Reunert Limited · JSE:RLO
Reunert — Investor Day (September 2007)
15 slides from Reunert's investor day presentation, Sep 26, 2007
Slide 1: Quince Capital Limited
Quince Capital Limited Reunert Investors Day Tiaan Kotze 26 September 2007
Slide 2: Introduction
Introduction • Quince Capital – Shareholders & Directors – Business Focus • Front Line Businesses – RC&C – ZS Rational – Quince Scripfin
Slide 3: Joint Venture
Joint Venture • Conceptualised in 2006, implemented effective1 May 2007 • Reunert contributed: RC&C book (Nashua finance) • PSG contributed: ZS Rational, margin lending book in Quince Scripfin plus significant capital • Potential initial earnings dilution for Reunert with significant earnings growth
Slide 4: Quince Capital Shareholding & Group Structure
Quince Capital Shareholding & Group Structure Reunert Michiel Le Roux PSG and other (49%) individuals (39%) Quince Capital Holdings Limited ZS Rational RC&C Finance Quince Scripfin Finance Limited Limited (Pty) Ltd (to finalise)
Slide 5: Directors
Directors • Michiel Le Roux • Chris Scoble (chairman) • Pat Gallagher • Johan du Preez • Jannie Mouton (ceo) • Chris Otto • Gerrit Pretorius • Jaap du Toit • Dave Rawlinson
Slide 6: Business Focus
Business Focus • Niche financing opportunities – Not in direct competition with big banks • Invest in good lending business constrained by capital • Innovative funding - invest in debt raising expertise • Establish culture to attract finance entrepreneurs
Slide 7: Business Focus
Business Focus • Double profit in 3 years • Expected normalised PAT – R60/70m • Total lending book > R1.7bn • Target business with at least 20% ROE • Immediate priority: – Optimise funding arrangements – Efficient use of capital
Slide 8: RC&C Finance Limited
RC&C Finance Limited • Acquired from Reunert on 1 May 2007 • Financing of office equipment – Nashua finance – Quince Asset Rentals • Discounting of rental agreements • Competitors: Sasfin, Fintech, Technofin, ABSA Technology Finance, Merchant West
Slide 9: RC&C – Infrastructure
RC&C – Infrastructure • Mike Purnell (MD) and team consisting of experienced CA’s and bankers. • 45 employees • Originate countrywide & operate from 2 offices in Johannesburg • Expanding services – Nashua = 25% – Quince Asset Rental – Partnerships
Slide 10: RC&C Priorities
RC&C Priorities • Funding through securitisation – Standard Bank/Blue Titanium conduit – Finalising the enhancement levels – Margins contracted before subprime collapse – Consolidation of SPV – Hedging all interest rate risk • Expand in context of good risk & credit management
Slide 11: ZS Rational
ZS Rational • Acquisition – competition commission • Origins in residential mortgage bridge finance • Industry estimated at R2bn • To be renamed Quince Property Finance • NCA compliant • Growing rapidly - Current book > R70m • Competitors include Paforma, Rodel, Bridgeway, Mettle factors
Slide 12: ZS Rational - Infrastructure
ZS Rational - Infrastructure • Offices based in Tygervalley • Willem le Roux(MD) & 15 employees including 3 CA’s • Distribution expanding – national footprint • Funded via bank loans and shareholder capital • Considering to expand into other property related funding
Slide 13: Quince Scripfin
Quince Scripfin • Access to PSG client base via PSG Konsult • Start up business • Loans against equity portfolios • Loan to value of 50% • Differs from CFD & SSF • Opportunity – PSG had R42bn AUM (Feb 07) • Priority: Funding arrangements & bed down system
Slide 14: Quince Scripfin - Infrastructure
Quince Scripfin - Infrastructure • Based in Tygervalley– leveraging existing infrastructure • On back of PSG online systems • Recruiting relationship management skills
Slide 15: Geared for growth
QUINCE CAPITAL Geared for growth