Nutun Limited · JSE:NTU
Nutun — Transaction Capital — H1 2021 Earnings Presentation
82 slides from Nutun's earnings presentation, 2021
Slide 1: Results Presentation for the six months ended 31 March
TRANSAC TI ON C API TAL Results Presentation F O R T H E SI X MONTHS ENDED 31 MARCH
Slide 2: Performance Overview
PERFORMANCE OVERVIEW 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 3: Transaction Capital 7-Year Performance
TRANSACTION CAPITAL 7-YEAR PERFORMANCE 2 LONG-TERM TRACK RECORD OF GROWTH RESUMED CAGR HY14 – HY21 A DECISIVE RECOVERY Core headline earnings1 ▲17% Core headline earnings1 ▲56% (HY21 vs HY19 ▲29%) Core HEPS1 ▲15% Core HEPS1 ▲43% (HY21 vs HY19 ▲18%) Dividend per share ▲18% DIVIDENDS RESUMED Total sha
Slide 4: Group Performance Highlights
GROUP PERFORMANCE HIGHLIGHTS 3 EARNINGS RECOVERED | HEPS GROWTH RATES IN LINE WITH PRE COVID-19 LEVELS HY21 COMPARED TO HY19 & HY20 FINANCIAL PERFORMANCE ROBUST BALANCE SHEET RETURNS EARNINGS RECOVERY R1.1 BILLION EQUITY RAISED DIVIDENDS RESUMED SUPPORTED DEMONSTRATING RESILIENCE IN LAST 12 MONTHS B
Slide 5: Key Performance Drivers
KEY PERFORMANCE DRIVERS 4 RECOVERY IN EARNINGS DEMONSTRATING RESILIENCE & RELEVANCE OF BUSINESS MODELS HY21 COMPARED TO HY19 & HY20 ORGANIC GROWTH FROM EXISTING DIVISIONS ACQUISITIVE GROWTH R13.2 billion 11.8% R385 million R2 705 million 43 410 41 550 GROSS LOANS NET INTEREST COST PRICE OF PURCHASED
Slide 6: Divisional Operational Metrics
DIVISIONAL OPERATIONAL METRICS 5 CONTINUED RECOVERY IN OPERATIONAL METRICS SA TAXI TCRS WeBuyCars ~100% ~100% ~95% ~95% ~40% ~85% ~85% ~35% 32.3 27.1 19.1 73 32 ~4% 7 5 593 5 803 4 386 4 358 6 925 7 235 2 775 2 520 2 705 6 274 5 532 7 948 2 318 1 432 2 428 483 170 353 251 646 189 396 286 726 1H20 2H
Slide 7: Group Portfolio Mix | Earnings Diversification Enhanced
GROUP PORTFOLIO MIX | EARNINGS DIVERSIFICATION ENHANCED 6 COMPOSITION OF EARNINGS 43% 5% 58% 5% 60% 26% 1% 2021 2020 2019 SA Taxi TCRS GEO 37% 35% WeBuyCars 30% 2021 2020 Movement 2019 Movement Headline earnings (Group Ownership) Rm Rm 2021 vs 2020 Rm 2021 vs 2019 SA Taxi1 (74.17%) 188 164 ▲15% 202
Slide 8: Negotiated Increased Shareholding in WeBuyCars from 49.9% to 74.9%
TRANSACTION CAPITAL NEGOTIATES INCREASED SHAREHOLDING IN WeBuyCars FROM 49.9% TO 74.9% 7 A QUALITY BUSINESS WITH HIGH CASH CONVERSION RATES & STRONG ORGANIC GROWTH PROSPECTS Refer to the Cautionary Announcement released on SENS on 12 May 2021 EARNINGS & VALUE ACCRETIVE INVESTMENT INTO A RELEVANT WeB
Slide 9: Transaction Capital Performance Highlights
TRANSACTION CAPITAL PERFORMANCE HIGHLIGHTS 8 TRANSACTION CAPITAL’S RESILIENCE & AGILE RESPONSE TO COVID-19 ENABLED SIGNIFICANT STRATEGIC PROGRESS IN 2021 ESTABLISHED & RELEVANT BUSINESS MODELS PROVEN RESILIENT & PRUDENT CAPITAL STRATEGY • SA Taxi, TCRS & WeBuyCars business models established over >2
Slide 10: Transaction Capital Performance Highlights
TRANSACTION CAPITAL PERFORMANCE HIGHLIGHTS 9 POSITIONING TRANSACTION CAPITAL FOR LONG-TERM GROWTH AT RATES IN LINE WITH PRE COVID-19 TRACK RECORD ENHANCED DIGITAL INITIATIVES & TRANSFORMATION TC GLOBAL FINANCE • Digital adoption accelerated by COVID-19 • ₤8.4m invested to date | ₤2.0m invested in HY
