Credit Corp Group Limited · ASX:CCP
Credit — FY2007 Earnings Presentation
24 slides from Credit's earnings presentation, Aug 16, 2007
Slide 1: FY07 Results Presentation
For personal use only FY07 Results Presentation Geoff Lucas Chief Executive Officer Matt Angell Chief Operating Officer
Slide 2: FY07 Financial Highlights
FY07 Financial Highlights For personal use only • Ledger edge Investment est e t increase c ease o of 29% 9% to $ $120m 0 • Revenue increase of 66% to $135.0m • EBITDA increase of 63% to $89.51m • NPAT increase of 36% to $19.63m • EPS increase of 27% to 44.98 cents • Dividend increase of 28% to 23.0
Slide 3: Financial Performance
Financial Performance For personal use only $140 Millions Revenue $135.02 EBITDA $120 $100 $89.51 $80 $60 $40 $20 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 3
Slide 4: Net Profit After Tax
Net Profit After Tax For personal use only $25 Millions $24.00 $20 $19 63 $19.63 $15 $10 $5 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 4
Slide 5: EPS and ROE
EPS and ROE For personal use only 50 40% EPS 45 ROE 35% 40 30% 35 25% EPS ((cents) 30 OE RO 25 20% 20 15% 15 10% 10 5% 5 0 0% FY01 FY02 FY03 FY04 FY05 FY06 FY07 5
Slide 6: Total Shareholder Return
Total Shareholder Return For personal use only $12 50 $12.50 Dividends $0.68 Capital Growth $10.00 $11.80 $7.50 $5.00 $2.50 76% Return $0.00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 6
Slide 7: Cash Flow and Investment
Cash Flow and Investment For personal use only 2007 2006 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 133,231,562 81,024,882 Payments to suppliers and employees ( 42,585,948) ( 26,174,598) Interest received 324,932 98,128 Finance costs ( 7,091,851) ( 2,937,282) I Income tax t pai
Slide 8: Funding Ledger Investment
Funding Ledger Investment For personal use only $140 ns Net Cash from Operations Million Net Cash from Financing $120 $100 58% $80 46% $60 $40 54% 42% $20 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 8
Slide 9: Balance Sheet
2007 2006 $ $ Balance Sheet For personal use only CURRENT ASSETS Cash and cash equivalents 4,474,640 2,835,658 Trade and other receivables 3,923,001 2,461,493 Other current assets 2,821,481 620,669 Available for sale financial assets 49,993,917 36,469,945 TOTAL CURRENT ASSETS 61,213,039 , , 42,387,7
Slide 10: Amortisation Analysis
Amortisation Analysis For personal use only $160 ns Million AWDV $148 4 $148.4 $140 DP Revenue Impairment $125.8 $120 $100 $80 $60 $52.1 $40 $20 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 10
Slide 11: FY07 Achievements
FY07 Achievements For personal use only • Expansion p of Senior Management g team • Integration of Pioneer Credit and PC Malaysia • Improvement of workflow and analytics activities • Design of flexibility within operating model • Broadening B d i off client li t relationships l ti hi • Improvement o
Slide 12: Expense Composition
Expense Composition For personal use only FY06 FY07 17.66% 14.54% 36.65% 6.65% 38.60% 7.93% 2.10% 1.71% 5.77% 4.30% 3.85% 3.58% 6.70% 7.32% 19.72% 20.93% Ledger Amortisation Employee Expenses Collection Expenses Facilities Expenses Financing Expenses Other Expenses Share Based Payments Tax NPAT 12
Slide 13: Our People – Geographic Distribution (FTE)
Our People – Geographic Distribution (FTE) For personal use only PENANG CURRENT STAFF 13 KUALA LUMPUR CURRENT STAFF 33 JOHOR BAHRU CURRENT STAFF 2 Malaysia BRISBANE CURRENT STAFF 44 PERTH CURRENT STAFF 51 SYDNEY - CBD CURRENT STAFF 193 SYDNEY - SOUTH CURRENT STAFF 37 SYDNEY - WEST CURRENT STAFF 82 1
