Mission and investment case

 
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:

TRANSACTION CAPITAL COMPRISES A DIVERSIFIED PORTFOLIO OF FINANCIAL SERVICES ASSETS
  • Two well established, autonomous and unique financial services businesses:
    • SA Taxi
    • Transaction Capital Risk Services
  • 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 cash generative and capital-related businesses.
    • Diversified revenue model across adjacent market segments and geographies.
WITH A BESPOKE AND ROBUST CAPITAL STRUCTURE INCORPORATING R1 BILLION* OF EXCESS CAPITAL
  • 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.
ESTABLISHED AS A SCALABLE FINANCIAL SERVICES PLATFORM
  • For SA Taxi and TCRS to develop new products and expand into new markets.
  • For Transaction Capital to innovate in introducing new organic and acquisitive growth opportunities.
WHICH IS LED BY AN ENTREPRENEURIAL OWNER-MANAGER TEAM
  • Ownership culture.
  • Decentralised, entrepreneurial, innovative, proven and long-serving leadership.
  • Specialised intellectual capital applied in managing a much smaller asset base than in larger organisations.
AND UNDERPINNED BY A ROBUST GOVERNANCE FRAMEWORK AND SOUND GOVERNANCE PRACTICES
  • 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).
WHICH TOGETHER POSITION THE GROUP FOR SUSTAINABLE GROWTH
  • Decentralised businesses that are self-sustaining and sizable in their own right.
  • Unrelenting investment into and precise implementation of innovative strategic initiatives.
  • Track record of delivering predictable and consistent high-quality earnings with high cash conversion rates and strong organic growth prospects.
  • Dividends growing at an accelerated rate when compared to earnings.
  • A focussed acquisition strategy supported by:
    • R1 billion of excess cash*.
    • Highly cash-generative businesses.
    • Supportive capital markets.
    • A strong unleveraged balance sheet.
AND THE DELIVERY OF A MEANINGFUL SOCIAL IMPACT
  • Businesses favourably positioned in relation to demographic and socio-economic trends, delivering social and commercial benefits.
  • SA Taxi facilitates:
    • Asset ownership by black-owned small and medium-sized enterprises (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.
    • Lending to SMEs.

* Post SA Taxi’s equity transaction with SANTACO.