Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (November 2006)
17 slides from Cash Converters International's investor presentation, Nov 13, 2006
Slide 1: Cash Converters, 13 November 2006
Slide | tly ) cas sheonverters 13 November 2006
Slide 2: Operational Snapshot
Slide 2 OPERATIONA Transformed company Australia - 120 stores UK - 115 stores Other - 230 sub- franchised stores Three key divisions going forward: Safrock Finance Mon-E Cash Advance Franchise Stores SNAPSHOT vi
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Slide 4: Global Personal Finance Industry
Slide 4 GLOBAL PERSONAL FINANCE INDUSTRY Rapid expansion in micro fending in USA, UK and Canada over the fast 20 years USA- A$40bn foan votume ~ approx 22,000 outlets ‘orecast PE of 20.0x, Mkt Cap: A$700m, 1,350 stores Advance Arn Historical PE of 18.3x, Mkt Cap: AS1.6bn, 2,778 stores Cash America:
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Slide 6: Australian Personal Finance Industry
Slide 6 AUSTRALIAN PERSONAL FINANCE INDUSTRY Largest Participants Cash Converters 97 stores 450,000 toans $118m loan value 160,000 customers Cash Now 22 stores City Finance 80 stores (mainly in NSW) Money3 10 stores (all in Victoria} 25,000 foans $15m loan value 20,000 customers
Slide 7: Introduction to Mon-E
Slide 7 INTRODUCTION TO MON-E Provides the IT software platform for cash advances <$1,000 to the Cash Converters network Current average loan -~ $285 Current average loan period « 4wks Only 97 out of 122 stores currently providing this service Key Statistics FY 2008 FY 2006 % increase Totat No. of L
Slide 8: Introduction to Safrock
Slide 8 INTRODUCTION TO SAFROCK Provides secured and unsecured loans using Cash Converters franchisees as its agent Core product are unsecured loans: Current active loans 7,100 Current toan book $9.5m Average loan $1,500 Current average loan period - 7mths
Slide 9: Introduction to Safrock
Slide 9 INTRODUCTION TO SAFROCK Key Sta S FY 2005 FY 2006 % increase Total No. of Loans 41,1143 24,430 93% Total No. of Customers 3,777 6,115 62% Total Value of Loans $10.0m $15.0m 50% EgiT $1.8m $3.9m 417%
Slide 10: Other Issues
Slide 10 OTHER ISSUES f@ Regulatory Environment Consumer Credit Code State regulations limit effective interest rates: * NSW: ‘includes fees & charges) + VIC: 48% - unsecured, 30% - secured (does not include fees & charges) t@ Bad Debts Only applies to the Safrock part of the business Historical Bad
Slide 11: Acquisition Summary
Slide 11 ACQUISITION SUMMARY Both vendors have agreed to substantial escrow and clawback provisions Both acquisitions were predominantly scrip based - approx 70% Mon-E: $15m acquisition 3.8x FY 06 EBIT multiple Safrock: $14.1m acquisition + earn out bonus of $3.4m 3.6x FY 06 EBIT multiple $17.5m acq
Slide 12: Growth Strategy
Slide 12 GROWTH STRATEGY Capitalise on CCV’s competitive advantage, size and branding to optimise shareholder value Utilise strong balance sheet - $9m cash Roliout of personai finance throughout entire network: Cash advance (97 out of 122 stores) Personal toans (73 out of 122 stores) Commence rollou
Slide 13: Financials - Historical Results
Slide 13 FINANCIALS - HISTORICAL RESULTS ®@ FY 2006 NET PROFIT: $4.2m (+36%) FY 2005 FY 2006 Increase PROFIT ANALYSIS {$m} (Sr) {3}
Slide 14: FY 2007 Consolidated Guidance
Slide 14 Y¥ 2007 CONSOLIDATED GUIDANCE FY 2007 (F)* FY 2007 Consolidated Forecast im) Revenues from ordinary a i 428 EBIT 13.9 Interest Revenue 0.4 Net Profit Before Tax 14,3 Income Tax (4,5) Net Profit After Tax {after minocity interests) Total Issued Capital {no earn out} **
Slide 15: Proforma 12mth Analysis - EBITA
Slide 15 Proforma 12mth Analysis - EBITA
Slide 16: Summary
Slide 16 SUMMARY Market leader in personal finance and pawn broking services National network of 122 Australian franchisees Advertising / branding strength Strong historical profit performance High ROE business with large recurring earnings Excellent growth opportunities: Market penetration of produ
Slide 17: Cash Converters website
Slide 17 a | hconverters "aun www. cashconverters.com.au
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