Cash Converters International Limited · ASX:CCV
Cash Converters International — FY2024 Earnings Presentation
22 slides from Cash Converters International's earnings presentation, Aug 30, 2024
Slide 1: FY2024 Investor Presentation
FY2024 Investor Presentation Full-year period ended 30 June 2024 Cash Converters International Limited (ASX:CCV) August 2024
Slide 2: What we do
What we do Retail Lending We are the largest global store network focused on Providing solutions to meet the cash needs of a repurposing pre-owned items – circular economy growing, under-serviced market 40 years in operation Multi-channel global in-store and online presence Regulated and responsible
Slide 3: About Us
About Us To work together in pursuit of a world free from financial bias, where choice and opportunity A diverse global Facilitating the Loved by our Reacquiring our is possible for all. business circular customers franchise economy network • Earnings from a • Largest worldwide • High brand • Histor
Slide 4: Our Global Network
Our Global Network 143 Across Australia, New Zealand and United the United Kingdom, Cash Kingdom 47 United Belgium Converters operates Corporate Kingdom owned stores and is the Master Franchisor of a franchise network of 72 France / 37 Belgium 11 Belgium stores. Switzerland ROW / Lux. The balance of
Slide 5: The need for personal finance is growing…
The need for personal finance is growing… Loan Applicant Age 40% Scale We are the largest operator offering small and medium loans in our 35% markets 30% Growing Target market spanning sub-prime and near-prime borrowers in Australia 25% market estimated at over $4b* 20% Innovation New “Line of Credi
Slide 6: Retail: Pre-owned retail is changing
Retail Pre-owned retail is changing • Growing luxury goods focus • AI-powered solutions for product verification enabling confident trade in high-end luxury markets • Luxury focused store concepts underway 6
Slide 7: Our Technology
Our Technology Proprietary machine learning based credit risk tools, trained using over 170m data points Over 770,000 loan applications scored and assessed in FY2024 Open Banking, New Payments Platform, Custom Banking Infrastructure AI enabled product authentication enabling new markets App and mobi
Slide 8: Our strategy
Our strategy Cas|i
Slide 9: Growth Strategy
Growth Strategy Risk managed, customer centric growth • Well established franchise network helped grow our business Inorganic • Acquire AUS & UK franchisees Expansion • Greenfield site expansion • Grow European ‘Hub’ (UK) Domestic Target 200 stores (up from 153) Reacquire Franchise Stores (74) • Gro
Slide 10: Store Acquisitions
Store Acquisitions Strong track record, well known targets and demonstrated profit contribution United • 42 stores acquired in July 2023, contributing $3.4m PBT in FY24 • A further 5 stores acquired June 2024 Kingdom • Forward pipeline of 12 stores under immediate consideration with further opportun
Slide 11: Outlook
Outlook Grow • 50 franchise store acquisitions made in FY2024 and a pipeline of future franchise store network acquisition opportunities under review in core markets • Underlying credit demand strong in an under- serviced customer segment • Finance facility in place with headroom to grow loan books
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Key Highlights
Key Highlights FY2024 $382.6m $69.1m $20.8m 1c per share Network Revenue Operating EBITDA Operating NPAT Half-year dividend paid Acquired franchise stores: Up 26% on pcp Up 21% on pcp Up 4% on pcp 8th straight half-year 3 Australian stores ($302.7m FY2023) ($57.2m FY2023) ($20.1m FY2023) dividend de
Slide 14: FY24: Financials
FY24 : Financials • Revenue up 26% pcp to $382.6m on continued organic momentum from the Company owned store operations across the international network and the contribution from franchise store acquisitions across Australia, the United Kingdom and New Zealand. • Operating EBITDA up 21% pcp to $69.1
Slide 15: FY2024 Financial highlights
FY2024 Financial highlights • Gross Loan Book up 6% pcp to $288.0m – product mix change executed, growing cornerstone Medium loan product and releasing new Line of Credit product, offsetting the reduction in Small loans due to 2023 regulatory changes. • LoC product (new) – entering an exciting ramp
Slide 16: Appendices
Appendices
Slide 17: Gross Loan Books ($m)
Gross Loan Books ($m) PCP Jun 2024 vs AUD Millions 30 Jun 2021 30 Jun 2022 30 Jun 2023 31 Dec 2023 30 Jun 2024 Jun 2024 vs Jun Dec 2023 2023 Loan Book 67.6 75.6 78.0 63.1 54.8 1 Small Loan -30% -13% % Of Total 38% 35% 29% 21% 19% Loan Book 49.4 76.1 99.9 110.2 106.9 7% -3% Medium Loan2 % Of Total 28
Slide 18: Loan Book Performance
Loan Book Performance Net bad debt expense & Expected Credit Loss* (“ECL”) movement • Net Bad Debt Expense for FY2024 was 30 June 2024 30 June 2023 Variance $48.8m, down from $49.3m in the prior comparative period (pcp). This result reflects $m $m $m the on-going focus on credit origination optimisa
Slide 19: Free Cash Flow
Free Cash Flow 30 Jun 2024 30 Jun 2023 Variance • Strong operating cash flow facilitating loan book $m $m $m funding and investing activities including the Total receipts 368.0 287.7 80.3 acquisition of Capital Cash in the United Kingdom. Payments to suppliers, employees and lease liabilities (263.7
Slide 20: Segment Revenue & Operating EBITDA
Segment Revenue & Operating EBITDA • Demand for credit products remained strong 30 June 2024 30 June 2023 Variance across the half. During FY2024 we received 780,000 applications for our Australian credit $m $m $m products. REVENUE Personal Finance 106.8 114.0 (7.2) • Store performance and Franchise
Slide 21: ESG Framework
ESG Framework Operating for 40 years, we understand the importance of adding value to the lives of our customers by operating a sustainable business over the long term. Environmental Social Governance • Our retail trade is driven by pre-owned (second-hand) • Our business serves as an essential and r
Slide 22: The material contained in this presentation is intended to be general background information on
The material contained in this presentation is intended to be general background information on Cash Converters and its activities current at the date of the presentation. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon
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