Nutun Limited · JSE:NTU

Nutun — Transsec 5 (RF) — Debt Investor Presentation (November 2021)

26 slides from Nutun's debt investor presentation, November 2021

  1. Slide 1: Transsec 5 (RF) Ltd Tap Issuance Presentation

    2021 Transsec 5 (RF) Ltd Tap Issuance Presentation

  2. Slide 2: Transsec 5 Tap Transaction Information and Timing

    TRANSSEC 5 TAP TRANSACTION INFORMATION AND TIMING Transsec 5 information Rating Agency Moody’s Investor Services Programme Limit ZAR 2.5 billion SA Taxi Development Finance Pty Limited (“SA Taxi”) and The Standard Bank of South Africa Co-arrangers Limited (“SBSA”) Interest Payment Dates ("IPD") 20 M

  3. Slide 3: Journey of Transsec Structures

    JOURNEY OF TRANSSEC STRUCTURES 2014 2015 2016 2017 2018 2019 2020 2021 Transsec 1 Transsec 2 noteholders noteholders fully repaid. fully repaid. Transsec 1 initial issuance of ZAR Transsec 1 Transsec 5 665m tap issuance initial issuance ZAR 4 533m ZAR 4 533m of ZAR 528m occurred on 19th May 2021 ZAR

  4. Slide 4: SA Taxi Business Update

    SA TAXI BUSINESS UPDATE Financial highlights as at 31 March 2021 R13.2bn 34 107 R218m 11.8% 21% 4.6% Gross loans Number of loans Core headline Net interest Stage 3 bucket as Credit loss ratio & advances on book earnings margin % of portfolio FY20 results below reflected subdued performance as a resu

  5. Slide 5: SA Taxi Business Update: Fleet Movement

    SA TAXI BUSINESS UPDATE SA Taxi’s Fleet Movement Recovery in activity of minibus taxi fleet benchmarked against pre-COVID-19 levels NORM LEVEL 5 LEVEL 4 LEVEL 3 LEVEL 2 LEVEL 1 LEVEL 3 LEVEL 1 2 3 LEVEL 4 LEVEL 3 2 LEVEL 1 MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP O

  6. Slide 6: SA Taxi Business Update: Collections and NPLs

    SA TAXI BUSINESS UPDATE SA Taxi Group Collections 96% 92% 89% 90% 91% 87% 87% 87% 87% 90% 83% Pre-COVID forecast 82% [Normalised forecast] 76% COVID Forecast 66% [Adjusted forecast] Actual 2nd COVID-19 3rd COVID-19 46% wave wave, 40% insurrection in KZN and isolated 20% Western Cape disruption Apr-2

  7. Slide 7: SA Taxi Business Update: Originations and Repossessions

    SA TAXI BUSINESS UPDATE Total Originations 2020 2021 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Originations | New 0 45 341 326 329 326 465 605 543 198 356 425 395 455 390 328 434 Originations | Pre- 0 85 187 212 228 274 228 302 298 189 381 367 287 372 299 251 288 owned Tota

  8. Slide 8: SA Taxi Is Positioned to Make a Positive Impact

    SA TAXI IS POSITIONED TO MAKE A POSITIVE IMPACT SA Taxi’s Sustainable Bond Framework • Inaugural Sustainable Bond Framework (“SBF”) issued in May 2021 The Framework is broken down into 4 key pillars: • SBF is used to define and select eligible green and social projects that support its financing eff

  9. Slide 9: Transsec 5 Tap Issuance Indicative Asset Pool

    TRANSSEC 5 TAP ISSUANCE INDICATIVE ASSET POOL Preliminary tap issuance asset pool All Participating Assets acquired by Transsec 5 must meet the Eligibility Criteria and the Portfolio Covenants must be satisfied immediately following each sale Transsec 5 may also utilise the proceeds of the notes iss

  10. Slide 10: Indicative Asset Pool (Continued)

    TRANSSEC 5 TAP ISSUANCE INDICATIVE ASSET POOL [CONTINUED] Indicative consolidated portfolio vehicles per brand Indicative consolidated portfolio year of loan origination 0% 1% 67% 26% 1% 2% 2018 40% 2019 3% 2020 59% 1% 2021 New Pre-owned Indicative consolidated portfolio vehicle classification 28.79

  11. Slide 11: Indicative Asset Pool (Continued)

    TRANSSEC 5 TAP ISSUANCE INDICATIVE ASSET POOL [CONTINUED] Indicative consolidated portfolio residual term of contract Indicative consolidated portfolio geographical concentration 70.00% 7.8% 10.4% 60.00% 50.00% 28.4% 22.0% 5.4% 8.4% 7.8% 9.1% 40.00% 2.1% 3.2% 22.3% 21.0% 30.00% 3.3% 2.7% 20.00% 10.0

  12. Slide 12: Tap Issuance Capital Structure Description

    TRANSSEC 5 TAP ISSUANCE CAPITAL STRUCTURE DESCRIPTION Capital structure Note Duration to coupon Interest rate profile Target rating Allocation of principal collections (Pre-Enforcement scenario) Description step-up date Amortises each IPD by at a minimum rate (Scheduled Redemption Amount). Liquidity

