Cash Converters International Limited · ASX:CCV
Cash Converters International — FY2016 Earnings Presentation
16 slides from Cash Converters International's earnings presentation, Aug 30, 2016
Slide 1: Building on our strengths: Investor Presentation
For personal use only Building on our strengths Investor Presentation Year ending 30 June 2016
Slide 2: FY16 Highlights
For personal use only FY16 Highlights • Strategy reset and restructuring to build on company strengths • Underlying profit growth • Diverse revenue streams provide resilience • High brand recognition and customer satisfaction
Slide 3: FY16 Financial Results Overview
FY16 Financial Results For personal use only Overview • Underlying EBITDA profit up 10.2 per cent to $69.1 million • Revenue higher at $379.3 million ( FY15: $374.3 million) • Net loss after tax $11.1 million ( FY15: $21.4 million) • Channel mix reduces impact of business volatility and regulatory c
Slide 4: Summary June 2016 Full Year
FY16 Financial Results For personal use only Summary 30 June 2016 Full Year ($ million) FY 2016 FY 2015 Statutory reporting basis REVENUE 379.3 374.3 EBITDA 17.3 9.1 EBIT 6.4 (7.5) NPAT (11.1) (21.4) BASIC EPS (cents) (2.30) (4.69) EBITDA NORMALISED (underlying profit) 69.1 62.7
Slide 5: FY16 Financial Results: Adjustments
For personal use only FY16 Financial Results Adjustments Normalisation Adjustments FY2016 FY2015 ($ million) Statutory EBITDA 17.3 9.3 Restructure costs 33.3 - Compliance provision 12.5 - Class action legal fees 2.4 1.8 Agency termination payment - 29.6 Class action settlement - 23.0 Other normalisa
Slide 6: Segments: Solid contributions from all segments
FY16 Financial Results For personal use only Segments Solid contributions from all segments Normalised consolidated segment results ($ million) Segment FY2016 FY2015 Franchise operations 7.1 5.9 Store operations 13.8 15.8 Financial services – admin 13.6 12.5 Financial services – PL 57.9 48.5 Vehicle
Slide 7: Australia continues to drive results
FY16 Financial Results For personal use only Australia Australia continues to drive results Australian segment results FY2016 FY2015 ($ million) Franchise operations 3.6 3.7 Store operations 18.2 18.8 Financial services – admin 12.4 11.5 Financial services – PL 58.3 54.3 Vehicle leasing (2.3) (1.9)
Slide 8: United Kingdom recovery well underway
FY16 Financial Results For personal use only United Kingdom United Kingdom recovery well underway UK segment results FY2016 FY2015 ($ million) Franchise operations 3.0 1.8 Store operations (4.4) (2.9) Financial services – admin 1.1 1.0 Financial services – PL (0.4) (5.7) Totals 0.7 (5.8) Corporate o
Slide 9: Online channels
FY16 Financial Results For personal use only Online channels Our online channels continue to grow strongly. They are a key part of our customer service and product innovation Australia United Kingdom Webshop registered users 103,636 313,000 Webshop sales $6.5 million £4.8 million (+37.4%) (+37.6%) P
Slide 10: Strategy Overview
FY16 Strategy For personal use only Overview Our strategy is to maximise the value of our brand and franchise network through a focus on high return businesses • Invest for sustainable market leadership and profitable growth in Australia • Operate in the United Kingdom as a profitable master franchi
Slide 11: Strategy Progress
FY16 Strategy For personal use only Progress We have made good progress with our strategy implementation • Exited UK corporate stores ( 44 sold and 15 closed) • New UK organisational structure. Now operating as a master franchise servicing 201 franchise stores held between 50 franchisees • Expect to
Slide 12: More initiatives planned for 2017
Strategy For personal use only More initiatives planned for 2017 We have more strategy initiatives planned for 2017 • Expand corporate and franchise network in Australia • New MACC product launched • Increase Green Light Auto Finance sales • Review SACC market and reduce lending to Centrelink segmen
Slide 13: FY17 Outlook
For personal use only FY17 Outlook Efficient execution of strategy and restructuring continues to be a priority • Demand for well established retail and pawn broking services to remain solid • Strategic decision to reduce activity and volume in some SACC segments • Volume from GLA Finance and MACC l
Slide 14: Clear direction and measures
Additional comment For personal use only Clear direction and measures Our strategic direction and performance measures are clear Strategic To be the leader in our chosen markets through responsible customer service Direction Key Leading customer High team Attractive shareholder High market share Imp
Slide 15: Brand, network and customer strengths
Additional comment For personal use only Brand, network and customer strengths In Australia we will continue to build on Cash Converters’ brand, network and customer satisfaction strengths • Market leading brand awareness: 97% brand awareness • Market leading distribution: 152 stores nationwide. Onl
Slide 16: Finance and banking arrangements
Additional comment For personal use only Finance and banking arrangements We have new finance and banking arrangements to underpin our strategy and ongoing operations • Five year arrangement with Fortress Investment Group on improved, market competitive terms • Loan securitisation facility with a dr
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