Nutun Limited · JSE:NTU
Nutun — Transaction Capital — Debt Investor Presentation (January 2022)
36 slides from Nutun's debt investor presentation, January 2022
Slide 1: TransCapital Investments DMTN Roadshow
oO TransCapital oO Transaction Capital Investments DMTN Roadshow JANUARY 22
Slide 2: 2-3 - - - - -
2-3 4 - 10 11 - 16 17 - 20 21 - 22 23 - 35 1
Slide 3: Group Overview
Slide 4: Issuer and Guarantor structure
100% Guarantor Issuer The Issuer, a special purpose company, is a 100% held subsidiary of Transaction Capital, whose sole purpose is to raise funding by the issuance of notes under the Programme. The Issuer’s obligations pursuant to the Programme and the due and punctual payment of all amounts owing
Slide 5: Performance Overview
02) PERFOR! OVER
Slide 6: Robust earnings performance and resumed dividend payments
ROBUST EARNINGS PERFORMANCE RESUMED DIVIDEND PAYMENTS 4 121 CORE CORE HEADLINE EARNINGS¹ HEPS¹ 2 215 2 167 FY21 vs FY19 27% FY21 vs FY19 15% 1 769 1 525 1 275 1 000 688 CAGR FY14 – FY21 Core headline earnings¹ 21% Core HEPS¹ 18% Dividend per share 18% 108 129 148 52 16 46 22 64 30 78 4
Slide 7: Earnings recovery demonstrates resilience, relevance and responsiveness
Earnings recovery demonstrates R1.17 billion equity raised in July 2021 Dividends resumed resilience, relevance & responsiveness Invested in value accretive controlling Supported by strong performance stake in WeBuyCars & robust balance sheet Final dividend of 33 cps In line with dividend policy o
Slide 8: Composition of earnings
COMPOSITION OF EARNINGS 2021 2020 2019 SA Taxi TCRS GEO WeBuyCars Total earnings | 2021 Earnings attributable to TC | 2021 2020 Movement 2019 Movement Headline earnings (Group Ownership) Rm Rm Rm 2021 vs 2020 Rm 2021 vs 2019 SA Taxi1 (74.5%) 499 413 194 113% 466 11% TCRS2 (100%) 320 320 42 662
Slide 9: Volumes exceed pre COVID-19 levels
~100% ~100% ~96% ~30% ~91% ~78% ~91% ~14% 26% 20% 122 135 16% 4 931 4 977 7 627 5 064 7 356 4 862 80 2 248 5 347 2 031 5 903 2 334 8 093 1 064 2 382 2 520 1 052 3 441 653 257 716 194 521 294 716 ~0% 2019 2020 2021 2019 2020 2021 2019 2020 2021 Monthly vehicles repossessed Monthly loans originated Co
Slide 10: Highly relevant business models and leading positions in defensive market sectors
HIGHLY RELEVANT BUSINESS MODELS & LEADING POSITIONS IN DEFENSIVE MARKET SECTORS Executive office supports divisions to design, fund & Business models established over >20 years Business models well positioned in relation implement growth strategies to structural elements in SA’s environment Actively
Slide 11: Enhanced digital initiatives and transformation
ENHANCED DIGITAL INITIATIVES & TRANSFORMATION Measurable ESE reporting Ensure TC’s impacts are appropriately managed Enhance value creation for TC & its stakeholders Apply digital capabilities to respond Apply leading-edge analytics Targeting only SDGs aligned to core operations & strategy to shifti
Slide 12: Capital Management
Slide 13: Capital requirements and funding philosophy
CAPITAL REQUIREMENTS Transaction Capital’s conservative capital management strategy, tested and validated during FY20 and into FY21, has ensured a robust group balance sheet. The group’s undrawn debt facilities, alongside those available at SA Taxi, TCRS and WBC, provide ample capacity and liquidity
Slide 14: Diversification by debt investor category, geography and funding structure
DIVERSIFICATION BY DEBT INVESTOR CATEGORY & CAPITAL POOL DIVERSIFICATION BY GEOGRAPHY LOCAL INTERNATIONAL Institutional investors Rest of Africa Banks Europe Fixed income funds & asset managers Australia DFIs & impact investors US DIVERSIFICATION BY FUNDING STRUCTURE & INSTRUMENT POSITIVE LIQUIDITY
Slide 15: Undrawn facilities and capital light model
MAJORITY RELATES TO PROPERTY BACKED MORTGAGE LOANS & TRADE CREDITORS Equity 26.4% | Subordinated debt 3.1% Equity 15.9% | Subordinated debt 4.8% R870m approved undrawn facilities R2.7bn available undrawn facilities covering R736m available undrawn facilities covering Capital light business model at
Slide 16: Investor facilities, maturities and covenants
INVESTOR FACILITY PROVIDED MATURITY DATE FACILITY TYPE COVENANTS • Group EBITDA to Group Net Interest Ratio: >3 • Guarantor EBITDA to Guarantor Interest Ratio: >3 • Attributable Group NAV to Guarantor Net Debt Ratio: >4.9 • Guarantor Gross Debt < R2.5bn These covenants are the TCL RCF covenants that
Slide 17: TCL dividends and interest
450 1,600 400 1,400 350 Interest received: Bank TCL DIVIDENDS & INTEREST 1,200 300 Interest received: Intercompany CAPITAL RAISES 1,000 MILLIONS 250 WBC Dividends MILLIONS 800 200 TCRS Dividends 600 150 SAT Dividends 400 100 TOTAL Dividend & Interest income 50 200 CAPITAL RAISES 0 0 2018 2019 2020 2
Slide 18: DMTN Offering
Slide 19: Programme terms
Issuer TransCapital Investments Limited Guarantor Transaction Capital Limited Programme Type Domestic Medium Term Note Programme Programme Size ZAR2bn For so long as any Tranche of the Senior Notes remains Outstanding, the Issuer and the Guarantor undertakes not to create or permit the creation of a
