Credit Corp Group Limited · ASX:CCP
Credit — Corporate Update (May 2013)
12 slides from Credit's corporate update, May 16, 2013
Slide 1: May 2013 Update
For personal use only May 2013 Update Thomas Beregi Chief Executive Officer Michael Eadie Chief Financial Officer
Slide 2: Strong core and growth initiatives on-track
Strong core and growth initiatives on-track For personal use only US expansion PDL book at $5m (1) Core strength On track for record PDL outlay Consumer lending growth Loan book to $16m (1) (1) As at 30 April 2013 2
Slide 3: Disciplined investment decisions
Disciplined investment decisions For personal use only Cumulative Collections (Initial Expectations versus Actual) (July 08 – Apr 13) 1,000 950 900 850 800 750 Actual 700 Cash 650 Collections Cumulative 600 Collections 550 $m 500 450 400 350 Initial 300 Projections 250 200 150 100 50 - Jun-08 Dec-08
Slide 4: Continued management of collection life-cycle
Continued management of collection life-cycle For personal use only PDL Collections by date of purchase 65.0 $m 60.0 55.0 23% 25% 50.0 28% 24% 27% 27% 27% 45.0 31% 34% 13% 13% 32% 34% > 3 years 40.0 9% 12% 13% 10% 12% 2-3 years 35.0 8% 18% 1-2 years 11% 7% 7% 22% 30.0 20% 21% 20% 22% 23% < 1 year 18
Slide 5: Collection efficiency tracking to expectation
Collection efficiency tracking to expectation For personal use only Debt Purchase Productivity (direct collection staff only) Domestic Productivity Total Productivity PDL PDL Collections Collections per hour per hour Offshore FTE $390 $300 251 $350 $260 $310 $276 $220 $209 $270 $268 $197 $180 $230 1
Slide 6: Growing domestic collection capacity in line with PDL investment
Growing domestic collection capacity in line with PDL investment For personal use only Headcount by function (FTE) 1000 900 800 New Initiatives 700 Support 600 Mercantile 500 Debt Purchase Operations 400 300 200 100 0 FY09 FY10 FY11 FY12 Dec-12 Apr-13 Function FY09 FY10 FY11 FY12 Dec 12 Apr 13 Debt
Slide 7: Strong purchasing year
Strong purchasing year For personal use only $130m FY13 Purchasing Guide: $125 - $130m $92.6m $91.5m Purchases $m $65m Contracted $125m as at 30 April 2013 $37m FY09 FY10 FY11 FY12 FY13 Actual Actual Actual Actual Current 7
Slide 8: Purchasing conditions remain challenging
Purchasing conditions remain challenging For personal use only > Strong competition has kept prices high > Credit Corp has used its operational strength to secure increased volumes > Minimum return criteria discipline has been maintained > Purchasing conditions are expected to remain challenging − L
Slide 9: Continued progress in the US
Continued progress in the US For personal use only > Operation has grown to 40 staff > PDL book stands at $5m > Rapid improvement despite falling behind pro-forma returns − Recent purchases are in line with pro-forma − Opportunity to optimize processes and technology for improved results > Further p
Slide 10: Accelerated growth in consumer lending
Accelerated growth in consumer lending For personal use only > Loan book has increased to $16m currently(1) > Majority of the loans written are unsecured installment loans − Product branded as ‘MoneyStart’ − Terms of 1-3 years and amounts up to $5,000 − For consumers with previous credit defaults −
Slide 11: Refined guidance
Refined guidance For personal use only FY13 Refined May 13 Issued Dec 12 PDL acquisitions $125 - $130m $105 - $125m NPAT - underlying (1) $28 - $29m $27 - $29m NPAT - reported $30 - $31m $29 - $31m EPS (basic) - underlying (1) 61 - 63 cents 59 - 63 cents Reported EPS (basic) 65 - 67 cents 63 - 67 ce
Slide 12: May 2013 Update – Questions
For personal use only May 2013 Update Questions