NITRO PROGRAMME (RF) LTD Nitro 7 Investor presentation 3 5 April - - PowerPoint PPT Presentation

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NITRO PROGRAMME (RF) LTD Nitro 7 Investor presentation 3 5 April - - PowerPoint PPT Presentation

NITRO PROGRAMME (RF) LTD Nitro 7 Investor presentation 3 5 April 2019 Strictly private and confidential This presentation does not represent an offer for sale or subscription of any notes. Please read the important information attached to


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SLIDE 1

WesBank ‐ a division of FirstRand Bank Ltd. An Authorised Financial Services and Registered Credit Provider. NCRCP20.

NITRO PROGRAMME (RF) LTD Nitro 7 Investor presentation 3 – 5 April 2019

Strictly private and confidential This presentation does not represent an offer for sale or subscription of any notes. Please read the important information attached to this presentation, and ensure that the final Programme Memorandum to be executed before auction date (and the risk factors contained therein) is read in full in conjunction with this presentation.

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SLIDE 2

The information herein has been prepared solely for informational purposes and does not, nor is it intended to constitute, an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. These materials and all information herein are highly confidential and may not be distributed, published, reproduced or disclosed (in whole or in part) without the prior written consent of FirstRand Bank Limited (together with its affiliates and other associated companies, hereinafter referred to as “FirstRand”). This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as prospective Investors). This presentation is only directed at prospective investors and any investment or investment activity to which this presentation relates is only available to prospective investors or will be engaged in only with prospective investors. Solicitations resulting from this presentation will only be responded to if the person concerned is a prospective investor. Other persons should not rely or act upon this presentation or any of its contents. No representation or warranty, express or implied, can be given with respect to the accuracy, completeness, sufficiency or usefulness of the information, or that any future offer of securities or instruments will conform to the terms hereof. Any such offer would be made pursuant to a definitive Offering Circular prepared by the issuer (the “Offering Circular”) which would contain material information not contained herein and to which prospective investors are referred. In the event of any such offering, these materials and any information herein shall be deemed superseded and replaced in their entirety by such Offering Circular. Any decision to invest in such securities should be made solely in reliance upon the final form of the such Offering Circular (including information which is incorporated by reference therein). Changes to the assumptions made in this analysis may have a material impact on the returns or results shown by way of example herein. No representation is made that any returns or results indicated will be achieved or that all assumptions in achieving these returns or results have been considered or stated. Past performance is not necessarily indicative of future results. Accordingly, there can be no assurance that future results will not be materially different from those described herein. Price and availability are subject to change without notice. FirstRand disclaim any and all direct or indirect liability relating to these materials, including without limitation any express or implied representations or warranties for, statements contained in, and omissions from, the information herein. Any projections or other estimates in these materials, including estimates of returns or performance, are forward-looking statements based upon, among other things, certain assumptions and are preliminary in nature. Actual results are difficult to predict and may depend upon factors within or beyond the issuer’s or FirstRand’s control. Actual events may differ from those assumed and changes to any assumptions may have a material impact on any projections or estimates. Other events not taken into account may occur and may significantly affect the analysis. There can be no assurance that estimated returns or projections can be realized or that actual returns or performance results will not be materially lower than those estimated herein. Such estimated returns and projections should be viewed as hypothetical and do not represent the actual returns that may be achieved by an investor. Investors should conduct their own analysis, using such assumptions as they deem appropriate, and should fully consider other available information, including the information described under “Risk Factors” in the Offering Circular, in making an investment decision. Neither FirstRand, nor the issuer or any of their respective agents or representatives make any representation nor have any of them given any advice concerning the appropriate regulatory treatment, accounting treatment, or possible tax consequences in connection with the proposed transaction. Prior to entering into any proposed transaction, you should determine, without reliance upon FirstRand, the issuer or any of their respective agents or representatives, the economic risks and merits, as well as the legal, tax, and accounting characteristics and consequences, of the transaction, and that you are able to assume these risks. The distribution of these materials and the offer or sale of securities or instruments may be restricted by law. Additionally, transfers of any such securities or instruments may be limited by law

  • r the terms thereof. Persons into whose possession these materials come are required to inform themselves of, and comply with, any legal or contractual restrictions on their purchase,

holding, sale, exercise of rights or performance of obligations under any transaction. Your receipt and use of the foregoing constitutes notice and acceptance of the foregoing.