Slide 11: WeBuyCars Performance Highlights
WeBuyCars PERFORMANCE HIGHLIGHTS 10 ACCELERATING TRANSACTION CAPITAL'S EARNINGS GROWTH RATE VALUE & EARNINGS ACCRETIVE INVESTMENT IN WeBuyCars • South Africa’s trusted trader of used vehicles through its vertically integrated, • Quality standalone business data & technology-led e-commerce & physical
Slide 12: SA Taxi Performance Highlights
SA TAXI PERFORMANCE HIGHLIGHTS 11 LONG-TERM TRACK RECORD OF GROWTH RESUMED ROBUST PERFORMANCE | PRE-PROVISION PROFIT FLAT (HY21 vs HY19 ▲22%) LONG-TERM TRACK RECORD OF GROWTH RESUMED • Quick alignment of operating models, financial structures & growth plans • Business model gained relevance in COVID
Slide 13: TCRS Performance Highlights
TCRS PERFORMANCE HIGHLIGHTS 12 LONG-TERM TRACK RECORD OF GROWTH RESUMED ROBUST PERFORMANCE | PRE-PROVISION PROFIT ▲21% (HY21 vs HY19 ▲44%) LONG-TERM TRACK RECORD OF GROWTH RESUMED • Quick alignment of operating models, financial structures & growth plans • Business model has gained relevance in COVI
Slide 14: WeBuyCars
WeBuyCars 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 15: Used Vehicle Market Context & Environment
USED VEHICLE MARKET CONTEXT & ENVIRONMENT 14 SA’S VEHICLE PARC HAS GROWN STEADILY DESPITE NEW VEHICLE SALES ▼OVER LAST 10 YEARS MODES OF TRANSPORT 1 SOUTH AFRICA’S VEHICLE PARC2 IS GROWING DESPITE NEW VEHICLE SALES ▼ OVER LAST 10 YEARS NEW VEHICLE SALES WRITE-OFF RATE 73% 10.8 million INTO PARC OUT
Slide 16: Used Vehicle Market Context & Environment
USED VEHICLE MARKET CONTEXT & ENVIRONMENT 15 USED VEHICLE MARKET IS RESILIENT, DEFENSIVE & GROWING DESPITE SOUTH AFRICA’s ECONOMIC CLIMATE STRONG RECOVERY IN USED VEHICLE SALES | ALREADY AT PRE COVID-19 LEVELS VEHICLE SALES & PRICES IN SOUTH AFRICA SHIFT FROM NEW TO USED VEHICLES • New vehicle sales
Slide 17: WeBuyCars Strategic Growth Initiatives
WeBuyCars STRATEGIC GROWTH INITIATIVES 16 FAVOURABLE STRUCTURAL MARKET CONDITIONS | BUSINESS MODEL MORE RELEVANT IN COVID-19 ENVIRONMENT VEHICLE SUPERMARKET | MIDSTREAM MEDIUM-TERM TARGET TO ▲VOLUME OF VEHICLES TRADED TO 10 000 PER MONTH • Harness data, technology & e-commerce potential › ▲penetrati
Slide 18: WeBuyCars Financial Performance
WeBuyCars FINANCIAL PERFORMANCE 17 HIGH GROWTH BUSINESS | WELL PLACED TO BUILD ON LONG-TERM TRACK RECORD OF GROWTH Strong growth rate & operating leverage Headline earnings ▲38% to R257m (HY21 vs HY19 ▲84%) CAGR HY19 – HY21: Headline earnings attributable to the group R113m (FY20: R19m) Headline ear
Slide 19: WeBuyCars Operational Performance
WeBuyCars OPERATIONAL PERFORMANCE 18 HIGH GROWTH BUSINESS | WELL PLACED TO BUILD ON LONG-TERM TRACK RECORD OF GROWTH CAGR HY19 – HY21: Strong COVID-19 recovery with favourable structural market conditions Vehicles bought ▲27% Vehicles sold per month Vehicles sold ▲25% Vehicle bays ▲12% • ~5 510 vehi
Slide 20: SA Taxi
SA TAXI 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 21: Environment & Market Context
