Nutun Limited · JSE:NTU
Nutun — Transaction Capital — FY2021 Earnings Presentation
84 slides from Nutun's earnings presentation, November 2021
Slide 1: Transaction Capital Results Presentation for the year ended 30 September 2021
oO Transaction Capital RESULTS PRESENTATION FOR THE YEAR ENDED 30 SEPTEMBER 21
Slide 2: Contents
SLIDE 2-14 SLIDE 15-22 SLIDE 23-30 SLIDE 31-40 SLIDE 41-42 SLIDE 43-82 1
Slide 3: Group performance overview
Ol) PERFOR! OVER RESULTS FOR THE YEAR ENDED 30 SEPTEMBER
Slide 4: Robust earnings performance, 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 30 16 46 22 64 78 40 9
Slide 5: 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 6: Earnings recovery demonstrates resilience, relevance & 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 7: Loan applications, repossessions & policy originations 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 3 441 653 294 257 716 194 521 716 ~0% 2019 2020 2021 2019 2020 2021 2019 2020 2021 Monthly vehicles repossessed Monthly loans originated Co
Slide 8: Investment into innovative businesses
Investment into innovative businesses Target value accretive investments in Target high growth fintech disruptors international markets Driving expansion into adjacent market segments Co-invest with off-shore based founders 74.2%1 74.5%2 100% 1. WeBuyCars is consolidated as a 74.2% subsidiary of the
Slide 9: 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 10: R870m approved undrawn facilities at holding company level
MAJORITY RELATES TO PROPERTY BACKED MORTGAGE LOANS & TRADE CREDITORS R870m approved undrawn facilities Available undrawn facilities covering Available undrawn facilities covering Capital light business model at holding company level for immediate loan origination requirements for FY22 acquisition of
Slide 11: Highly relevant business models & 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 12: Enhanced digital initiatives & transformation
ENHANCED DIGITAL INITIATIVES & TRANSFORMATION Measurable ESE reporting Refer to slide 74 - 79 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 operatio
Slide 13: Value & 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 14: 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 15: 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 16: WeBuyCars results
02 | WeBu RESULTS FOR THE YEAR ENDED 30 SEPTEMBER
Slide 17: Positive shift towards used vehicles
POSITIVE SHIFT TOWARDS USED VEHICLES1 Shift away from walking towards public transport Sources: 1. National Household Travel Survey 2020 | 2. Autotrader car industry report 2020/21 16
Slide 18: Shift from new to used vehicles
SHIFT FROM NEW TO USED VEHICLES SOUTH AFRICA’S VEHICLE PARC1 IS GROWING DESPITE NEW VEHICLE SALES OVER LAST 10 YEARS SHIFT FROM NEW TO USED VEHICLES Stressed economic environment EXCEEDS Price | Driven by exchange rates (~70% imported) Chip shortage for new vehicles More affordable optio
Slide 19: Geographic distribution of vehicle parc & pricing index
GEOGRAPHIC DISTRIBUTION OF THE VEHICLE PARC5 VEHICLE PRICING INDEX (VPI) & CONSUMER PRICE INDEX (CPI)³ 10% 6% ¹ 2 5% 39% 7% 5% 0% 5% 13% 2% (5%) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 7% Index - new (rate) ¹ Index - used (rate) 16% ³ CPI - base = Jan 2000 (rate) ³ NEW VS
Slide 20: WeBuyCars platform model
Private consumer Private consumer Stockholders with inventory on balance sheet Control buying & selling experience Stockholder Platform >3 000 dealers (~2 100 franchised) &/or Buy from private consumers: Dealership groups affiliated to OEMs platform • Digital lead generation Rental companies/ • Limi