Important information

2

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SLIDE 3

Table of contents

3

  • Executive summary

4

  • About WesBank

5

  • Business and market update

7

  • Credit performance update

8

  • Origination performance

9

  • Risk management, underwriting and bad debt performance

10

  • Nitro Programme overview

13

  • Nitro 7 transaction

15

  • Transaction features

16

  • Capital structure

17

  • Provisional portfolio summary

20

  • Transaction timeline and contact information

23

  • Appendices

25

  • Summary of historic data and Nitro performance

27

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SLIDE 4
  • To date, FirstRand Bank (FRB), a wholly-owned subsidiary of FirstRand Limited, has successfully

executed 6 Nitro securitisations

  • Nitro 7 represents the seventh securitisation of WesBank vehicle finance loans
  • First transaction of the Nitro Programme (the Programme)
  • The Programme was established for faster execution, time to market, standardised

documentation and leveraging economies of scale

  • Secured with a portfolio of [R2 000] million of instalment sale agreements and [R60] million of cash
  • Notes are rated by Moody’s Investors Services (Moody’s)
  • Class A short-dated senior tranche has a legal final maturity of 13 months
  • WesBank, a division of FRB, acts as originator, seller and servicer of the participating assets
  • Rand Merchant Bank (RMB), a division of FRB, acts as arranger, debt sponsor, manager and

administrator

Executive summary

4

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SLIDE 5

WesBank is part of the FirstRand group

Group-wide functions Retail and commercial banking, insurance Corporate and investment banking Instalment finance Asset management LISTED HOLDING COMPANY (FIRSTRAND LIMITED, JSE: FSR) UK specialist bank

5

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SLIDE 6
  • WesBank represents the group’s activities in instalment credit, fleet management and related services in the retail,

commercial and corporate segments of South Africa

  • WesBank’s leading position in its chosen markets is due to its long-standing alliances with leading motor

manufacturers, suppliers and dealer groups and strong point-of-sale presence

  • WesBank is the partner of choice for over 60 leading international brands, including automotive OEMs, insurance

providers and oil companies

  • Total finance market share at Dec 2018:
  • 39% (including TFS and VWFS)
  • 30% (excluding TFS and VWFS)
  • WesBank has consistently been rated first in the vehicle financing category of the PWC SA Banking Survey

WesBank is the market leader in vehicle and asset finance in South Africa

6

Motor – SA retail vehicle asset finance (VAF) Corporate/commercial asset-backed finance and full maintenance leasing

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SLIDE 7

Business and market update

7

Business update

  • Despite increased competitive pressures, remained disciplined in origination and pricing
  • Focused on credit quality and return profile
  • Continued to grow alliances
  • Pressure on retail NIR due to declining account volumes (tracking vehicle sales)

Key market developments

  • Decline in NAAMSA sales stats
  • Increase in replacement cycle of vehicles
  • Consumers shift to lower value vehicles
  • Greater demand in used vehicles
  • Higher vehicle price inflation
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SLIDE 8

Credit performance update – Motor VAF SA (FirstRand Limited)

Source: WesBank. 78.4% 14.7% 2.1% 1.0% 2.0% 1.9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 10 20 30 40 50 60 70 80 90

Current Between 31 and 60 days Between 61 and 90 days Between 91 and 120 days 120+ Classified

Delinquency analysis - Dec 2018 R billion

Delinquency analysis - December 12m averages (%) 2015 2016 2017 2018 Between 31 and 60 days 4 4.2 3.8 3.6 Between 61 and 90 days 1.5 1.6 1.7 1.7 Between 91 and 120 days 1.8 1.9 2.2 2.4 Classified 1.3 1.5 1.5 1.9

8 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Motor (SA retail VAF) arrears

Normal 1+ Normal 2+ Normal 3+ Normal Classified Current Restructured Restr 1+ Restr 2+ Restr 3+ Restr Classified Other

Motor (SA retail VAF) NPL % at 31 Dec 18: 6.72%

* * Stage 3/NPLS.

