Cash Converters International Limited · ASX:CCV

Cash Converters International — Investor Presentation (November 2009)

16 slides from Cash Converters International's investor presentation, Dec 1, 2009

1. Slide 1: Investor Presentation November 2009

   For personal use only Investor Presentation November 2009

2. Slide 2: Overview

   Overview For personal use only ƒ Cash Converters International Limited (ASX:CCV) is a company owned and franchised retail network ƒ Services offered include: ƒ Sale of second hand goods ƒ Cash advance loans (30 day only term, small loan size) ƒ Personal loans (longer term with average of 7 months, m

3. Slide 3: Summary

   Summary For personal use only Share price $0.60 Shares on issue 364 m Market capitalisation $218.1 m Cash on hand (as at 24 Nov 2009) $59.0 m Interest bearing liabilities $16.9 m Enterprise value $176.1 m PER on 2009A earnings 8.86 x Dividend yield on 2009A 5.0% Guidance NPAT 2010 earnings $20 5m to

4. Slide 4: Background

   Background For personal use only ƒ 1984 First retail outlet established ƒ 1988 Seven stores open, franchising begins with two stores ƒ 1990 Commence national expansion ƒ 1991 First store opened in the UK ƒ 1994 First store opened in non non‐English English speaking market (France) ƒ 1999 First payda

5. Slide 5: Franchise System

   Franchise System For personal use only ƒ Franchising has enabled the rapid expansion of business nationally and globally ƒ Cash Converters International sells a licence for the franchise rights of a country to a sub‐franchisor. The sub‐franchisor develops p each countryy ƒ Franchising has benefits t

6. Slide 6: Store Locations

   Store Locations For personal use only Australian Stores System Stores Country Store Numbers Country Store Numbers Australia 136 UK 142 QLD 44 stores + Belgium 16 Ireland 8 WA 1 corporate 18 stores + Holland 8 USA 5 7 corporate Italy 2 New Zealand 21 SA NSW 20 stores 11 stores + France 36 South Afric

7. Slide 7: UK Operations

   UK Operations For personal use only ƒ Cash Converters opened its first UK store in 1991 ƒ Experienced management team in place ƒ Substantial market size, size population of +60 million and well accepted industry sector ƒ Current UK store numbers 142 ƒ 118 franchise stores ƒ 24 corporate owned o ned

8. Slide 8: Branding

   Branding For personal use only ƒ Cash Converters has completed a re‐branding exercise to: ƒ Contemporize the look and feel ƒ Broaden customer appeal ƒ Remove barriers ƒ Cash Converters Con erters is not an alternative alternati e but b t a highly highl unique niq e business : ƒ Unique range of solut

9. Slide 9: Personal Finance Products

   Personal Finance Products For personal use only ƒ Provides secured and unsecured loans using Cash Converters franchisees as its agent ƒ Core products are unsecured loans: ƒ Active loans at 30 June 2009 : 19,211 ƒ Current active loans : 22,950 ƒ Loan book at 30 June 2009 : $21.4m ƒ Current C rrent lo

10. Slide 10: Cash Advance

    Cash Advance For personal use only ƒ Provided by Cash Converters through MON‐E and Quickdraw ƒ Provides the IT software platform for cash advances <$1,000 to the Cash Converters network ƒ Franchisee charges a fee of 35% of principal loaned ƒ MON‐E charges a fee which ranges from a min 3.8% of the pr

11. Slide 11: Regulatory Issues

    Regulatory Issues For personal use only ƒ Consumer Credit to transfer from State based legislation across to a single, standard National Credit Code (NCCP) ƒ Phase 1: ƒ 3 Bills introduced on 25th June and now passed(Credit Bill, Transition Bill, Fees Bill) ƒ Our products and processes/disclosures al

12. Slide 12: Franchise Consolidation

    Franchise Consolidation For personal use only ƒ Franchising has allowed Cash Converters to harness the collective capital of nearly 500 franchisees to develop a global brand and extensive shop network ƒ The consolidation strategy involves buying back franchises ƒ Store ownership provides: ƒ Increase

13. Slide 13: Franchise Consolidation

    Franchise Consolidation For personal use only Strategy: ƒ Continue to open new franchised and company owned stores in both Australia and the UK to maintain our competitive advantage ƒ Acquire as many franchised stores as are available in the short to medium term ƒ It is anticipated that a target of

14. Slide 14: Growth

    Growth For personal use only ƒ Growth strategy in place ƒ Cash Converters is very well funded to execute its growth strategy ƒ Focusing on: ƒ Opening of new company owned stores. Key target geographies in the short term are NSW and UK. ƒ Increasing the penetration of financial products ƒ Acquiring a

15. Slide 15: Outlook

    Outlook For personal use only ƒ Recently upgraded 2010FY NPAT target, in the range of $20.5m to $21.0m ƒ Cash Converters has counter cyclical characteristics and is experiencing growth despite the current global economic environment ƒ Continue to acquire franchised stores as they become available ƒ

16. Slide 16: Appendix: Product Overview

    Appendix For personal use only Product Overview Safrock Mon‐e Pawn Broking Geography Australia and the UK Australia and the UK Both Australia and UK Security Unsecured Secured Unsecured Secured Loan Size $1,000 to $2,000 $2,000 to $5,000 $50‐$1,000 (avg is $90) (avg is $1,500) (avg is $303) Loan Dur

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