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Transaction Capital Limited                                 TransCapital Investments Limited
(Incorporated in the Republic of South Africa)              (Incorporated in the Republic of South Africa)
Registration number: 2002/031730/06                         Registration number: 2016/130129/06
JSE share code: TCP                                         Bond company code: TCII
ISIN: ZAE000167391                                          LEI: 378900AA31160C6B8195
(“Transaction Capital” or “the company” or “the group”)

VOLUNTARY TRADING UPDATE IN RESPECT OF WEBUYCARS FOR THE FOUR MONTHS ENDED
31 JANUARY 2024

INTRODUCTION
Shareholders are referred to the announcement released by Transaction Capital on SENS on Tuesday,
13 February 2024 regarding the unlocking of value for shareholders of Transaction Capital, comprising: the firm
intention to unbundle WeBuyCars and its separate listing on the Main Board of the JSE, the WeBuyCars share
issue of R760 million, the private placement of WBC shares of R500 million, a proposed pre-listing capital raise
of up to R750 million and withdrawal of the cautionary announcement (“Firm Intention Announcement”).

The purpose of this announcement is to provide shareholders with a business trading update for WeBuyCars
in the light of the release of the Firm Intention Announcement. The information contained in this
announcement has not been reviewed or reported on by the group’s external auditors and is the responsibility
of Transaction Capital’s board of directors.

TRADING UPDATE
In the 2023 financial year (“FY2023”), WeBuyCars delivered on key performance metrics including increased
volumes and growth in market share. Although earnings were down in the first half of FY2023, the business saw
a strong recovery in the second half. This positive momentum has continued into 2024, notwithstanding the
adverse market conditions.
  For the 4 months ended 31 January                        2024          2023           2022 Movement
                                                                                               2024 vs 2023
  Financial performance
  Revenue                                          Rm      7 636        6 574          5 246             16%
  Core earnings                                    Rm        267          223            275             20%
  Core cost-to-income ratio                         %       61.5          60.4           48.7
  Debt-to-equity ratio                              %       32.4          47.5           45.2
  Cash generated from operating activities         Rm        402          256            193             57%
  Net interest-bearing liabilities
                                                   Rm      1 034        1 392          1 058           (26%)
  (excl IFRS 16)
  Operational performance
    Vehicles purchased                       Number         53 855        48 346       37 826             11%
    Vehicles sold                            Number         53 144        47 056       37 259             13%
    Stock days                               Number              29           30            23
    Inventory                                     Rm         1 975         1 945         1 093               2%


                                                                                                              1
 Inventory units                              Number         12 352       12 487         7 380             (1%)
 F&I penetration on units sold                    %            19.4         21.6          16.7
 F&I units                                    Number         10 300       10 155         6 205               1%
 Vehicle parking bays                         Number         10 444         9 885        6 985               6%
 Buying pods                                  Number             74            59            24            25%
 Total e-commerce sales                       Number         13 951         9 846       11 274             42%
 Total e-commerce sales                             %          26.3          20.9          30.3

Financial performance
In line with expectations, WeBuyCars has resumed its earnings growth trajectory with core earnings growing
20% in the first four months of the 2024 financial year (“FY2024”), compared to the same four month period in
FY2023. WeBuyCars’ earnings performance in FY2023 was impacted by the change in market dynamics, as the
factors that had contributed to unusually high used car demand and price inflation in 2022 reversed. The
business’ agile operating model and quick stock turn enabled it to respond quickly to these market changes. At
the start of 2023 WeBuyCars swiftly adjusted its vehicle buying strategy to focus on lower-priced second-hand
vehicles, in line with consumer demand. In H2 2023 margins stabilised and operational efficiencies improved,
driving the return to earnings growth in FY2024.

Revenue continues to grow in line with the growth in number of vehicles sold as the existing branch network
matures. WeBuyCars is consistently expanding its market share in a highly fragmented market.

WeBuyCars has continued to invest in its proprietary digital business platform, data, and analytics capabilities
which optimise the vehicle buying and selling process. This proprietary technology platform has proven to be a
key differentiator for the business.

WeBuyCars’ balance sheet is conservatively geared, supported by high cash conversion rates. Net debt of
R1 034 million consists primarily of mortgage loans (R734 million) on several vehicle supermarkets, and working
capital facilities (R300 million) to fund inventory. In the current high interest rate environment, management
has repaid debt during the period under review, which has resulted in interest savings.

Operational performance
In the first four months of FY2024, WeBuyCars bought 53 855 vehicles and sold 53 144 vehicles, up 11% and
13% respectively. The number of vehicles bought and sold continues to grow, with the number of vehicles sold
reaching a record of 14 000 in January 2024.

In 2022, WeBuyCars made significant investments in its infrastructure, increasing total capacity to 8 580 parking
bays. During the sixteen months to 31 January 2024, a further 1 864 bays were added to the national footprint,
bringing the national capacity to 10 444 parking bays. Given the focus on leveraging existing strategic
infrastructure investments, only one new branch was opened in the last nine months, resulting in inventory
levels remaining consistent with the prior period. The physical footprint will be expanded further in 2024 and
2025 to meet the business’ growth aspirations.

As the business has scaled, it has consistently invested in marketing spend to enhance the WeBuyCars brand.
Investment in its website and its consumer app has allowed for increased online engagement with consumers,
making vehicle purchasing more convenient. WeBuyCars’ website is currently averaging 5.7 million monthly
visits with 1.8 million unique visitors, presenting a unique and growing buy-and-sell ecosystem.




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OPERATING CONTEXT
The structural elements supporting the medium and long-term outlook for the second-hand vehicle market in
South Africa remain positive. In the current macroeconomic environment characterised by high unemployment
and elevated interest rates, affordability is a big challenge for consumers, driving demand for more affordable
used vehicles. In addition, the increasing prices of new vehicles, fuelled by inflationary pressures and a
depreciating Rand, also boosts demand in the pre-owned vehicle market.

WeBuyCars has proven to have been well-positioned in the current environment and will continue to deliver on
its value offering to consumers as it expands.

Sandton
13 February 2024

Transaction Advisor and Sponsor
PSG Capital

Legal Advisor as to South African law
ENSafrica

Legal Advisor as to US and UK law
Goodwin

Tax Advisor
Werksmans Attorneys

Investor Relations
Nomonde Xulu – Email: nomondex@transactioncapital.co.za




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