Credit Corp Group Limited · ASX:CCP

Credit — Investor Presentation (April 2021)

20 slides from Credit's investor presentation, Apr 29, 2021

  1. Slide 1: Market Update

    For personal use only Market Update 29 April 2021 Thomas Beregi CEO Michael Eadie CFO Credit Corp Group Market Update Credit Corp Team Update 2020 I 1

  2. Slide 2: Continued leadership in the credit-impaired consumer segment

    Continued leadership in the credit-impaired consumer segment … For personal use only ANALYTICS & DISCIPLINE OPERATIONAL EXCELLENCE SUSTAINABILITY & COMPLIANCE Australian / NZ debt buying  Largest database  Highest asset turnover 1  No adverse orders or undertakings  History of pricing accuracy 

  3. Slide 3: Delivered a return to pre-COVID growth trajectory

    … delivered a return to pre-COVID growth trajectory … For personal use only NPAT AND RETURN ON ASSETS $ 105m 20.0% $ 90m 15.0% $ 75m $ 60m 10.0% $ 45m $ 30m 5.0% $ 15m - - FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Projected 1 FY2021 Total NPAT (LHS) COVID adjustments NPAT (LHS) ROA (RHS) 1. M

  4. Slide 4: Despite challenging debt buying market conditions

    … despite challenging debt buying market conditions For personal use only  Temporary reduction in market sale volumes  Sale volumes below pre-COVID levels by approx. 50% in both AUS/NZ and US  Key drivers:  Run-off in unsecured credit balances 1,2 due to stimulus / forbearance and constrained sp

  5. Slide 5: We remain very competitive in all our debt buying markets

    We remain very competitive in all our debt buying markets … For personal use only FY2021 PURCHASING PIPELINE $ 350m FY2021 purchasing $ 300m guidance $310 - $330m FY2021 initial US  Strong outcomes in the US where $ 250m purchasing US we are a comparatively smaller guidance $43m AUS/NZ $ 200m $120

  6. Slide 6: Due to strong operational outcomes

    … due to strong operational outcomes … For personal use only  AUS/NZ in line with ingoing expectations  Collection House book performing to pro-forma  Total collections tracking to expected softening as stimulus/forbearance has been withdrawn  US performance strong  Solid H1 operational results

  7. Slide 7: And recognised compliance leadership

    ... and recognised compliance leadership … For personal use only H1 FY2021 AUS EDR rate 1 12 months to Jun-20 US dispute rate 2 Credit Corp Credit Corp Publicly traded Other debt buyer A  Continued industry leadership debt buyers Publicly traded  Lowest EDR rate 1 in AUS and low US debt buyer B di

  8. Slide 8: With the capacity to increase investment as opportunities arise

    … with the capacity to increase investment as opportunities arise For personal use only FACILITY HEADROOM AND GEARING  Cash and undrawn lines of ~$400 million, $ 450m 50% $396m $392m representing substantial investment capacity $ 400m $373m $ 350m $316m 40%  Corporate banking facility extended for

  9. Slide 9: The US is driving current year growth

    The US is driving current year growth … For personal use only  Ongoing investment and operational improvement are driving earnings US NPAT (A$m) US COLLECTIONS (A$m) 1 $ 20m $150m $ 15m $100m $ 10m $50m $ 5m - - FY2018 FY2019 FY2020 FY2021 projection FY2018 FY2019 FY2020 FY2021 projection 1. Prior

  10. Slide 10: And is positioned to contribute into the future

    … and is positioned to contribute into the future For personal use only  Already the 6th largest debt buyer in the US market  On all but one major credit issuer debt buyer panel  Fit-out of Washington State will take capacity to ~700 seats and support A$200+ million of annual purchasing  Very co

