Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (October 2023)
21 slides from Cash Converters International's investor presentation, Oct 24, 2023
Slide 1: Q1 FY2024 Investor Presentation
1 Q1 FY2024 Quarter ended 30 September 2023 (unaudited) Investor Presentation Australian Microcap Investment Conference Cash Converters International Limited (ASX:CCV) October 2023
Slide 2: About Us
2 About Us The largest circular economy store network operating in more countries 39+ years in operation ASX listed 1997 across the globe, supporting good borrowers that others won’t • Provide a solution to customer cash needs through our stores globally and online 683 stores globally • Our core c
Slide 3: Our Global Network
3 Our Global Network Across Australia, New Zealand and the United Kingdom, Cash Converters 142 76 operates Corporate owned stores and is the Master Franchisor of a franchise United Kingdom 42 United Belgium network of stores. Kingdom The rest of the international operations are run by Master Franchi
Slide 4: Business Model – 'Powering up' | FY24 – FY28
4 Business Model – ‘Powering up’ | FY24 – FY28 CCV has identified upside to the current business, leveraging our business The Loan Book is structurally shifting away from the small loan product due to model across an expanding geographic footprint Australian legislative changes (implementation manda
Slide 5: CCV – Key Metrics FY 2023
5 Our Ecosystem Growing online presence integrated with our stores; serving a large and growing customer base in growing markets. Australian Addressable Market Retail CCV has a high Personal Vehicle customer satisfaction NPS 68+1 Finance Finance $46bn+ Australian Circular Economy2 $2bn+ Australian S
Slide 6: Our Competitive Advantage
6 Our Competitive Advantage Substantial scale and data repository provides our business with a competitive advantage. Large Customer Base Leading Tech Platform Healthy Balance Sheet Sustainability Regulation ✓ Scale business and ✓ Proprietary platforms built ✓ $58.4m in cash at 30 ✓ Facilitating cir
Slide 7: Highlights
Highlights cashédnverters
Slide 8: Key Highlights
8 Key Highlights FY23 $302.7m $57.2m $20.1m 2c per Revenue Operating EBITDA Operating NPAT share Dividend paid for FY23 Up 23% on pcp Up 8% on pcp Up 6% on pcp ($245.9m in FY2022) ($52.7m in FY2022) ($19.0m in FY2022) Follows 2c paid FY22 and FY21 Q1 FY24 $101.4m $278.5m $100.9m $69.7m 4.8% Revenue
Slide 9: Gross Loan Book
9 Gross Loan Book Gross Loan Book, $M Transitioning out of SACC personal loans in the Small loans segment ✓ Small loans weighting has dropped to 23% of the loan book from 34% end September 2023 versus 2022 ✓ Other and newly launched loan Gross Loan Book By Product, $M Gross Loan Book By Product, $M
Slide 10: Outlook – Powering Up
10 Outlook – Powering Up Annual Revenue, $M Operating EBITDA, $M Operating NPAT, $M Growth Drivers Quarter ✓ Record demand driving Medium & Vehicle loan book growth Revenue, $M Gross loan book, $M ✓ New product releases delivering new growing loan books ✓ Ongoing diversification away from ‘Payday’ l
Slide 11: Our Strategy
Our Strategy cashédnverters
Slide 12: Growth Strategy
12 Growth Strategy We continue to invest our cash to sensibly acquire stores from franchisees, establish new loan books and expand our store network reach. • Acquire franchisees • Establish new greenfield sites Inorganic • Evaluate aligned asset purchases Expansion • Integrate and grow NZ • Grow Eur
Slide 13: New Product Strategy
13 New Product Strategy We are transitioning out of SACC personal loans, by leveraging our scale, data and technology to develop new and innovative products. Financial Sector Reform Act 2022 • As recently as 2016 the business offered one unsecured loan product in Australia, a Small Amount • As previ
Slide 14: Appendices
Appendices
Slide 15: Gross Loan Books $m – as at 30 Sept 2023
Gross Loan Books $m – as at 30 Sept 2023 15 PCP 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 30 Sep Sep 2023 vs Sep 2023 vs 2022 2022 2022 2023 2023 2023 Jun 2023 Sep 2022 Loan Book $75.6m $72.4m $82.2m $83.2m $78.0m $65.0m Small Loan1 -10% -17% % Of Total 35% 34% 32% 31% 29% 23% Loan Book $76.1m $77.1m $90.9
Slide 16: FY2023: Loan Book Performance – Net bad debt expense & ECL
16 FY2023: Loan Book Performance – Net bad debt expense & ECL 30 Jun 2023 30 Jun 2022 Variance • Net Bad Debt Expense for FY23 was $’000 $'000 $'000 $49.3 million, up from $28.6 million in the prior period (pcp). This was anticipated, with significant loan book growth Bad debts written off 55,483 36
Slide 17: FY2023: Free Cash Flow
17 FY2023: Free Cash Flow 30 Jun 30 Jun Variance • FY23 cash balance grew to $71.6m (June 2022: 2023 2022 $58.1m), after funding loan book growth and the $’000 $'000 $'000 acquisition of Cash Converters New Zealand. Operating EBITDA 57,236 52,728 4,508 • Operating cash flow generated is used to fund
Slide 18: FY2023: Reconciliations
18 FY2023: Reconciliations 30 Jun 2023 30 Jun 2022 Variance $’000 $'000 $'000 EBITDA1 Reported Basis (62,587) 41,532 (104,119) Impairment and other significant items 119,823 11,196 EBITDA Operating Basis 57,236 52,728 4,508 EBIT1 Reported Basis (75,019) 27,850 (102,869) Impairment and other signific
Slide 19: FY2023: Segment Revenue & Operating EBITDA
19 FY2023: Segment Revenue & Operating EBITDA 30 Jun 30 Jun • Personal Finance and Store Operations Variance Variance strong revenue & operating EBITDA growth 2023 2022 on pcp as demand continues to grow. Cost $’000 $'000 $'000 % of living pressures continue to impact REVENUE customers and awareness
Slide 20: ESG Framework
20 ESG Framework Operating for over 39 years, we understand the importance of adding value to the lives of our customers by operating a sustainable business over the long term. Environmental Social Governance • Our retail trade is driven by pre-owned (second- • Our business serves as an essential an
Slide 21: Company’s intent, belief or current expectations with respect to Cash Converters’ business and operations.
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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