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Quince Capital Limited

Quince Capital Limited. Reunert Investors Day Tiaan Kotze 26 September 2007. Introduction. Quince Capital Shareholders & Directors Business Focus Front Line Businesses RC&C ZS Rational Quince Scripfin. Joint Venture. Conceptualised in 2006, implemented effective1 May 2007

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Quince Capital Limited

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  1. Quince Capital Limited Reunert Investors Day Tiaan Kotze 26 September 2007

  2. Introduction • Quince Capital • Shareholders & Directors • Business Focus • Front Line Businesses • RC&C • ZS Rational • Quince Scripfin

  3. Joint Venture • Conceptualised in 2006, implemented effective1 May 2007 • Reunert contributed: RC&C book (Nashua finance) • PSG contributed: ZS Rational, margin lending book in Quince Scripfin plus significant capital • Potential initial earnings dilution for Reunert with significant earnings growth potential

  4. Quince Capital Shareholding & Group Structure

  5. Directors • Michiel Le Roux (chairman) • Johan du Preez (ceo) • Gerrit Pretorius • Dave Rawlinson • Chris Scoble • Pat Gallagher • Jannie Mouton • Chris Otto • Jaap du Toit

  6. Business Focus • Niche financing opportunities • Not in direct competition with big banks • Invest in good lending business constrained by capital • Innovative funding - invest in debt raising expertise • Establish culture to attract finance entrepreneurs

  7. Business Focus • Double profit in 3 years • Expected normalised PAT – R60/70m • Total lending book > R1.7bn • Target business with at least 20% ROE • Immediate priority: • Optimise funding arrangements • Efficient use of capital

  8. RC&C Finance Limited • Acquired from Reunert on 1 May 2007 • Financing of office equipment • Nashua finance • Quince Asset Rentals • Discounting of rental agreements • Competitors: Sasfin, Fintech, Technofin, ABSA Technology Finance, Merchant West

  9. RC&C – Infrastructure • Mike Purnell (MD) and team consisting of experienced CA’s and bankers. • 45 employees • Originate countrywide & operate from 2 offices in Johannesburg • Expanding services • Nashua = 25% • Quince Asset Rental • Partnerships

  10. RC&C Priorities • Funding through securitisation • Standard Bank/Blue Titanium conduit • Finalising the enhancement levels • Margins contracted before subprime collapse • Consolidation of SPV • Hedging all interest rate risk • Expand in context of good risk & credit management

  11. ZS Rational • Acquisition – competition commission • Origins in residential mortgage bridge finance • Industry estimated at R2bn • To be renamed Quince Property Finance • NCA compliant • Growing rapidly - Current book > R70m • Competitors include Paforma, Rodel, Bridgeway, Mettle factors

  12. ZS Rational - Infrastructure • Offices based in Tygervalley • Willem le Roux(MD) & 15 employees including 3 CA’s • Distribution expanding – national footprint • Funded via bank loans and shareholder capital • Considering to expand into other property related funding

  13. Quince Scripfin • Access to PSG client base via PSG Konsult • Start up business • Loans against equity portfolios • Loan to value of 50% • Differs from CFD & SSF • Opportunity – PSG had R42bn AUM (Feb 07) • Priority: Funding arrangements & bed down system

  14. Quince Scripfin - Infrastructure • Based in Tygervalley– leveraging existing infrastructure • On back of PSG online systems • Recruiting relationship management skills

  15. Geared for growth

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