ENVIRONMENT & MARKET CONTEXT 20 MINIBUS TAXI INDUSTRY IS DEFENSIVE & GROWING DESPITE CHALLENGING ENVIRONMENT STRUCTURAL ELEMENTS SUPPORT MINIBUS TAXI INDUSTRY RESILIENCE MINIBUS TAXI IS THE LARGEST & MOST VITAL MODE OF TRANSPORT TOTAL ADDRESSABLE MARKET WITHIN INTEGRATED PUBLIC TRANSPORT NETWORK >25
Slide 22: Environment & Market Context
ENVIRONMENT & MARKET CONTEXT 21 MINIBUS TAXI INDUSTRY IS DEFENSIVE & GROWING WITH RESILIENT OPERATORS ENVIRONMENT & LOWER COMMUTER MOBILITY IMPACTING PROFITABILITY VEHICLE PRICES REPO RATE FARES R493 900 ~R4 699 ▲ 3.5% 9.3% ▲ TOYOTA HIACE (DIESEL) PRICE1 IMPACT ON MONTHLY AVERAGE REPO RATE³ MONTHLY
Slide 23: Vehicle Mobility Analytics Used to Manage Credit & Insurance Risk
VEHICLE MOBILITY ANALYTICS USED TO MANAGE CREDIT & INSURANCE RISK 22 TELEMATICS DATA SHOWS RECOVERY IN AVERAGE ACTIVITY OF MINIBUS TAXI FLEET, COLLECTIONS & PROFITABILITY BENCHMARKED AGAINST PRE COVID-19 LEVELS RISK-ADJUSTED NORM LEVEL 5 LEVEL 4 LEVEL 3 LEVEL 2 LEVEL 1 LEVEL 1 COVID-19 HAS PROVEN TH
Slide 24: SA Taxi Financial Performance
SA TAXI FINANCIAL PERFORMANCE 23 DEMONSTRATED STRONG FINANCIAL PERFORMANCE Headline earnings • ▲13% to R228m (HY21 vs HY19 ▲4%) | TC’s attributable portion ▲15% to R188m 45.2 46.1 42.0 › After consolidating 82.1% (HY20: 81.4%; HY19: 98.5%) • Pre-provision profit flat (HY21 vs HY19 ▲22%) 11.8 Net int
Slide 25: SA Taxi Credit Performance
SA TAXI CREDIT PERFORMANCE 24 DEMONSTRATED STRONG CREDIT PERFORMANCE Gross loans & advances ▲16% to R13.2bn • Vehicle demand > Vehicle supply | Applications in line with pre COVID-19 levels • Number of loans originated ▲12% (HY21 vs HY19 ▲2%) 27.1 › Lower loan approval rates | Conservative credit qu
Slide 26: Transaction Capital Risk Services
TRANSACTION CAPITAL RISK SERVICES 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 27: Environment & Market Context | South Africa
ENVIRONMENT & MARKET CONTEXT | SOUTH AFRICA 26 DEFENSIVELY POSITIONED IN A CHALLENGING CONSUMER CREDIT ENVIRONMENT MACRO- & SOCIO-ECONOMIC ENVIRONMENT PLACING PRESSURE ON CONSUMERS | COVID-19 WILL ADVERSELY IMPACT CONSUMER CREDIT SECTOR FURTHER ELEVATED LEVELS OF UNEMPLOYMENT Overdue debt balances c
Slide 28: TCRS's Business Model Gains Relevance in COVID-19 Environment
TCRS’S BUSINESS MODEL GAINS RELEVANCE IN COVID-19 ENVIRONMENT 27 TRANSACTION CAPITAL’S CONSUMER CREDIT REHABILITATION INDEX (CCRI) CONSUMER’S PROPENSITY TO REPAY DEBT DETERIORATING WITH WEAK ECONOMIC CONDITIONS EXACERBATED BY COVID-19 SOUTH AFRICA’s NATIONAL CONSUMER CREDIT REHABILITATION PROSPECT T
Slide 29: Environment & Market Context | Australia
ENVIRONMENT & MARKET CONTEXT | AUSTRALIA 28 AUSTRALIAN CONSUMER CREDIT ENVIRONMENT AUSTRALIAN CONSUMER EMPLOYED BUT HIGHLY LEVERAGED AUSTRALIAN DEBT COLLECTION ENVIRONMENT • 5.6% unemployment | ▼to pre-pandemic levels (April 2021) CONSUMERS • Historically low interest rates & higher property prices
Slide 30: TCRS Market Positioning | Diversified Business Model
TCRS MARKET POSITIONING | DIVERSIFIED BUSINESS MODEL 29 BY BUSINESS ACTIVITY, REVENUE MODEL, GEOGRAPHY, SECTOR, CLIENT & MANDATE BUSINESS ACTIVITIES BUSINESS COLLECTION TRANSACTIONAL OUTSOURCE SERVICES SERVICES SERVICES ~95% ~5% <1% COLLECTION SERVICES DIVERSIFICATION Contingency & FFS Australia Oth
