Nutun Limited · JSE:NTU
Nutun — Transaction Capital — H1 2024 Earnings Presentation
33 slides from Nutun's earnings presentation, May 2024
Slide 1: Half year ended 31 March 2024
for the half year ended 31 March 2024
Slide 2: Agenda
1 Strategic review 03 2 Financial review 11 3 Prospects 20 4 Appendix 22
Slide 3: Strategic review
Strategic review for the half year ended 31 March 2024
Slide 4: Progress against strategic imperatives
Introduc tion Progress against strategic imperatives In progress Complete Migrate Transaction Capital from an Reduce net debt at holding Rationalise and reduce the 1 company level 2 group’s head office 3 operational group to an investment holding company ◉ Raised R1.0bn in WeBuyCars ◉ Merged roles o
Slide 5: Transaction Capital debt profile
Introduc tion Transaction Capital debt profile Holding company commercial view 30 September 2023 31 March 2024 Post WeBuyCars Unbundling PREF SHARES (2027)1 R489 m PREF SHARES (2027)1 PREF SHARES (2027)1 -- - DMTN (2025, 2027) 1 DMTN (2025, 2027) 1 DMTN (2025, 2027) 1 R451 m R451 m R451 m REVOLVING
Slide 6: Transaction Capital Balance Sheet
Introduc tion Transaction Capital Balance Sheet Unencumbered investment holding company with two assets 75% April 2024 ◉ Gomo transferred to Mobalyz with Post WeBuyCars Unbundling Rm legacy loan book of R429m Investments in subsidiaries 1 266 ◉ Subordinated loan from TC to SA Taxi capitalised Trade
Slide 7: About Nutun
Introduc tion About Nutun Capital – enabled business | BPO Established in 1997 – over 25 years’ experience Technology enabled with omni-channel capability 150+ clients in Australia, South Africa, UK and the US Top BPO operator in South Africa: BPESA Awards 2023 Largest collections agency in the Sout
Slide 8: Nutun Balance Sheet
Introduc tion Nutun Balance Sheet Significant simplification Unaudited restated Key notes Rm 30 September 2023 Movement April 2024 Cash and cash equivalents 273 84 357 ◉ Trade and other receivables includes receipt of funds from the disposal of Australia Trade and other receivables 831 (328) 503 ◉ E
Slide 9: Nutun business overview
Introduc tion Nutun business overview Unique offering spanning the customer and credit lifecycle COLLECTIONS ENABLEMENT SERVICING • Portfolio evaluation and yield modelling • Billing and service support • Scoring models • Product education • Digital, omnichannel and telephony • Service requests camp
Slide 10: Mobalyz business overview
Introduc tion Mobalyz business overview Breaking mobility barriers SA Taxi lending business ◉ Management team significantly overhauled and strengthened ◉ Operations downsized & efficiencies introduced ◉ Strong emphasis on cash management ◉ SA Taxi balance sheet restructure: detailed business plan pr
Slide 11: Financial review
Financial review for the half year ended 31 March 2024
Slide 12: Performance overview
Introduc tion Performance overview Assess results against: Progress made towards strategic goals • Performance & prospects of Nutun & Mobalyz Core earnings from Total core earnings Basic EPS from continuing operations >100% attributable to the group >100% continuing operations 20.7% attributab
Slide 13: Mobalyz
Mobalyz for the half year ended 31 March 2024
Slide 14: Mobalyz financial performance
SA T ax i Mobalyz financial performance Mobal yz Prioritising cash preservation and generation vs optimising profit 1 600 Business is currently being managed with a priority on 1 500 1 400 16,0 preserving and generating cash as opposed to optimising profit 1 300 69,7 1 200 68,4 14,0 1 100 46,2 Core
Slide 15: Mobalyz credit performance
SA T ax i Mobalyz credit performance Mobal yz Improvement expected over the medium to long term R15.6bn R17.6bn R16.6bn1 Gross loans & advances 5% to R16.6bn1 (H1 2023: R17.6bn) ◉ SA Taxi gross loans and advances 5% to R16.2bn (H1 2023: R17.1bn) 21% 34% 50% • Number of loans originated 76% to
Slide 16: Repositioning of Mobalyz
SA T ax i Repositioning of Mobalyz Mobal yz Path to stabilisation Balance sheet restructure Operational restructure Restructuring SA Taxi balance sheet Lower loan origination levels Resizing the cost base in line ◉ Detailed restructure framework has with lower loan originations & been developed and
Slide 17: Nutun
