Nutun Limited · JSE:NTU
Nutun — Transsec 5 (RF) — Debt Investor Presentation (2021)
29 slides from Nutun's debt investor presentation, 2021
Slide 1: Transsec 5 (RF) Ltd Initial Issuance Presentation
2021 Transsec 5 (RF) Ltd Initial Issuance Presentation
Slide 2: 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 tap Transsec 5 665m issuance of initial target ZAR 4 533m ZAR 4 533m ZAR 528m issuance size ZAR 3 050m of [ZA
Slide 3: Transsec 5 Initial Transaction Information and Timing
TRANSSEC 5 INITIAL 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")
Slide 4: SA Taxi Business Update: Financial Highlights
SA TAXI BUSINESS UPDATE Financial highlights as at 30 September 2020 R12.2bn 32 890 R221m 11.8% 32.3% 7.3% Gross loans Number of loans Core headline Net interest Non-performing Credit loss ratio & advances on book earnings margin loans FY20 results reflect subdued performance as a result of COVID-19
Slide 5: SA Taxi Business Update: COVID-19 Environment
SA TAXI BUSINESS UPDATE COVID-19 Environment Minibus taxis are the primary mode of transport and continue to be even more important with the decline in available train services Monthly Land Transport Survey (LTS) data from Statistics South Africa (Stats SA) highlights a c. 13% cumulative annual decl
Slide 6: SA Taxi's Fleet Movement
SA TAXI BUSINESS UPDATE SA Taxi’s Fleet Movement Recovery in activity of minibus taxi fleet benchmarked against pre-COVID-19 levels Pre-lockdown Level 5 Level 4 Level 3 Level 2 Level 1 Risk-adjusted level 3 Operating vehicles1 (%) 102 101 100 100 101 101 101 100 101 101 103 100 100 104 102 101 103 1
Slide 7: SA Taxi Group Collections and NPLs
SA TAXI BUSINESS UPDATE SA Taxi Group Collections R395 000 87% 87% 89% 90% 82% 90% 76% 66% Pre-COVID forecast 46% 40% [Normalised forecast] COVID Forecast [Adjusted forecast] 20% Actual Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 SA Taxi Group NPLs 34.9% 33.2% 32.3%
Slide 8: Financed Vehicles per Brand and Originations
SA TAXI BUSINESS UPDATE SA Taxi’s current financed minibus vehicles per brand as at 30 September 2020 88% 3% 4% 5% Toyota Nissan Mercedes Benz Other Recommended retail prices for popular model (excluding extras) Toyota Ses’fikile R493 900 This price reflects the recommended retail price for a new di
Slide 9: Insurance and SA Taxi Auto Parts
SA TAXI BUSINESS UPDATE Insurance 64 000 R914 m >2 85% Policies on Gross written Products per Contribution to book premium customer NIR FY19 FY19 FY19 FY19 60 000 R833 m >2 77% • Broadened our client base with over 49 000 insurance clients (financed by SA Taxi and open market clients). • Mobilised t
Slide 10: Technology and Data
SA TAXI BUSINESS UPDATE Technology and Data >4.7m R914 m Kilometres driven Spatial data and tracked every points collected day every year • These capabilities underpin SA Taxi’s operations and are key to mitigating risk • SA Taxi has been tracking data for more than 11 years • SA Taxi continues to e
Slide 11: SA Taxi Is Positioned to Make a Positive Impact
SA TAXI IS POSITIONED TO MAKE A POSITIVE IMPACT The minibus taxi industry is almost exclusively comprised of black We empower SMEs through financial inclusion individuals who are underserved by traditional credit providers. SA Taxi provides credit to entrepreneurs who may not have previously been af
Slide 12: Transsec 5 Programme Overview
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 subordination
Slide 13: Transsec 5 Initial Issuance Indicative Asset Pool
TRANSSEC 5 INITIAL ISSUANCE INDICATIVE ASSET POOL Initial issuance asset pool All Participating Assets must meet the Eligibility Criteria and the Portfolio Covenants must be satisfied immediately following each sale. The tables below provide an overview of the provisional pool cut as at 13 April 202
Slide 14: Indicative Asset Pool (Continued)
TRANSSEC 5 INITIAL ISSUANCE INDICATIVE ASSET POOL [CONTINUED] Indicative consolidated portfolio vehicles per brand Indicative consolidated portfolio year of loan origination 66% 28% 1% 2015 2016 32% <1% 1% 2% 2017 2018 2019 2% 1% 2020 66% 2021 New Pre-owned Indicative consolidated portfolio vehicle
Slide 15: Indicative Asset Pool (Continued)
TRANSSEC 5 INITIAL ISSUANCE INDICATIVE ASSET POOL [CONTINUED] Indicative consolidated portfolio residual term of contract Indicative consolidated portfolio geographical concentration 85.1% 7.8% 9.8% 28.4% 22.9% 5.4% 8.4% 7.6% 8.5% 2.1% 2.8% 22.3% 20.7% 2.2% 2.7% 7.0% 5.5% 1.2% 0.6% 0.6% 10.5% 8.3% <
Slide 16: Transsec 5 Capital Structure Description
TRANSSEC 5 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 Facility may
Slide 17: Capital Structure Description: Tranching
TRANSSEC 5 CAPITAL STRUCTURE DESCRIPTION Tranching of the targeted issuance deal size of up to ZAR [800]m (including Subordinated Loan) Target Size Target CE1 Target Size Coupon Step-Up Final Legal Maturity Preliminary Note Description Target Rating (% of deal (% of total (ZAR’m) Date Date Price Gui
Slide 18: Contact List
CONTACT LIST SA Taxi Standard Bank Alex Otto Nicholas Gunning Capital Markets | Head Debt Capital Markets | Investment Banking | Manager Phone: +27 (0)82 389 9701 Phone: +27 (0)82 786 9267 Email: aotto@sataxi.co.za / alexo@transactioncapital.co.za Email: nicholas.gunning@standardbank.co.za Rish Naid
Slide 19: 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
Slide 20: Annexure A: Securitisation Programme Overview
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
Slide 21: 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
Slide 22: 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
Slide 23: 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
Slide 24: 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
Slide 25: 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
Slide 26: Annexure E: Capital Structure Positioning
ANNEXURE E: CAPITAL STRUCTURE POSITIONING Class A & Ω Notes as a percentage of total capital structure Transsec 5 (May '21) 69.00% Urban Ubomi 1 (Mar '21) 76.15% Thekwini 17 (Mar '21) 84.83% Thekwini 16 (Nov '20) 88.77% Thekwini 15 (Nov '20) 87.25% Capital Structure of other Securitisation Issuers 1
Slide 27: Annexure F: Transsec 4 Initial Issuance Auction Summary
ANNEXURE F: TRANSSEC 4 INITIAL ISSUANCE AUCTION SUMMARY ZAR2 349 billion total bids All bids for the tap issuance cleared at or below the bottom end of price guidance. 2.67x oversubscribed One new investor to the SA Taxi group. The Transsec 4 initial issuance WACC was the same as the total Transsec
Slide 28: 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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