Nutun Limited · JSE:NTU

Nutun — Transaction Capital — FY2019 Earnings Presentation

66 slides from Nutun's earnings presentation, November 2019

  1. Slide 1: Results Presentation for the year ended 30 September 2019

    TRA NSA CTI ON CA PI TA L RESULTS PRESENTATION 2019 FOR THE YEAR ENDED 30 SEPTEMBER

  2. Slide 2: Group Highlights

    GROUP HIGHLIGHTS 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  3. Slide 3: Financial Highlights

    FINANCIAL HIGHLIGHTS 3 FY19 COMPARED TO FY18 R446 million R803 million R313 million HEADLINE EARNINGS ATTRIBUTABLE TO GROUP HEADLINE EARNINGS HEADLINE EARNINGS ATTRIBUTABLE TO GROUP  21%  18%  15% R519 million 131.3 cps R1.2 billion HEADLINE EARNINGS HEADLINE EARNINGS PER SHARE COST PRICE PURCHAS

  4. Slide 4: Group Portfolio Mix

    GROUP PORTFOLIO MIX 4 Composition of earnings 5% 6% 39% 2019 40% 2018 56% 54% SA Taxi TCRS GEO CONSERVATIVE CAPITAL STRATEGY • Group balance sheet well capitalised, ungeared & liquid • Undeployed capital of ~R950 million • Majority allocated towards strategic organic growth initiatives • Excess capi

  5. Slide 5: Transaction Capital 5-Year Performance

    TRANSACTION CAPITAL 5-YEAR PERFORMANCE 5 CAGR FY14 – FY19: 2 215 HEPS ▲20% Dividend per share ▲31% Total shareholder return ▲33% 1 769 Dividends growing faster than earnings, supported by high cash conversion rates 1 525 1 275 1 000 688 112 131 16 52 22 69 30 81 40 96 50 61 2014 2015 2016 2017 2018

  6. Slide 6: TCRS Strategic Highlights

    TCRS STRATEGIC HIGHLIGHTS 6 DELIVERING ON GROWTH ROBUST PERFORMANCE FROM RECOVERIES GROWTH OPPORTUNITIES IDENTIFIED CORPORATION IN AUSTRALIA POSITIONING TCRS FOR ORGANIC GROWTH • Revenue ▲low double-digit %, all organic growth SA | Continued NPL Portfolio acquisition opportunities (new mandates & cl

  7. Slide 7: SA Taxi Strategic Highlights

    SA TAXI STRATEGIC HIGHLIGHTS 7 DELIVERING ON GROWTH OWNERSHIP TRANSACTION SA TAXI AUTO REPAIRS & SA TAXI AUTO PARTS • SANTACO acquired 25% stake in SA Taxi for R1.7bn • Launched March 2018, with salvage operations established • Finalised on 6 Feb 2019 shortly thereafter • Settled ~R1bn of debt, yiel

  8. Slide 8: Transaction Capital Group Structure 2014

    TRANSACTION CAPITAL GROUP STRUCTURE 2014 8 TRANSACTION CAPITAL SA TAXI 2014 TRANSACTION CAPITAL RISK SERVICES 2014 SERVICES CAPITAL SOLUTIONS Collection services (SA) Acquisition of NPL Portfolios (SA) • Contingency Alternative Capital asset classes management • Assess, mitigate & • Allocate permane

  9. Slide 9: Transaction Capital Group Structure 2019

    TRANSACTION CAPITAL GROUP STRUCTURE 2019 9 GROWING EARNINGS BASE BY EXPANDING EXISTING TOTAL ADDRESSABLE MARKET & ENTERING ADJACENT MARKET SEGMENTS VIA VERTICAL INTEGRATION TRANSACTION CAPITAL SA TAXI 2019 TRANSACTION CAPITAL RISK SERVICES 2019 SERVICES CAPITAL SOLUTIONS Collection services Acquisit

  10. Slide 10: Transaction Capital Risk Services

    TRANSACTION CAPITAL RISK SERVICES 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  11. Slide 11: TCRS Market Positioning: Diversified Business Model

    TCRS MARKET POSITIONING | DIVERSIFIED BUSINESS MODEL 11 BY BUSINESS ACTIVITY, REVENUE MODEL, GEOGRAPHY, SECTOR, CLIENT & MANDATE Business activities Collection services diversification Contingency & FFS Australia Select Select international international 29% markets² markets² <1% NPL Portfolios <1%