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SLIDE 9
  • Margin pressure continued due to:
  • Increased competitive activity
  • Focus on originating lower-risk business, which is generally written at lower margins
  • New business origination mix change from fixed-rate to floating-rate business
  • Dealers remain the main channel for origination

Origination update

9 Source: WesBank.

  • 20,000

40,000 60,000 80,000 100,000 120,000

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Book size (R million)

New business growth vs book value (FirstRand Limited)

Book - WesBank Motor New Business - WesBank Motor

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SLIDE 10

WesBank risk management

10

Governance and compliance

  • Centralised product function, aligned to

FirstRand group frameworks and methodologies

  • FirstRand Enterprise Risk Management
  • versees structures
  • Business conducted in accordance with the

National Credit Act

  • Credit is responsible for development,

implementation and monitoring of AML scorecards Operations

  • Manages Motor collections and administration

functions following well-defined guidelines and procedures

  • Early collections team deals with default accounts,

according to differential rules.

  • Upon collection failure accounts enter specialised

collections, where vehicles are repossessed, uplifted (fully or partially recovered) or cleared for sale and sold via auction

  • Accounts are written off and moved to bad debts

department for further collections on shortfalls

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SLIDE 11

WesBank default and collections process

Source: WesBank.

The account is written off after sale of the vehicle and further recovery is pursued The customer is allowed 15 days to pay the arrears and release goods failing which the vehicle is sold at a public auction and provision on the account is raised Should the customer not rectify after a visitation, the goods are uplifted Should no rectification take place, the account is referred to a field agent to visit the customer The collector will attempt to phone the customer to rectify arrears Defaulting accounts are clustered into a group according to differential risk rules

Flow chart of default process Collections value chain

CLIENT DEFAULTS Knowledge management and quality assurance capacity planning Asset remarketing Field agents, tracers and specialised recovery unit Unpaid cluster Early collections Special recovery unit Specialised collections Bad debts

11

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SLIDE 12

Source: WesBank.

Credit scoring system/decision/rating

  • Centralised at WesBank head office
  • Automated credit assessment (ACAS)

improves turnaround time

  • Key aspects assessed by the scorecard

include:

  • Affordability
  • Applicant information
  • Credit bureau information
  • Finance structure
  • FirstRand account history
  • Automated credit assessment for loans up to:
  • R3.5 million for low risk juristics
  • R2.0 million for higher risk juristics
  • ACAS evaluates >99% deals by volume and

>99% deals by value

  • 30% approval rate

Consumer (81%)

  • Private Individual
  • Salary as major

source Non-consumer (19%)

  • Self employed
  • Company
  • Commission as

major source

Application scorecards

Risk Actual default rate Retail fixed Credit rating Retail linked Credit rating Approve 1 Low risk 1.48% B+ 1.05% BB Approve 2 4.01% B+ 3.38% B+ Approve 3 Medium risk 7.85% B 6.81% B Approve 4 13.11% B 11.86% B Approve 5 High risk 20.79% B- 18.80% B- Decline 1 High risk - negotiable of merit 21.75% B- 20.26% B Decline 2 Unacceptable risk 24.69% B- 27.40% B- Decline 3 Policy declines - high risk 9.26% B 7.15% B Not scored Not Scored 8.34% B 7.44% B

12

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SLIDE 13

Nitro programme overview

Rationale for programme – faster execution and time to market of transactions, standardised documentation, economies of scale

PROGRAMME DOCUMENTATION FLOW Programme memorandum

  • Structural backbone
  • General overview of the programme
  • Generic terms and conditions

Applicable transaction supplement

  • Each transaction will have its own transaction

supplement

  • Description of the offering
  • Specific structural features and priority of

payments

  • Specific terms and conditions
  • Unique investor considerations

Applicable pricing supplement

  • Contains the terms and conditions of specific

note

13

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SLIDE 14

Nitro programme – key differences to Nitro 6

Co-mingling Issuer

  • Single newly-established Issuer SPV company
  • Issuer SPV enters into one or more transactions as specified in the relevant applicable transaction supplement
  • For each transaction, a security SPV will be established, which will hold, realise security for the benefit of secured creditors in

respect of that transaction

  • In respect of each transaction, the security SPV established in respect of that transaction will, in relation to that transaction
  • nly, furnish a limited recourse guarantee to the noteholders and other secured creditors of the issuer in relation to that

transaction

  • The issuer will indemnify the relevant security SPV in respect of claims made by the secured creditors under that guarantee
  • Obligations of the issuer to each security SPV arising from the relevant indemnity shall be secured by a security cession to

the security SPV of the issuer’s rights to the assets applicable to that transaction

