Credit Corp Group Limited · ASX:CCP
Credit — Investor Presentation (July 2003)
13 slides from Credit's investor presentation, Jul 30, 2003
Slide 1: St George Bank Alliance and Capital Raising
July 2003 Private and Confidential (¢q Credit Corp Credit Corp Group Limited St George Bank Alliance and Capital Raising Z Wilson HTM EWVESTMENT GROUP
Slide 2: Disclaimer
Disclaimer (¢ CreditCorp Inside information. The information contained in this document and otherwise disclosed to you by Wilson HTM Ltd (ABN 68 010 529 665) or its related bodies corporate (Wilson HTM), or Credit Corp Group Limited (ABN 33 092 697 151) {Credit Corp) may constitute “inside informati
Slide 3: Introduction
Introduction € CreditCorp CCP has been selected as the exclusive acquirer of a St George Bank ledger. Unique structure involving immediate purchase of book - face value approx. $50 million and subsequent purchase of monthly forward flow for 1 year of freshly ‘written off debt. An option fee has been
Slide 4: Credit Corp activities
Credit Corp activities € ‘ VA CreditCorp
Slide 5: Credit Corp activities
Credit Corp activities € CreditCorp Contribution by area to Group Revenue: 2003¢” Ledger Purchasing 9.9 Mercantile Collections 3.4 Process Serving 3.3 16.6 Source: WHTM Research
Slide 6: The St George acquisition
The St George acquisition € CreditCorp St George restructured its recoveries area. Accordingly it has sought an arrangement whereby all current debts in recovery are being sold to CCP and all future debts for a period of 12 months, moving to “recovery” from “collection”, will be acquired by CCP at w
Slide 7: CCP's history of ledger purchases
CCP’s history of ledger purchases € CreditCorp CCP is Australia's oldest and most experienced participant in the highly specialised ‘Debt Purchase’ sector. CCP is experienced at valuing and actioning debt from a variety of financial institutions and across a diverse range of financial products. Fina
Slide 8: CCP's history of ledger purchases
CCP’s history of ledger purchases * Details of historic recovery experience: Ledger A Ledger B Ledger C Purchase Date 23 Mar1985 28Mar2002 31 Dec 2002 Purchase Price $121,000 $2,285,847 $1,955,513 Total Collected $3,166,722 $2,590,670 $1,089,762 # Accounts 4,982 3,334 1,642 Payers Base $530,282 $2,3
Slide 9: Results are in line with market expectations
* Results are in line with market expectations. * Announcement of preliminary final results due on 1 September 2003. * By business area: € CreditCorp Debt Ledger Purchasing * Overall sector results highlight specialised nature and importance of ‘experience and depth of understanding. . St George tra
Slide 10: Effect of the acquisition on CCP
Effect of the acquisition on CCP * Significant increase in ledger acquisition investment over 2002/03. —- 2003: $5m to 2004: $16m * Increase in interest expense with the drawdown of new debt facilities and utilisation of guarantee facility. - Approx. $0.7m from low levels of debt in prior years. * I
Slide 11: The debt facility
The debt facility € CreditCorp A new facility has been provided by Westpac Banking Corporation, replacing all previous facilities and is being used for working capital and acquisition purposes. Anticipated that Net Debt at the end of the 2003/04 year will be $5.5 million and the guarantee facility w
Slide 12: Equity raising - terms
Equity raising - terms Shares offered 2,857,143 Offer price per share (cum 2003 final dividend) $1.05 Total raising $3,000,000 Shares issued post raising 34,771,143 Market capitalisation post issue (at issue price) $36,509,700 A further 2.055 million shares will be issued as deferred consideration u
Slide 13: Equity raising - timetable
Equity raising - timetable € CreditCorp Friday, 25 July Monday, 28 July Tuesday, 29 July Wednesday, 30 July Tuesday, 5 August Friday, 8 August Placement marketing (after close of business) Request for trading halt Placement marketing Offers of placement participation despatched Placement acceptances
Credit Corp Group — Investor Presentation (July 2003) on 6ix