Slide 31: TCRS Strategic Growth Initiatives to Create Value
TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 30 ACQUISITION OF NPL PORTFOLIOS AS PRINCIPAL IN SOUTH AFRICA & AUSTRALIA GROWTH TRAJECTORY TO SUPPORT FUTURE POSITIVE PERFORMANCE COLLECTION MULTIPLE VINTAGE PERFORMANCE¹ AS AT 31 MARCH 2021 Cost price of purchased book debts acquired (Rm) 5 883 Ran
Slide 32: TCRS Financial Performance
TCRS FINANCIAL PERFORMANCE 31 DEMONSTRATED STRONG FINANCIAL PERFORMANCE Pre-provision profit ▲21% to R363m (HY21 vs HY19▲44%) 86.6 Headline earnings¹ ▲27% to R131m (HY21 vs HY19▲11%) 83.5 81.1 Non-interest revenue ▲8% to R1.2bn (HY21 vs HY19▲30%) • Revenue from collection services ▲7% (HY21 vs HY19
Slide 33: Conclusion
CONCLUSION 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 34: Conclusion
CONCLUSION 33 Strong operational recovery | Current operational activity near to or exceeding pre COVID-19 levels Business models demonstrated resilience & responsiveness to COVID-19 Continue to enhance ESE frameworks, • Agile & flexible response to COVID-19, including measurable ESE reporting drive
Slide 35: Questions
QUESTIONS 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 36: Appendix
APPENDIX 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 37: Transaction Capital | Compelling & Unique Investment Case
TRANSACTION CAPITAL | COMPELLING & UNIQUE INVESTMENT CASE 36 Mobilises an optimal balance Actively identifies, invests in & operates, of equity & debt capital to fund high-potential, digitally advantaged the growth of business platforms & context-relevant businesses, in defensive & their underlying
Slide 38: Transaction Capital Evolution Since Listing
TRANSACTION CAPITAL EVOLUTION SINCE LISTING 37 MANAGEMENT INTERVENTIONS TO CREATE VALUE CAGR FY12 to FY19: November 2015 March 2018 November 2019 FY20 January 2021 Headline earnings per share1 ▲23% Early adoption of IFRS 9 Accelerated bookbuild – Founders sold Sunday Times 2nd best performing Financ
Slide 39: Appendix WeBuyCars
APPENDIX WeBuyCars 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 40: WeBuyCars Positioning Statement
WeBuyCars 39 POSITIONING STATEMENT Entrepreneurial, founder-led & proudly South African; leveraging ~20 years WeBuyCars has no brand affiliation of experience in proprietary vehicle, price Is South Africa’s & offers a diverse range of vehicles for sale & consumer data with artificial intelligence tr
Slide 41: WeBuyCars | Market Positioning
WeBuyCars | MARKET POSITIONING 40 COMPETITIVE ADVANTAGES 2. ARTIFICIAL INTELLIGENCE (AI), ANALYTICS & LEAD GENERATION • AI & machine learning applied to › Ensure vehicles bought & sold at a fair price › Adjust pricing according to value & demand, preserving margins & high stock turn • Lead generatio
Slide 42: Transaction Capital Subscribed for Non-Controlling 49.9% in WeBuyCars
TRANSACTION CAPITAL SUBSCRIBED FOR A NON-CONTROLLING 49.9% IN WeBuyCars 41 A QUALITY BUSINESS WITH HIGH CASH CONVERSION RATES & STRONG ORGANIC GROWTH PROSPECTS EARNINGS ACCRETIVE CASH DEPLOYMENT INTO A RELEVANT & SCALABLE BUSINESS WITH POTENTIAL TO GROW IN VALUE Purchase consideration 4 ¹ FOUNDERS C