  • Secured creditors in respect of a transaction will have recourse only to the participating assets of the issuer in relation to that

transaction and will not have recourse to the assets of any other transaction

  • For each transaction a separate bank account will be opened
  • Each transaction will be administered as an independent transaction
  • Assets and liabilities relating to each transaction will be identified in the accounting records of the issuer, as being attributable

solely to that transaction, and will be contractually segregated from the assets and liabilities relating to each other transaction

  • For each transaction an investor report will be prepared

Security SPV Programme parties

  • Issuer SPV – Nitro Programme (RF) Ltd
  • Servicer – WesBank
  • Originator and Seller – WesBank
  • Administrator – RMB
  • Board of Directors and Trustees - Quadridge Corporate Fiduciary and Secretarial Services
  • Transaction parties (Bank Account, Hedge counterparty, etc.) – appointed per transaction

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SLIDE 15

Nitro 7 – key transaction counterparties

Role Counterparty Current long term rating* Rating trigger Possible trigger effects Account bank FRB (RMB) Aaa.za A1.za Replacement Servicer FRB (WesBank) Aaa.za A1.za Accelerated sweeping Customer notification Replacement Swap counterparty FRB Aaa.za A2.za Collateral posting

* Moody’s ratings as at 1 April 2019

WesBank WesBank Noteholders

Sale of portfolio Initial consideration Principal and interest

Nitro Programme (RF) Ltd (Nitro 7)

FRB Administrator Quadridge Corporate Fiduciary and Secretarial Services RMB

Purchase price for the notes

Servicer RMB Swap counterparty Trustee Account bank Originator / seller ISSUER

15

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SLIDE 16

Nitro 7 – key transaction features

Servicer strength High quality collateral1 Robust structure

  • Retail vehicle finance portfolio originated and serviced by WesBank
  • Granular provisional portfolio with average loan size of R 178 115 and average seasoning of 21 months2
  • 100% prime-linked auto loans
  • Used 70.00% / new 30.0%
  • Private individual 84.2% / self-employed private Individual 15.8%
  • 45.64% of the portfolio (balloon and non-balloon capital) relates to agreements with a final balloon instalment, with 15.41% of the total capital

made up of only balloon exposure

  • Weighted average yield of 12.75% for the pool
  • Geographically diversified throughout South Africa
  • Participating assets are transferred to Nitro 7
  • Class A note - legal final maturity of 13 months
  • Simple pass-through waterfall structure - single capital repayment mode
  • Prepayments are used to redeem noteholders
  • Credit enhancement of: Class A notes is 82%, Class B notes is 12%, Class C notes is 7%
  • Fully-funded cash reserve sized at 3% of aggregate principal balance of the participating assets on the issue date
  • Single cash reserve funded at inception to cover any liquidity shortfalls and asset write-offs. Cash reserve available at each quarter as part
  • f the available distribution amount
  • Estimated excess spread at closing of roughly 2.6%3
  • FirstRand Bank Limited is currently rated Baa3 (Aaa.za)/P-3 (P-1.za) by Moody’s
  • WesBank is the market leader in the South African vehicle finance market
  • WesBank is an experienced servicer with six successfully paid in full domestic securitisations

1. All statistics are based on a provisional portfolio as at February 2019. The final portfolio is expected to have similar statistical properties. 2. Average calculations are weighted by current outstanding balance. 3. Estimated post-swap asset yield less estimated senior expenses and senior note interest expressed as a percentage of provisional portfolio. 16

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SLIDE 17

Credit enhancement

  • Credit enhancement for Class A to Class B notes provided by the cash reserve, note subordination and

available excess spread

  • Benefits from an estimated average excess spread at closing of roughly 2.6%2
  • Structured to pay interest and principal sequentially after payment of senior expenses
  • Interest and principal payments on Class C to E notes is subordinated to principal on Class A to Class B

notes as per pre-enforcement order of priority (refer to next slide)

  • Any losses due to insufficient cash flows will be subject to the following order:
  • Covered by excess spread
  • Borne by the subordinated notes in reverse order of seniority

Cash reserve

  • Fully funded at closing from proceeds on sale of the Class E notes
  • At inception, cash reserve requirement is 3% of the aggregate principal balance of participating assets on

issue date

  • At each interest payment date, cash reserve required to be funded up to the following requirement:
  • 3% of aggregate principal balance of participating assets on each determination date prior to such

interest payment date

  • Subject to a floor of 1% of aggregate principal balance of initial assets
  • Cash reserve available to support interest payments on Class A to Class B notes

Hedging strategy

  • Balance-guaranteed interest rate swap between FRB (swap counterparty) and Nitro 7
  • Hedge basis risk between prime rate paying assets and JIBAR-paying liabilities
  • Swap counterparty will pay 3-month JIBAR on the notional outstanding of the notes and receive a

fixed rate from the issuer

  • Swap counterparty subject to collateral posting triggers from Moody’s

Nitro 7 – structural features of capital structure

1. Nominal credit enhancement (CE) excludes excess spread, and includes 3% cash reserve. 2. Estimated post-swap asset yield less estimated senior expenses, senior note interest expressed as a percentage of provisional portfolio.

