Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (November 2014)
20 slides from Cash Converters International's investor presentation, Nov 27, 2014
Slide 1: Investor Presentation November 2014
For personal use only Investor Presentation November 2014
Slide 2: Sept Quarter Update
Sept Quarter Update For personal use only Strong revenue growth, up 26.2% to $97.2m on previous corresponding period (pcp). Driven by: Increase of $12.5m from Personal Loan products Increase in Corporate Store revenue of $6.1m Personal Loan book $105m as at 30 September, up 23.4% from $85.1m from 30
Slide 3: Sept Quarter Update: Financial Results Summary
Sept Quarter Update For personal use only Financial Results Summary 30 Sept 2013 30 Sept 2014 Variance Statutory Reporting Basis Quarter Quarter Revenue $77.04m $97.23m +26.2% EBITDA $8.92m $15.98m +79% EBIT $7.04m $13.84 +96.6% NPAT $4.38m $7.72m +76.4% Normalised EBITDA 30 Sept 2013 30 Sept 2014 V
Slide 4: Agent Agreements
Agent Agreements For personal use only Cash Converters has entered into contracts, the principal effect of which is to terminate the development agency agreements with Kentsleigh and Cliffview (Agreements) for $30.8 million cash, including GST The Agreements have been in place for approximately ten
Slide 5: Agent Agreements
Agent Agreements For personal use only The termination of the Kentsleigh/Cliffview contracts provide Cash Converters with the following benefits: $5.7 million pa in reduced expenses ($200K staff costs retained) A termination of a commission with savings flowing straight through to the CCV bottom lin
Slide 6: Business Model
Business Model For personal use only Corporate and Franchised Store retail network driving sales of financial services products The major revenue segments are: Franchise operations Retail store operations and pawn-broking (company owned stores) Personal Finance – cash advance and pay-day lending Per
Slide 7: Australian Personal Loan Book
Australian Personal Loan Book For personal use only Loan Book 120 109.2 104.3 106.3 104.9 105.0 105.7 97.6 100.3 100.8 94.3 96.3 100 86.8 84.7 85.1 84.3 86.7 A$ Millions 80 60 40 20 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Loan book at 31 October 2014: $105.7m, up 25.4% on p
Slide 8: Australian Personal Loan Book: Principal Advanced
Australian Personal Loan Book For personal use only Principal Advanced 20 18 16 A$ Millions 14 12 10 8 6 4 2 0 Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sept Oct Last Year 11.2 9.7 11.9 12.8 15.2 15.6 16.9 12.1 12.2 10.4 13.5 18.0 15.6 9.9 10.3 11.1 11.9 This year 15.6 9.9 10.3
Slide 9: Australian Cash Advance
Australian Cash Advance For personal use only 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 July Aug Sept Oct 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 16.8 19.1 18.5 20.5 This Year 17.1 16.8 1
Slide 10: Online Loan Growth
Online Loan Growth For personal use only Online loan growth continuing Online Personal Loan Volumes Online Cash Advance Volumes 915.4 6.1 844.2 823.8 5.5 5.1 5.1 5.2 755.6 734.4 740.1 4.9 714.8 706.6 714.4 703.8 4.6 4.5 4.6 649.9 4.2 A$ Thousands 4.0 3.8 A$ Millions 478.6 455.9 3.0 370.0 357.8 2.3 3
Slide 11: UK Regulatory Environment
UK Regulatory Environment For personal use only Cash Converters has significant experience operating in a number of regulatory regimes The Financial Conduct Authority (FCA) released Policy Statement PS14/16 on 11 November 2014 in which they detail the rules for a rate cap on high cost, short term cr
Slide 12: Growth Opportunities
Growth Opportunities For personal use only Carboodle was established as Green Light Auto Group Pty Ltd (GLA) in 2010 as a total motoring solution providing customers who don’t have access to main stream credit with a reliable and well maintained car on lease terms inclusive of running costs (insuran
Slide 13: Growth Opportunities
Growth Opportunities For personal use only Carboodle has recently completed a transaction in which it sold the assets of the business (leased vehicles) and then leased them back from a Melbourne based vehicle leasing company, Fleet Partners This transaction provides Carboodle with a lower cost of fu
Slide 14: Summary & Outlook
Summary & Outlook For personal use only Revenue up 26.2% and normalised EBITDA up 61% on previous corresponding quarter Continuation of the trend which commenced in December 2013 following the transition to the new regulatory regime Continued growth in loan advances for the Personal Loan product and
Slide 15: Appendices
For personal use only Page 15 Appendices
Slide 16: Corporate Snapshot
For personal use only Page 16 Corporate Snapshot
Slide 17: September Quarter FY15
September Quarter FY15 For personal use only 30 September 30 September Financial results summary Variance 2013 2014 (Statutory Reporting Basis) % Quarter Quarter Revenue $77,039,320 $97,230,953 +26.2 EBITDA $8,923,771 $15,976,991 +79.0 Depreciation and amortisation $1,885,984 $2,137,686 +13.3 EBIT $
Slide 18: FY2014 Results
FY2014 Results For personal use only FY 2014 FY 2013 Move Revenue $m 331.7 272.7 +21.6% EBITDA $m 51.6 57.0 -9.5% EBIT $m 43.7 50.6 -13.6% NPAT $m 24.2 32.9 -26.4% EPS Cps 5.67 8.09 -29.9% DPS Cps 4.00 4.00 +0% Final dividend of $0.02 per share (fully franked) payable on 30 September 2014 to share h
Slide 19: HY2014 Segment Results
HY2014 Segment Results For personal use only Divisional EBITDA FY14 FY13 Move Franchise Operations 6.63 6.39 +3.9% Store Operations 15.62 9.10 +71.6% Financial Services - Administration 10.41 14.20 -26.7% Financial Services – Personal Loans 39.84 42.46 -6.2% Green Light Auto (after minority) (0.98)
Slide 20: Financial Performance
For personal use only Page 20 Financial Performance
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