Slide 20: Indicative offering terms
Issuer TransCapital Investments Limited Guarantor Transaction Capital Limited A-.za (GCR), positive ratings watch Credit rating Refer to slide 33 for rating summary Programme ZAR2 billion Indicative target issue size ZAR 400 million with the potential to upsize to ZAR 500m Indicative tenor 3-year /
Slide 21: Indicative dates
Indicative Dates Week beginning 17 January 2022 Investor roadshow Week beginning 24 January 2022 Termsheet without price guidance released to investors Week beginning 31 January 2022 Termsheet with price guidance released to investors 9 February 2022 Proposed Auction Date 14 February 2022 Settlement
Slide 22: Contacts
CONTA‘
Slide 23: Transaction Capital and Rand Merchant Bank contacts
TRANSACTION CAPITAL RAND MERCHANT BANK David Hurwitz Rish Naidoo Delia Patterson Chief Executive Officer Capital Markets | Head: Deal Origination Capital Markets | Distribution Phone: +27 (0) 11 049 6733 Phone: +27 (0)11 592 8460 Phone: +27 (0) 83 676 9595 Email: [email protected] Emai
Slide 24: Appendix
06 | APPEN
Slide 25: Strong organic growth above FY20, earnings nearing FY19 levels
Strong organic growth above FY20 | Earnings nearing FY19 levels Strong organic growth | Applying FY19 as a base Strong organic growth | Applying FY19 as a base 49.9% INVESTMENT ON 11 SEPTEMBER 2020 24.3% ADDITIONAL INVESTMENT ON 3 AUGUST 2021 2
Slide 26: WeBuyCars: value and earnings accretive investment
VALUE & EARNINGS ACCRETIVE INVESTMENT More consumers opting for used versus new vehicles New heights reached in several categories during FY21 New vehicle sales3 in September 2021 13.1% compared to 2019 levels • total revenue, vehicles bought & sold, Used vehicle sales4 in September 2021
Slide 27: SA Taxi: earnings nearing FY19 levels
EARNINGS NEARING FY19 LEVELS Minibus taxi industry indispensable to Applications exceeding pre COVID-19 levels for South Africa’s economic activity new & QRT minibus taxis Headline earnings attributable to group 113% to R413m • >16% in minibus taxi use from 2013 to 2020 Continued momentum in
Slide 28: TCRS: resilient performance in challenging environment
RESILIENT PERFORMANCE IN CHALLENGING ENVIRONMENT Structured to deliver in three key areas • Collections, transactions & business process outsource Collection services proved resilient in difficult environment services • FY21 collections revenue 8% (FY21 vs FY19 23%) Effective functioning of
Slide 29: Delivering shared value
DELIVERING SHARED VALUE Business model operationalises commitment to sustainable & inclusive growth • Consistently generating good commercial returns for clients & Our societal purpose is to enable mobility access Our societal purpose is to promote stable, across our industry value chains for millio
Slide 30: SA Taxi's vaccination centre and sustainable bond framework
SA TAXI’S VACCINATION CENTRE SUSTAINABLE BOND FRAMEWORK SA Taxi issued its 1st bond backed by a Sustainable Bond Framework Launch of SA Taxi Vaccination Centre in July 2021 in Midrand, Gauteng • Through Transsec 5 initial issuance • ~16 0001 Pfizer vaccines have been administered Milestones achieved
Slide 31: Promoting financial inclusion and sustainable credit supply
We promote financial inclusion by providing sustainable & responsible loans We support a sustainable supply of credit by unlocking value from our clients’ non-performing loans to SMEs who might otherwise be denied access to credit Selling their non-performing loan portfolios frees up operational cap
Slide 32: Supporting social inclusion and bettering industries we serve
| CONTINUED SUPPORTING SOCIAL INCLUSION BETTERING INDUSTRIES WE SERVE We support a critical public transport service We form partnerships that promote inclusivity & safety of the industry We are a trusted & respected partner We promote formalisation of the industry We focus on the rehabilitation & e
Slide 33: Inclusive hiring and climate resilience
WE HIRE INCLUSIVELY WE UNDERSTAND OUR IMPORTANT ROLE IN PROMOTING CLIMATE RESILIENCE The Transaction Capital board comprises 14 directors, of whom eight are non-executive directors & six are executive directors Our carbon footprint Methodology: GHG Protocol Consolidation approach: Operational contro
Slide 34: GCR rating summary
RATING SUMMARY “Johannesburg, 30 September 2021 - GCR Ratings (‘GCR’) has placed the ‘B’ long term International and ‘A-(ZA)’ long term National scale ratings on Ratings Watch Positive, pending the consolidation of We Buy Cars”. GCR Rated Entity / Issue Rating Class Rating Scale Rating Outlook / Wat
Slide 35: Agile response to COVID-19 and trajectory of high-quality earnings
Agile & flexible response to COVID-19, driven by culture of entrepreneurship, TC consolidating proportion of WeBuyCars innovation & integrity with ability to navigate volatile dynamics earnings No further operational adjustments required in FY21 to accommodate COVID-19 WeBuyCars to accelerate &
Slide 36: Forward-looking statements
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 described in
Transaction Capital — Debt Investor Presentation (January 2022) on 6ix