COMPANY PRESENTATION 2006

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• COMPANY PRESENTATION 2006

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RCC FINANCE

• Who is RCC Finance?
• Business Model
• Funding
• Base Analysis
• Relevant Statistics
• The Future

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RCC FINANCE

• RCC 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.

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MISSION STATEMENT

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

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KEY SUCCESS FACTORS

• Best rates.
• Best turnaround times.
• Best services.
• - One on one relationships.

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BASE ANALYSIS

• SPLIT BY CUSTOMER
• Nashua 88
• Panasonic 8
• Sietel 4

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ISO 90012000

• Currently under audit
• Certification due November 2006.

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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.

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COMPETITION

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

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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.

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BUSINESS MODEL

• Nashua Finance
• RCC Finance

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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.

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RCC 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

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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.

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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.

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BASE ANALYSIS (Contd)

• 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).

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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

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EXCHANGE RATES

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

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BASE ANALYSIS
Own Book Sold Book Total
Value (R000s) 1,323,848 151,684 1,475,532
Average period to run 36 months 14 months 30 months
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BASE ANALYSIS (Contd)

• Fixed Rentals. 77
• Linked to Prime Rentals. 23
• Coverage of Fixed Deals. 77
• Equity Cover 16
• Swaps 84

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STATISTICS - RATIOS
2002 2003 2004 2005 2006
Return on Equity 30 5 52 49 57
Cost to Revenue 16 18 9 11 11
Return on Assets 3 0 10 3 3
Bad Debts 0.5 0.9 0 0 0
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THANK YOU