  12. Slide 12: Environment & Market Context: South Africa

    ENVIRONMENT & MARKET CONTEXT | SOUTH AFRICA 12 DEFENSIVELY POSITIONED IN A CHALLENGING CONSUMER CREDIT ENVIRONMENT MACRO- & SOCIO-ECONOMIC ENVIRONMENT IN SA PLACING PRESSURE ON CONSUMERS OVER THE MEDIUM TERM 10.2 million Transaction Capital’s consumer credit rehabilitation index 37 million (~40%) NO

  13. Slide 13: Environment & Market Context: Australia

    ENVIRONMENT & MARKET CONTEXT | AUSTRALIA 13 AUSTRALIAN CONSUMER CREDIT ENVIRONMENT AUSTRALIAN CONSUMER EMPLOYED BUT HIGHLY LEVERAGED AUSTRALIAN DEBT COLLECTION ENVIRONMENT • 5.3% unemployment (October 2019) • Consumers: • Persistently high levels of household debt to disposable income at ~190%, › Pr

  14. Slide 14: TCRS Strategic Growth Initiatives to Create Value

    TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 14 GROWTH OPPORTUNITIES IN AN UNDERDEVELOPED & GROWING SA MARKET TOP BUYERS OF TOP BUYERS OF CONSUMER DEBT IN USA1 CONSUMER DEBT IN EUROPE Buyer $million Buyer $million • Encore Capital ~$692m • Intrum ~$1 133m TOP BUYERS OF • PRA Group ~$647m • Arro

  15. Slide 15: TCRS Strategic Growth Initiatives to Create Value

    TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 15 OPPORTUNITIES FOR CAUTIOUS ORGANIC GROWTH IN SIGNIFICANTLY LARGER SELECT MARKETS ACQUISITION OF AUSTRALIAN NPL PORTFOLIOS • Portion of undeployed capital allocated towards accelerated acquisition of Australian NPL Portfolios FRAGMENTED SEGMENT OF

  16. Slide 16: Acquisition of NPL Portfolios as Principal

    TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 16 ACQUISITION OF NPL PORTFOLIOS AS A PRINCIPAL IN SA & AUSTRALIA Growth trajectory to support future positive performance Collection multiple vintage performance¹ as at 30 September 2019 4 480 Cost price of purchased book debts acquired (Rm) 2015 2.

  17. Slide 17: TCRS Strategic Growth Initiatives to Create Value

    TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 17 DELIVERING ON GROWTH INVESTMENT INTO DATA, COLLECTION SERVICES TECHNOLOGY & ANALYTICS Acquisition of NPL Portfolios as principal Contingency & FFS collection services • Process optimisation: Work force management, dialer, propensity to pay scoreca

  18. Slide 18: TCRS 5-Year Performance

    TCRS 5-YEAR PERFORMANCE 18 CAGR FY14 to FY19: Headline earnings¹ ▲29% 2 104 Non-interest revenue ▲20% 1 837 1 485 964 953 313 861 273 233 168 134 88 2 382 1 291 1 461 1 867 1 374 2 989 4 480 471 561 728 2014 2015 2016 891 2017 2018 2019 Carrying value of purchased book debts (Rm) Estimated remaining

  19. Slide 19: TCRS Financial Performance

    TCRS FINANCIAL PERFORMANCE 19 • Headline earnings ▲15% to R313m • Non-interest revenue ▲15% to R2.1 bn • Organic revenue from collection services ▲21% › SA | Excellent revenue growth in collection of NPL Portfolios positively offset expected slow down in contingency collection revenues - SA collecti

  20. Slide 20: TCRS Market Positioning

    TCRS MARKET POSITIONING 20 DIVERSIFIED BUSINESS MODEL TCRS’s business model video telestration as published at HY19 | http://www.transactioncapital.co.za/risk.php

  21. Slide 21: SA Taxi

    SA TAXI 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  22. Slide 22: Environment for Minibus Taxi Operators

    ENVIRONMENT FOR MINIBUS TAXI OPERATORS 22 INDUSTRY IS DEFENSIVE & GROWING WITH RESILIENT OPERATORS DESPITE CHALLENGING ECONOMIC ENVIRONMENT STRUCTURAL ELEMENTS SUPPORT MINIBUS TAXI INDUSTRY RESILIENCE DOMINANT & GROWING MODE DEMAND FOR MINIBUS TAXIS > SUPPLY IN SOUTH AFRICA OF INTEGRATED PUBLIC TRAN

