Nutun Limited · JSE:NTU
Nutun — WeBuyCars — Merger or Acquisition (February 2024)
27 slides from Nutun's merger presentation, February 2024
Slide 1: Investor Presentation WeBuyCars
Wide Audience Investor Presentation WeBuyCars February 2024
Slide 2: Overview of WeBuyCars Presenters
Overview of WeBuyCars Presenters Introduction FAAN VAN DER WALT CHRIS REIN WYNAND BEUKES Chief Executive Officer Chief Financial Officer Chief Digital Officer 1
Slide 3: Anticipated WeBuyCars Transaction Timeline
Anticipated WeBuyCars Transaction Timeline The proposed transaction including the listing will be concluded by early April 2024 Transaction Capital announces Transaction unbundling Capital We Buy Cars (cautionary) Investor shareholder Holdings lists engagements meeting on the JSE Late Jan 2024 Mid F
Slide 4: The WeBuyCars Story
The WeBuyCars Story From a family-owned business, WeBuyCars has grown into SA’s leading pre-owned vehicle trader 2001 2001 • WeBuyCars founded 2010 by the van der Walt 2010 • 1st supermarket built in Pretoria - capacity 100 vehicles. brothers. 2011 2011 2014 • Capacity expanded - 700 vehicles. • Exp
Slide 5: WeBuyCars Today
WeBuyCars Today WeBuyCars spans South Africa with a robust multi-channel strategy, connecting seamlessly with a diverse customer base 2,817 employees c. 10%-12% market share and growing 23 years of buying and 345 buyers nationally selling vehicles WeBuyCars recently launched operations in Namibia 15
Slide 6: Market Positioning
WeBuyCars Market Positioning SA’s vehicle parc2 is growing despite reduction in new vehicle sales Vehicle sales (CAGR)1 Used vehicle New vehicle 1250 000 10 year 1.8% 10 year 0.5% 5 year 1.4% 5 year 1.1% 1000 000 750 000 500 000 250 000 - 2005 2010 2015 2020 2022 New vehicle sales Pre-owned
Slide 7: Market Positioning (continued)
WeBuyCars Market Positioning (continued) Select Listed Players USA South Africa Europe Motus and CMH are not seen as directly comparable to WeBuyCars as they offer different products and services outside of sales of pre-owned vehicles. This includes new vehicles as well as rentals etc. Peers Relianc
Slide 8: Growth Strategy
WeBuyCars Growth Strategy WeBuyCars has many levers and opportunities for continued organic growth and is the market leader in pre-owned vehicles Market Share target of c. 23% by FY28, currently at c. 10% - 12% (FY28: 22k vehicles sold per month) Drive Expand Product Offering Physical Expansion Curr
Slide 9: Growth Strategy (continued)
WeBuyCars Growth Strategy (continued) Consistent trend of channel distribution and market share growth Channel Distribution Sales to dealerships (c. 20-25% of current FY21A FY22A FY23 sales) typically increases liquidity and together with the ability to leverage 141 k customer sales creates a strate
Slide 10: Power of digital real-estate
WeBuyCars - Power of digital real-estate Digital business platform enables economies of scale - scalability of IT-infrastructure is infinite. Automation, experimentation & optimization developed in-house using latest technologies in computer vision, deep learning, large language models, machine lear
Slide 11: Growth of WeBuyCars: 2010 to 2023
Growth of WeBuyCars: 2010 to 2023 WeBuyCars has grown market share and profits exponentially 25 000 150 000 Revenue and units sold 20 000 R20.0bn REVENUE (R’ MILLIONS) R17.9bn 100 000 UNITS SOLD 15 000 R10.7bn 10 000 50 000 5 000 - - FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21A FY22A FY23
Slide 12: Income Statement and Cash Generation
WeBuyCars Income Statement and Cash Generation Operating performance and cash flow conversion 1 400 1 184 1 147 1 200 1 105 1 030 1 000 824 780 762 800 660 541 600 400 200 0 FY21A FY22A FY23 EBITDA Operating profit Core profit after tax 596 90% Cash Conversion (%) 70% Major working capital required
Slide 13: Robust Balance Sheet
WeBuyCars Robust Balance Sheet WeBuyCars has maintained a strong balance sheet with enhanced cash conversion in FY2023A 5 588 6 012 4 059 3 602 3 123 2 381 2 465 2 410 1 678 1 386 1 251 608 FY21A FY22A FY23 Net Debt Total Equity Total Assets Total Liabilities Cash Conversion Cycle 35 30 Debtors and
Slide 14: Summary - Vision and Ambition
WeBuyCars Summary - Vision and Ambition Our ambition is to double market share from c. 10% - 12% currently to c. 23% by FY28 Well positioned to benefit from pre-owned vehicle trends in the motor industry Established relationships and brand with SA consumers to enable growth initiatives Continue to l
Slide 15: You are invited to a site visit at The Dome
You are invited to a site visit at The Dome The Dome is the largest vehicle supermarket in Africa, housing 1500 bays Where: WeBuyCars Dome, Northumberland When: Thursday, 22 February 2024 Rd and, Olievenhout Ave, North Riding, (11am – 12pm) Randburg, 2161 Please confirm attendance at info@webuycars.
