Credit Clear Limited · ASX:CCR
Credit Clear — Investor Presentation (July 2023)
12 slides from Credit Clear's investor presentation, Jul 28, 2023
Slide 1: FY23 Q4 Investor Presentation
FY23 Q4 Investor Presentation ASX: CCR | 28 July 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: 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 Unmatched digitally led An ASX-listed technology Growing addressable hybrid service offering that Technology is aligned with compa
Slide 4: Key Metrics – FY23 Q4
Key Metrics – FY23 Q4 Record quarterly revenue drives positive cash flow from operations $9.1m1 $0.2m2 $12m Q4 Revenue Cash from Cash at bank operating activities +6% PCP (Strong balance sheet $2.3m improvement PCP following capital raise With record monthly revenue in May and nil debt) in June of $
Slide 5: New clients and strong debt file referrals – FY23 Q4
New clients and strong debt file referrals – FY23 Q4 75 1,128 1.2m New clients Active clients Active files +25% PCP +42% PCP +40% PCP +$2.2m in potential revenue • Emerged as a new Active clients Active files (m) provider to tier 1 1200 1.4 organisations 1.2 • Tender win rate of over 1000 70% in the
Slide 6: Revenue and clients
Revenue and clients Revenue by quarter ($m) • Record quarterly revenue of $9.1m1 9.5 • Record monthly revenue achieved in June of $3.7m, which resulted in a profitable month 9 on an underlying operating basis • Q4 is seasonally the second strongest 8.5 quarter 8 • Q1 is seasonally the strongest quar
Slide 7: New clients will drive revenue growth
New clients will drive revenue growth Tier-1 clients are clients with potential to contribute over $1m in annual revenue. Currently Credit Clear has several tier-1 clients already signed, but yet to contribute any revenue including: • A big four bank • One of Australia's largest telecommunication pr
Slide 8: Profound changes in customer behaviour
Profound changes in customer behaviour What’s changed? How to engage now? Credit Clear is • 87% of people • On average people achieving: won't answer the spend 5.5 hours of the • Engagement rates of phone to numbers day on their mobile 60 – 80% on its that they don’t phone automated workflow recogni
Slide 9: Digital collections
Digital collections Digital collections • Continued acceleration of digital 25,000 collections • 61% growth PCP in digital collections clearly shows widespread adoption of 20,000 digital platform • Leverage massive and growing data-set 15,000 through AI with proven results, creating high barrier to
Slide 10: Large and growing addressable market
Large and growing addressable market • Debt under collections in Australia was ~$21bn at the end of 2022 • Third party contingent collections (~40%) and debt $21bn $?bn purchasers (~60%), with trend towards less debt being sold Under third debt worked party collection internally or sold • Does not i
Slide 11: Credit Clear data reflects macro trends
Credit Clear data reflects macro trends Consumers deeper in debt Business struggling to survive • Average debt per file has risen 113% in the • Corporate insolvencies have spiked 62% in past year, from $1,099 to $2,344 in the the year to June 2023 (ASIC data) second quarter of CY 2023 • Credit Clear
Slide 12: Outlook
Outlook • Focus on realising potential revenue from new clients signed in FY23 where revenue is still to be earned • Strong pipeline of new business targets across consumer, commercial, insurance and government NEW CLIENTS • Winning multiple tier-1 clients in 2H23 (IAG, QUU, a Big Four Bank) has cle