  23. Slide 23: Environment for Minibus Taxi Operators

    ENVIRONMENT FOR MINIBUS TAXI OPERATORS 23 MINIBUS TAXIS ARE THE PREFERRED MODE OF PUBLIC TRANSPORT DUE TO COMPETITIVE PRICING, ACCESSIBILITY & RELIABILITY LOWER LSM CONSUMERS SPEND ~ 40% OF MONTHLY HOUSEHOLD INCOME ON PUBLIC TRANSPORT FARES COMMUTER TRIPS VIA BUS & RAIL MOSTLY REQUIRE FIRST & LAST K

  24. Slide 24: Environment for Minibus Taxi Operators: Fare Increases

    ENVIRONMENT FOR MINIBUS TAXI OPERATORS 24 FARE INCREASES MUTED IN 2019 FARES DETERMINED BY EACH ASSOCIATION PER ROUTE • The industry ensures operators remain profitable • Demand for minibus taxi services is relatively inelastic FARE INCREASE CONSIDERATIONS INCLUDE MPUMALANGA • Timing & extent of pri

  25. Slide 25: SA Taxi Market Positioning

    SA TAXI MARKET POSITIONING 25 VERTICALLY INTEGRATED BUSINESS MODEL

  26. Slide 26: SA Taxi Finance: Developmental Credit

    SA TAXI MARKET POSITIONING 26 VERTICALLY INTEGRATED BUSINESS MODEL DEVELOPMENTAL CREDIT DRIVING POSITIVE SOCIAL IMPACT SA TAXI FINANCE INCLUSIVE GROWTH | ECONOMIC TRANSFORMATION ~80% 10.8 billion 32 441 ~1.2 PROPORTION OF CUSTOMERS CLASSIFIED Proportion of customer base AS PREVIOUSLY FINANCIALLY EXC

  27. Slide 27: Vertically Integrated Business Model

    VERTICALLY INTEGRATED BUSINESS MODEL 27 MINIMISING THE COST OF RISK, BY MAXIMISING RECOVERIES SA Taxi’s vertically integrated business model • Repossess, refurbish, salvage parts, resell & refinance • Loss given default <25% • Recovery ratio >75% LOSS GIVEN NON-PERFORMING REPOSSESSION DEFAULT CREDIT

  28. Slide 28: SA Taxi Auto Repairs

    SA TAXI MARKET POSITIONING 28 VERTICALLY INTEGRATED BUSINESS MODEL SA TAXI AUTO REPAIRS | AUTOBODY SA TAXI AUTO REPAIRS ~20 000m² ~220 per month ~400 WORKSHOP INTERNAL VEHICLE EMPLOYEES FACILITIES REFURBISHMENT CAPACITY >75%  ~ 4% to ~10% RECOVERY RATES ON REPOSSESSION, AVERAGE REFURBISHMENT COST¹

  29. Slide 29: SA Taxi Direct

    SA TAXI MARKET POSITIONING 29 VERTICALLY INTEGRATED BUSINESS MODEL NEW MINIBUS TAXI SA TAXI DIRECT • SA Taxi Direct sells new & pre-owned minibus taxis • SA Taxi’s pre-owned minibus taxis: › Rebuilt to a high-quality › Trusted product in the industry › Provides a reliable & affordable alternative in

  30. Slide 30: SA Taxi Protect

    SA TAXI MARKET POSITIONING 30 VERTICALLY INTEGRATED BUSINESS MODEL TELEMATICS & TECHNOLOGY SA TAXI PROTECT >30 000 MAJORITY OF FINANCED CLIENTS CHOOSE TO BE INSURED BY SA TAXI¹ INSURANCE CLIENTS >2.0 >100 PRODUCTS PER CLIENT BROKER NETWORK to expand total addressable market › Premiums remained stabl

  31. Slide 31: SA Taxi Auto Parts and Salvage

    SA TAXI MARKET POSITIONING 31 VERTICALLY INTEGRATED BUSINESS MODEL SA TAXI AUTO PARTS | SALVAGE SA TAXI AUTO PARTS LAUNCHED MARCH 2018 | SALVAGE OPERATIONS ESTABLISHED THEREAFTER › Import & locally procure new parts from source at lower cost  COST OF › Salvage used parts from vehicles not economica

