1. COMPANY PRESENTATION 2006

2. RC&C FINANCE Who is RC&C Finance? Who is RC&C Finance? Business Model Business Model Funding Funding Base Analysis Base Analysis Relevant Statistics Relevant Statistics The Future The Future

3. RC&C FINANCE RC&C Finance is the in-house asset finance company for the Reunert group. RC&C 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. We specialise in office equipment for corporate customers for Nashua, Panasonic Sietel and their franchises. Only Rental agreements are financed. Only Rental agreements are financed. We advance funds against against a fixed income stream. We advance funds against against a fixed income stream.

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

5. KEY SUCCESS FACTORS Best rates. Best rates. Best turnaround times. Best turnaround times. Best services. Best services. - One on one relationships.

6. BASE ANALYSIS SPLIT BY CUSTOMER SPLIT BY CUSTOMER  Nashua88%  Panasonic 8%  Sietel 4%

7. ISO 9001:2000 Currently under audit Currently under audit Certification due November 2006. Certification due November 2006.

8. 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 with Reunert College for 2 persons. Launched Bursary Scheme in conjunction with Reunert College for 2 persons. Investment in Corporate Social Investment via Nashua Franchises. Investment in Corporate Social Investment via Nashua Franchises.

9. COMPETITION ABSA Technology Finance (Union) ABSA Technology Finance (Union) Sasfin Sasfin Merchant West Merchant West Technofin Technofin Nefco Nefco

10. CREDIT VETTING  Investment in a new system written by Acuo, a 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. Improved exception reporting. Improved exception reporting. Improved Data Base management. Improved Data Base management.

11. BUSINESS MODEL Nashua Finance Nashua Finance RC&C Finance RC&C Finance

12. NASHUA FINANCE Existing 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.

13. 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 ……

14. 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 deals. Utilise Swaps to fix margin on fixed rate deals. Swaps matched to the expected life of the deal. Swaps matched to the expected life of the deal.

15. 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.

16. 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 SA ( Mainly Gauteng and Western Cape). Top 50 Geographically spread throughout SA ( Mainly Gauteng and Western Cape).

17. 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.  Average 8h04  Existing Users 6h56  New Users12h36

18. EXCHANGE RATES Direct : No effect. Direct : No effect. - No imports. - No exports. Indirect: Indirect: - Potential slowdown in dealer business. - Increase prices, increase payout values.

19. BASE ANALYSIS Own Book Sold Book Total Value (R’000s) 1,323,848151,6841,475,532 Average period to run 36 months 14 months 30 months

20. BASE ANALYSIS (Cont’d) Fixed Rentals.77% Fixed Rentals.77% Linked to Prime Rentals.23% Linked to Prime Rentals.23% Coverage of Fixed Deals. 77% Coverage of Fixed Deals. 77%  Equity Cover16%  Swaps84%

21. STATISTICS - RATIOS 20022003200420052006 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%

22. THANK YOU