Slide 1: FY17 Results Presentation
For personal use only FY17 Results Presenta 1 August 2017 Thomas Beregi, CEO Michael Eadie, CFO 4 Credit Corp Group
Slide 2: Leadership in the credit impaired consumer segment
=, Leadership in the credit impaired consumer segment... Credit Corp Group + Long-term growth ANALYTICS & OPERATIONAL SUSTAINABILITY * ROE 16% - 18% DISCIPLINE EXCELLENCE & COMPLIANCE - Low gearing Core Australian / NZ debt buying + Largest database * Highest asset turnover 1 * No adverse orders or
Slide 3: Return disciplines have generated sustained performance
Cc ...and return disciplines have generated sustained performance... credit Corp Group Cents per share 140 120 100 80 60 40 20 a oe asta - . eeteee wosocncccesee® ook oe? a ee EPS CAGR 28% FY08 FY09 FY10 FY11 FY12 FY13 mmm EPS seeeeee ROE % 24% 50 FY16 FY17 FY17 Results Presentation | 3
Slide 4: Delivering 20% earnings growth in 2017
Cc ...delivering 20% earnings growth in 2017... Credit Corp Group FY17 Financial results FY17 FY16 $ change % change Debt buying ' $199.5m $173.2m +$26.3m Lending $66.4m $53.5m +$12.9m Revenue total $265.9m $226.7m +$39.2m BR +17% Debt buying ' $42.9m $39.8m +$3.1m Lending $12.3m $6.1m +$6.2m NPAT t
Slide 5: Positioning CCP for the next wave of opportunity
…while positioning CCP for the next wave of opportunity For personal use only Segment Market conditions CCP response AUS / NZ • Pricing remains strong with signs of • Momentum from recent purchasing Debt buying easing ahead • Maintain discipline - New capital has stimulated pricing • Focus on operat
Slide 6: Record AUS / NZ PDL purchasing will drive collections in 2018
Cc Record AUS / NZ PDL purchasing will drive collections in 2018... credit corp Group * Record purchasing year of $250m - AUS/ NZ $202m - US $48m * Strong starting position will underpin AUS / NZ PDL collections and earnings Purchasing Collections from starting book $ 350m $ 350m $280m fo ecaennn en
Slide 7: Maintaining pricing discipline for long-term performance
Cc ..-aS we maintain pricing discipline for long-term performance Credit Corp Group *« New competitor capital has stimulated pricing ¢ At the same time some forward flows have been renewed at reduced prices ¢ FY18 contracted pipeline currently at $75m $300m $200m $100m FY17 Actual PDL outlay bridge
Slide 8: Strong operating metrics supported by continuous improvement
Strong operating metrics supported by continuous improvement For personal use only Pricing accuracy and returns on track Efficiency and productive capacity • Total cumulative collections above aggregate • FY17 productivity in line with the pcp expectations • Total debt buying operations staff up 9%
Slide 9: Recent investment translating into positive cash flow trajectory
=, Recent investment translating into positive cash flow trajectory... credit corp Group ¢ Positive free cash flow was achieved in H2 FY17 ¢ Higher collections and lending cash flows from previous investment Free cash flow $ 150m $ 100m $ 50m . LZ ($ 50m) ($ 100m) FY11 FY12 FY13 FY14 FY15 FY16 H1 H2
Slide 10: Unrivalled financial capacity
Cc ...and unrivalled financial capacity Credit Corp Group * $300m of funding lines in place until 2020 - Includes $85m securitised consumer loan warehouse facility - Immediate ~$100m headroom * Gearing remains conservative; 43% at Jun-17 ¢ Financial capacity will be critical to securing attractive p
Slide 11: Lending is now a substantial component of CCP's business
=, Lending is now a substantial component of CCP’s business... Credit Corp Group FY17 Lending share of investment, revenue and earnings Assets Revenue NPAT 990 Mam Debt buying ' Ml Consumer lending . Debt buying includes agency activities FY17 Results Presentation | 11
Slide 12: Main driver of profit growth
...-and continues to be our main driver of profit growth... =, Credit Corp Group $6m increase in FY17 Lending NPAT to $12m On track for strong growth in FY18 Target returns achieved ROA % 20% 16% 12% 8% 4% (4%) (8%) NPAT guide of $16 - $17m FY15 FY16 Mam NPAT FY17 FY18 Forecast — ROA ($4m) FY17 Resu
Slide 13: Lending loan book and revenue with sustained momentum
For personal use only Cc ...with sustained momentum... Credit Corp Group Loan book & revenue $161m Yield maintained Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 mam Gross loan book (excl. provisions) eeeeee Annualised revenue FY17 Results Presentation | 13
Slide 14: Strong new customer acquisition and retention metrics
For personal use only Cc ...supported by strong new customer acquisition and retention metrics Credit Corp Group ¢« New customer acquisition demonstrates growth headroom ¢ Customer retention is a function of product superiority Customer settlements ($) FY15 FY16 FY17 HEE New customers (Ml Pre-existi