  32. Slide 32: SA Taxi Rewards

    SA TAXI MARKET POSITIONING 32 VERTICALLY INTEGRATED BUSINESS MODEL SANTACO & SA TAXI DELIVERING SUSTAINABLE SA TAXI REWARDS BENEFITS TO SA TAXI CLIENTS & THE INDUSTRY • Direct benefits for the industry resulting from ownership FUEL PROGRAMME transaction between SA Taxi & SANTACO ~18 000 • Leverage i

  33. Slide 33: SA Taxi 5-Year Performance

    SA TAXI 5-YEAR PERFORMANCE 33 CAGR FY14 to FY19: Headline earnings¹ ▲21% Non-interest revenue composition 446 Gross loans & advances ▲14% ▲ to 33% (FY19) from 27% (FY14) NPL ratio ▼ 3% Credit loss ratio ▼ 6% Recovery on repossession ▲ to >75% (FY19) from <65% (FY13) 368 Gross written premium² ▲22% 3

  34. Slide 34: SA Taxi Financial Performance

    SA TAXI FINANCIAL PERFORMANCE 34 • SA Taxi headline earnings ▲38% to R519m 48.6 • TC’s attributable portion ▲21% to R446m 45.6 › Despite consolidating only 81.4% (previously 98.5%) 44.2 › All organic growth › Settled approximately ~R1bn of interest-bearing debt on 6 Feb 2019 yielding - ~R55m after t

  35. Slide 35: SA Taxi Credit Performance

    SA TAXI CREDIT PERFORMANCE 35 • Gross loans & advances ▲16% to R10.8bn 17.5 17.9 › Number of loans originated ▲11% (FY18: ▲3%) 17.1 › Rand value of loans originated ▲16% (FY18: ▲9%) › Toyota vehicle prices ▲4.2% since FY18 • NPL ratio at 17.9% (FY18: 17.5%) › In line with expectations › Conservative

  36. Slide 36: Early Adoption of IFRS 17 Insurance Contracts

    EARLY ADOPTION OF IFRS 17 | INSURANCE CONTRACTS 36 MORE CONSERVATIVE PROVISIONING METHODOLOGY INCURRED VS. EXPECTED LOSS 20.5 INCURRED LOSS MODEL FORWARD LOOKING | EXPECTED LOSS MODEL 29.9 OCR LRC IFRS 4 Incurred LIC 3.3 claims IBNR IFRS 17 2.2 Incurred OCR + IBNR LIC + & expected claims IFRS 4 IFRS

  37. Slide 37: SA Taxi Vertically Integrated Business Model

    SA TAXI VERTICALLY INTEGRATED BUSINESS MODEL 37 BUSINESS PLATFORM SERVICING MINIBUS TAXI OPERATORS ACROSS THE VALUE CHAIN SA Taxi’s business model video telestration as published at FY18 | http://www.transactioncapital.co.za/taxi.php

  38. Slide 38: Capital Management & Shareholding

    CAPITAL MANAGEMENT & SHAREHOLDING 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  39. Slide 39: Capital Management

    CAPITAL MANAGEMENT 39 Performance 61 • Capital strategy conservative & appropriate in current economic 50 conditions 40 • Holding company balance sheet ungeared & liquid 32.8 29.9 28.3 › Undeployed capital of ~R950 million › Majority allocated towards strategic organic growth initiatives 3.5 4.0 3.3

  40. Slide 40: Shareholding, Dividend & Board

    SHAREHOLDING, DIVIDEND & BOARD 40 6% • Dividends growing faster than earnings › CAGR of 31% since FY14 › Total dividend FY19 ▲22% to 61cps 32% - Interim dividend per share declared May 2019 ▲29% to 27cps - Final dividend per share declared November 2019 41% 30 September 2019 ▲17% to 34cps › Total di

  41. Slide 41: Questions

    QUESTIONS 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  42. Slide 42: Appendix

    APPENDIX 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  43. Slide 43: Transaction Capital

    TRANSACTION CAPITAL 43 As a listed entity, to extend our track record of high-quality earnings growth, TRANSACTION CAPITAL we identify opportunities to leverage our high IP, leading technologies Our capital management approach & low-cost operational infrastructure to IS AN ACTIVE INVESTOR IN support

