Credit Corp Group Limited · ASX:CCP
Credit — Investor Presentation (May 2010)
11 slides from Credit's investor presentation, May 20, 2010
Slide 1: Market Update – 20 May 2010
For personal use only Market Update – 20 May 2010 Thomas Beregi Chief Executive Officer Todd Vogel Chief Financial Officer
Slide 2: EBITDA growth accelerates to 20%
EBITDA growth accelerates to 20% For personal use only Financials to April 2010 YTD Actual (1) FY10 versus pcp (1) 10 Months to April 10 Feb10 Guidance PDL acquisitions up 88% to $53.7m $55-65m Revenue up 16% to $149.2m EBITDA up 20% to $96.1m $104-110m NPAT up 16% to $11.3m $12.5-14m EPS (basic) up
Slide 3: Cash flow and balance sheet strength despite increased purchasing
Cash flow and balance sheet strength despite increased purchasing For personal use only Ten months ended $ million 30 Apr 10 30 Apr 09 EBITDA 96.1 79.8 Operating cash flow 84.0 65.2 PDL acquisitions and capex (54.1) (29.2) Free cash flow 29.9 36.0 PDL carrying value 152.6 175.5 Net bank debt 52.8 89
Slide 4: Recent purchases are yielding acceptable returns…
Recent purchases are yielding acceptable returns… For personal use only Average purchases over the 16 months to April 2010 Cumulative percentage of purchase price collected by month FY10 Guide 230% 225%-250% 60% Actual Forecast 49% 50% 47% % of 39% 40% purchase price 27% 37% collected 30% 20% 25% 11
Slide 5: …and we continue to drive collections from older PDLs…
…and we continue to drive collections from older PDLs… For personal use only PDL Revenue by date of purchase 45 24% 28% 25% 40 22% 8% 12% 15% 9% 9% 35 20% 7% 7% 9% 19% 27% 16% 30 22% 27% > 3 years 28% 21% 13% 22% 26% 21% 2-3 years 25 41% 35% 1-2 years $m 27% 41% < 1 year 20 36% 16% 13% 12% 63% 23% 1
Slide 6: …while maintaining our focus on the certainty of returns
…while maintaining our focus on the certainty of returns For personal use only Total Portfolio Apr 10 Dec 09 Jun 09 Dec 08 Jun 08 Dec 07 Face value $2.6bn $2.5bn $2.2bn $2.2bn $2.2bn $1.9bn Number of accounts 302,000 306,000 284,000 319,000 370,000 388,000 Payment arrangements Face value $448m $392m
Slide 7: We have started to grow our collection capacity…
We have started to grow our collection capacity… For personal use only Headcount by function (FTE) 600 500 Support 400 Process Serving / Mercantile 300 Debt Purchase Operations 200 100 0 FY06 FY07 FY08 FY09 Dec 09 Apr 10 Function FY06 FY07 FY08 FY09 Dec 09 Apr 10 Debt Purchase Ops 182 294 405 435 47
Slide 8: …while preserving collection efficiency
…while preserving collection efficiency For personal use only Debt Purchase Productivity (direct collection staff only) $275 2010/09 $255 2009/08 $250 $245 $239 Revenue $229 $235 per hour $231 $229 $239 $228 $228 $238 $234 $224 $225 $231 $234 $224 $227 $227 $229 $214 $212 $211 $209 $200 $204 $175 Ma
Slide 9: Our FY10 purchasing pipeline remains strong…
Our FY10 purchasing pipeline remains strong… For personal use only Purchases by half-year FY09 FY10 FY10 Guide $37m $64m $64-$66m $m 40 37 35 30 27 24 25 18 20 13 15 10 5 0 H209 H109 H209 H110 H210 Actual Committed at May 10 9
Slide 10: …and, despite uncertain PDL market conditions the purchasing outlook for FY11 is steady
…and, despite uncertain PDL market conditions the purchasing outlook for FY11 is steady For personal use only • FY 11 purchasing guidance of $40-60m • Purchasing conditions remain as disclosed in Feb 10 – Increased pricing – Achieving minimum return criteria will require superior operational executi
Slide 11: Refined guidance
Refined guidance For personal use only FY10 Updated May 10 Issued Feb 10 PDL acquisitions $64 - $66m $55 - $65m EBITDA $110 - $115m $104 - $110m NPAT $13.0 - $14.0m $12.5 - $14.0m EPS (basic) 29 - 31cents 28 - 31cents Guidance excludes potential shareholder litigation costs. 11