  11. Slide 11: Consumer lending volumes have recovered

    Consumer lending volumes have recovered … For personal use only  Book has re-grown following the high levels of prepayment in the Jun-20 and Sep-20 quarters CONSUMER LENDING BOOK AND REVENUE LENDING VOLUMES BY QUARTER INDEXED TO PRIOR COMPARATIVE PERIOD $ 230m 90% $ 212m 86%  Demand recovered with

  12. Slide 12: Driven by existing customers

    … driven by existing customers For personal use only  Net lending guidance increased from $5 - $10m to $10 - $20m LOAN VOLUME ($ DISBURSED) $80m $60m $40m $20m $0m Q2 FY2020 Q3 FY2020 Q4 FY2020 Q1 FY2021 Q2 FY2021 Q3 FY2021 Existing customers New customers Credit Corp Group Market Update 12

  13. Slide 13: We remain on track for a strong result in FY2021

    We remain on track for a strong result in FY2021 For personal use only FY2021 guidance Revised Apr 2021 Revised Feb 2021 PDL investment $310 - $330m $310 - $330m Net lending $10 - $20m $5 - $10m NPAT $85 - $90m $85 - $90m EPS (basic) 126 - 134 cents 126 - 134 cents Credit Corp Group Market Update 13

  14. Slide 14: Questions

    For personal use only Questions Credit Corp Group Market Update Credit Corp Team Update 2020 I 14 14 Credit Corp Team Update 2020 I 14

  15. Slide 15: Appendices

    For personal use only Appendices: Key Operating Metrics Appendix 1: Pricing discipline and accuracy Appendix 2: Collections life cycle Appendix 3: Productivity Appendix 4: Payers base Appendix 5: Operational and total headcount Credit Corp Group Market Update Credit Corp Team Update 2020 I 15 19 Cre

  16. Slide 16: Pricing discipline and accuracy

    APPENDIX 1 Pricing discipline and accuracy For personal use only PRICING DISCIPLINE AND ACCURACY $ 4,000m Cumulative collections $ 3,500m $ 3,000m Actual cash collections $ 2,500m $ 2,000m $ 1,500m $ 1,000m $ 500m Initial projections - * For all PDLs held at June 2008, initial projections represent

  17. Slide 17: Collections life cycle

    APPENDIX 2 Collections life cycle For personal use only PDL COLLECTIONS BY VINTAGE $ 160m +8%1,2 $ 140m $ 120m 33% 34% 32% $ 100m 31% 32% 34% 35% 29% 30% 12% 12% $ 80m 31% 32% 33% 32% 30% 30% 30% 32% 32% 13% 16% 16% 18% 14% $ 60m 15% 15% 15% 12% 10% 11% 14% 18% 17% 17% 13% 14% 23% 23% 19% 25% 19% 15

  18. Slide 18: Productivity

    APPENDIX 3 Productivity For personal use only PDL COLLECTIONS PER HOUR $ 350 March YTD $ 300 FY2021: $288 12m to Mar-21 $ 250 FY2020: $248 $ 200 12m to Mar-20 $ 150 $ 100 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Credit Corp Group Market Update 18

  19. Slide 19: Payers base

    APPENDIX 4 Payers base For personal use only PORTFOLIO SUMMARY: AUS/NZ DEBT BUYING ONLY Total portfolio Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Mar-21 Face value $5.9b $6.0b $6.2b $6.4b $7.8b $7.7b $8.6b $8.6b Number of accounts 710,000 710,000 753,000 786,000 1,268,000 1,193,000 1,392,000

  20. Slide 20: Operational and total headcount

    APPENDIX 5 Operational and total headcount For personal use only PERIOD END HEADCOUNT (FTE) PERIOD END HEADCOUNT (FTE) 2,200 Dec-19 1 Jun-20 Dec-20 Mar-21 2,000 1,800 Debt buying 1,455 1,378 1,281 1,279 operations 1,600 1,400 Agency 281 251 222 203 1,200 Lending 126 118 110 110 1,000 800 Support 133

Credit Corp Group — Investor Presentation (April 2021) on 6ix