Credit Clear Limited · ASX:CCR
Credit Clear — FY2021 Earnings Presentation
32 slides from Credit Clear's earnings presentation, Aug 26, 2021
Slide 1: Annual Results Presentation FY21
Annual Results Presentation FY21 ASX: CCR August 2021
Slide 2: Record financial growth underpinned by increasing digital revenues, new client wins and high retention rates
Record financial growth underpinned by increasing digital revenues, new client wins and high retention rates Financial Record revenue and digital gross profit underpinned by increasing $11.0m $3.5m >90% +1,250% uptake of digital Total Revenue Digital Revenue1 Digital GP margin Increased FY21, record
Slide 3: Successful execution of key strategic priorities strongly positions Credit Clear for long-term growth
Successful execution of key strategic priorities strongly positions Credit Clear for long-term growth Accelerate Core Growth Enhance Digital Capabilities Transformational Growth • Customers: Continued to deepen • New platform modules: Several clients • Engaging with international sector coverage and
Slide 4: Optimising financial and repayment outcomes through technology innovation and superior customer engagement
Optimising financial and repayment outcomes through technology innovation and superior customer engagement Market leading digital communication and payment management platform continues to disrupt the Tech traditional receivables management sector Our innovative digital solutions continue to demonst
Slide 5: Agenda
Agenda 01 Operational update 02 Financial update 03 Growth agenda & outlook 04 Appendix
Slide 6: Operational update
C creditclear Ol Operational update
Slide 7: The shifting repayments landscape calls for intelligent digital solutions
The shifting repayments landscape calls for intelligent digital solutions and enhancement of client and end user relationships • Recovery tailwinds COVID-19 recovery • Ballooning receivables ledgers • Increasing communications requirement Increased digital • Increased adoption of digital driving sca
Slide 8: Diversified blue-chip customer base growth underpinned by enhanced technology and premium user experience
Diversified blue-chip customer base growth underpinned by enhanced technology and a focus on premium user experience Servicing blue-chip clients across a broad range of target verticals: Digital communications (millions) +164% Utilities Insurance Finance 11.3 4.3 FY20 FY21 Water Automotive Other ver
Slide 9: A successful year of targeted platform development to expand breadth of services and functionality
A successful year of targeted platform development to expand breadth of services and functionality offered to customers Continued investment into market leading platform technology, including optimising: Expanded communications reach through expanding secure digital End-user engagement Repayment man
Slide 10: Credit Clear has successfully integrated Credit Solutions since December 2019 acquisition
Credit Clear has successfully integrated Credit Solutions since December 2019 acquisition, converting 75% of addressable clients to digital platform Conversion to digital enhances gross profits Current characteristics of the traditional Credit Solutions1: Gross Profit Pre vs Post Acquisition2 ($M) d
Slide 11: Client satisfaction metrics and case studies validate value and benefits of Credit Clear's platform
Client satisfaction metrics and case studies validate value and benefits of utilising Credit Clear’s intelligent digital platform Customer Satisfaction Metrics Case Study Metrics – Select client example Client retention rate Our digital collection strategy was implemented for delinquent accounts bet
Slide 12: Client testimonial: BMW Financial Services
Credit Clear has been able to provide our business with a seamless and efficient engagement tool for customers to self-service their outstanding payments. Credit Clear’s cutting edge technology makes communicating exactly what you need, at the right time, so simple. The client portal supports the to
Slide 13: Financial update
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Slide 14: Strong year of financial performance with record achievements and continued investment into platform for growth
Strong year of financial performance with record achievements and continued investment into platform for growth FY20 FY21 Summary Change (%) $000 $000 FY21 total revenue was up 70% to $11.0m (vs. FY20), Total revenue reaching a record high 6,474 10,980 70% Digital revenue 1,411 3,480 147% Traditiona
Slide 15: Growth across all key revenue streams with record performance achieved in key digital offering
Growth across all key revenue streams with record performance achieved in key digital offering Total Revenue ($m) Digital Revenue ($000) Targeting >90% gross Traditional (late stage) margins 1400 Traditional (early stage) from digital services Digital Total: $11.0m 1200 +70% Total revenue growth 100
