firstrand's debt investor presentation, July 2025
Slide 1: Nitro 9 investor presentation
Nitro 9 investor presentation July 2025
Slide 2: Important information
Important information The information herein has been prepared solely for informational purposes and does not, nor is it intended to constitute, an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. These
Slide 3: Contents
Contents About WesBank 5 Retail VAF credit origination, performance and risk management 11 Nitro programme and transaction overview 19 • Nitro 9 key transaction features 23 • Nitro 9 capital structure 24 • Provisional portfolio summary 27 Transaction timeline and contact information 31 Annexures – s
Slide 4: Meet the team
Meet the team Richard Pampel CFO: WesBank Dawid Spangenberg Head: Retail Credit Cameron Gough Head: Structuring, FirstRand Group Treasury Melanie Kleinhans Head: FirstRand Debt Office, FirstRand Group Treasury Willem du Plooy Structured Finance Manager, FirstRand Group Treasury Delia Patterson RMB D
Slide 5: About WesBank
About WesBank 5
Slide 6: WesBank is part of FirstRand’s portfolio
WesBank is part of FirstRand’s portfolio Retail and commercial banking, insurance and investments Corporate and investment banking Vehicle asset finance (VAF) and fleet management Listed holding company (FirstRand Limited, JSE: UK specialist lender and savings bank FSR) Asset management Group-wide f
Slide 7: Market leader in vehicle and asset finance in SA
Market leader in vehicle and asset finance in SA Corporate/ commercial Motor (asset-based finance (retail VAF) and full maintenance leasing) • Primary activities in instalment credit, fleet management and related services in the retail, commercial and corporate segments in SA • Long-standing allianc
Slide 8: WesBank retail VAF financial performance
WesBank retail VAF financial performance Group level Bank level Six months ended Six months ended 31 December 31 December R million 2024 2023 % change 2024 2023 % change Normalised earnings 797 708 13 491 452 9 Normalised PBT 1 093 978 12 673 619 9 NPLs as a % of advances 5.94 6.12 6.03 6.13
Slide 9: Key retail VAF market developments
Key retail VAF market developments Industry sales stats Customer affordability Vehicle price inflation show a drop in vehicle under pressure remains high sales year-on-year Consumers shifting Many new Chinese to lower value vehicles Increase in vehicle and Asian brands offering better value replacem
Slide 10: Retail VAF credit origination, performance and risk management
Retail VAF credit origination, performance and risk management 10
Slide 11: Origination update
Origination update • Continued margin pressure reflects: • Increased competitive activity • Origination tilt to quality new business over the past few years • Continued shift in new business origination mix from fixed to floating rate • Dealers remain the main channel for origination VAF portfolio R
Slide 12: Credit scoring
Credit scoring 100% Approval ratio (score decision) 75.9% 75% 66.2% • Centralised at WesBank head office 50% 51.4% 28.8% 25% • Automated credit assessment 0% 14.6% Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Sep 23 Sep 24 Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 Jun 23 Jun
Slide 13: Credit application process
Credit application process Application • Majority of applications processed through structure dealers adjusted • Most application are auto scored (>98%) Decline • Small portion of population of customers will Auto score go through a judgemental process – the main reason is that they cannot be auto s
Slide 14: Credit performance update
Credit performance update • Portfolio’s risk profile has gradually shifted towards lower-risk categories • 12-month default rates reverting to pre-pandemic levels Risk distribution Portfolio 12m default rate 100% 30% 90% 25% 80% 70% 20% 60% 50% 15% 40% 10% 30% 20% 5% 10% 0% 0% Jun 18 Jun 19 Jun 20 J
Slide 15: Credit performance update
Credit performance update Delinquency rates 7% 6% 5% 4% 3% 2% 1% 0% Jan 18 Jan 19 Jan 20 Jan 21 Jan 22 Jan 23 Jan 24 Jul 18 Jul 19 Jul 20 Jul 21 Jul 22 Jul 23 Jul 24 1+ arrears 2+ arrears 3+ arrears Classified Restructured 15
Slide 16: Risk management
Risk management Governance and compliance Operations • Centralised product function, aligned • Collections and administration functions to FirstRand group frameworks and following well-defined guidelines and procedures methodologies • Early collections team deals with default • FirstRand’s group ent
Slide 17: Default and collections process
Default and collections process Defaulting accounts are clustered into a Collections value chain group according to differential risk rules Collector will attempt to phone Knowledge customer to rectify arrears Early management and collections quality assurance Should no rectification take place, acc
Slide 18: Nitro programme and transaction overview
Nitro programme and transaction overview 18
Slide 19: Nitro programme overview
Nitro programme overview WesBank (as seller and servicer) Programme FRB Indemnity Indemnity Indemnity memorandum and cession Nitro 7 and cession Nitro 8 and cession Nitro 9 security security security General overview Administrator SPV trust SPV trust SPV trust of the programme Nitro Series 7 Nitro S