Slide 15: Product superiority critical to Lending success
Product superiority critical to Lending success For personal use only • Pricing below the cap applicable to mainstream lending - Free of supplier / marketing restrictions applicable to competing products - Access to efficient conventional funding - High rates of retention and referral • Integration
Slide 16: US is now delivering earnings growth
cS US is now delivering earnings growth... Credit Corp Group ¢ FY17 labour productivity improved by 20% over the prior year ¢ Sustainable bank of payments established - Payment arrangements now 60% of collections - Litigation pipeline developed ¢ Automation initiatives set to produce further improve
Slide 17: Market conditions have improved
…and market conditions have improved… For personal use only • Reduced demand - Industry consolidation over the past 3 years - Major debt buyer placed into bankruptcy (SquareTwo) 1 • Enlarged supply - Charge-off rates increased from 3.05% (Q1 2016) to 3.47% (Q1 2017) 2 • Competitors report improved r
Slide 18: Accelerating CCP's US expansion
...accelerating CCP’s US expansion Cc Credit Corp Group * Collection headcount growing ¢ Purchasing from new issuers US purchasing and headcount $m Headcount $ 60m 300 Purchasing guide $45 - $55m $ 40m 200 $ 20m 100 FY15 FY16 mam PDL purchasing FY17 FY18 Forecast —Headcount FY17 Results Presentation
Slide 19: Emphasis on sustainability and long-term value creation
Emphasis on sustainability and long-term value creation =, Credit Corp Group Diversification Organic diversification supports disciplined investment Financial Capacity Conservative balance sheet & substantial financing capacity to secure investment opportunities Ethical practices Sustainable and res
Slide 20: Initial FY18 Guidance
Initial FY18 Guidance For personal use only FY18 Initial guidance PDL acquisitions $140 - $170m Net lending $35 - $45m NPAT $60 - $63m EPS (basic) 126.0 - 132.0 cents DPS 63.0 - 66.0 cents FY17 Results Presentation | 20
Slide 21: Questions
For personal use only Questions FY17 Results Presentation | 21
Slide 22: Appendix - Key operating metrics
For personal use only Appendix - Key operating metrics FY17 Results Presentation | 22
Slide 23: Operating cash flows and gearing
Cc i Appendix 1 | Operating cash flows and gearing Credit Corp Group H2 FY17 H1 FY17 H2 FY16 Hi FY16 Operating cash flow $130.3m $133.1m $112.1m $116.9m PDL acquisitions ($105.9m) ($148.5m) ($135.0m) ($101.4m) Net lending ($15.8m) ($30.4m) ($23.2m) ($31.9m) Capex ($0.3m) ($1.0m) ($0.7m) ($1.3m) Net
Slide 24: Operational metrics - pricing discipline and accuracy
=, ] Appendix 2 | Operational metrics - pricing discipline and accuracy Credit corp Group Cumulative collections $2.4bn $2.0bn Actual cash collections $1.6bn $1.2bn Initial projections $0.8bn $0.4bn * For all PDLs held at June 2008, initial projections represent the forecast at June 2008 FY17 Result
Slide 25: Operational metrics - collection life-cycle
For personal use only ij Appendix 3 | Operational metrics - collection life-cycle Cc Credit Corp Group PDL collections by vintage +11%' $105m ee A a ~ $90m A $75m 30% 31% 32% 28% 29% 31% $60m 24% 25% 26% 15% $45m $30m $15m Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15
Slide 26: Operational metrics - productivity
=, i Appendix 4 | Operational metrics - productivity Credit Corp Group Debt purchase productivity (direct collection staff only) PDL collections per hour YTD average FY17: $203 $ 300 FY16: $203 $ 250 $ 200 ese@eee 2015/16 —=— 2016/17 $ 150 $ 100 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY17 R
Slide 27: Operational metrics - payers base
For personal use only Cc 7 Appendix 5 | Operational metrics - payers base Credit Corp Group Total portfolio Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Face value $4.9bn $5.1bn $5.3bn $5.7bn $5.8bn Number of accounts 703,000 687,000 673,000 699,000 716,000 Payment arrangements Face value $1,044m $1,099m $1,1
Slide 28: Operational and total headcount
i Appendix 6 | Operational and total headcount =, Credit Corp Group Period end headcount (FTE) 1,500 1,300 {8 Support upluy mmm Lending 900 Mill Agency Mil Debt buying ops 700 500 Jun 14 Function Jun 15 Jun 16 Jun 17 Jun 17 Debt buying operations 919 1,004 1,096 1,198 Agency 12 11 13 81* Lending 109
Slide 29: Transparent accounting supported by cash flows
=, Appendix 7 | Transparent accounting supported by cash flows Credit Corp Group ¢ Highest PDL amortisation rates in industry Implicit multiple - ~47% in recent years, 2.15x return *° - Supported by realised cash flows ng | __ trttttetesseeesssesessstessseseessneeseneneees * Upfront life of loan los