Humm Group Limited · ASX:HUM
Humm — ASX Small Cap Conference Hong Kong (March 2016)
16 slides from Humm's conference presentation, Mar 30, 2016
Slide 1: ASX Small Cap Conference Hong Kong
ASX Small Cap Conference Hong Kong 21st October 2010 John DeLano Chief Executive Officer and Managing Director Not for distribution or release in the United States or to U.S. persons 1
Slide 2: Disclaimer
Disclaimer Important Notice No recommendation, offer, invitation or advice This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in FlexiGroup Limited (“FlexiGroup”) in any jurisdiction.
Slide 3: FlexiGroup (FXL) Overview
FlexiGroup (FXL) Overview FXL - Market Financials: – ASX Top 300 stock with market cap of approximately USD400m. – $124m cash at bank1 as at 30JUN10 – 8.2x P/E - trading at a 32% discount to ASX Small Industrials – FY2011 Guidance 11% - 16% cash NPAT growth FXL – the company: – Founded in 1988 leasi
Slide 4: FlexiGroup Businesses – 4 Verticals
FlexiGroup Businesses – 4 Verticals Retail Point of Sale Retail Point of Sale Retail Point of Sale OEM & Vendor Lease to Interest Free Lease - IT & electrical Mobile Broadband - IT commercial accounts Trading since 1989, acquired Oct Trading since 1988, IPO Dec Launched in retailers, Feb Recruited a
Slide 5: Group Highlights
Group Highlights Fully franked final dividend of 4.5 cents - 50% increase on FY09. Diversification strategy is on track. New businesses (Interest Free, Mobile Broadband and Vendor Finance) producing strong profit and volume growth Risk containment strategy in 2007 - 2009 (early in the GFC) results i
Slide 6: Strong Financial Performance
Strong Financial Performance Profit: FY10 Core NPAT1 of $60.0m (inc tax credit). Cash NPAT2 up 24% to $41.6m Volume: 30% growth. Leases, Interest Free, Mobile Broadband double digit growth Credit: Continued improvement in quality; impairment falls by 10% to 4.4% of ANR3 Balance Sheet /Cash flow: $12
Slide 7: FlexiGroup's performance amongst the best in the ASX300 throughout GFC
FlexiGroup’s performance amongst the best in the ASX300 throughout GFC FXL Position in Metric Performance ASX 3002 Earning per share growth FY08- FY10 EPS CAGR1 29% ► Top 10% Dividend per share growth FY08- FY10 DPS CAGR1 17% ► Top 5% Total Shareholder ASX 300 TSR Ranking Returns – last 12 months 12
Slide 8: Well Positioned for Growth
Well Positioned for Growth Market Under serviced market due to post GFC funding paradigm Funding With new and existing committed funding, facilities are in place to capitalise on growth opportunities Profit New profit opportunities with Certegy and BLiNK through product innovation Acquisition Opport
Slide 9: Through downturn and GFC, FXL diversified into businesses and increased NPAT 35%
Through downturn and GFC, FXL diversified into 4 1 businesses and increased NPAT 35% In FY08 point of sale small ticket leasing produced 100% of profit In just two years, new businesses (interest free, vendor finance, mobile broadband) contribute 20% of profit This trend is expected to continue give
Slide 10: New businesses deliver strong volume growth and profit margins
New businesses deliver strong volume growth and profit margins Current NPAT margin1 27% Strong growth from new business segments which are expected to deliver 30% to 35% NPAT margin All FXL Businesses target minimum 5%+ NPAT/ANR2 Retail Point of Sale Retail Point of Sale Retail Point of Sale OEM & V
Slide 11: Certegy continues to exceed expectations
Strong focus on growth and product innovation – Certegy continues to exceed expectations Interest Income and Performance NPAT NPAT Certegy FY10 Cash NPAT1 $7.6m exceeds Margin3 ANR 4 guidance 30% 5% Operating income increased by $17.4m in FY10, FY10 FY09/10 Interest Free2 ACTUAL Growth driven by vol
Slide 12: Strong Australian volumes outperform
Strong Australian volumes outperform Performance NPAT NPAT Australian small ticket leasing volume growth of +7% Margin1 ANR 2 for FY10. 2H10 +10% outperforming retail sector 25% 8% Conservative approach to credit in NZ and Ireland FY10 FY09/10 Lease: IT & Electrical ACTUAL Growth constrains volumes
Slide 13: Investment in customer acquisition during start up is expected to drive improved profitability in FY11
Investment in customer acquisition during start up is expected to drive improved profitability in FY11 Performance Economic model: Revenue derived from monthly NPAT Margin3 paying customers less data costs, customer 35% acquisition costs and operating expenses FY10 FY09/10 54,000 customers producing
Slide 14: FXL's Vendor Finance is well placed to deliver strong growth in FY11/12
FXL’s Vendor Finance is well placed to deliver strong growth in FY11/12 Performance Recruited experienced vendor finance team to NPAT NPAT Margin1 ANR 2 target under serviced market as foreign and 35% 4% domestic banks have contracted or exited FY10 FY09/10 In the 5 years prior to joining FXL, the v
Slide 15: FlexiGroup operates a sound credit quality business
FlexiGroup operates a sound credit quality business Net impairment losses in FY10 of $24.4m were 10% lower on prior year Superior results driven by: 20 years experience in consumer and business credit embedded in FXL’s credit scoring systems Products financed are for customers day to day usage – thi
Slide 16: Outlook for FY11
Outlook for FY11 FY11 Cash NPAT guidance of $46m-$48m. Growth of 11% to 15% on FY10 Cash NPAT of $41.6m – Increased contribution from Certegy due to product innovation – Increased customer numbers support strong revenue growth from BLiNK Mobile Broadband – Growth in good credit quality verticals (co
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