Cash Converters International Limited · ASX:CCV
Cash Converters International — H1 FY2012 Earnings Presentation
24 slides from Cash Converters International's earnings presentation, Mar 12, 2012
Slide 1: Investor Presentation – Interim results, 6 months ended 31 December 2011
For personal use only Investor Presentation Interim results 6 MONTHS ENDED 31 DECEMBER 2011
Slide 2: Cash Converters Overview
Cash Converters Overview For personal use only Retailer of second hand goods and provider of personal financial services operating through owned and franchised stores Services Revenue by segment Franchise Sale of second hand goods through owned stores, franchises operations 10% and webshop Personal
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only 5 Year Summary – Financial Year Ended $m 2007 2008 2009 2010 2011 Revenue 46.0 74.4 94.8 127.8 187.6 PBT 16.7 21.6 23.3 31.2 38.7 Board of Directors Reginald Webb (Non Executive Chairman) Peter Cummins (Managing Director) John Yeudall (Non Executive Director)
Slide 4: History
History For personal use only 1984 First retail outlet established 1988 Seven stores open, franchising begins with two stores 1990 Commence national expansion 1991 First store opened in the UK 1994 First store opened in non-English speaking market (France) 1999 First payday loan 2005 Opened first co
Slide 5: Regulatory Environment
Regulatory Environment For personal use only Australia Joint Parliamentary Committee on Corporations and Financial Services report on phase 2 reforms proposed by the government as set out in the Consumer Credit and Corporations Legislation (Enhancements) Bill 2011 The Committee concluded on 2 Decemb
Slide 6: Business Overview
For personal use only BUSINESS OVERVIEW
Slide 7: Store Locations
Store Locations For personal use only UK corporate stores Global store network – 657 stores Country Store Numbers Country Store Numbers Australia 146 UK 208 Belgium 20 Ireland 4 Holland 8 USA 7 Italy 1 New Zealand 13 France 78 South Africa 46 Spain 73 Thailand 1 Portugal 5 Singapore 6 Canada 34 Mala
Slide 8: Personal Finance Products
Personal Finance Products For personal use only Australian lending is mature with UK Australia UK loan book growing rapidly Active loans: $60.4k £15.7k Core products are unsecured loans: Loan book $62.1m £8.5m Cash advance Average loan $1,028 £541 Personal loans Current average loan period: 7 months
Slide 9: UK Operations
UK Operations For personal use only Cash Converters opened its first UK store in 1991 Experienced management team in place Substantial market size, population of +60 million and well accepted industry sector Total of 208 stores 154 franchise stores 54 corporate owned stores Further opportunity for g
Slide 10: Financial Review
For personal use only FINANCIAL REVIEW
Slide 11: 2012HY Financial highlights
2012HY Financial highlights For personal use only Strong revenue growth of 28.2% to $111.7 million Adjusted net profit1 after tax increased 7% to $15.3m (2010HY: $14.3m) Nine “greenfield” stores opened in H1 (7 in the UK and 2 in Australia) Total UK store numbers finished the half-year at 208, an in
Slide 12: Corporate & franchise store operations
Corporate & franchise For personal use only store operations 54 corporate stores in UK and 43 in Australia PBT of $4.3m (2010: $5.6m) from 508 franchised stores globally with 154 in UK, 103 in corporate owned stores Australia and 304 in RoW Australia $3.9m (2010: $4.4m) Franchising enabled the rapid
Slide 13: Personal loans
Personal loans For personal use only PBT from personal loans increased Safrock 21.6% to $12.9m (2010: $10.6m) Personal, unsecured, instalment loans UK Finance Division PBT increased to Average loan: $1,200 over 7 months $1.44m (2010: -$270k) Australia loan book at 31 December 2011: $62.1m A record f
Slide 14: Cash advance administration
Cash advance For personal use only administration Australia MON-E Cash Advance 14.7% growth in active Administration fees from cash advance/payday loans customers to 58,261 Australia - $111.7m of loans advanced to 58,262 customers Average loan $364 UK - £13.0m of loans advanced during the period to
Slide 15: Growth Strategy
For personal use only GROWTH STRATEGY
Slide 16: Growth Strategy
Growth Strategy For personal use only Opening of new company owned stores. Key target geographies in the short term are the UK and, within Australia, New South Wales Increasing the penetration of financial products Acquiring and improving the performance of available franchised stores New franchisee
Slide 17: Growing Lending Services
Growing Lending Services For personal use only Cash advance and personal loan products introduced in the UK October 2009 – still immature with opportunity to grow the loan book significantly and reduce bad debt ratios towards levels we experience in Australia Increase product penetration and growth
Slide 18: Summary & outlook
Summary & outlook For personal use only Summary Well positioned to take advantage of significant growth opportunities in the UK and other geographies Substantial franchisee network provides opportunities to acquire established stores thus avoiding profit “drag” of greenfield sites Significant opport
Slide 19: Appendices
For personal use only APPENDICES
Slide 20: Results summary
Results summary For personal use only 31 December 2011 31 December 2010 Variance % Revenue 111,671,665 87,108,276 +28.2 EBITDA 22,267,924 22,109,892 +0.7 EBIT 20,303,354 20,976,339 -3.2 Income tax expense 6,007,896 6,238,122 -3.7 Finance costs 1,052,615 426,969 +146.5 Net profit before non-controlli
Slide 21: Balance sheet
Balance sheet For personal use only Consolidated Current assets 31 December 2011 31 June 2011 $ $ Cash and cash equivalents 19,543,250 23,456,996 Trade and other receivables 11,009,650 9,028,292 Personal loan receivables 77,394,174 64,156,414 Inventories 14,707,830 14,068,118 Other assets 3,439,742
Slide 22: Cash flows
Cash flows For personal use only Consolidated Half-year ended Cash flows from operating activities 31 December 2011 31 December2010 $ $ Net working capital movement 4,764,529 8,960,699 Interest received 472,846 860,512 Interest received from personal loans 14,564,916 10,218,956 Net increase in perso
Slide 23: Product Overview
Appendix For personal use only Product Overview Safrock Mon-e Pawn Broking Geography Australia and the UK Australia and the UK Both Australia and UK Security Unsecured Secured Unsecured Secured Loan Size $1,000 to $2,000 $2,000 to $5,000 $50-$1,000 (avg is $90) (avg is $1,500) (avg is $303) Loan Dur
Slide 24: Target Market
Target Market For personal use only Group 1 Group 2 Group 3 No wealth Low wealth Growing wealth Household Net worth: $24,321 Household Net worth: $140,133 Household Net worth: $295,814 Profile Gross household income: $255 p/wk Gross household income $543 p/wk Gross household income $917 p/wk Aged up
Cash Converters International — H1 FY2012 Earnings Presentation on 6ix