  44. Slide 44: Investment Case

    INVESTMENT CASE 44 COMPELLING & UNIQUE AS WE EXECUTE ON OUR STRATEGY • Two well established, autonomous & unique financial services businesses: SA Taxi & TCRS • Positioned in attractive market segments occupying leading market positions TRANSACTION CAPITAL • Highly defensive businesses able to withs

  45. Slide 45: Investment Case Continued

    INVESTMENT CASE CONTINUED 45 COMPELLING & UNIQUE AS WE EXECUTE ON OUR STRATEGY • Identify, assess, develop & partner with entrepreneurial, innovative & experienced founders, LED BY AN EXPERIENCED owners & managers of businesses ENTREPRENEURIAL • Ownership culture • Empowered, entrepreneurial, innova

  46. Slide 46: Investment Case Continued

    INVESTMENT CASE CONTINUED 46 COMPELLING & UNIQUE AS WE EXECUTE ON OUR STRATEGY TO GENERATE RISK-ADJUSTED • Value-led investment approach • Seeking investment outcome that combines: INTEREST RETURNS & CAPITAL › Attractive risk-adjusted interest returns from our asset portfolios APPRECIATION › Enhance

  47. Slide 47: Transaction Capital Business Model

    TRANSACTION CAPITAL BUSINESS MODEL 47 CAPITAL INPUTS CAPITAL OUTCOMES INTELLECTUAL CAPITAL INTELLECTUAL CAPITAL Specialist credit risk management skills in alternative Market-leading & socially relevant business platforms asset classes, active strategic intervention 1 2 with scale & resilience, deli

  48. Slide 48: Appendix: Transaction Capital Risk Services

    APPENDIX TRANSACTION CAPITAL RISK SERVICES 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  49. Slide 49: Transaction Capital Risk Services

    TRANSACTION CAPITAL RISK SERVICES 49 TRANSACTION CAPITAL RISK SERVICES Generating in-depth insights Innovative & bespoke technology from the continuous collection systems that drive superior of accurate & valuable data IS A TECHNOLOGY-LED, performance & efficiency to develop a consolidated view of a

  50. Slide 50: TCRS Diversified by Business Activity, Sector & Geography

    TCRS MARKET POSITIONING | DIVERSIFIED BUSINESS MODEL 50 DIVERSIFIED BY BUSINESS ACTIVITY, SECTOR & GEOGRAPHY Collection services ~80% revenue contribution ACQUISITION OF NPL PORTFOLIOS CONTINGENCY & FFS COLLECTION SERVICES ~40% revenue contribution SA ~15% revenue contribution Australia ~25% revenue

  51. Slide 51: TCRS Competitive Advantages

    TCRS MARKET POSITIONING 51 COMPETITIVE ADVANTAGES TCRS’s PROPRIETARY DATA • Database of SA’s distressed consumers • Continuously enriched (with collection & ContactAbility results) REPUTATION OF PERFORMANCE ANALYTICS • Only local listed industry participant • Predictive & layered voice analytics • D

  52. Slide 52: Environment & Market Context: South Africa

    ENVIRONMENT & MARKET CONTEXT | SOUTH AFRICA 52 DEFENSIVELY POSITIONED IN A CHALLENGING CONSUMER CREDIT ENVIRONMENT CREDIT REHABILITATION IS A CRUCIAL ELEMENT IN GROWING AN INCLUSIVE ECONOMY TRANSACTION CAPITAL’S CONSUMER CREDIT REHABILITATION INDEX % CHANGE IN REHABILITATION PROSPECT FOR Q3 2019 • N

  53. Slide 53: European Distressed Debt Market Unattractive

    TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 53 CONCENTRATED SEGMENT OF EUROPEAN DISTRESSED DEBT MARKET UNATTRACTIVE • High levels of competition • Many participants of scale (credit management platforms, private equity funds & asset managers) • Access to cheap capital & leverage deployed for m

  54. Slide 54: Enter Fragmented International Specialised Credit Market

    TCRS STRATEGIC GROWTH INITIATIVES TO CREATE VALUE 54 ENTER FRAGMENTED SEGMENT OF INTERNATIONAL SPECIALISED CREDIT MARKET TCRS’s SELECTIVE & CAUTIOUS DIVERSIFICATION SUPPORTS PERFORMANCE INVESTMENT APPROACH IN VARYING MARKET CONDITIONS • Target select off-market investment opportunities • Portfolio t