Slide 14: Our People – Functional Distribution (Headcount)
Our People – Functional Distribution (Headcount) For personal use only Function FY04 FY05 FY06 FY07 Change E ec ti e & Senior Mgmt Executive 2 2 3 7 133% Debt Purchase Operations 39 80 182 316 74% Process Serving / Mercantile 45 61 30 45 50% S pport Functions Support F nctions 19 31 48 71 48% Malays
Slide 15: Efficiency Measures
Efficiency Measures For personal use only $420 100.0% nds $413 $ 98 1% 98.1% Thousan 96.4% 88.4% 91.3% mployee (Ex Repcol) $390 $ 75.0% n Down Value quivalent Em Revenue / evenue / $376 R Averrage Written Full Time Eq Annual Re $360 50.0% Collections $346 C Average F $330 25.0% Workforce Efficiency
Slide 16: Ledger Investment
Ledger Investment For personal use only $140 Millions >$125 0 >$125.0 $120.0 $120 $100 $105.6 (Ex Repcol) $80 $60 $40 $20 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 16
Slide 17: Portfolio Detail
Portfolio Detail For personal use only • Approximately 170,000 open accounts with a total outstanding balance >$1.2b • Approximately 17,500 accounts on current recurring payment arrangements with a total outstanding balance >$100m and average monthly payments of $ ~$230 • ‘The Tail’ – vintages older
Slide 18: Repcol Portfolio and Strategy
Repcol Portfolio and Strategy For personal use only • Approximately 190,000 open accounts with a total outstanding balance >$500m • Total portfolio now approximately 360,000 open accounts representing 330,000 330 000 distinct customers owing >$1.7b >$1 7b • Accounts cross referenced against existing
Slide 19: Bankrupts & DAs occurring <6 Months after purchase
Bankrupts & DAs occurring <6 Months after purchase For personal use only DAs 5% Bankrupts olume by Account Vo 4% 2.5% 1 6% 1.6% of Portfolio b 3% 1.4% 1.1% Percentage o 2% 2.3% 2.3% 2.3% 1.8% 1% FY06 H1 FY06 H2 FY07 H1 FY07 H2 19
Slide 20: Bankrupts and Debt Agreements
Bankrupts and Debt Agreements For personal use only Metric 2005 2006 # Pre DA Accounts with Payment 925 927 Average Pre DA Revenue $ 752 $ 752 # Post DA Accounts with Payment 1 659 1,659 1 392 1,392 Average Post DA Revenue $ 1,916 $ 1,128 • 54% of accounts which enter Bankruptcy or a DA have some pa
Slide 21: Australian Debt Purchase Market
Australian Debt Purchase Market For personal use only $400 ons NB : Does not factor strong trend Millio al Deployed in Portfolio Investment towards 'younger' sale or significant movement in write off rates $300 $200 Total Capita $100 Estimated Credit Corp Market Share $0 FY04 FY05 FY06 FY07 FY08 21
Slide 22: Trends in consumer cash flows
Trends in consumer cash flows For personal use only ($/month mo movement ement from Jan 06 to JJull 07) Mortgage Holders Renters Household Fiscal (<10% of Portfolio) (>90% of Portfolio) Petrol Income Benefit Rate Rises Net Position Rental Cost Net Position (100BP) $30,000 -13 129 -152 -36 -103 13 $4
Slide 23: Into FY08
Into FY08 For personal use only • Ledger Investments of > $125m • NPAT of $24.0m • EPS Growth of > 20% • Continued market leadership • Ongoing growth of domestic workforce • Continued development of operational flexibility • Deepening of finance system capabilities • Refinement of funding options •
Slide 24: Questions?
For personal use only FY07 Results Presentation Questions?