Credit Corp Group Limited · ASX:CCP
Credit — H1 2008 Earnings Presentation
12 slides from Credit's earnings presentation, Feb 14, 2008
Slide 1: H1 08 Results Presentation
For personal use only H1 08 Results Presentation Richard Thomas Acting Chairman Geoff Lucas Chief Executive Officer
Slide 2: H1 08 Financials
H1 08 Fi Financials i l For personal use only • Revenue up 25% to $75.5 million • EBITDA up 8% to $43.8 million • NPAT down 33% to $6.09 million • EPS d down 32% t to 13 86 cents 13.86 t • Dividend down 81% to 2.0 cents 2
Slide 3: Balance Sheet and Cash Flow Metrics
B l Balance Sheet Sh t and d Cash C h Flow Fl Metrics M ti For personal use only Six months ended Six months ended Change Dec 07 Dec 06 Operating cashflow ($m) 43.8 36.3 21% D bt L Debt Ledger d purchases h ($ ($m)) 61 2 61.2 48 7 48.7 59% Written down value of debt ledgers ($m) 215.7 142.6 51% Clos
Slide 4: Our People – Functional Distribution (FTE)
O People Our P l – Functional F ti l Di Distribution t ib ti (FTE) For personal use only H1 6 mth Function FY04 FY05 FY06 FY07 FY08 change Executive & Senior Mgmt 2 2 3 7 7 - Debt Purchase Operations 39 80 182 294 412 40% Process Serving / Mercantile 45 61 30 38 42 11% Support Functions 19 31 48 61
Slide 5: Revised Guidance – Recent purchases
R i dG Revised Guidance id – Recent R t purchases h For personal use only Percentage of purchase price collected by month 60 Bank 1 Total first 6 months 31.0% 40 Bank 2 Total first 6 months 48.7% 48 7% % Bank 3 Total first 6 months 41.6% 20 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month fro
Slide 6: Revised Guidance – Focus on short-term revenue
R i dG Revised Guidance id – Focus F on short-term h tt revenue For personal use only • Rapid volume growth has created inability to commence collections on whole portfolio • Focus directed to newer purchases • Workflow management to be more evenly distributed across entire portfolio • Volume of ppu
Slide 7: Revised Guidance – Lower average productivity
R i dG Revised Guidance id – Lower L average productivity d ti it For personal use only • December quarter productivity by tenure band Headcount* Productivity* Tenure (FTE average) (Revenue per hour) < 6 months 150 $80 7-12 months 95 $249 >12months 86 $344 331 $197 * Direct collection staff only — e
Slide 8: Revised Guidance – New ledger acquisitions
R i dG Revised Guidance id – New N lledger d acquisitions i iti For personal use only Revenue origination profile - Percentage 100% 7% 2004 and prior 5% 80% 21% 2005 2006 60% 2007 40% 52% 2008 20% 15% 0% Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 H1 2008 Monthly Over 6 months • The Th CCompany h has
Slide 9: Revised guidance – Corporate costs
R i d guidance Revised id – Corporate C t costs t For personal use only Corporate costs % Revenue Corporate Headcount (FTE) 12% 10.1% 9.4% 80 9% 7.4% 60 6% 40 3% 20 0% 0 FY 2006 FY 2007 H1 2008 • Investment in larger corporate and administrative platform for forecast volume increases • Revenue is ex
Slide 10: Strategic Review
St t i Review Strategic R i For personal use only • Initiated and Directed by Board with involvement of executive management • Time frame 30 – 45 days • Expected costs and/or charges – Premises (lease tail/make good) $0.8m – Staff costs $1.85m – Goodwill & Plant $2.20m • Target run rate savings $6m
Slide 11: 2H Outlook
2H 08 O Outlook tl k For personal use only Complete strategic review and implement: • Cost reductions • Workflow Management refinement • Debt ledger purchase reductions through more disciplined pricing FY08 NPAT forecast of $10-12m (pre restructuring costs) FY08 EBITDA forecast of $83-87m 11
Slide 12: Questions
For personal use only H1 08 Results to December 2007 Questions