Credit Clear Limited · ASX:CCR
Credit Clear — FY2023 Earnings Presentation
17 slides from Credit Clear's earnings presentation, Aug 30, 2023
Slide 1: FY23 Results Investor Presentation
For personal use only FY23 Results Investor Presentation ASX: CCR | 30 August 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by, and is the sole responsibility of Credit Clear No representation or warranty, express or implied, is made by any person as to the Limited ACN 604 797 033 (Company). The information contained in this presentation was fairness, accuracy, completeness
Slide 3: FY23 – Key Metrics
FY23 – Key Metrics Growing revenue, improving profitability and well funded $35.0m $0.2m ($2.3m) For personal use only FY23 Revenue Normalised EBITDA1 Cash used in operations2 +63% YoY with strong $3.8m improvement YoY $6.4m improvement YoY up finish to the year with adjusted for one off, non- 73%.
Slide 4: FY23 – Leading indicators
FY23 – Leading indicators Referred debt files increasing in value and volume $2.1bn 1,128 1.2m For personal use only Value of files under Active clients Active files management (FUM) +42% YoY +40% YoY +59% YoY Active clients Active files (m) 1200 1.4 • Value of FUM driven by 1000 1.2 materially larg
Slide 5: Growing adoption and use of SaaS platform
Growing adoption and use of SaaS platform Digital revenue has a gross margin of ~80% Digital Collections ($m) Digital Attribution1 For personal use only • 88% growth YoY in digital collections 80 60% clearly shows widespread adoption of digital platform 70 • Digital now accounts for 55% of 55% payme
Slide 6: New clients
New clients Combined end-to-end offering is unmatched in Australia with SaaS platform and integrated contingent collections resonating strongly with tier-1 clients providing strong momentum into FY24 For personal use only 346 A tier-1 client is defined as a client with potential revenue greater than
Slide 7: FY24 Outlook
FY24 Outlook • Economic tailwinds have strengthened with internal and external data suggesting a significant For personal use only increase in overdue accounts Macroeconomic tailwinds • Australian companies clearly preparing for a deterioration in the economic environment by strengthening their coll
Slide 8: Appendix
For personal use only Appendix 8
Slide 9: Business Overview
Business Overview Transforming debt collection after decades of under investment in technology, poor regulatory adherence and a failure to change with customer behaviour For personal use only Unmatched digitally led An ASX-listed technology hybrid service offering Growing addressable Technology is a
Slide 10: FY23 Financial Highlights
FY23 Financial Highlights Revenue ($m) For personal use only 40 • Revenue up 63% YoY with additional revenue flowing 35 through to EBITDA 30 • EBITDA - Underlying profit of $0.2m, an improvement $3.8m 25 • EBITDA - Statutory result improves from $10.5m loss to $5.0m loss 20 35 • Cash burn from opera
Slide 11: EBITDA – Normalised vs Statutory
EBITDA – Normalised vs Statutory FY22 FY23 $000's $000's For personal use only EBITDA - Underlying Business Revenue 21,462 34,951 - Revenue up 63% Expenses Employee Benefits (13,576) (20,551) - Employee benefits up 51% Tech Development - OPEX (2,579) (2,048) - Continued investment in Tech Dev Other
Slide 12: Cashflow
Cashflow Cash burn has reduced by 73% FY22 FY23 Movement For personal use only $000’s $000’s Receipts from clients 19,617 38,699 +97% Payments - operations (26,390) (38,493) +46% • Receipts are up 97%, while Lease payments (AASB16) (760) (960) +26% payments increased 46% Tech Dev CAPEX (1,152) (1,58
Slide 13: Balance sheet
Balance sheet For personal use only FY22 FY23 $000’s $000’s Cash 10,204 12,001 • Sound cash balance to continue Debt growing the business - - • No debt • Ample working capital Current assets 19,457 21,216 Non-current assets 54,918 55,627 Current Liabilities (12,515) (10,783) Non-current liabilities
Slide 14: Large and growing addressable market
Large and growing addressable market • Debt under collections in For personal use only Australia was ~$21bn at the end of 2022, this is comprised of debt referred to third party collection agencies or sold to debt purchasers • Third party contingent collections accounted for ~40% of the market and d
Slide 15: New clients will drive revenue growth
New clients will drive revenue growth Currently Credit Clear has several tier-1 clients already signed but did not contribute any revenue during FY23 including a big four bank, one of Australia's largest telecommunication providers, two of Australia’s largest general For personal use only insurance
Slide 16: Profound changes in customer behaviour
Profound changes in customer behaviour For personal use only How to engage now? What’s changed? • On average people • 87% of people Credit Clear is spend 5.5 hours of the won't answer the day on their mobile achieving: phone to numbers • Engagement rates of phone that they don’t 60 – 80% on its • Op
Slide 17: Credit Clear positively exposed to key macro trends
Credit Clear positively exposed to key macro trends Macro-economic Environment Businesses For personal use only Consumers • Cost of living pressures have drastically • Corporate insolvencies • Average debt per file impacted customers ability to service living have spiked 62% in the has risen to over