ASSETS LIABILITIES1

100%

21% nominal CE 82% 4% nominal CE 3% 3% nominal

3%

VEHICLE FINANCE ASSETS CASH RESERVE

70% nominal CE 12% 5% nominal CE 7% Class A P-1.za Class D Caa3.za Class E [not rated] Class B Aaa.za Class C Ba2.za

17

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SLIDE 18
  • Credit enhancement to the Class A to Class D notes will be provided by:
  • Excess spread
  • A cash reserve funded at inception with the proceeds of the Class E note
  • Note subordination

Nitro 7 capital structure

Tranche National scale rating (Moody’s) Issuance amount (R million) Credit enhancement (%)2 WAL1 Legal final maturity date Expected maturity date Coupon JSE listing Status A P-1.za(sf) [420] 82 0.58 20-May-20 31-Apr-20 3m JIBAR + [●] Listed Offered B Aaa.za(sf) [1 400] 12 1.94 20-Jun-25 31-Oct-25 3m JIBAR + [●] Listed Offered C Ba2.za(sf) [100] 7 2.91 20-Jun-25 31-Apr-22 3m JIBAR + [●] Listed Offered D Caa3.za [100] 3 3.06 20-Jun-25 31-Apr-22 3m JIBAR + [●] Listed [Call Desk] E [Not rated] [60]3 [N/A] 20-Jun-25 31-Apr-22 3m JIBAR + [●] Unlisted [Call Desk/ Retained] Total [2 060]

1. 15% CPR assumption, zero losses, zero defaults. 2. Subordination and 3.0% cash reserve (excluding excess spread). 3. Proceeds from the issuance of the Class E tranche are used to fund the cash reserve at [R60 million] at closing.

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SLIDE 19

Nitro 7 – weighted average life and amortisation profile

Key assumptions for estimated weighted average life:

  • Portfolio is subject to a constant annual rate of

prepayment

  • Portfolio sold to the issuer is [R2 000 million]
  • Original outstanding balance of each class of

notes is equal to principal amount based on the provisional portfolio and capital structure

  • There are no delinquent receivables or defaulted

receivables during the life of the transaction

Note: Amortisation and credit enhancement profile based on 15% CPR. Key assumptions listed above. Credit enhancement levels includes note subordination and cash reserve (excludes excess spread).

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.0 0.5 1.0 1.5 2.0 2.5 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22

Estimated amortisation profile (R billion)

Class A Bal Class B Bal Class C Bal Class D Bal Class A CE Class B CE Class C CE Class D CE

Annual CPR 7.5% 10.0% 15.0% 17.5% 20.0% 25.0% Class A (years) 0.69 0.65 0.58 0.56 0.54 0.51 Class B (years) 2.34 2.18 1.94 1.83 1.74 1.59 Class C (years) 3.36 3.19 2.91 2.78 2.68 2.50 Class D (years) 3.56 3.31 3.06 2.81 2.81 2.56

19

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SLIDE 20

Portfolio summary: Nitro portfolio comparison

20

Nitro 1 Nitro 3 Nitro 5 Nitro 6 Nitro 7 provisional pool1

Receivables (R million) 2 000 5 000 2 400 2 040 [3 000] Number of agreements 24 709 42 833 19 541 12 183 16 843 Average outstanding capital balance (ZAR) 80 942 133 185 122 819 185 881 178 115 New / used split

  • New

54% 46% 40% 36% 30%

  • Used

48% 54% 60% 64% 70% Weighted average loan-to-value 85% 87% 92% 92% 93% Remaining term (months) 38 47 43 49 50 Seasoning (months) 19 9 25 22 20 Delinquency status Up to 30 days Up to 30 days Up to 30 days Up to 30 days Up to 30 days Weighted average yield Prime - 0.6% Prime - 0.78% Prime + 1.6% Prime + 2.2% Prime + 2.5%

1. All statistics are based on a provisional portfolio as at 5 February 2019. The final portfolio is expected to have similar statistical properties.

