Credit Corp Group Limited · ASX:CCP

Credit — Shareholder Meeting (October 2022)

16 slides from Credit's shareholder meeting presentation, Oct 25, 2022

  1. Slide 1: FY2023 Performance Update

    25 OCTOBER 2022 FY2023 PERFORMANCE UPDATE Thomas Beregi Cc Credit Corp Group => ec o) @) D 5 @ c e) D — ® a. = je) UL,

  2. Slide 2: Leadership of the credit impaired consumer segment

    For personal use only Leadership of the credit impaired consumer segment… ANALYTICS & DISCIPLINE OPERATIONAL EXCELLENCE SUSTAINABILITY & COMPLIANCE Australian / NZ debt buying  Large database  High asset turnover 1  Low dispute rate  History of pricing accuracy  Low cost to collect 2  $1.4b in

  3. Slide 3: Has secured a strong PDL investment pipeline

    For personal use only … has secured a strong PDL investment pipeline… PDL INVESTMENT $ 450m $ 400m $ 350m Revised FY2023 $ 300m purchasing guidance $ 250m $240 - $260m  Aus/NZ secondary purchase $ 200m FY2023 purchasing $ 150m pipeline of $240m  Forward flow renewals $ 100m contracted at October 2

  4. Slide 4: And record lending volumes

    For personal use only … and record lending volumes  Record Wallet Wizard cash loan demand  No relaxation in credit settings and arrears / losses remain below pre-COVID levels CONSUMER LENDING BOOK AND REVENUE LENDING VOLUMES INDEXED TO PRE-COVID $ 300m $ 200m COMPARATIVE PERIOD1 $ 250m 214% 198% 

  5. Slide 5: Outlook for Aus/NZ PDL supply remains constrained

    For personal use only While the outlook for Aus/NZ PDL supply remains constrained…  Early signs that unsecured indebtedness may be starting to re-build  This won’t impact FY2023 PDL supply AUS INTEREST BEARING CONSUMER CREDIT CARD AUS BANK CREDIT CARD 90+ DAYS PAST DUE RATES 2 BALANCES 1 $29bn 1.4

  6. Slide 6: Prospect of rapidly rising US PDL supply is increasing

    For personal use only … the prospect of rapidly rising US PDL supply is increasing…  The US consumer is ‘leveraging up’ and charge-offs are growing US REVOLVING CREDIT MARKET US PURCHASING (A$m) $ 950bn 5% $250m $ 900bn 4% $200m $ 850bn 3% $150m $ 800bn $ 750bn 2% $100m $ 700bn 1% $50m $ 650bn $ 60

  7. Slide 7: We have found ways to grow resourcing to meet the opportunity

    For personal use only …and we have found ways to grow resourcing to meet the opportunity  US labour market challenges overcome through:  Commencement of North Carolina ‘virtual site’  Philippines evening shift  Australian morning shift US HEADCOUNT 700 600 600 518 500 400 393 384 349 300 200 100

  8. Slide 8: Operational performance is on track

    For personal use only Operational performance is on track…  AU/NZ  Collections reflect 25% decline in trailing 12 month purchasing over pcp  Recent secondary purchase will support collections over the balance of the year  US  Payers book growth points to the initial impact of the step-up in hea

  9. Slide 9: We continue to invest in further drivers of growth

    For personal use only …and we continue to invest in further drivers of growth  US consumer lending  Initial pilot learnings assessed  Product re-build to be completed by Q2  Auto lending  Record monthly volumes  Strong broker take-up  Other lending  BNPL (Wizpay) pilot operational with 750 m

  10. Slide 10: FY2023 guidance refined

    For personal use only FY2023 guidance refined FY2023 initial guidance FY2023 refined guidance Ledger investment $220 - $260 million $240 - $260 million Net lending $50 - $60 million $50 - $60 million NPAT $90 - $97 million $90 - $97 million EPS (basic) 133 - 143 cents 133 - 143 cents Credit Corp Gro

  11. Slide 11: Appendices: Key Operating Metrics

    For personal use only Appendices: Key Operating Metrics Appendix 1: Pricing discipline and accuracy Appendix 2: Collections life cycle Appendix 3: Productivity Appendix 4: Payers base Appendix 5: Operational and total headcount Credit Corp Group AGM Update 2022 Credit Corp Team Update 2020 I 11 19 C

  12. Slide 12: Pricing discipline and accuracy

    APPENDIX 1 For personal use only Pricing discipline and accuracy PRICING DISCIPLINE AND ACCURACY Cumulative collections $ 5,000m $ 4,000m Actual cash collections $ 3,000m $ 2,000m Initial $ 1,000m projections 1 - 1. For all PDLs held at June 2008, initial projections represent the forecast at June 2

  13. Slide 13: Collections life cycle

    APPENDIX 2 For personal use only Collections life cycle PDL COLLECTIONS BY VINTAGE $ 160m (3%)1 $ 140m $ 120m 33% 34% 29% 30% 33% 33% 36% 35% 32% $ 100m 33% 33% 33% 32% 32% 34% 12% 12% 19% $ 80m 30% 30% 31% 34% 34% 18% 13% 14% 19% 20% 16% 15% 15% 15% 13% $ 60m 14% 14% 16% 16% 18% 16% 16% 18% 17% 25%

  14. Slide 14: Productivity

    APPENDIX 3 For personal use only Productivity PDL COLLECTIONS PER HOUR $ 350 YTD Sep -2022 average $ 300 FY2023: $3091 $ 250 12m to Sep-21 FY2022: $323 $ 200 12m to Sep-22 $ 150 $ 100 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 1. Constant currency basis Credit Corp Group AGM Update 2022 14

  15. Slide 15: Payers base

    APPENDIX 5 For personal use only Payers base PORTFOLIO SUMMARY: AU/NZ DEBT BUYING ONLY Total portfolio Dec-20 Jun-21 Dec-21 Jun-22 Sep-22 Face value $8.6b $8.5b $7.9b $7.6b $7.4b Number of accounts 1,392,000 1,326,000 1,252,000 1,236,000 1,190,000 Payment arrangements Face value $1,550m $1,600m $1,5

  16. Slide 16: Operational and total headcount

    APPENDIX 6 For personal use only Operational and total headcount PERIOD END HEADCOUNT (FTE) PERIOD END HEADCOUNT (FTE) Jun-21 Jun-22 Sep-22 2,200 2,000 Debt buying operations 1,261 1,296 1,287 1,800 1,600 Agency 218 229 242 1,400 1,200 Lending 111 162 228 1,000 Support 143 153 176 800 600 Total 1,73

Credit Corp Group — Shareholder Meeting (October 2022) on 6ix