MISSION: PROVIDING SPECIALISED FINANCIAL AND ALLIED SERVICES IN HIGHLY SPECIALISED AND UNDER-SERVED SEGMENTS OF THE FINANCIAL SERVICES SECTOR.




INVESTMENT CASE: EXECUTING ON TRANSACTION CAPITAL'S MISSION CREATES A COMPELLING AND UNIQUE INVESTMENT CASE:


  • Two well established, autonomous and unique financial services businesses:
    - SA Taxi
    - Transaction Capital Risk Services (TCRS)
  • Positioned in attractive market segments occupying leading market positions
  • Highly defensive businesses able to withstand difficult economic conditions
  • Deep vertical integration enabling the application of specialised expertise to mitigate risk, participate in margin and provide a broader service to clients
  • Superior data, leading-edge technology and analytics capabilities differentiate our offerings, inform business decisions and mitigate risk
  • Via a diversified business model:
    - Unique blend of highly ash generative and capital-related businesses
    - Diversified revenue model across adjacent market segments and geographies
  • Conservative equity capital structure to fund organic growth and acquisition activity:
    - Ungeared at holding company level
    - Proven ability to raise debt and equity capital efficiently from a diversified range of local and international investors
  • For SA Taxi and TCRS to develop new products and expand into new markets
  • For Transaction Capital to collaborate in introducing new organic and/or acquisitive growth opportunities
  • For Transaction Capital to realise synergies and cross-selling opportunities within existing products
  • Empowered ownership culture
  • Decentralised, entrepreneurial, proven and long-serving leadership
  • Specialised intellectual capital applied over a much smaller asset base than in larger organisations
  • Experienced, diverse and independent directors at group and subsidiary level
  • Institutionalised governance, regulatory and risk management practices
  • Conservative accounting policies (including the early adoption of IFRS 9)
  • Decentralised businesses that are self-sustaining and sizable in their own right
  • Track record of delivering predictable high-quality earnings with high cash conversion rates and strong organic growth prospects
  • Dividends growing at an accelerated rate when compared to earnings
  • A focused acquisition strategy:
    - Earnings accretive acquisitions of relevant and scalable business platforms, whose value can be developed by Transaction Capital
    - Acquisition strategy supported by R650 million of excess cash, highly cash generative businesses, supportive capital markets and a strong unleveraged balance sheet
  • Businesses favourably positioned in relation to demographic and socio-economic trends, delivering both a social and commercial benefit
  • SA Taxi facilitates:
    - Asset ownership by black-owned SMEs, financial inclusion, SME empowerment and sustainable job creation
    - Improved public transport infrastructure
    - Environmental sustainability
  • TCRS facilitates:
    - Credit rehabilitation of over-indebted consumers
    - Lenders to maintain cleaner balance sheets to continue extending credit affordably

STRATEGY


Develop specialised capabilities and industry solutions to achieve deep vertical integration within existing market segments, and further develop and apply these competencies to create new positions within adjacent and new market segments, thereby driving organic growth.

Judiciously invest equity capital, conservatively leveraged with local and international debt, into accurately assessed asset classes to achieve superior risk-adjusted returns.

Generate in-depth insights from the continuous collection of diverse, accurate and valuable data sets to enable precise decisioning and proactive risk management, and leverage data, analytics and technology within a dynamic servicing platform to drive profitable growth.

Target quality assets operating within Transaction Capital’s focused market segments that will enhance its capabilities, and whose business models and value can be enhanced through active management.

Develop, engage and reward employees and executives to engender a high-performance culture.


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ABOUT TRANSACTION CAPITAL