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SLIDE 21

Nitro 7 – provisional portfolio snapshot1

Original loan-to-value (R million)

Receivable type Autoloans Outstanding balance R 2 999 994 915.73 Number of receivables 16 843 Average current balance 178 115 Weighted average rate Prime + 2.5% Weighted average original LTV 93% Weighted average remaining term 50 Weighted average seasoning 20

Refer to the pricing supplement for additional provisional portfolio stratifications. 1. All statistics are based on a provisional portfolio as at 5 February 2019. The final portfolio is expected to have similar statistical properties.

Summary pool information as at 5 February 2019

70% 30%

New/used

Used New

84% 16% Private individual Self-employed Private individual 46% 54%

Loan type

Instalment sale Instalment sale with balloon 200 400 600 800 1,000 1,200 1,400 0% - 15% 15% - 30% 30% - 45% 45% - 60% 60% - 75% 75% - 90% 90% - 105% 105% - 120%

21

Customer type

Balloon exposure 15%

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SLIDE 22

Provisional portfolio snapshot1

Top 10 manufacturers Geographical distribution

Please refer to the pricing supplement for additional provisional portfolio stratifications. 1. All statistics are based on a provisional portfolio as at 5 February 2019. The final portfolio is expected to have similar statistical properties.

Manufacturer Outstanding principal balance (R) Outstanding principal balance (%) Number

  • f contracts

Number of contracts (%)

HYUNDAI 363 754 080 12.13% 2 111 12.53% FORD 326 144 384 10.87% 1 766 10.49% MERCEDES-BENZ 238 060 612 7.94% 876 5.20% BMW 231 180 824 7.71% 930 5.52% VOLKSWAGEN 200 079 803 6.67% 1 470 8.73% NISSAN 190 608 976 6.35% 1 165 6.92% TOYOTA 184 575 411 6.15% 1 125 6.68% RENAULT 184 424 732 6.15% 1 234 7.33% KIA 152 231 349 5.07% 1 005 5.97% MAZDA 135 419 277 4.51% 601 3.57% 6.52% 3.34% 48.35% 14.34% 3.47% 5.63% 3.87% 1.74% 12.73% 0% 10% 20% 30% 40% 50% 60% Eastern Cape Free State Gauteng KwaZulu Natal Limpopo Mpumalanga North West Northern Cape Western Cape

22

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SLIDE 23
  • Roadshow:

3 – 5 April 2019 (Johannesburg and Cape Town)

  • Target price guidance:

[15 April 2019]

  • Target issuance size:

[R1.5bn – R2bn]

  • Target auction:

[25 April 2019]

  • Target settlement:

[3 May 2019]

  • Auction will be uniform price sealed bid on issue margin relative to 3-month JIBAR
  • Request investors to submit by 11:00am
  • Maximum allocation per note/overall
  • Spread required per note
  • Staggered bids are acceptable
  • Allocations will be on tightest spread first – marginal spread pro rated
  • Final allocations will be reported to investors by 1:00pm

Transaction timeline and auction details

23

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SLIDE 24

Contacts

WesBank

Anushuya Gounden (Chief Financial Officer) T 011 632 4629 agounden@wesbank.co.za Lizelle van Deventer (Head of Data and Analytics) T 011 649 5375 vandeventerl@wesbank.co.za

FirstRand Group Treasury

Cameron Gough (Funding and Liquidity) T 011 282 1140 cameron.gough@firstrand.co.za Silvia Caroto (Funding and Liquidity) T 011 282 1458 silvia.caroto@firstrand.co.za Kavir Narsai (Funding and Liquidity) T 011 282 1107 kavir.narsai@firstrand.co.za

Rand Merchant Bank

Cynthia Heyneke (Distribution) T 011 282 1205 cynthia.heyneke@rmb.co.za Anina van Aswegen (Structuring) T 011 282 8004 anina.vanaswegen@rmb.co.za Burger van der Merwe (Legal) T 011 282 1133 burger.vandermerwe@rmb.co.za

FIRSTRAND INVESTOR RELATIONS www.firstrand.co.za investor.relations@firstrand.co.za

24

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SLIDE 25

Summary of key historical performance (prime-linked portfolio)

Source: WesBank.