Slide 43: Evolution of WeBuyCars into a Leading Market Participant
EVOLUTION OF WeBuyCars INTO A LEADING MARKET PARTICIPANT 42 ENTREPRENEURIAL CULTURE | INVESTMENT IN EXPANSIVE INFRASTRUCTURE | BUILDING A TRUSTED BRAND | UNIQUE E-COMMERCE TECHNOLOGY 2001 2001 - 2010 HIGHLIGHTS AS AT FY20 2001 • Located in Pretoria; Advertising in newspapers • WeBuyCars founded by v
Slide 44: Used Vehicle Industry Is Large & Highly Fragmented
USED VEHICLE MARKET CONTEXT & ENVIRONMENT 43 USED VEHICLE INDUSTRY IS LARGE & HIGHLY FRAGMENTED LARGE & HIGHLY FRAGMENTED MARKET WITH VARIOUS PARTICIPANTS & OPERATING MODELS Rental companies/ Dealers DEALERS | GROUPS VS INDEPENDENT dealerships/banks Stockholder Platform • Stockholders with inventory
Slide 45: Global Listed Peers
GLOBAL LISTED PEERS 44 A MIX OF MARKET PARTICIPANTS INCLUDING ONLINE PLATFORMS; MARKET PLACES; FRANCHISE DEALERS; E-COMMERCE WITH VEHICLE SUPERMARKETS WeBuyCars BUSINESS MODEL UNIQUE IN SA WITH COMPARABLE INTERNATIONAL PEERS Advertising Europe Revenue Units sold cost as % Advertising 2020 (US$) (‘00
Slide 46: WeBuyCars Stacks Up Well Against Comparable International Peers
WeBuyCars STACKS UP WELL AGAINST COMPARABLE INTERNATIONAL PEERS 45 PROFITABILITY SURPASSES COMPARABLE PEERS, SUPPORTED BY EFFICIENT INVENTORY MANAGEMENT & EFFECTIVE ADVERTISING SPEND • Hybrid model including • Hybrid model including • Hybrid model including • Hybrid model including e-commerce & phys
Slide 47: The Buying Journey
FRICTIONLESS, VERTICALLY INTEGRATED E-COMMERCE PLATFORM 46 DATA & TECHNOLOGY LED | CREATING DIFFERENTIATED EXPERIENCE THE BUYING JOURNEY AUCTION CLICK CHOOSE • Bid live COLLECT DRIVE VISIT CHOOSE • Trusted brand facilitating BROWSE CHOOSE FINANCE & INSURANCE peace of mind transacting • Paperless sal
Slide 48: The Selling Journey
FRICTIONLESS, VERTICALLY INTEGRATED E-COMMERCE PLATFORM 47 DATA & TECHNOLOGY LED | CREATING DIFFERENTIATED EXPERIENCE WE COME TO YOU THE SELLING JOURNEY CLICK • Apply online ESTIMATED OFFER EVALUATION IMMEDIATE PAYMENT • Easy obligation-free application • Obligation free evaluation • Immediate cash
Slide 49: Appendix SA Taxi
APPENDIX SA TAXI 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 50: SA Taxi Positioning Statement
SA TAXI 49 POSITIONING STATEMENT SA TAXI An innovative & pioneering business model is a vertically integrated with operations expanding throughout A unique blend of vehicle procurement, retail, the financial services & asset value chain minibus taxi platform repossession & refurbishment capabilities
Slide 51: SA Taxi Evolution Since Listing
SA TAXI EVOLUTION SINCE LISTING 50 MANAGEMENT INTERVENTIONS TO CREATE VALUE CAGR FY12 to FY19: Non-interest revenue composition: November 2015 July 2017 March 2018 October 2018 October 2019 Headline earnings ▲19% ▲ 33% (HY21) from 26% (FY12) Early adoption of IFRS 9 Accounting consolidation of SA Ta
Slide 52: Environment for Minibus Taxi Operators (HY20 Pre COVID-19)
ENVIRONMENT FOR MINIBUS TAXI OPERATORS (HY20 PRE COVID-19) 51 MINIBUS TAXIS ARE THE PREFERRED MODE OF PUBLIC TRANSPORT DUE TO COMPETITIVE PRICING, ACCESSIBILITY & RELIABILITY LOWER LSM CONSUMERS SPEND ~40% OF MONTHLY HOUSEHOLD INCOME ON PUBLIC TRANSPORT FARES COMMUTER TRIPS VIA BUS & RAIL MOSTLY REQ