Slide 21: WeBuyCars headline earnings, EBITDA & revenue
Headline earnings 32% • Initial 49.9% investment in WeBuyCars effective 11 September 2020 EBITDA 39% Revenue 32% • Additional 24.3% investment in WeBuyCars effective 3 August 2021 Stable margins despite strong growth • Options in place to acquire remaining 25.1% by FY26 • Stable margin
Slide 22: WeBuyCars operating metrics
E-commerce sales¹ >100% Vehicles bought 24% • Favourable structural market conditions Vehicles sold 23% Vehicle bays 25% • ~6 925 vehicles per month | October 2020 to March 2021 Average selling price per vehicle 8% • ~7 785 vehicles per month | April 2021 to September 2021 Advertising expe
Slide 23: Vehicle supermarket midstream & e-commerce
VEHICLE SUPERMARKET | MIDSTREAM Initial medium-term target for vehicles traded of 10 000 per month on track 92% to be realised sooner than initially anticipated DEALERS (B2B) Harness data & technology to drive e-commerce offering • penetration of e-commerce | ~30% online sales in FY21 (FY20: ~14
Slide 24: SA Taxi results
03 SA TAX! RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 21 Q ie Transsec 5 World Finance Sustainability Awards Inaugural social bond issuance on JSE’s in category of Most Sustainable Company sustainable segment through Transsec 5 in the Mobility Industry
Slide 25: Minibus taxi preferred form of transport
Preferred form of transport due to accessibility & flexibility ~15 million commuter trips daily³ Essential service with spend non-discretionary No government subsidy4 ¹ ¹ dissatisfaction around bus stop facilities ~670 000 commuter trips daily (15% from FY20)5 Receives 56% of government subs
Slide 26: New and pre-owned minibus taxi market supply
NEW PRE-OWNED 1. Total monthly market supply of minibus taxis comprises Toyota, Nissan & Mercedes vehicles, SA Taxi’s best estimate based on monthly NAAMSA reports, internal data & Lightstone | 2. SA Taxi internal information 25
Slide 27: Environment & lower commuter mobility impacting profitability
Environment & lower commuter mobility impacting profitability VEHICLE PRICES REPO RATE COVID-19 ¹ FARES SA TAXI’S INTEREST RATES⁴ ⁸ Challenging environment due to industry disruptions • COVID-19 restrictions, civil unrest & minibus taxi conflict FUEL PRICES INCLUDING FUEL LEVIES in
Slide 28: Minibus taxi industry indispensable during COVID-19
COVID-19 has proven that minibus taxi industry is indispensable to SA’s productivity & early beneficiary of economic recovery LOCKDOWN LEVELS IN 2020 RISK-ADJUSTED LOCKDOWN LEVELS IN 2021 NORM LEVEL 5 LEVEL 4 LEVEL 3 LEVEL 2 LEVEL 1 LEVEL 3 LEVEL 1 2 3 LEVEL 4 LEVEL 3 2 LEVEL 1 MAR APR MAY JUN JUL A
Slide 29: SA Taxi earnings and interest rates
44.8 50.0 44.1 • 109% to R499m | TC’s attributable portion 113% to R413m 12.2 12.0 11.8 • Weighted average interest rate3 at origination 20.1% (FY20: 22.4%; FY19: 23.7%) 11.1 • Change in product mix to QRT originations 9.8 • Funding costs to 7.9% (FY20: 9.8%; FY19: 11.1%) 9.0 › Historical lo
Slide 30: SA Taxi loan book and originations
R10.8bn R12.2bn R14.0bn • Toyota vehicle prices 4.0% in FY21 | Further 2.5% in October 2021 16% 26% 20% • Number of loans originated 37% (FY21 vs FY19: 0%) | Recovered to FY19 levels › Lower loan approval rates › Conservative credit quality focused on experienced taxi operators › Constrained
Slide 31: Opportunities for further vertical integration
