COMPANY PRESENTATION COMPANY PRESENTATION 20062006

RC&C FINANCE

Who is RC&C Finance?Who is RC&C Finance? Business ModelBusiness Model FundingFunding Base AnalysisBase Analysis Relevant StatisticsRelevant Statistics The FutureThe Future

RC&C FINANCE

RC&C Finance is the in-house asset finance RC&C Finance is the in-house asset finance company for the Reunert group.company for the Reunert group.

We specialise in office equipment for We specialise in office equipment for corporate customers for Nashua, Panasonic corporate customers for Nashua, Panasonic Sietel and their franchises.Sietel and their franchises.

Only Rental agreements are financed.Only Rental agreements are financed. We advance funds against against a fixed We advance funds against against a fixed

income stream.income stream.

MISSION STATEMENT

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

KEY SUCCESS FACTORS

Best rates.Best rates. Best turnaround times.Best turnaround times. Best services.Best services.

- One on one relationships.- One on one relationships.

BASE ANALYSIS

SPLIT BY CUSTOMERSPLIT BY CUSTOMER NashuaNashua 88%88% PanasonicPanasonic 8% 8% SietelSietel 4% 4%

ISO 9001:2000

Currently under auditCurrently under audit Certification due November 2006.Certification due November 2006.

BBBEE CERTIFICATION

Rating: “Non BEE-Limited Contribution”.Rating: “Non BEE-Limited Contribution”.

Investment in Staff Training.Investment in Staff Training. Launched Bursary Scheme in conjunction Launched Bursary Scheme in conjunction

with Reunert College for 2 persons.with Reunert College for 2 persons. Investment in Corporate Social Investment Investment in Corporate Social Investment

via Nashua Franchises.via Nashua Franchises.

COMPETITION

ABSA Technology Finance (Union)ABSA Technology Finance (Union) SasfinSasfin Merchant WestMerchant West TechnofinTechnofin NefcoNefco

CREDIT VETTING

Investment in a new system written by Acuo, a Investment in a new system written by Acuo, a Reunert company.Reunert company.

Enhanced scorecard model.Enhanced scorecard model. More user friendly.More user friendly. Web based design.Web based design.

- give an online effect for major customers.- give an online effect for major customers. Improved exception reporting.Improved exception reporting. Improved Data Base management.Improved Data Base management.

BUSINESS MODEL

Nashua FinanceNashua Finance

RC&C FinanceRC&C Finance

NASHUA FINANCE

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

RC&C Finance

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

FUNDING

Overnight Funds from Shareholders.Overnight Funds from Shareholders. Fixed Rate deals backed by fixed funding.Fixed Rate deals backed by fixed funding. Utilise Swaps to fix margin on fixed rate Utilise Swaps to fix margin on fixed rate

deals.deals. Swaps matched to the expected life of the Swaps matched to the expected life of the

deal.deal.

INTEREST RATES

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

BASE ANALYSIS (Cont’d)

Approx’ 10,000 End users.Approx’ 10,000 End users. Approx’ 55,000 contracts.Approx’ 55,000 contracts. Largest End user 1.2% of total base.Largest End user 1.2% of total base. Top 50 End users = 20% of total base.Top 50 End users = 20% of total base. Top 50 Geographically spread throughout Top 50 Geographically spread throughout

SA ( Mainly Gauteng and Western Cape).SA ( Mainly Gauteng and Western Cape).

STATISTICS - CREDIT

Credit Vet average 1,488 applications pm.Credit Vet average 1,488 applications pm. Approval ratio 75% (average).Approval ratio 75% (average). Discount average 1515 contracts.Discount average 1515 contracts. Turnaround times.Turnaround times.

AverageAverage 8h04 8h04Existing UsersExisting Users 6h56 6h56New UsersNew Users 12h3612h36

EXCHANGE RATES Direct : No effect.Direct : No effect.

- No imports.- No imports.

- No exports.- No exports. Indirect:Indirect:

- Potential slowdown in dealer - Potential slowdown in dealer business.business.

- Increase prices, increase payout - Increase prices, increase payout values.values.

BASE ANALYSIS

Own BookOwn Book Sold BookSold Book TotalTotal

Value Value (R’000s)(R’000s)

1,323,8481,323,848 151,684151,684 1,475,5321,475,532

Average Average period to period to runrun

36 months36 months 14 months14 months 30 months30 months

BASE ANALYSIS (Cont’d)

Fixed Rentals.Fixed Rentals. 77%77% Linked to Prime Rentals.Linked to Prime Rentals. 23%23% Coverage of Fixed Deals. Coverage of Fixed Deals. 77%77%

Equity CoverEquity Cover 16%16%SwapsSwaps 84%84%

STATISTICS - RATIOS

20022002 20032003 20042004 20052005 20062006

Return on Return on EquityEquity

30%30% 5%5% 52%52% 49%49% 57%57%

Cost to Cost to RevenueRevenue

16%16% 18%18% 9%9% 11%11% 11%11%

Return on Return on AssetsAssets

3%3% 0%0% 10%10% 3%3% 3%3%

Bad DebtsBad Debts 0.5%0.5% 0.9%0.9% 0%0% 0%0% 0%0%

THANK YOU