  13. Slide 13: Tap Issuance Capital Structure Description: Tranching

    TRANSSEC 5 TAP ISSUANCE CAPITAL STRUCTURE DESCRIPTION Tranching of the targeted issuance size of ZAR 500 with the ability to upsize to ZAR 600m (excluding Subordinated Loan) Target Size Target CE1 Target Size Coupon Step-Up Final Legal Maturity Preliminary Note Description Target Rating (% of deal (

  14. Slide 14: Contact List

    CONTACT LIST SA Taxi Standard Bank Mark Herskovits Nicholas Gunning Chief Investment Officer | Transaction Capital Debt Capital Markets | Investment Banking | Manager Phone: +27 (0)83 632 1513 Phone: +27 (0)82 786 9267 Email: markH@transactioncapital.co.za Email: nicholas.gunning@standardbank.co.za

  15. Slide 15: Annexure A: Transsec Programme Overview

    ANNEXURE A TRANSSEC 5 PROGRAMME OVERVIEW Key differences between Transsec 5 and Transsec 4 Transsec 5 (RF) Limited Transsec 4 (RF) Limited Short-term note class category Categorised as Class Ω Note Categorised as Class A1 Note Subordinated loan % 10% 12% Class C note To be issued N/A Class A note su

  16. Slide 16: Annexure A: Securitisation Programme Overview

    ANNEXURE A: TRANSSEC 5 SECURITISATION PROGRAMME OVERVIEW Transaction structure (see detailed description on the following slide) Capitalised terms below are with reference to the Transsec 5 Programme Memorandum 100% SA Taxi Development Finance Transsec 5 Security SPV (RF) Ordinary Transsec 5 Securit

  17. Slide 17: Annexure A: Transaction Steps Summary

    ANNEXURE A: TRANSSEC 5 SECURITISATION PROGRAMME OVERVIEW Transaction steps summary (with reference to the diagram on the previous slide) • On the Initial Issue Date and each subsequent Tap Issue Dates the Seller will sell Participating Assets to Transsec 5 which shall make the purchase utilising the

  18. Slide 18: Annexure B: Credit Enhancement Determination

    ANNEXURE B: TRANSSEC 5 CREDIT ENHANCEMENT DETERMINATION Moody’s ABS rating methodology overview • Moody’s methodology broadly consists of 2 stages: (1) the collateral analysis, and (2) the programme and cash flow analysis • Under the collateral analysis there is an assessment of SA Taxi and its loan

  19. Slide 19: Annexure B: SA Taxi Origination Performance

    ANNEXURE B: TRANSSEC 5 CREDIT ENHANCEMENT DETERMINATION SA Taxi origination performance • Potential losses arise in the Participating Asset Pool on the date of sale of the vehicles following a repossession. • Moody’s asset analysis considered (1) the recovery rates on repossessions, (2) the net loss

  20. Slide 20: Annexure B: Asset Analysis Outcomes

    ANNEXURE B: TRANSSEC 5 CREDIT ENHANCEMENT DETERMINATION Asset analysis outcomes Moody’s cash flow analysis relies on the probability distribution from the collateral analysis which they assume is lognormally distributed The mean of the distribution is derived directly from the SA Taxi portfolio net

  21. Slide 21: Annexure C: Eligibility Criteria

    ANNEXURE C: ELIGIBILITY CRITERIA Criteria that each Participating Asset must satisfy Each Obligor Each Instalment Agreement • has a current billing address in the Republic of South Africa that has been verified by • has not been terminated, is in existence and is documentation which is no older than

  22. Slide 22: Annexure D: Summary of Priority of Payments

    ANNEXURE D: SUMMARY OF PRIORITY OF PAYMENTS Pre-Enforcement Post-Enforcement 1 Tax 1 Tax 2 Fees due to Security SPV and Owner Trustees 2 Fees due to Security SPV and Owner Trustees 3 Account Bank and Third Party Expenses 3 Account Bank and Third Party Expenses 4 Senior Servicing Fee and Standby Serv

  23. Slide 23: Annexure E: Capital Structure Positioning

    ANNEXURE E: CAPITAL STRUCTURE POSITIONING Class A & Ω Notes as a percentage of total capital structure Thekwini 15 (Nov '20) 87.25% Thekwini 16 (Nov '20) 88.77% Thekwini 17 (Mar '21) 84.83% Urban Ubomi 1 (Mar '21) 76.15% Transsec 5 (May '21) 69.00% Transsec 5 (Nov '21) 68.90% Capital Structure of ot

  24. Slide 24: Transsec Initial Issuance Auction Summary

    TRANSSEC 5 INITIAL ISSUANCE AUCTION SUMMARY Auction Summary Auction Date 19 May 2021 Settlement Date 26 May 2021 (T+5) Voloume Sought (ZAR'm) up to 900 Total Received Bids (ZAR'm) 1 527 Total Bid Cover Ratio 1,70 Class Description Class Ω Class A1 Class A2 Class A3 Class B Class C Stock Code TR5OM1

  25. Slide 25: Disclaimer

    DISCLAIMER The Standard Bank of South Africa Limited This presentation is provided for information purposes only on the express understanding that the United States Residents information contained herein will be regarded as strictly confidential. It is not to be delivered nor shall its Neither this

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