Nutun Limited · JSE:NTU
Nutun — Transaction Capital — Investor Day (June 2017)
39 slides from Nutun's investor day presentation, Jun 13, 2017
Slide 1: Transaction Capital Risk Services Investor Day
TRANSACTION CAPITAL RISK SERVICES INVESTOR DAY 13 JUNE 2017
Slide 2: Agenda
AGENDA TUESDAY 13 JUNE 2017 14h00 – 14h30 Introduction to Transaction Capital Risk Services (TCRS) (Auditorium) Dave McAlpin (Chief executive TCRS) 14h00 – 15h15 Call centre walk-through Dave McAlpin, Carl de Villiers, Mark Conradie, Rob Monteith, Niels von Hase 15h15 – 16h15 Data & technology demon
Slide 3: Introduction to the Business
INTRODUCTION TO THE BUSINESS DAVE McALPIN (CHIEF EXECUTIVE)
Slide 4: Transaction Capital Risk Services (TCRS)
TRANSACTION CAPITAL RISK SERVICES (TCRS) 1 Innovative & bespoke TRANSACTION CAPITAL technology systems that drive superior performance RISK SERVICES IS A & efficiency TECHNOLOGY-LED, 4 Assisting its clients by accelerating Generating in-depth insights cash flow as an agent on an outsourced 2 from th
Slide 5: Environment & Market Context: Challenging Consumer Credit Environment
ENVIRONMENT & MARKET CONTEXT CHALLENGING CONSUMER CREDIT ENVIRONMENT IN SOUTH AFRICA, OF THE 35 MILLION ADULTS1 THERE ARE: 9.8 MILLION NON-PERFORMING CREDIT CONSUMERS (NCR Q4 2016) 24 MILLION OVER 11 MILLION SOUTH AFRICANS DESCRIBED AS “OVER-INDEBTED” (UP FROM 5 MILLION IN 2014) CREDIT ACTIVE CONSUM
Slide 6: TCRS' Evolution Since Listing
TCRS’ EVOLUTION SINCE LISTING MANAGEMENT INTERVENTIONS TO CREATE VALUE November 2015 December 2016 Early adoption of IFRS 9 Entered value added services market CAGR HY12 to HY17: December 2015 via 75% acquisition of Road Cover Headline earnings ▲18% TCR achieves level 3 B-BBEE rating December 2016 O
Slide 7: Client Engagement Model March 2014
TCRS’ DIVERSIFIED BUSINESS MODEL 31 MARCH 2014 ORIGINATE MANAGE COLLECT LEAD GENERATION & PAYMENT & ACCOUNT MANAGEMENT COLLECTION SERVICES R16 CUSTOMER ACQUISITION BILLION Contingency & fee-for-service Telcos Telcos collections Specialist South Africa 2%10% Insurance lending 22% Insurance 16% Other
Slide 8: Client Engagement Model March 2017
TCRS’ DIVERSIFIED BUSINESS MODEL 31 MARCH 2017 ORIGINATE MANAGE COLLECT LEAD GENERATION & PAYMENT & ACCOUNT MANAGEMENT COLLECTION SERVICES A$600 CUSTOMER ACQUISITION MILLION 18% Insurance 20% Public sector R14 Telcos & specialist lending Insurance Specialist Insurance AUSTRALIA² 31% Utilities and te
Slide 9: TCRS Operates in a Highly Fragmented Market
TCRS OPERATES IN A HIGHLY FRAGMENTED MARKET DOMINATING ACROSS MULTIPLE METRICS NUMBER OF REGISTERED DEBT COLLECTORS & EMPLOYEES 1 1680 439 Accenture Services 910 Blake 857 254 Real People 832 668 ARA 774 576 VeriCred Collections 749 VVM 555 Shapiro Shaik Defries 526 Nimble 421 1179 Credit Solutions
Slide 10: TCRS Infrastructure: Scalability & Flexibility
TCRS INFRASTRUCTURE SCALABILITY & FLEXIBILITY • Direct staff › Quick to train › Quick to scale • 60 days to build a fully ~550 000 ~500 000 ~R2.2 BILLION operational call centre PAYMENTS RECEIVED DEBIT ORDERS & NAEDO OF PAYMENTS PROCESSED EACH MONTH TRANSACTIONS PROCESSED FOR CLIENTS EACH MONTH with
Slide 11: Investment into People