Continue to assess opportunities for further vertical integration • Core business – finance, insurance, auto repairs, auto parts & dealership Development of bespoke products for minibus taxi industry • Through industry partnerships & collaboration Leverage 20+ years of IP to expand into new or adjac
Slide 32: Transaction Capital Risk Services results
OA TRANSACTION CAPITAL RISK SERVICES RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 21 Oo ae INVESTORS IN PEOPLE’ invest eople Silve
Slide 33: South African consumer environment
¹ IN SA ³ 34.4% unemployment rate 44.4% expanded definition discouraged work-seekers³ (FY20: 42%) (FY20: 2.47 million) Highest levels in 12 years ⁴ ⁵ New credit granted 21.3% 75.2% Credit granted by retailers 13% (FY20: 76%) 32.6% of credit applications approved (FY20: 38.7%) ⁵ 7.7% (FY2
Slide 34: Consumer credit stress by income segment
2 Average income R 4 929 R 12 468 R 33 894 (top 5%) % of total retail accounts (#) 53% 17% 11% % of total mortgage accounts (#) 6% 25% 67% 165% Debt-to-income ratio 17% 75% (88% secured) % defaulted 63% 45% 21% Credit stress indicator 3.7 months Credit card 10% defaulted in arrears balances by 2
Slide 35: National consumer credit rehabilitation prospect trends
SOUTH AFRICA’s NATIONAL CONSUMER CREDIT REHABILITATION PROSPECT TRENDS | QUARTER ON QUARTER No Percentage change (%) 0.4% 1.0% 0.8% 0.7% 0.2% change 0.4% 0.6% 0.5% 1.5% 0.4% 2.5% 3.7% 1.7% 1.3% 2.6% 1.1% Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 2
Slide 36: Australian and South African collections environment
Unemployment to 4.5% | Government support reducing work sought Hours worked showing pressure on employers to costs Predominantly employed | Lockdowns & government support programs creating uncertainty Government support programs renewed as lockdowns extended Positive response to non-voice & di
Slide 37: Master Data Universe - enriched data on each individual
MASTER DATA UNIVERSE (MDU) - ENRICHED DATA ON EACH INDIVIDUAL WHEN to contact | Right time to call & right day to pay Data sourced HOW to contact | Ongoing digital optimisation OTHER DATA SOURCES Data from Data is current, CREDIT Opportunity to from MDU • Positive consumer response to non-voice & di
Slide 38: Collection services diversification
COLLECTION TRANSACTIONAL BUSINESS PROCESS SERVICES SERVICES OUTSOURCE SERVICES COLLECTION SERVICES DIVERSIFICATION Contingency Contingency & FFS & FFS 16% Australia 23% SA 25% Australia 45 Australia 4% 1% NPL portfolios as principal NPL portfolios Other SA 71 Australia as principal 74% SA 57% SA Tel
Slide 39: NPL portfolio acquisitions and collection multiples
GROWTH TRAJECTORY TO SUPPORT FUTURE POSITIVE PERFORMANCE COLLECTION MULTIPLE VINTAGE PERFORMANCE¹ AS AT 30 SEPTEMBER 2021 6 370 2017 1.6 1.1 2.7 R356m book debts acquired (Rm) 5 181 Cost price of purchased 4 480 2018 1.4 1.3 2.7 R639m Rand million 122 135 2019 1.1 1.5 2.6 R1 064m 80 2020 0.8 2.8 3.6
Slide 40: TCRS collection services financial performance
98.8 79.7 80.6 62 • Revenue from collection services 8% (FY21 vs FY19 23%) 54 • SA collections revenue 21% (FY21 vs FY19 31%) 50 • Australia collections revenue 18% (FY21 vs FY19 4%) • Proactively restructured staff complement & infrastructure › Implemented highly effective
Slide 41: TCRS strategic priorities
COLLECTION TRANSACTIONAL BUSINESS PROCESS SERVICES SERVICES OUTSOURCE SERVICES • Accelerated acquisition of NPL portfolios › As sector dynamics in SA & Aus become clearer & return to pre COVID-19 levels of activity › In an underdeveloped & growing SA market › Small position in Aus & other internatio
Slide 42: Conclusion
