Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (May 2023)
21 slides from Cash Converters International's investor presentation, May 2, 2023
Slide 1: March Q3 FY2023 Investor Presentation
March Q3 FY2023 Investor Presentation Coffee Microcaps Conference Period ended 31 March 2023 (unaudited) Cash Converters International Limited (ASX:CCV) May 2023
Slide 2: About Us
About Us Supporting good borrowers We provide solutions to meet our customers cash needs through our store and online network. Our core competency is helping good borrowers excluded from the mainstream financial system, access finance. We also facilitate an increasingly important role in the circula
Slide 3: Our Business model
Our Business model Omni-channel Store and Online Platform distributing loan and retail products, within Australia and across the globe. 1 2 3 Store Operations2 New Loan Loan Book Products1 Corporate Owned Stores Unsecured Secured Franchised Stores Personal Finance Segment Green Light Auto Stores Per
Slide 4: Customer Journey – Personal Finance
Customer Journey – Personal Finance 4
Slide 5: Our Competitive Advantage
Our Competitive Advantage Large Customer Base Leading Tech Platform Healthy Balance Sheet Sustainability Regulation Transacting with over Proprietary platforms built $59.8m in cash at 31 Facilitating circular Already meeting National 100,000 active customer inhouse, growing digital March 2
Slide 6: H1 FY2023 Highlights
H1 FY2023 Highlights Half-year period ended 31 December 2022 and Trading update for March Quarter, Q3 FY2023
Slide 7: Highlights
Highlights December, H1 FY2023 (vs PCP) – financial results • Revenue growth driven by increasing volume across all loan books and store trading Dividend Revenue up 24% $142.4m improvements. Earnings Operating EBTIDA up 18% $28.9m Fully franked declared for 1c • Operating NPAT excludes significant i
Slide 8: H1 FY2023 Highlights Cont…
H1 FY2023 Highlights Cont… Growth Drivers Diversification of business model away from SACC product sitting within Small Loans (impacted by new legislation); strong customer demand for alternative financing solutions. Marketing optimisation now attracting 22,000+ new customers per month. Medium
Slide 9: Trading Update for March Quarter, Q3 FY2023
Trading Update for March Quarter, Q3 FY2023 Outlook – Trading update, March Quarter Q3 FY2023 The rebound in credit demand observed in H1 FY2023 has continued into Q3 FY2023 resulting in growing Loan Books and robust retail trade. Stores performance remains strong with sufficient inventory to meet
Slide 10: Financial Service Reform Bill Update
Financial Service Reform Bill Update • As announced by the Company on 21 February 2023, a Bill passed by the Australian Senate in December 2022 contains several Financial Services legislative changes . These changes focus on the enhanced regulation of SACC loan products offered by the Company. • The
Slide 11: Our Strategy
Our Strategy cashédnverters
Slide 12: Our Strategic Growth Priorities
Our Strategic Growth Priorities Australia International • Acquire franchisees • Acquire loan books Consolidate • Optimise core business • Enhance customer value • Integrate and grow NZ • Increase free cash flow • Establish European ‘Hub’ (UK) Expand • Increase equity ownership • Launch new products
Slide 13: Strategy Update
Strategy Update Acquisitions & Expansion • Disciplined review of investment opportunities continues. Acquiring strategic loan books, franchises and investing in • Ongoing franchise acquisition and network expansion. Greenfields to expand our distribution network, optimising our store model. • NZ acq
Slide 14: ESG In Practice – The Circular Economy
ESG In Practice – The Circular Economy Value is generated at each stage; the seller receives cash for unwanted goods, Cash Converters generates revenue through resale, the new owner acquires an item of value, and our combined contribution to waste benefits the environment. 1 Trading in the Circular
Slide 15: Appendices
Appendices cashédnverters
Slide 16: Gross Loan Books $m
Gross Loan Books $m Note : All Sma ll, Me d ium a nd Ve hic le loa n b ooks a re Aus tra lia n. 1 Small Amount Credit Contract (SACC) is a regulated unsecured personal loan product, transacted in-store and online, up to $2,000. 2 Medium Amount Credit Contract (MACC) is a regulated unsecured personal
Slide 17: Loan Book Performance – Net bad debt expense & ECL
Loan Book Performance – Net bad debt expense & ECL • Net bad debt expense reflects the growth in lending demand and loan books. Whilst the Bad 31 Dec 2022 31 Dec 2021 Variance Debt Written Off has increased with larger loan $’000 $'000 $'000 books, the Net Loss Rate remains in line with historical l
Slide 18: Free Cash Flow
Free Cash Flow 31 Dec 31 Dec Variance • The Group’s Cash balance grew to $67.5m in the 2022 2021 half (June 2022: $58.1m), after funding loan book growth and the acquisition of Cash Converters New $’000 $'000 $'000 Zealand. Operating EBITDA 28,889 24,403 4,486 • Operating cash flow generated is used
Slide 19: Reconciliations
Reconciliations 31 Dec 2022 31 Dec 2021 Variance $’000 $'000 $'000 EBITDA1 Reported Basis (89,306) 13,469 (102,775) Impairment and other significant items 118,195 10,934 EBITDA Operating Basis 28,889 24,403 4,486 EBIT1 Reported Basis (95,542) 6,109 (101,651) Impairment and other significant items 11
Slide 20: Segment Revenue & Operating EBITDA
Segment Revenue & Operating EBITDA 31 Dec 2022 31 Dec 2021 Variance Variance • Personal Finance and Store Operations strong $’000 $'000 $'000 % revenue & operating EBITDA growth on pcp as post Covid recovery continued. REVENUE Personal Finance 59,174 46,448 12,726 27% • Over 22% of Store trading day
Slide 21: Disclaimer
The material contained in this presentation is intended to be general background information on Cash Converters and its activities current at the date of the presentation. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon
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