Slide 53: SA Taxi Market Positioning
SA TAXI MARKET POSITIONING 52 VERTICALLY INTEGRATED BUSINESS MODEL DEVELOPMENTAL CREDIT DRIVING POSITIVE SOCIAL IMPACT SA TAXI FINANCE INCLUSIVE GROWTH | ECONOMIC TRANSFORMATION 13.2 billion 34 107 ~1.3 PROPORTION OF CUSTOMERS CLASSIFIED 75% Proportion of customer base AS PREVIOUSLY FINANCIALLY EXCL
Slide 54: SA Taxi Market Positioning: Auto Repairs
SA TAXI MARKET POSITIONING 53 VERTICALLY INTEGRATED BUSINESS MODEL SA TAXI AUTO REPAIRS | AUTOBODY SA TAXI AUTO REPAIRS ~20 000m² >2 600 per year >75% WORKSHOP MINIBUS TAXIS REBUILT RECOVERY RATES ON REPOSSESSION, FACILITIES REFURBISHMENT & RESALE >42 ~400 ~40 REFURBISHMENT EMPLOYEES TRAINED MECHANI
Slide 55: SA Taxi Market Positioning: Direct Dealerships
SA TAXI MARKET POSITIONING 54 VERTICALLY INTEGRATED BUSINESS MODEL NEW MINIBUS TAXI SA TAXI DIRECT • SA Taxi Direct sells new & pre-owned minibus taxis • SA Taxi’s pre-owned minibus taxis: › Rebuilt to a high-quality › Trusted product in the industry › Provides a reliable & affordable alternative in
Slide 56: SA Taxi Market Positioning: Insurance & Telematics
SA TAXI MARKET POSITIONING 55 VERTICALLY INTEGRATED BUSINESS MODEL TELEMATICS & TECHNOLOGY SA TAXI PROTECT ~33 000 MAJORITY OF FINANCED CLIENTS CELL CAPTIVE CHOOSE TO BE INSURED BY SA TAXI¹ THROUGH GAURDRISK INSURANCE CLIENTS >2.0 >100 BROKER NETWORK PRODUCTS PER CLIENT to expand total addressable m
Slide 57: SA Taxi Market Positioning: Auto Parts
SA TAXI MARKET POSITIONING 56 VERTICALLY INTEGRATED BUSINESS MODEL SA TAXI AUTO PARTS | SALVAGE SA TAXI AUTO PARTS LAUNCHED MARCH 2018 | SALVAGE OPERATIONS ESTABLISHED THEREAFTER • Import & locally procure new parts from source at lower cost COST OF REFURBISHMENT • Salvage used parts from vehicles n
Slide 58: SA Taxi Market Positioning: SANTACO & Transaction Account
SA TAXI MARKET POSITIONING 57 VERTICALLY INTEGRATED BUSINESS MODEL | ULTIMATE INTENTION TO COMBINE TELEMATICS, REWARDS, FINANCE & CREDIT INTO TRANSACTION-BASED ACCOUNT FOR OPERATORS SANTACO & SA TAXI DELIVERING SUSTAINABLE SA TAXI TRANSACTION-BASED ACCOUNT BENEFITS TO SA TAXI CLIENTS & THE INDUSTRY
Slide 59: SA Taxi Operational Performance
SA TAXI OPERATIONAL PERFORMANCE 58 SA TAXI OPERATOR PROFILE CREDIT PROFILE OF LOANS ON BOOK ~1.3 4.5 years 71 months 27.1% ~7 950 VEHICLES PER CUSTOMER AVERAGE AGE OF VEHICLE AVERAGE LOAN TERM1 NON-PERFORMING LOAN RATIO APPLICATIONS PER MONTH 48 years 89% >R6 000 49 months 32% AVERAGE AGE OF CUSTOME
Slide 60: Appendix Transaction Capital Risk Services
APPENDIX TRANSACTION CAPITAL RISK SERVICES 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 61: TCRS Positioning Statement
TRANSACTION CAPITAL RISK SERVICES 60 POSITIONING STATEMENT TRANSACTION CAPITAL RISK SERVICES Investing into best-in-class technology to enhance our hard-to-replicate digital TCRS combines its unique backbone, provide data-driven insights & create alternative revenue opportunities technology, data &
Slide 62: TCRS Market Positioning: Competitive Advantages
