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COMPANY PRESENTATION 2006

COMPANY PRESENTATION 2006. RC&C FINANCE. Who is RC&C Finance? Business Model Funding Base Analysis Relevant Statistics The Future. RC&C FINANCE. RC&C Finance is the in-house asset finance company for the Reunert group.

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COMPANY PRESENTATION 2006

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  1. COMPANY PRESENTATION 2006

  2. RC&C FINANCE • Who is RC&C Finance? • Business Model • Funding • Base Analysis • Relevant Statistics • The Future

  3. RC&C FINANCE • RC&C Finance is the in-house asset finance company for the Reunert group. • We specialise in office equipment for corporate customers for Nashua, Panasonic Sietel and their franchises. • Only Rental agreements are financed. • We advance funds against against a fixed income stream.

  4. MISSION STATEMENT “Working together, to create wealth, through innovative finance products, to maximise the rewards for all our partners in profit”

  5. KEY SUCCESS FACTORS • Best rates. • Best turnaround times. • Best services. - One on one relationships.

  6. BASE ANALYSIS • SPLIT BY CUSTOMER • Nashua 88% • Panasonic 8% • Sietel 4%

  7. ISO 9001:2000 • Currently under audit • Certification due November 2006.

  8. BBBEE CERTIFICATION • Rating: “Non BEE-Limited Contribution”. • Investment in Staff Training. • Launched Bursary Scheme in conjunction with Reunert College for 2 persons. • Investment in Corporate Social Investment via Nashua Franchises.

  9. COMPETITION • ABSA Technology Finance (Union) • Sasfin • Merchant West • Technofin • Nefco

  10. CREDIT VETTING • Investment in a new system written by Acuo, a Reunert company. • Enhanced scorecard model. • More user friendly. • Web based design. - give an online effect for major customers. • Improved exception reporting. • Improved Data Base management.

  11. BUSINESS MODEL • Nashua Finance • RC&C Finance

  12. NASHUA FINANCE Existing Model • Bill to franchise. • Franchise collects rentals as an agent. • Recourse risk taken by the franchise. • Best rates available. • Perform regular franchise reviews. • For Nashua and some Panasonic.

  13. RC&C Finance • Bill Direct to end user. • We collect directly. • Finance company takes the credit risk. • Rates competitive with opposition product. • No franchise review procedure necessary. • For Panasonic, Siemens and ……

  14. FUNDING • Overnight Funds from Shareholders. • Fixed Rate deals backed by fixed funding. • Utilise Swaps to fix margin on fixed rate deals. • Swaps matched to the expected life of the deal.

  15. INTEREST RATES • Historically rates have been much higher. • Volumes not expected to drop much. • Reduces temptation to rollover base. • Margins are managed. • Fix where necessary. • No material effect expected.

  16. BASE ANALYSIS (Cont’d) • Approx’ 10,000 End users. • Approx’ 55,000 contracts. • Largest End user 1.2% of total base. • Top 50 End users = 20% of total base. • Top 50 Geographically spread throughout SA ( Mainly Gauteng and Western Cape).

  17. STATISTICS - CREDIT • Credit Vet average 1,488 applications pm. • Approval ratio 75% (average). • Discount average 1515 contracts. • Turnaround times. • Average 8h04 • Existing Users 6h56 • New Users 12h36

  18. EXCHANGE RATES • Direct : No effect. - No imports. - No exports. • Indirect: - Potential slowdown in dealer business. - Increase prices, increase payout values.

  19. BASE ANALYSIS

  20. BASE ANALYSIS (Cont’d) • Fixed Rentals. 77% • Linked to Prime Rentals. 23% • Coverage of Fixed Deals. 77% • Equity Cover 16% • Swaps 84%

  21. STATISTICS - RATIOS

  22. THANK YOU

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