INVESTMENT INTO PEOPLE 2016 HIGHLIGHTS TCRS 294 promotions of which 172 are women 90% of high potential employees retained 72% of employees are women 92% of employees are black1 103 training programmes conducted 76 training hours per employee 98% of employees who received training are black¹ Gender
Slide 12: Data, Analytics & Scalable Technology Platform
DATA, ANALYTICS & SCALABLE TECHNOLOGY PLATFORM CAMPAIGN BUILDER MASTER DATA UNIVERSE (MDU) Data sourced from MDU Predictive analytics to for maximised determine: ContactAbility 9.2 MILLION 94% 1 in 4 • Optimised campaign • Propensity to pay UNIQUE & VALID ID NUMBERS COVERAGE OF SOUTH AFRICA’S South
Slide 13: Call Centre Walk-Through
_ a CY CO ON TRANSACTION RISK i SE
Slide 14: Data & Technology Demonstration
DATA & TECHNOLOGY DEMONSTRATION ROB MONTEITH (CHIEF INFORMATION OFFICER)
Slide 15: Scalable Technology Collections Platform
SCALABLE TECHNOLOGY COLLECTIONS PLATFORM 1 CORE 2 CAMPAIGN 3 DIALER & WORK- TRANSACTIONAL BUILDER FORCE MANAGEMENT TECHNOLOGY SYSTEM • Real time management tools • Enhances scale of • Customised per client • Automated messaging ContactAbility 1 • Ease of use • Champion Challenging • Schedule the wor
Slide 16: Scalable Technology Collections Platform
SCALABLE TECHNOLOGY COLLECTIONS PLATFORM 1 CORE 2 CAMPAIGN 3 DIALER & WORK- TRANSACTIONAL BUILDER FORCE MANAGEMENT TECHNOLOGY SYSTEM • Real time management tools • Enhances scale of • Customised per client • Automated messaging ContactAbility 1 • Ease of use • Champion Challenging • Schedule the wor
Slide 17: Core Transactional System: Landing Screen
CORE TRANSACTIONAL SYSTEM LANDING SCREEN CHEETAH 17
Slide 18: Core Transactional System: Discount Module
CORE TRANSACTIONAL SYSTEM DISCOUNT MODULE 18
Slide 19: Core Transactional System: Interest & Fees
CORE TRANSACTIONAL SYSTEM INTEREST & FEES 19
Slide 20: Core Transactional System
CORE TRANSACTIONAL SYSTEM 20
Slide 21: Core Transactional System: Capture Once-off Promise to Pay
CORE TRANSACTIONAL SYSTEM CAPTURE ONCE-OFF PROMISE TO PAY (PTP) 21
Slide 22: Core Transactional System
CORE TRANSACTIONAL SYSTEM 22
Slide 23: Scalable Technology Collections Platform
SCALABLE TECHNOLOGY COLLECTIONS PLATFORM 1 CORE 2 CAMPAIGN 3 DIALER & WORK- TRANSACTIONAL BUILDER FORCE MANAGEMENT TECHNOLOGY SYSTEM • Real time management tools • Enhances scale of • Customised per client • Automated messaging ContactAbility 1 • Ease of use • Champion Challenging • Schedule the wor
Slide 24: Campaign Builder: Prioritised Automatic Scheduling System
CAMPAIGN BUILDER PRIORITISED AUTOMATIC SCHEDULING SYSTEM 24
Slide 25: Campaign Builder: Prioritised Automatic Scheduling System
CAMPAIGN BUILDER PRIORITISED AUTOMATIC SCHEDULING SYSTEM 25
Slide 26: Scalable Technology Collections Platform
SCALABLE TECHNOLOGY COLLECTIONS PLATFORM 1 CORE 2 CAMPAIGN 3 DIALER & WORK- TRANSACTIONAL BUILDER FORCE MANAGEMENT TECHNOLOGY SYSTEM • Real time management tools • Enhances scale of • Customised per client • Automated messaging ContactAbility 1 • Ease of use • Champion Challenging • Schedule the wor
Slide 27: Dialer Management Console
DIALER MANAGEMENT CONSOLE 27
Slide 28: Workforce Management System