TCRS MARKET POSITIONING 61 COMPETITIVE ADVANTAGES TCRS’s PROPRIETARY DATA • Database of SA’s distressed consumers • Continuously enriched (with collection & ContactAbility results) ANALYTICS REPUTATION OF PERFORMANCE • Predictive & layered voice analytics to determine: • Only local listed industry p
Slide 63: TCRS Evolution Since Listing
TCRS EVOLUTION SINCE LISTING 62 MANAGEMENT INTERVENTIONS TO CREATE VALUE CAGR 2012 to 2019: June 2015 November 2015 January 2017 October 2019 July 2020 Non-interest revenue ▲14% Improved penetration Early adoption of IFRS 9 Entered Australian debt recoveries TCBS accounted for as a TCTS established
Slide 64: TCRS Market Positioning: Master Data Universe
TCRS MARKET POSITIONING 63 COMPETITIVE ADVANTAGES MASTER DATA UNIVERSE (MDU) - ENRICHED DATA ON EACH INDIVIDUAL OTHER DATA SOURCES Data from • Opportunity to Data is current, relevant CREDIT such as the PRINCIPAL monetise data Enriching the data creates an exponential effect on efficiency BUREAU & a
Slide 65: TCRS Collections Risk Segmentation
TCRS COLLECTIONS RISK SEGMENTATION 64 PROPORTION OF COLLECTIONS FROM EMPLOYER SEGMENTS DISTRIBUTION OF MONTHLY COLLECTIONS PER EMPLOYMENT RISK SEGMENT Relatively low exposure to COVID-19 impacted industries Monthly collections received from consumers not formally employed ~33% 40% • Indicating resil
Slide 66: TCRS Strategic Growth Initiatives to Create Value
TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 65 AS MARKET DYNAMICS POST COVID-19 BECOME CLEARER, THE ACQUISITION OF NPL PORTFOLIOS IN SOUTH AFRICA & AUSTRALIA PROVIDE OPPORTUNITIES TO ACCELERATE CAPITAL DEPLOYMENT FOR ATTRACTIVE RISK-ADJUSTED RETURNS TOP BUYERS OF TOP BUYERS OF CONSUMER DEBT IN
Slide 67: TCRS Strategic Growth Initiatives to Create Value
TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 66 AS MARKET DYNAMICS POST COVID-19 BECOME CLEARER, THE ACQUISITION OF NPL PORTFOLIOS IN SOUTH AFRICA & AUSTRALIA PROVIDE OPPORTUNITIES TO ACCELERATE CAPITAL DEPLOYMENT FOR ATTRACTIVE RISK-ADJUSTED RETURNS TCRS’s FUNDING REQUIREMENTS FOR THE ACQUISIT
Slide 68: Appendix Capital Management
APPENDIX CAPITAL MANAGEMENT 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 69: Capital & Funding Evolution Since Listing
CAPITAL & FUNDING EVOLUTION SINCE LISTING 68 February June 2014 April 2015 November 2015 November 2016 November 2017 December 2018 April – September 2020 2012 Transsec: Transsec tap Transsec 2: R4bn S&P Established a R2bn domestic note • Dividend policy amended Transsec 1 note holders fully repaid •
Slide 70: Conservative Funding Philosophy
CONSERVATIVE FUNDING PHILOSOPHY 69 FUNDING PHILOSOPHY INNOVATIVE ENGAGED DEBT INVESTORS JUDICIOUS RISK MITIGATION OPTIMAL CAPITAL STRUCTURES THINKING • Recurring investment by debt investors • Optimal liquidity management between asset & liability • Proactively managing valuable capital & funds Inno
Slide 71: Diversified Debt Funding Strategy
DIVERSIFIED DEBT FUNDING STRATEGY 70 DIVERSIFICATION BY DEBT INVESTOR CATEGORY DIVERSIFICATION BY FUNDING STRUCTURE DIVERSIFICATION BY GEOGRAPHY & CAPITAL POOL & INSTRUMENT 11% 15% 14% 71% 41% 1% 20% 10% 29% 38% 28% 27% 4% 11% 27% 20% Institutional investors Warehousing facilities LOCAL Banks On-bal
