Nutun Limited · JSE:NTU
Nutun — Transaction Capital — Debt Investor Presentation (March 2023)
18 slides from Nutun's debt investor presentation, Mar 23, 2023
Slide 1: Transaction Capital
Transaction j \o Capital la YEARS ‘AS ALISTED ENTITY
Slide 2: Presentation Outline
Presentation Outline 01 | Introduction (David Hurwitz) 02 | Capital structure (Mark Herskovits) 03 | SA Taxi (Sean Doherty) 04 | Q&A
Slide 3: Capital structure
Capital structure
Slide 4: Structure Overview | Funding philosophy
Structure Overview | Funding philosophy Judicious risk management ◉ Optimal liquidity management between asset and liability cash flows ◉ Effective management of interest rate risk, currency risk and roll over risk ◉ Controlled exposure to short term instruments ◉ No cross-collateralisation or cross
Slide 5: Diversified debt funding strategy | Transaction Capital group overview
Diversified debt funding strategy | Transaction Capital group overview WeBuyCars Entity (all entities which make up the GEO) FY2022 balance R2.0 billion R3.5 billion R1.5 billion R0.2 billion outstanding 46% mortgage finance Composition ~9% ~16% ~7% ~1% Debt investors 13 debt investors % Holding 10
Slide 6: Diversified debt funding strategy | SA Taxi
Appendix Diversified debt funding strategy | SA Taxi Debt structure Pass through structures Warehousing facilities Private structured finance Traditional corporate funding FY2022 balance SATIF SATDF/SATS outstanding R5.9 billion R1.9 billion R0.8 billion R2.1 billion R4.7 billion Composition ~38% ~1
Slide 7: Maturity Profile | September 2022
Maturity Profile | September 2022 Transaction Capital Group Overview Maturity Profile Available Total debt Subsidiary 0-6 months 6-12 months 1-2 years 2-3 years 3-4 years 4-5 years Facilities drawn 5+ years Gomo 125 225 40 7 31 48 49 50 - Nutun (South Africa and Australia) 666 3,521 271 804 985 788
Slide 8: Maturity Profile | September 2022 | SA Taxi Overview
. Maturity Profile | September 2022 SA Taxi Overview Excluding Bullets Maturity Profile Available Structure Type Facilities Total debt drawn 0-6 months 6-12 months 1-2 years 2-3 years 3-4 years 4-5 years 5+ years Warehousing facilities 1,068 1,932 1,888 - 44 - - - - Private structured finance 2,286
Slide 9: SA Taxi
SA Taxi
Slide 10: Environment & market context
SA T ax i Environment & market context Minibus taxi is the largest & most vital mode of transport within integrated public transport network Taxi industry transports ~15 million commuters per day Factors impacting the industry Essential mode of transport with 84% of users of public transport utilizi
Slide 11: Calibrating to market conditions
SA T ax i Calibrating to market conditions SA Taxi performance • Demand for new and QRT1 was higher than pre-covid levels illustrated through applications (there is still opportunity) TOTAL • Collections performance did not deteriorate but it was still not fully MARKET recovered to pre-Covid levels,
Slide 12: Calibrating to market conditions
SA T ax i Calibrating to market conditions Lockdown Lockdown levels in 2020 Risk-adjusted lockdown levels in 2021 levels in 2022 2022 NORM LEVEL 5 LEVEL 4 LEVEL 3 LEVEL 2 LEVEL 1 LEVEL 3 LEVEL 1 2 3 4 LEVEL 3 2 LEVEL 1 MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT
Slide 13: Incremental business shifts were insufficient to drive required performance
SA T ax i Incremental business shifts were insufficient to drive required performance Previous origination levels Business shifts Increase QRT volumes to address affordability - Reduced yield - Reduced NIR Reduced appetite for New to shift better risk customers into QRTs Invested in: • Midrand and V
Slide 14: Originations and book size recalibrated for market conditions
SA T ax i Change 1 & 2 : Originations and book size recalibrated for market conditions Infrastructure scaled to deliver originations Recalibration on FY2023 origination volumes In 2022, the business and its infrastructure was scaled The business and infrastructure is currently being downscaled to or
Slide 15: Increase in provisioning given change in disposal and recovery rate
SA T ax i Change 3 & 4 : Increase in provisioning given change in disposal and recovery rate Lower recovery rate given additional disposal channel Pre-covid Revised credit appetite ±95% refurbished and refinanced which ±75% refurbished and refinanced to support lower QRTs supported a high recovery r
Slide 16: Change 7: Augmented Mobalyz management team
SA T ax i Change 7: Augmented Mobalyz management team Sean Doherty Sean Doherty joined Mobalyz as the Deputy CEO in January 2023. His responsibilities will include the day-to-day operations. This represents an exciting opportunity for Sean to run the business and grow the new mobility platform. Terr
Slide 17: Q&A
Q&A
Slide 18: 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
Transaction Capital — Debt Investor Presentation (March 2023) on 6ix