05 CONCLL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER
Slide 43: Conclusion and outlook
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 44: Appendix
01 APPEN RESULTS FOR THE YEAR ENDED 30 SEPTEMBER
Slide 45: Appendix contents
SLIDE 45 SLIDE 46-55 SLIDE 56-65 SLIDE 66-70 SLIDE 71-73 SLIDE 74-79 SLIDE 80-82 44
Slide 46: Transaction Capital unique investment case
TRANSACTION CAPITAL | COMPELLING & UNIQUE INVESTMENT CASE oO Transaction Capital Identifies, invests in & operates a diversified portfolio of high-potential, digitally advantaged & context-relevant businesses, in defensive & high-stigma market sectors with historically low levels of stakeholder trus
Slide 47: Appendix: WeBuyCars
02 | APPEl WeBu RESULTS FOR THE YEAR ENDED 30 SEPTEMBER
Slide 48: South Africa's trusted trader of used vehicles
IS SOUTH AFRICA’S TRUSTED TRADER OF USED VEHICLES THROUGH ITS DATA & TECHNOLOGY-LED VERTICALLY INTEGRATED PHYSICAL & E-COMMERCE INFRASTRUCTURE 47
Slide 49: Scalable technology led platform
1. PROPRIETARY DATA 4. EXPANSIVE INFRASTRUCTURE Leveraging ~20 years of vehicle, price, consumer Holding a large variety & quantum of stock & other data with AI & machine learning PHYSICAL INFRASTRUCTURE Continuously enriched with buying & selling • Nationwide presence transactional data obtained fr
Slide 50: WeBuyCars investment structure and options
25.1% to be acquired in various tranches at specific intervals during Initial 49.9% investment of R1.8 billion FY23, FY24 & FY26 ¹ Put option to acquire 7.5% in FY23 Additional 24.3% investment of R1.6 billion Put or call option to acquire 7.5% in FY24 • Based upon assumed WeBuyCars FY21 & FY2
Slide 51: WeBuyCars unique in SA with international peers
WeBuyCars business model unique in SA with comparable international peers Europe Revenue Vehicles sold 2020/1 (US$) (‘000) United States Revenue Vehicles sold P 3.3bn³ 447 2020/1 (US$) (‘000) Asia / Pacific Revenue Vehicles sold 2 M 4.1bn³ 231 2020 (US$) (‘000) 1 E 19bn 752 F 9.3bn³ 1708 F 33m7 n/a
Slide 52: Business model comparison with peers
E-commerce & physical model E-commerce & physical model E-commerce & physical model E-commerce & physical model E-commerce model F&I products as an agent F&I products as an agent Vertically integrated Vertically integrated Vertically integrated Stockholder Stockholder On-balance sheet financing On-b
Slide 53: Selling and buying journey
SELLING JOURNEY APPLY ONLINE SEAMLESS EXPERIENCE QUICK & EASY OBLIGATION-FREE OFFER Driven by lead generation Priced by AI Buying pods & Vehicle supermarkets Immediate cash settlement Trusted brand facilitating peace-of-mind Hasstle-free & convenient process BUYING JOURNEY Bid live on auction or Tru
Slide 54: E-commerce platform, vehicle supermarkets, buying pods
E-COMMERCE PLATFORM 100% data driven processes | Proprietary pricing algorithms Online solution allows to buy, sell, exchange or finance vehicle & offers F&I products 1 VEHICLE SUPERMARKETS Vehicles sold directly to private consumers & other dealerships | Highly visible, modular & modern BUYING PO
Slide 55: Acquisition of the Dome and expansion
Acquisition of the Dome in Northgate, Johannesburg during July 2021 One of biggest used vehicle supermarkets in the World | Capacity: ~1 400 parking bays WeBuyCars Dome to open in December 2021 Launch of new high quality designed buying pod in Gauteng | Modular & modern national market presence in
Slide 56: Finance and insurance partners