Slide 72: Strong Balance Sheet Position with Unfettered Access to Liquidity
STRONG BALANCE SHEET POSITION WITH UNFETTERED ACCESS TO LIQUIDITY 71 R24.0 billion R16.8 billion R5.0 billion R1.9 billion TOTAL ASSETS TOTAL ASSETS TOTAL ASSETS TOTAL ASSETS ASSETS R12.4 billion R2.7 billion INVENTORIES R600 million NET LOANS & ADVANCES PURCHASED BOOK DEBTS PROPERTIES R620 million
Slide 73: Diversified Debt Funding Strategy
DIVERSIFIED DEBT FUNDING STRATEGY 72 PASS THROUGH WAREHOUSING PRIVATE STRUCTURED FINANCE ON BALANCE SHEET DEBT STRUCTURE STRUCTURES FACILITIES (MAJORITY INTERNATIONAL DFIs) & SYNDICATED LOANS FY20 BALANCE OUTSTANDING R3.7 billion R2.1 billion R5.3 billion R2.7 billion COMPOSITION ~27% ~15% ~38% ~20%
Slide 74: Economic, Social & Environmental Impact
ECONOMIC, SOCIAL & ENVIRONMENTAL IMPACT 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 75: Transaction Capital's Commitment to Delivering Shared Value
TRANSACTION CAPITAL’S COMMITMENT TO DELIVERING SHARED VALUE 74 VALUE CREATION FOR STAKEHOLDERS BY GENERATING GOOD COMMERCIAL RETURNS & POSITIVE SOCIAL IMPACT DELIVERING SHARED VALUE • Transaction Capital’s business model operationalises our commitment to sustainable & inclusive growth of the Our soc
Slide 76: Economic Impact
ECONOMIC IMPACT 75 FACILITATING ECONOMIC DEVELOPMENT Transaction Capital’s focus on traditionally under-served market segments where it can make a meaningful social impact supports economic growth & development We empower SMEs through financial inclusion We drive economic growth by promoting credit
Slide 77: Economic Impact | Continued
ECONOMIC IMPACT | CONTINUED 76 SUPPORTING SOCIAL INCLUSION BETTERING THE INDUSTRIES WE SERVE SA Taxi promotes social inclusion by helping millions SA Taxi works to better the public transport industry of commuters to access services & economic opportunities for all stakeholders We support a critical
Slide 78: Social & Environmental Impact
SOCIAL & ENVIRONMENTAL IMPACT 77 WE HIRE INCLUSIVELY WE UNDERSTAND OUR IMPORTANT ROLE IN PROMOTING CLIMATE RESILIENCE Our employment practices contribute We understand our important role in to socioeconomic transformation promoting climate resilience The Transaction Capital board comprises 15 direct
Slide 79: Glossary
GLOSSARY 2021 R E S U LT S F O R T H E S I X MONTHS ENDED 31 MARCH
Slide 80: Glossary
GLOSSARY 79 AUS Australia EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortisation Accsys, a 100% owned subsidiary of TCRS now part of Transaction Capital ACCSYS Estimated undiscounted remaining gross cash collections from NPL Portfolios Transactional Services (TCTS) ERC over the next
Slide 81: Glossary
GLOSSARY 80 Additional gross margin earned on value-added products & allied services TCTS Transaction Capital Transactional Services Product margin including finance, insurance, tracking & other revenue TRP Taxi Recapitalisation programme RBH Royal Bafokeng Holdings Vehicle margin Margin earned on t
Slide 82: Disclaimer
DISCLAIMER 81 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 transaction