Nutun for the half year ended 31 March 2024
Slide 18: Nutun financial performance
Nutun financial performance Results reflective of transition Nutun Revenue contribution highlights Foreign currency CX revenue 49% 1 000 contributing R543m 19% to R739m (36% of total revenue) (H1 2023: R619m) 42% 36% (H1 2023: R457m) H1 2024 31% Revenue H1 2023 856 750 789 769 739 173 Revenue 619
Slide 19: CE Services: Acquisition of NPL portfolios as principal
CE Services Acquisition of NPL portfolios as principal Nutun 7 429 7 883 Carrying value of purchased book debts 7% to R4.9bn (H1 2023: R4.6bn) 6 876 4 944 4 636 3 954 Investment into SA NPL portfolios Rand million 81% to R123m (H1 2023: R631m) ◉ Deployed capital conservatively • Applied more con
Slide 20: Prospects
Prospects for the half year ended 31 March 2024
Slide 21: Continue our commitment to unlocking value
Prospects Continue our Focus on accelerating Mobalyz’s service Focus on achieving scale and margin commitment to offering & demonstrating relevance of the with emphasis in international revenue business model unlocking value Bold steps to remove costs & simplify Restructuring imperatives in FY2024 r
Slide 22: Appendix
Appendix for the half year ended 31 March 2024
Slide 23: Balance sheet funding
APPENDIX Balance sheet funding for the half year ended 31 March 2024
Slide 24: Diversified debt funding strategy | TC group overview
Appendix Diversified debt funding strategy | TC group overview Appendix (all entities which make up the GEO) 31 March 2024 R1.56 billion R4.39 billion R0.42 billion balance outstanding ◉ R8.1bn of assets; R4.4bn of senior debt ◉ Net debt at TC ~R1.3 billion1 ◉ On Gomo balance sheet ◉ Well supported
Slide 25: Diversified debt funding strategy | SA Taxi
Appendix Diversified debt funding strategy | SA Taxi Appendix Pass through structures Warehousing facilities Private structured finance Traditional corporate funding 31 March 2024 SATIF SATDF/SATS balance R4.56 billion R2.78 billion R3.15 billion R4.7 billion R0.53 billion outstanding Debt investors
Slide 26: Mobalyz
APPENDIX Mobalyz for the half year ended 31 March 2024
Slide 27: Environment & market context
Appendix Environment & market context Appendix Structural shift in industry SA Taxi’s interest rates Commuter mobility 8.25% 100% 97% Vehicle prices Repo rate5 SA Taxi fleet Average distance H1 2023: 7.25% operating per vehicle R577 800 ~R8 813 Toyota Hiace (diesel) price¹ Impact on monthly Since
Slide 28: SA Taxi operational performance
Appendix SA Taxi operational performance Appendix SA Taxi operator profile ~1.23 51 years 6 years ~20% Vehicles Average age Average age of Loans originated Credit profile of loans on book per customer of customer vehicle to repeat customer H1 2023: ~1.2 H1 2023: 50 years H1 2023: 5.4 years H1 2023:
Slide 29: Nutun
APPENDIX Nutun for the half year ended 31 March 2024
Slide 30: Environment & market context | Collection services in SA
Environment & market context | Collection services in SA CE services | Nutun acts as a principal acquiring & then collecting on NPL portfolios in South Africa Nutun ~41.02 million Adults¹ in SA ~27.41 million Credit active consumers² Consumers non-performing2 1 in 3 ~23.5% of credit-active Sept 2023
Slide 31: Nutun CE Services | Acquisition of NPL portfolios as principal
Appendix Nutun CE Services | Acquisition of NPL portfolios as principal Collection multiple vintage performance1 as of 31 March 2024 2020 1.4 1,1 2,5 Estimated Remaining Collections (ERC) 6% to R7.9bn R 483m supporting strong annuity cash flows & predictable growth in book debts acquired (Rm) futu
Slide 32: Glossary
Glossary AUS Australia Estimated undiscounted remaining gross cash collections from non-performing ERC loan portfolios over the next 120 months AVCS Absconsion, violation and credit shortfall cover GEO Group executive office BPO Business process outsourcing NAV Net asset value Core earnings from con
Slide 33: Disclaimer
DISCLAIMER This presentation may contain certain "forward-looking statements" regarding beliefs or expectations of the TC Group, its directors & other members of its senior management about the TC Group's financial condition, results of operations, cash flow, strategy & business & the transactions d