FINANCE PARTNERS INSURANCE PARTNERS Vehicle insurance Insurance License Provider for credit life Warranty Presence of banks in all WeBuyCars vehicle supermarkets Scratch & dent • WeBuyCars earns commission on successful financing deals Tyre & rim WeBuyCars to offer F&I products as principal in futur
Slide 57: Appendix: SA Taxi
03 | APPE SA 1 RESULTS FOR THE YEAR ENDED 30 SEPTEMBER Oo (A Tran rx Q 'ranssee 2 World Finance Sustainability Awards Inaugural social bond issuance on JSE’s in category of Most Sustainable Company sustainable segment through Transsec 5 in the Mobility Industry
Slide 58: Vertically integrated business platform for minibus taxi operators
IS A VERTICALLY INTEGRATED BUSINESS PLATFORM UTILISING SPECIALIST CAPABILITIES, ENRICHED PROPRIETARY DATA & TECHNOLOGY TO PROVIDE DEVELOPMENTAL FINANCE, INSURANCE & OTHER SERVICES TO EMPOWER SME MINIBUS TAXI OPERATORS, THUS SUPPORTING THE SUSTAINABILITY OF THE MINIBUS TAXI INDUSTRY 57
Slide 59: Public transport fares and commuter modes
LOWER LSM CONSUMERS SPEND ~40% OF MONTHLY HOUSEHOLD INCOME ON PUBLIC TRANSPORT FARES COMMUTER TRIPS VIA BUS & RAIL OFTEN TRAVEL FIRST & LAST KM UTILISING MINIBUS TAXIS Personal vehicles Top 3 factors influencing Minibus taxi Bus Train (drivers) Walk choice of mode of transport % using as main mode o
Slide 60: Developmental credit driving positive social impact
DEVELOPMENTAL CREDIT DRIVING POSITIVE SOCIAL IMPACT INCLUSIVE GROWTH | ECONOMIC TRANSFORMATION PROPORTION OF CUSTOMERS CLASSIFIED Proportion of customer base AS PREVIOUSLY FINANCIALLY EXCLUDED Average score Score below which at which SA Taxi traditional banks are grants finance unlikely to offer
Slide 61: New and pre-owned minibus taxis
NEW MINIBUS TAXI SA Taxi Direct sells new minibus taxis & QRT’s SA Taxi’s QRTs: • Rebuilt to a high-quality • Trusted product in the minibus taxi industry • Provides a reliable & affordable alternative in this challenging environment (vs. purchasing a new minibus taxi) Vehicles sold through SA Tax
Slide 62: SA Taxi Auto Repairs
SA TAXI AUTO REPAIRS | AUTOBODY One of the largest autobody repair & mechanical refurbishment facilities in Southern Africa SA TAXI AUTO REPAIRS | MECHANICAL Focusing exclusively on minibus taxis Rebuilding high quality renewed minibus taxis, mitigates credit risk & insurance losses • loss given d
Slide 63: Telematics & technology, insurance competitive advantage
TELEMATICS & TECHNOLOGY Telematics utilised for insurance underwriting, premium pricing & prevention & detection of loss events Competitive priced insurance premiums • Premiums in comprehensive vehicle insurance remained stable • Premiums across special risk products SA TAXI AUTO REPAIRS custome
Slide 64: SA Taxi Auto Parts and salvage
SA TAXI AUTO PARTS | SALVAGE | SALVAGE OPERATIONS ESTABLISHED THEREAFTER Import & locally procure new parts from source at cost Salvage used parts from vehicles not economically viable to repair credit losses & cost of insurance claims SA TAXI AUTO PARTS | RETAIL Exposes SA Taxi’s brand & serv
Slide 65: SANTACO & SA Taxi delivering sustainable benefits
SANTACO & SA TAXI DELIVERING SUSTAINABLE BENEFITS TO SA TAXI CLIENTS & THE INDUSTRY FUEL PROGRAMME Direct benefits for the industry resulting from ownership transaction between SA Taxi & SANTACO Leverage industry’s purchasing power to negotiate better pricing to benefit minibus taxi operators & asso
Slide 66: SA Taxi customer distribution and typical credit agreement
SA TAXI GEOGRAPHIC DISTRIBUTION TYPICAL NEW CREDIT AGREEMENT² Recommended retail price2 Finance instalment R12 461 Gauteng (Toyota diesel incl. VAT) R510 417 KwaZulu-Natal Insurance instalment R2 979 Interest charged 19.5% (Comprehensive, credit life & other) Mpumalanga SA TAXI Western Cape Term in
