Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (April 2009)
18 slides from Cash Converters International's investor presentation, Apr 16, 2009
Slide 1: Investor Presentation April 2009
For personal use only Investor Presentation April 2009
Slide 2: Overview
Overview For personal use only Cash Converters International Limited (ASX:CCV) is a company owned and franchised retail network Services offered include: Sale of second hand goods Cash advance loans (30 day only term, small loan size) Personal loans (longer term with average of 7 months, l
Slide 3: Summary
Summary For personal use only 2008 EBIT Contributions Share price $0.375 Shares on issue 240 m Market capitalisation $90.0 m Cash on hand $11.5 m Interest bearing liabilities $14.1 m Enterprise value $92.6 m PER on 2008A earnings 5.97 x Dividend yield on 2008A 8.0% Total EBIT $22.6m Guidance NPAT 20
Slide 4: Background
Background For personal use only 1984 First retail outlet established 1988 Seven stores open, franchising begins with two stores 1990 Commence national expansion 1991 First store opened in the UK 1994 First store opened in non‐English speaking market (France) 1999 First payday loan 200
Slide 5: Franchise System
Franchise System For personal use only Franchising has enabled the rapid expansion of business nationally and globally Cash Converters International sells a licence for the franchise rights of a country to a sub‐franchisor. The sub‐franchisor develops each country Franchising has benefits to b
Slide 6: Store Locations
Store Locations For personal use only Australian Stores System Stores Country Store Numbers Country Store Numbers Australia 135 UK 130 QLD 44 stores Belgium 16 Ireland 8 WA 25 stores Holland 8 USA 5 7 corporate Italy 2 New Zealand 21 SA NSW 20 stores 10 stores France 36 South Africa 56 1 corporate S
Slide 7: UK Operations
UK Operations For personal use only Cash Converters opened its first UK store in 1991 Experienced management team in place Substantial market size, population of +60 million and well accepted industry sector Total of 130 stores 112 franchise stores 18 corporate owned stores Contributed
Slide 8: Target Market
Target Market For personal use only Quintile 1 Quintile 2 Quintile 3 No wealth Low wealth Growing wealth Household Net worth: $24,321 Household Net worth: $140,133 Household Net worth: $295,814 Gross household income: $255 p/wk Gross household income $543 p/wk Gross household income $917 p/wk Aged
Slide 9: Branding
Branding For personal use only Cash Converters has completed a re‐branding exercise to: Contemporize the look and feel Broaden customer appeal Remove barriers Cash Converters is not an alternative but a highly unique business : Unique range of solutions for cash requirements Unique ret
Slide 10: Personal Finance Products
Personal Finance Products For personal use only Provides secured and unsecured loans using Cash Converters franchisees as its agent Core product are unsecured loans: Active loans at Half Year : 13,659 Loan book at Half Year : $15,474 Average loan: $1,500 Fees on average loan: Establish
Slide 11: Cash Advance
Cash Advance For personal use only Provided by Cash Converters through MON‐E and Quickdraw Provides the IT software platform for cash advances <$1,000 to the Cash Converters network Franchisee charges a fee of 35% of principal loaned MON‐E charges a fee which ranges from a min 3.8% of the pr
Slide 12: Regulatory Issues
Regulatory Issues For personal use only Consumer Credit to transfer from State based legislation across to a single, standard national regulation of consumer credit State regulations limit effective interest rates to: NSW, ACT & QLD: 48% (includes fees and charges) Vic: 48% ‐ unsecured, 30%
Slide 13: Franchise Consolidation
Franchise Consolidation For personal use only Franchising has allowed Cash Converters to harness the collective capital of nearly 500 franchisees to develop a global brand and extensive shop network The consolidation strategy involves buying back franchises Store ownership provides: Increase
Slide 14: Franchise Consolidation
Franchise Consolidation For personal use only Acquiring Franchises: Cash Converters acquired 5 franchised stores in the UK in July 2007 and 8 franchised stores in the in Victoria in October 2007 Total consideration $15.9m Total EBIT contribution $3.3m Total assets acquired $6.1m Average PE o
Slide 15: Franchise Consolidation
Franchise Consolidation For personal use only Strategy: Continue to open new franchised and company owned stores in both Australia and the UK to maintain our competitive advantage Acquire as many franchised stores as are available in the short to medium term It is anticipated that a target of
Slide 16: Growth
Growth For personal use only Growth strategy in place Focusing on: Opening of new company owned stores. Key target geographies in the short term are NSW and UK Increasing the penetration of financial products Acquiring available franchised stores New franchisee store openings Improving
Slide 17: Outlook
Outlook For personal use only Targeting NPAT of $14.5m to $15.0m for 2009FY Cash Converters has counter cyclical characteristics and is experiencing growth despite the current global economic environment Continue to acquire franchised stores as they become available Capitalise on Cash Conver
Slide 18: Appendix: Product Overview
Appendix 2 For personal use only Product Overview Safrock Mon‐e Pawn Broking Geography All Australian States. Does not operate in UK Australia only. Does not Both Australia and UK operate in UK Security Unsecured Secured Unsecured Secured Loan Size $1000 to $2000 $2,000 to $5,000 $50‐$1000 (avg is $
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