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 Q25 Q26

Static cumulative default rates (all vehicles)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 Q25 Q26

Static cumulative default rates (used cars)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 Q25 Q26

Static cumulative default rates (new cars)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 Q25 Q26

Static recovery rates

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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SLIDE 26

Summary of key historical performance (prime-linked portfolio)

Source: WesBank.

Dynamic delinquencies

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3

Dynamic prepayments (R billion)

Book Outstanding Principal Amount as at Date Prepayment (%) 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2008 Q1 2008 Q3 2009 Q1 2009 Q3 2010 Q1 2010 Q3 2011 Q1 2011 Q3 2012 Q1 2012 Q3 2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3 1 - 30 DAYS 31 - 60 DAYS 61 - 90 DAYS 90+ DAYS

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

500 1,000 1,500 2,000 2,500 3,000 Jan 2008 Jun 2008 Nov 2008 Apr 2009 Sept 2009 Feb 2010 Jul 2010 Dec 2010 May 2011 Oct 2011 Mar 2012 Aug 2012 Jan 2013 Jun 2013 Nov 2013 Apr 2014 Sept 2014 Feb 2015 Jul 2015 Dec 2015 May 2016 Oct 2016 Mar 2017 Aug 2017 Jan 2018 Jun 2018 Nov 2018

New business production (million)

Original Principal Amount of Loans Originated in Month Number of Loans Originated in Month (#)

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0% 5% 10% 15% 20% 25% 30% 35% 40% Approved 1Approved 2Approved 3Approved 4Approved 5 Declined 1 Declined 2 D3

New business production by risk

2014 2015 2016 2017 2018

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SLIDE 27

Nitro 4: Clean-up call exercised

  • Clean-up call for Nitro 4 was exercised in April 2015,

with the final redemption of all outstanding notes due on the 14 May 2015

  • CPR at maturity was 28.58%, averaging 29.28%
  • ver the duration of the transaction
  • Nitro 4 performed very well with cumulative write-
  • ffs of 0.61% of the aggregate initial pool balance

Cumulative net loss CPR

Source: http://sasf.co.za/investorreports/ABS/AssetBacked_Nitro4.htm. 29.28%

0% 5% 10% 15% 20% 25% 30% 35% 40% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

Delinquency trends

Between 31 and 60 days Between 61 and 90 days Between 90 and 120 days Greater than 120 days Classified 6.91% 4.56% 0.61% 0% 1% 2% 3% 4% 5% 6% 7% 8% Delinquency (%) Non-Performing (%) Cummulative Write-offs (%)

27

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SLIDE 28

Nitro 5: Clean-up call exercised

  • Clean-up call for Nitro 5 was exercised in

September 2018, with the final redemption of all

  • utstanding notes due on the 20 September 2018
  • CPR at maturity was 25.41%, averaging 24.33%
  • ver the duration of the transaction
  • Nitro 5’s cumulative nett write off were 0.55% at

the end of the transaction

Cumulative net loss

Source: http://sasf.co.za/investorreports/ABS/AssetBacked_Nitro5.htm.

Delinquency trends

0% 5% 10% 15% 20% 25% 30% 35%

24.33%

CPR

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Jun'15 Nov'15 Apr'16 Sep'16 Feb'17 July'17 Dec'17 May'18 Between 31 and 60 days Between 61 and 90 days Between 90 and 120 days Greater than 120 days Classified

6.63% 5.16% 0.55%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Deliquency % Non Performing % Cumulative Net write offs (%)

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SLIDE 29

Nitro 6

  • Closed in April 2018
  • Class A notes have redeemed within the 1 year

maturity

  • Class B has begun amortising in line with the

underlying portfolio, with 76% having redeemed thus far

  • CPR has averaged 19.01% for the last 11 months
  • Nitro 6 is performing well with cumulative net write-offs

to date of roughly 0.068% as at 28 February 2019

Cumulative net loss

Source: http://sasf.co.za/investorreports/ABS/AssetBacked_Nitro6.htm.

Delinquency trends CPR

0% 5% 10% 15% 20% 25% 30%

19.01%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Between 31 and 60 days Between 61 and 90 days Between 90 and 120 days Greater than 120 days Classified

4.04% 1.32% 0.068%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Deliquency % Non Performing % Cumulative Net write offs (%)

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SLIDE 30

Notes

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SLIDE 31

Notes

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SLIDE 32

Notes

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