Slide 16: Q&A
Q&A
Slide 17: Annexures to the presentation
Annexures to the presentation
Slide 18: Investment case Summary
WeBuyCars – Investment case Summary WeBuyCars has disrupted the pre-owned vehicle market by creating a household brand while utilising cutting-edge technology Investment Case • Reputable, trusted, household brand in the South African market. • Continued growth in revenue and bottom-line, with room t
Slide 19: Technology Summary
WeBuyCars – Technology Summary WeBuyCars has disrupted the pre-owned vehicle market by creating a household brand while utilising cutting-edge technology Technology Driven • 20+ years of proprietary data enabling a data driven business. • Purpose built, in-house developed digital business platform,
Slide 20: Growth Summary
WeBuyCars – Growth Summary WeBuyCars has disrupted the pre-owned vehicle market by creating a household brand while utilising cutting-edge technology Growth Strategy • Double market share from c. 10% - 12% to c. 23% by FY28. • Increase the physical footprint across South Africa whilst targeting stra
Slide 21: Financial Summary
WeBuyCars – Financial Summary WeBuyCars has disrupted the pre-owned vehicle market by creating a household brand while utilising cutting-edge technology Robust Financials • Sustained revenue and net profit growth driven by sales volumes and economies of scale. • High correlation between net profit a
Slide 22: Robust Balance Sheet
WeBuyCars Robust Balance Sheet WeBuyCars balance sheet exhibits high liquidity, solvency and low gearing levels Liquidity Gearing Solvency ROE 33% 2,83 48% 2,34 2,42 2,49 39% 2,27 23% 23% 1,90 32% Current Ratio Debt/Equity Assets/Liabilities Core Return on Equity FY21A FY22A FY23A Profitability WeBu
Slide 23: Experienced, entrepreneurial management team
WeBuyCars Experienced, entrepreneurial management team Wider Management team that has the relevant experience and contribute to the entrepreneurial excellence FAAN VAN DER WALT (49) CHRIS REIN (53) Dr. WYNAND BEUKES (46) DIRK VAN DER WALT (52) Chief Executive Officer Chief Financial Officer Chief Di
Slide 24: Economic, Social, Environmental and Governance
WeBuyCars Economic, Social, Environmental and Governance1 Societal purpose: To accelerate sustainable mobility through innovation, simplicity, and trust. Governance Promoting climate resilience • WeBuyCars is a well-known and trusted brand in an industry where • Solar PV installed at 9 of the 15 sup
Slide 25: Simplified Structure – Pre and Post Listing
WeBuyCars Simplified Structure – Pre and Post Listing Existing TC shareholders will receive new shares in WeBuyCars (listed) Transaction Capital Ltd 100% I VDW Holdings (Pty) Ltd Transaction Capital I VDW Holdings (Pty) Ltd Existing TC Shareholders New Investors (WeBuyCars Founders) Motor Holdco (Pt
Slide 26: Contacts
Contacts IMPORTANT NOTICE Should you have any questions on the presentation, please contact PSG Capital: Terence Kretzmann: Email: terencek@psgcapital.com Mobile: 081 831 2709 Calvin Craig: Email: calvinc@psgcapital.com Mobile: 072 959 8198 25
Slide 27: Disclaimer
Disclaimer IMPORTANT NOTICE This presentation has been prepared by, and is subject to the copyright of, WeBuyCars. No part of this presentation may be reproduced, transmitted, stored in a retrieval system or translated in any other language in any form, by any means without the prior written consent