WORKFORCE MANAGEMENT SYSTEM PREDICTED AGENTS ROSTER FOR THE FOLLOWING WEEK Mon Tues Wed Thurs Fri Sat Sun Name Payroll Team Strand name 05 Jun 2017 06 Jun 2017 07 Jun 2017 08 Jun 2017 09 Jun 2017 10 Jun 2017 11 Jun 2017 REBONES1 XFQZ MAFIKA NKOSI ASJD 0730-1500 0730-1500 1500-2030 0900-1430 0730-150
Slide 29: Scalable Technology Collections Platform
SCALABLE TECHNOLOGY COLLECTIONS PLATFORM 1 CORE 2 CAMPAIGN 3 DIALER & WORK- TRANSACTIONAL BUILDER FORCE MANAGEMENT TECHNOLOGY SYSTEM • Real time management tools • Enhances scale of • Customised per client • Automated messaging ContactAbility 1 • Ease of use • Champion Challenging • Schedule the wor
Slide 30: Real-Time Mobile Device for Managers
REAL-TIME MOBILE DEVICE FOR MANAGERS 30
Slide 31: Agent Summary
AGENT SUMMARY © Transaction Capital Risk Services an, Tin ane ae mT OR tar int am 50 @ soe fon ios Sm ae 8 aoe tao im om mo ae tes im in a Ose yea ime im 7m 0 see tio it ae sO aes tee ian Ge & 0 ae ioe ap ie Me © 28 Sim ine e200 aN tor int im ae aN for ist 99 © Son ton laser om 985 iXvave 11088 S58
Slide 32: Scalable Technology Collections Platform
SCALABLE TECHNOLOGY COLLECTIONS PLATFORM 1 CORE 2 CAMPAIGN 3 DIALER & WORK- TRANSACTIONAL BUILDER FORCE MANAGEMENT TECHNOLOGY SYSTEM • Real time management tools • Enhances scale of • Customised per client • Automated messaging ContactAbility 1 • Ease of use • Champion Challenging • Schedule the wor
Slide 33: Enabled Over Any Omni-Channel
ENABLED OVER ANY OMNI-CHANNEL VOICE AT SCALE • ~1 000 000 out bound calls per day • ~ 300 000 connected calls to a live person per day • ~ 60 000 confirmed Right Party Contacts (RPC’s) per day • ~ 40 000 payment commitments (PTP’s) per day SMS • ~ 16 000 000 SMS per month as batch or individual trig
Slide 34: Scalable Technology Collections Platform
SCALABLE TECHNOLOGY COLLECTIONS PLATFORM 1 CORE 2 CAMPAIGN 3 DIALER & WORK- TRANSACTIONAL BUILDER FORCE MANAGEMENT TECHNOLOGY SYSTEM • Real time management tools • Enhances scale of • Customised per client • Automated messaging ContactAbility 1 • Ease of use • Champion Challenging • Schedule the wor
Slide 35: Collections
COLLECTIONS • We operate & experiment with all available payment channels › From traditional bank accounts, through client retail infrastructure, through payment portals, to Kazang (spaza shops) • Debit order & NAEDO › TCRS manages a NAEDO strategy that varies each month › This is managed through ou
Slide 36: Conclusion
CONCLUSION DAVE McALPIN (CHIEF EXECUTIVE)
Slide 37: Summarising TCRS' Market Positioning & Competitive Advantage
SUMMARISING TCRS’ MARKET POSITIONING & COMPETITIVE ADVANTAGE CONCLUSION DATA & ANALYTICS Generating in-depth insights from the continuous collection of accurate & valuable data to develop a consolidated view of an individual that enables precise & informed internal & external decisioning TECHNOLOGY
Slide 38: Questions
“ ll _ > i 2 ac <i 2 i <i a TH RVICE TRANSACTION CAPITAL RISK SE
Slide 39: Disclaimer
DISCLAIMER This presentation may contain certain "forward-looking statements" regarding beliefs or expectations of the TC Group, its directors and other members of its senior management about the TC Group's financial condition, results of operations, cash flow, strategy and business and the transact