Cash Converters International Limited · ASX:CCV
Cash Converters International — H1 2023 Earnings Presentation
19 slides from Cash Converters International's earnings presentation, Feb 27, 2023
Slide 1: H1 FY2023 Investor Presentation
H1 FY2023 Investor Presentation Half-year period ended 31 December 2022 Cash Converters International Limited (ASX:CCV) February 2023
Slide 2: About Us
About Us Supporting good borrowers. We provide solutions to meet our customers cash needs through our store and online network. Our core competency is helping good borrowers excluded from the mainstream financial system, access finance. We also facilitate an increasingly important role in the circul
Slide 3: Our Business Model
Our Business model Omni-channel Store and Online Platform distributing loan and retail products, within Australia and across the globe. 1 2 3 Store Operations2 New Loan Loan Book Products1 Corporate Owned Stores Unsecured Secured Franchised Stores Personal Finance Segment Green Light Auto Stores Per
Slide 4: Our Competitive Advantage
Our Competitive Advantage Large Customer Base Leading Tech Platform Healthy Balance Sheet Sustainability Regulation ✓ Transacting with over ✓ Proprietary platforms built ✓ $67.5m in cash, and ✓ Facilitating circular ✓ Already meeting National 100,000 active customer inhouse, growing digital ~$29.0m
Slide 5: H1 FY2023 Highlights
H1 FY2023 Highlights Half-year period ended 31 December 2022
Slide 6: H1 FY2023 Highlights (vs PCP)
H1 FY2023 Highlights (vs PCP) Dividend • Revenue growth driven by increasing volume Revenue up 24% $142.4m Earnings Operating EBTIDA up 18% $28.9m Fully franked declared 1c across all loan books and store trading improvements. • *Operating NPAT excludes significant items for the half year; 5th $116m
Slide 7: H1 FY2023 Highlights Cont… Outlook – Growth Drivers
H1 FY2023 Highlights Cont… Outlook – Growth Drivers ✓ Diversification of business model away from SACC product sitting within Small Loans (impacted by new legislation); strong customer demand for alternative financing solutions. ✓ Marketing optimisation now attracting 22,000+ new customers per month
Slide 8: Financial Service Reform Bill Update
Financial Service Reform Bill Update • As announced by the Company on 21 February 2023, a Bill passed by the Australian Senate in December 2022 contains several Financial Services legislative changes. These changes focus on the enhanced regulation of SACC loan products offered by the Company. • The
Slide 9: Our Strategy
Our Strategy cashédnverters
Slide 10: Our Strategic Growth Priorities
Our Strategic Growth Priorities Australia International • Acquire franchisees. • Acquire loan books. Consolidate • Optimise core business. • Enhance customer value. • Integrate and grow NZ. • Increase free cash flow. • Establish European ‘Hub’ (UK) Expand • Increase equity ownership. • Launch new pr
Slide 11: Strategy Update
Strategy Update Acquisitions & Expansion • Disciplined review of investment opportunities continues. Acquiring strategic loan books, franchises and investing in • Ongoing franchise acquisition and network expansion. Greenfields to expand our distribution network, optimising our store model. • NZ acq
Slide 12: ESG Framework
ESG Framework Operating for over 38 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- • Our business serves as an essential and •
Slide 13: Appendices
Appendices cashédnverters
Slide 14: Gross Loan Books $m
Gross Loan Books $m 30 Jun 31 Dec 30 Jun 31 Dec 30 June 31 Dec PCP Dec 22 vs 2020 2020 2021 2021 2022 2022 H1’23 vs Jun 22 H1’22 Small Loan Loan Book $63.1m $59.8m $67.6m $69.0m $75.6m $82.2m +19% +9% (SACC)1 % of Total 38% 38% 38% 36% 35% 32% Medium Loan Loan Book $31.7m $30.9m $49.4m $65.1m $76.1m
Slide 15: Loan Book Performance – Net bad debt expense & ECL
Loan Book Performance – Net bad debt expense & ECL • Net bad debt expense reflects the growth in lending demand and loan books. Whilst the Bad 31 Dec 2022 31 Dec 2021 Variance Debt Written Off has increased with larger loan $’000 $'000 $'000 books, the Net Loss Rate remains in line with historical l
Slide 16: Free Cash Flow
Free Cash Flow 31 Dec 31 Dec Variance • The Group’s Cash balance grew to $67.5m in the 2022 2021 half (June 2022: $58.1m), after funding loan book growth and the acquisition of Cash Converters New $’000 $'000 $'000 Zealand. Operating EBITDA 28,889 24,403 4,486 • Operating cash flow generated is used
Slide 17: Reconciliations
Reconciliations 31 Dec 2022 31 Dec 2021 Variance $’000 $'000 $'000 EBITDA1 Reported Basis (89,306) 13,469 (102,775) Impairment and other significant items 118,195 10,934 EBITDA Operating Basis 28,889 24,403 4,486 EBIT1 Reported Basis (95,542) 6,109 (101,651) Impairment and other significant items 11
Slide 18: Segment Revenue & Operating EBITDA
Segment Revenue & Operating EBITDA 31 Dec 2022 31 Dec 2021 Variance Variance • Personal Finance and Store Operations strong $’000 $'000 $'000 % revenue & operating EBITDA growth on pcp as post Covid recovery continued. REVENUE Personal Finance 59,174 46,448 12,726 27% • Over 22% of Store trading day
Slide 19: Disclaimer
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
Cash Converters International — H1 2023 Earnings Presentation on 6ix