Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (July 2014)
18 slides from Cash Converters International's investor presentation, Jul 10, 2014
Slide 1: Investor Presentation July 2014
For personal use only Investor Presentation July 2014
Slide 2: Corporate Snapshot
Corporate Snapshot For personal use only Share Price $1.11 $1.60 Shares on Issue 428.9m Share Price History $1.40 Market Capitalisation $476.1m $1.20 Cash on Hand (30 June 2014) $27.2 $1.00 Interest Bearing Liabilities (30 June 2014) $123.9 $0.80 Substantial Shareholders % Ezcorp 31.9 $0.60 HSBC Cus
Slide 3: Division/Segment Summary
Division/Segment Summary For personal use only Franchise Division • Includes all revenue and expenses relating to the 78 and 164 franchised stores respectively in Australia and the UK and fees from international sub-franchisors who operate 355 stores in 22 countries Corporate Stores Division • This
Slide 4: HY2014 Segment Results
HY2014 Segment Results For personal use only Divisional EBITDA 31 Dec 2013 31 Dec 2012 Variance Franchise Operations $3,179,386 $3,165,102 +0.5 Store Operations $6,870,046 $6,501,637 +5.7 Financial Services - Administration $4,920,328 $7,328,828 -32.9 Financial Services – Personal Loans $18,288,097
Slide 5: Group Summary
Group Summary For personal use only HY2014 HY2013 Move Revenue $m $155.8 $134.9 +15.5% EBITDA $m $21.7 $30.4 -28.5% EBIT $m $17.9 $27.6 -35% NPAT $m $9.9 $18.4 -60.6% EPS $ $0.023 $0.047 -51.1% DPS $ $0.02 $0.02 - Payout Ratio 87.0% 42.6% Dividend of $0.02 per share (fully franked) payable on 28 Mar
Slide 6: 3rd Quarter Segment Results
3rd Quarter Segment Results For personal use only Divisional EBITDA 31 Dec 2013 YTD 31 March 2014 QTR Financial YTD Franchise Operations $3,179,386 $1,821,782 $5,001,168 Store Operations $6,870,046 $4,035,667 $10,905,713 Financial Services - Administration $4,920,328 $2,476,656 $7,396,984 Financial
Slide 7: Group Summary 3rd Quarter
Group Summary 3rd Quarter For personal use only HY2014 3rd QTR YTD Revenue $m $155.7 $85.3 $241.0 EBITDA $m $21.7 $14.5 $36.2 EBIT $m $17.9 $12.7 $30.6 NPAT $m $9.9 $7.2 $17.1 Normalised EBITDA HY2014 3rd QTR YTD EBITDA $m $21.7 $14.5 $36.2 - Ausgroup provision $m $1.1 $0.6 $1.7 - Stamp duty on stor
Slide 8: Business Model
Business Model For personal use only • Corporate and Franchised Store retail network driving sales of financial services products • The major revenue segments are: Franchise operations (franchised stores provide all services) Corporate store operations (company owned stores provide all services) Per
Slide 9: HY 2014 Overview
HY 2014 Overview For personal use only First quarter transitionary. The first quarter was impacted by the transition to the new Australian regulatory regime Strong recovery experienced in the second quarter. This upward trend should continue in the second-half, following a record breaking December l
Slide 10: Australian Personal Loan Book
For personal use only Australian Personal Loan Book Loan Book Produced EBITDA of $17.4m (2012HY: $18.6m) 120.0 100.3 100.8 104.3 109.2 Bad debt percentage of principal written off to 91.5 86.8 94.3 96.3 97.6 100.0 84.7 85.1 84.3 86.7 A$ Millions 80.0 principal advanced remained constant at 5.6% 60.0
Slide 11: Cash Advance Australia – Principal Advanced
For personal use only Cash Advance Australia – Principal Advanced CA – Principal Advanced 25.0 20.0 A$ Millions 15.0 10.0 5.0 0.0 June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Last Year 20.0 18.6 20.4 20.5 21.6 22.7 22.6 20.6 20.1 19.4 14.4 17.4 17.1 This Year 17.1 16.8 19.1 18.5 20.5 20.3
Slide 12: Online Loan Growth
For personal use only Online Loan Growth Online Personal Loan Volumes Online Cash Advance Volumes 7.0 900.0 844.2 6.1 800.0 755.6 6.0 734.4 5.5 714.8 706.6 714.4 5.1 5.1 700.0 649.9 4.9 5.0 4.6 4.2 600.0 A$ Thousands 3.8 A$ Millions 4.0 478.6 500.0 455.9 3.0 370.0357.8 3.0 400.0 2.3 310.1310.3 2.0 3
Slide 13: Regulatory Environments
Regulatory Environments For personal use only Cash Converters has significant experience operating in a number of regulatory regimes United Kingdom – Regulatory Environment The UK treasurer recently announced that a rate cap is to be introduced effective from 2 January 2015. The Financial Conduct Au
Slide 14: Carboodle
Carboodle For personal use only Carboodle was established as Green Light Auto Group Pty Ltd (“GLA”) in 2010. Carboodle is a licensed motor vehicle dealer providing customers who don’t have access to main stream credit with a reliable and well maintained car (retail and commercial). Carboodle provide
Slide 15: Carboodle Active Leases
Carboodle For personal use only Active Leases 1000 877 800 600 600 400 243 200 36 0 2011 2012 2013 Current Page 15
Slide 16: The Outlook
The Outlook For personal use only The first half result reflects the regulatory regime transition that the Company is going through in Australia with the third quarter improving strongly against the previous quarters Since a low point in September, lending volumes in Australia have been increasing A
Slide 17: Appendices
For personal use only Page 17 Appendices
Slide 18: Financial Performance
For personal use only Page 18 Financial Performance
Cash Converters International — Investor Presentation (July 2014) on 6ix