  55. Slide 55: Appendix: SA Taxi

    APPENDIX SA TAXI 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  56. Slide 56: SA Taxi

    SA TAXI 56 SA TAXI An innovative & pioneering business model with operations expanding throughout the financial IS A VERTICALLY INTEGRATED services & asset value chain, A unique blend of vehicle building a scalable platform that MINIBUS TAXI PLATFORM procurement, retail, repossession can be leverage

  57. Slide 57: Environment & Market Context

    ENVIRONMENT & MARKET CONTEXT 57 MINIBUS TAXI INDUSTRY IS RESILIENT, DEFENSIVE & GROWING DESPITE SA’S ECONOMIC CLIMATE TRAIN < 600 000 ▼ 23% COMMUTER TRIPS DAILY MINIBUS TAXI PUBLIC TRANSPORT COMMUTERS RELY > 15 million ▲ ON MINIBUS TAXIS GIVEN THEIR ACCESSIBILITY, RECEIVES 44% OF GOVERNMENT SUBSIDY

  58. Slide 58: Integrated Public Transport Network

    ENVIRONMENT & MARKET CONTEXT 58 INTEGRATED PUBLIC TRANSPORT NETWORK, WITH BUS & RAIL COMMUTERS RELYING ON MINIBUS TAXI INFRASTRUCTURE JOHANNESBURG Source: SA Taxi telematics data as at 11 October 2016 | National Land Transport Strategic Framework 2015

  59. Slide 59: SA Taxi Impact

    SA TAXI IMPACT 59 DELIVERING SHARED VALUE FOR THE INDUSTRY ECONOMIC TRANSFORMATION & INCLUSIVE GROWTH SME EMPOWERMENT DEVELOPMENTAL CREDIT ACHIEVING INCLUSIVE GROWTH 100% 25% 22% BLACK OWNED SMEs WOMEN OWNED SMEs1 UNDER THE AGE OF 35 YEARS¹ R3.8 billion R25.7 billion LOANS ORIGINATED CREATING LOANS

  60. Slide 60: SA Taxi Operational Performance

    SA TAXI OPERATIONAL PERFORMANCE 60 SA TAXI OPERATOR PROFILE CREDIT PROFILE OF LOANS ON BOOK 1.2 3.6 years 71 months 38% VEHICLES PER CUSTOMER AVERAGE AGE OF VEHICLE AVERAGE LOAN TERM¹ AVERAGE APPROVAL RATE 47 years 88% >R6 000 48 months AVERAGE AGE OF CUSTOMER TOYOTA VEHICLES MINIMUM MONTHLY OPERATO

  61. Slide 61: Appendix: Capital Management

    APPENDIX CAPITAL MANAGEMENT 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  62. Slide 62: Overview of Debt Funding Channels by Exposure

    OVERVIEW OF DEBT FUNDING CHANNELS BY EXPOSURE 62 Diversification by debt investor category Diversification by funding structure Diversification by geography 18% 13% 22% 22% 37% 32% Life companies Warehousing facilities Banks On-balance sheet 34% Local Asset managers Securitisation 26% DFIs Structure

  63. Slide 63: Funding Philosophy & Positive Liquidity Mismatch

    FUNDING PHILOSOPHY & POSITIVE LIQUIDITY MISMATCH 63 Positive liquidity mismatch At year end a positive asset-liability gap was observed for the group 0-6 MONTHS 6-12 MONTHS 1-2 YEARS 2-3 YEARS 3-4 YEARS 4-5 YEARS 5+ YEARS Assets Liabilities Cumulative FUNDING PHILOSOPHY INNOVATIVE ENGAGED DEBT INVES

  64. Slide 64: Glossary

    GLOSSARY 2 0 1 9 RESULTS FOR THE YEA R ENDED 30 SEPTEMBER

  65. Slide 65: Glossary

    GLOSSARY 65 BPS Basis points CAGR Compound annual growth rate CPS Cents per share DFI Developmental finance institution DPS Dividend per share ERC Estimated undiscounted remaining gross cash collections from NPL Portfolios over the next 120 months FFS Fee-for-service GEO Group executive office HEPS

  66. Slide 66: Disclaimer

    DISCLAIMER 66 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 transaction

Transaction Capital — FY2019 Earnings Presentation on 6ix