Slide 20: Nitro Programme features
Nitro Programme features Issuer Security SPV Commingling Programme Transaction Transaction • Single issuer • Security SPV holds security for benefit • Assets and liabilities will be of secured creditors per transaction identified in the accounting • Multiple transaction capability • Security SPV wil
Slide 21: Key counterparties
Key counterparties Servicer Administrator Trustee Swap counterparty Account bank WesBank FRB Quadridge Trust Services FRB FRB Originator/seller Sale of portfolio ISSUER Principal and interest Nitro Programme (RF) Ltd Noteholders WesBank Initial consideration Purchase price (Nitro 9) for the notes Cu
Slide 22: Nitro 9 key transaction features
Nitro 9 key transaction features High-quality Robust structure Servicer strength collateral* • Portfolio originated and • Participating assets are transferred • Moody’s has assigned FRB serviced by WesBank to Nitro 9 counterparty ratings of Baa3/P-3 • Granular retail portfolio, • Class A note - lega
Slide 23: Nitro 9 capital structure
Nitro 9 capital structure Assets Liabilities* Credit enhancement (CE) on the Class A to B notes • Cash reserve, note subordination and available excess spread • Estimated average excess spread at closing of c. [3.1%]** [23]% nominal Class A • Structured to pay interest and principal sequentially aft
Slide 24: Nitro 9 capital structure
Nitro 9 capital structure Credit enhancement provided by excess spread, Cash Reserve and note subordination National Issuance Credit Weighted Listed Legal final Tranche scale rating amount enhancement average life Coupon on the Status maturity (Moody’s) (R million) (%)* (WAL)** JSE A [P-1.za] [460]
Slide 25: Nitro 9 note amortisation profile
Nitro 9 note amortisation profile Key assumptions: • Portfolio subject to a constant annual prepayment rate (CPR) • Portfolio sold to the issuer amounts to [R2 billion] • Original outstanding balance of each class of notes is equal to principal amount based on the provisional portfolio and capital s
Slide 26: Provisional portfolio
Provisional portfolio* Summary pool information at 25 June 2025 Borrower type New/used Outstanding balance R1 999 980 849 3% Demo Self-employed Number of receivables 9 225 private individual 20% Average current balance R216 800 Used 54% 43% New 80% Weighted average rate Prime + 1.90% Private individ
Slide 27: Provisional portfolio snapshot
Provisional portfolio snapshot Top 10 manufacturers* Outstanding principal balance Contracts R million % Number % Suzuki 264.3 13.22% 1551 16.81% Ford 187.7 9.39% 842 9.13% Hyundai 170.1 8.51% 827 8.96% Nissan 161.6 8.08% 757 8.21% Toyota 147.0 7.35% 656 7.11% Renault 129.3 6.47% 730 7.91% Haval 129
Slide 28: Provisional portfolio snapshot
Provisional portfolio snapshot Geographical distribution* Outstanding principal balance Contracts R million % Number % Gauteng 874.5 43.73% 4024 43.62% Western Cape 325.7 16.28% 1690 18.32% KwaZulu Natal 307.9 15.40% 1404 15.22% Mpumalanga 132.5 6.63% 562 6.09% Eastern Cape 100.4 5.02% 457 4.95% Nor
Slide 29: Portfolio summary: Nitro portfolio comparison
Portfolio summary: Nitro portfolio comparison Nitro 9 Nitro 5 Nitro 6 Nitro 7 Nitro 8 provisional pool* Receivables (R million) 2 400 2 040 2 000 2 000 2 000 Number of agreements 19 541 12 183 11 562 9 846 9 225 Average outstanding capital 122 819 185 881 172 980 203 125 216 800 balance (R) New/used
Slide 30: Transaction timeline and auction details
Transaction timeline and auction details • Roadshow: July and August 2025 • Auction announcement: end August 2025 • Target price guidance: end August 2025 • Target issuance size: R2 billion • Target auction: early September 2025 • Target settlement: early September 2025 • Auction will be uniform pri
Slide 31: Annexures
Annexures 31
Slide 32: WesBank retail VAF – historical performance summary
WesBank retail VAF – historical performance summary* Static cumulative default rates (all vehicles) Static cumulative default rates (used cars) 10% 10% 5% 5% 0% 0% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q1
Slide 33: WesBank retail VAF – historical performance summary
0 1 2 3 4 5 0% 10% 20% 30% 40% Jan 2008 Jun 2008 2008 Q1 Nov 2008 2008 Q4 Apr 2009 2009 Q3 Sept 2009 2010 Q2 Feb 2010 2011 Q1 Jul 2010 Dec 2010 2011 Q4 May 2011 2012 Q3 Oct 2011 2013 Q2 Dynamic delinquencies Mar 2012 2014 Q1 New business production Aug 2012 2014 Q4 Jan 2013 2015 Q3 Jun 2013 2016 Q2
Slide 34: Nitro 7
Nitro 7 • Nitro 7 was the first transaction issued out of Nitro Programme Delinquency trends 6% • Clean-up call for Nitro 7 was exercised in September 2023, with the final redemption of all outstanding notes due on 4% 20 September 2023 2% • CPR averaged 20.02% over the duration of the transaction 0%
Slide 35: Nitro 8
Nitro 8 • Nitro 8 is the second transaction issued out of Nitro Programme • Issued in December 2024 at a nominal value of R2.06 billion • As at 20 June 2025, Nitro 8 had R1.7 billion of notes outstanding Expected amortisation profile* Current capital structure* R billion National Outstanding Tranche
Slide 36: Notes
Notes 36