Slide 16: Attractiveness of digital communications driving increased conversion from traditional
Attractiveness of digital communications and broader technology functionality driving increased conversion from traditional Revenue Mix (%) – FY20 vs. FY21 Key takeaways FY20 FY21 Digital Revenue $6,474 +147% $10,980 • Digital revenue increasing as a FY21 vs FY20 proportion of total revenue 22% 23%
Slide 17: Improved Operating Expense to Revenue ratios highlight pathway through to positive cash flow generation
Improved Operating Expense to Revenue ratios highlight pathway through to positive cash flow generation FY20 FY21 Change OPEX breakdown OPEX as a proportion of revenue (%) $000 $000 (%) Employee benefits expense (5,256) (9,064) (72%) Revenue: $6,474 $10,980 Other expenses (5,185) (6,930) (34%) OPEX
Slide 18: Growth agenda & outlook
C creditclear 03 Growth agenda & outlook
Slide 19: CEO message on growth and innovation
It brings me great pleasure to lead this revolutionary and next generation fintech as it enters yet another exciting phase of growth and innovation. I am exceptionally proud of the Credit Clear team and their immense work and unwavering commitment to our customers – resulting in record achievements
Slide 20: Expanding upon our strategic initiatives to ensure strong foundations for long-term growth
Expanding upon our strategic initiatives to ensure strong foundations are leveraged for long-term growth Accelerate Core Growth Enhance Digital Capabilities Transformational Growth q Increase client base by targeting a broad Planned technology investment targeting four Targeting UK and US as immedia
Slide 21: Product roadmap to develop technology across four key categories
Product roadmap to develop technology across four key categories Artificial Intelligence (AI) Core Products Strategy Manager Insurance Vertical and Machine Learning • Develop data platform to • Continued investment in core • Continued testing of traditional • Insurance-specific functionality, suppor
Slide 22: Our goal is to become the world's most advanced customer engagement and repayments platform
“Our goal is to become the world’s most advanced customer engagement and repayments platform – making repayments frictionless” Lewis Romano Founder 2 2
Slide 23: Q&A
C creditclear Q8A
Slide 24: Appendix
\, credit 04 Appendix
Slide 25: Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2021 Consolidated Group 2020 2021 $000 $000 Revenue 6,474 10,980 Other income 1,187 2,089 Employee benefits expense (5,256) (9,064) Finance costs (83) (152) Share based expenses (195) (1,075) Other exp
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position As at 30 June 2021 Consolidated Group Continued Consolidated Group 2020 2021 2020 2021 $000 $000 $000 $000 Assets Non-Current Liabilities Current Assets Lease liabilities 815 508 Cash and cash equivalents 2,190 10,747 Provisions 93 194 Trust funds 533 654
Slide 27: Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity For the year ended 30 June 2021 Consolidated Group Ordinary Share Capital Retained Earnings Reserves Total $000 $000 $000 $000 Balance at 1 July 2019 10,530 (8,214) - 2,316 Comprehensive income Loss for the year - (4,287) - (4,287) Total comprehensive inco
Slide 28: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows For the year ended 30 June 2021 Consolidated Group 2020 2021 $000 $000 Cash Flows From Operating Activities Receipts from customers 6,018 10,421 Payments to suppliers and employees (9,392) (16,066) Finance costs (63) (6) Government stimulus payments received 752
Slide 29: Experienced Board & Management Team
Experienced Board & Management Team Board Executive Team • Extensive experience as a management consultant with David Hentschke Brenton Glaister Gerd Schenkel The Boston Consulting Group, with successful executive Chief Executive Officer Managing Director - Credit Solutions appointments at NAB, Citi
Slide 30: Corporate Overview
Corporate Overview Financial Information Share Price Performance (since IPO) ASX Code CCR Share Price ($) Volume (k) Shares on issue 225.7m 1.20 30,000 Share price1 $0.53 1.00 25,000 Market capitalisation ~$120m 0.80 20,000 Cash at bank (30 June 2021) $10.7m Options & Rights 30.4m 0.60 15,000 53c 25
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by, and is the sole responsibility Credit Clear Limited ACN 604 797 033 (Company). The information contained in this presentation was prepared as at 26 August 2021, and remains subject to change without notice. The information in this presentation is of
Slide 32: Contact Us
Contact Us Company David Hentschke Credit Clear e: david@creditclear.com.au Investors Joel Seah Vesparum Capital p: +61 (3) 8582 4800 e: david@creditclear.com.au