Slide 67: Appendix: Transaction Capital Risk Services
04] APPENDIX TRANSACTION CAPITAL RISK SERVICES RESULTS FOR THE YEAR ENDED 30 SEPTEMBER ae INVESTORS IN PEOPLE’ invest eople Silve
Slide 68: TCRS digitally enabled business services
COMBINES ITS UNIQUE TECHNOLOGY, DATA & ANALYTICS COMPETENCIES TO PROVIDE A RANGE OF DIGITALLY ENABLED BUSINESS SERVICES AS A TRUSTED PARTNER TO A GLOBAL CLIENT BASE & CONTRIBUTING TO THE FINANCIAL SUSTAINABILITY OF THE COMMUNITIES WE SERVE 67
Slide 69: TCRS performance and data capabilities
Database of SA’s distressed consumers Continuously enriched (with collection & contactAbility results) Predictive & layered voice analytics to determine: Only local listed industry participant • Propensity to pay • Dynamic matter prioritisation Diverse range of local & international stakeholders • R
Slide 70: NPL portfolio acquisition by buyer
Buyer $million Buyer $million ⁵ Encore Capital ~$660m2 Intrum ~$583m Buyer $million PRA Group ~$905m2 Hoist Finance ~$199m Credit Corp ~$176m3 Credit Corp ~$45m Axactor ~$240m Collection House ~$0m6 Arrow Global ~$127m Pioneer Credit ~$23m Other ~$35m Recoveries Corp ~$9m4 THE ACQUISITION OF NPL POR
Slide 71: International NPL expansion and funding secured
TCRS’s funding requirements for the acquisition of NPL portfolios in South Africa & Australia in FY22 already secured European collections market significantly > than SA’s Small position in large market provides meaningful opportunity Australia collections market significantly > than SA’s Maintain c
Slide 72: Appendix: Capital management
05) APPEN CAPIT MANAGEN RESULTS FOR THE YEAR ENDED 30 SEPTEMBER
Slide 73: Funding diversification and liquidity mismatch
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 74: Debt investors and funding instruments
16 debt investors 2 debt investors 16 debt investors 10 debt investors Banks Banks DFIs & impact funders Banks Institutional investors Banks Institutional investors Fixed income funds & asset managers Fixed income funds & asset managers Fixed income funds & asset managers Rated & listed securitisati
Slide 75: Appendix: Economic, social & environmental impact
06) APPEN ECONOMIC, & ENVIRON! IMPA RESULTS FOR THE YEAR ENDED 30 SEPTEMBER
Slide 76: 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 77: 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 78: Promoting financial inclusion and sustainable credit
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 79: Supporting social inclusion, 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 80: 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 81: Glossary
07 | GLOSS/ RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 21
Slide 82: Glossary of terms
AUS Australia CPS Cents per share B2B Business-to-business (vehicle dealerships) A vehicle inspection certification providing information on the mechanical & DEKRA Report technical status of the vehicle B2C Business-to-consumer EBITDA Earnings Before Interest, Taxes, Depreciation, & Amortisation CAG
Slide 83: Glossary of terms (continued)
Non-performing consumer loan portfolios acquired by TCRS to be collected TC Transaction Capital NPL portfolio as principal Open market TCRS Transaction Capital Risk Services Minibus taxi operator not previously an SA Taxi client taxi operator Additional gross margin earned on value-added products &
Slide 84: Forward-looking statements 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 described in