Slide 1: FY'20 Results
FY’20 Results CEO Daniel Riley CFO Steve Shin
Slide 2: About CML
About CML A provider of Business Finance solutions, offering Invoice Finance Institutions 43% Board and Equipment Finance, operating 10% under the names Cashflow Register Finance and Classic Funding Other 47% Group. Invoice Factoring Capital Structure (26th August 2020) Invoice Discounting Share Pri
Slide 3: About CML
About CML CML employs an experienced team of ~105 people and services clients nationally from offices in Brisbane, Sydney, Melbourne and Perth. Operating under the name Cashflow Finance and Classic Funding Group, CML provides the following services: Invoice Invoice Equipment Factoring Discounting Fi
Slide 4: FY'20 Highlights
FY’20 Highlights Despite challenging EBITDA (adjusted) Underlying NPATA environment CML $19.8m $8.4m produced strong results. ($20.4m pcp) ($9.5m pcp) Underlying EPS¹ DPS (Fully Franked) 4.0c 1.75c (4.7c pcp) (2.4c pcp) 1. FY’20 Underlying EPS is based on Underlying NPATA, which excludes non-cash $2
Slide 5: FY'20 Highlights
FY’20 Highlights CML is well positioned FY’20 Creditable performance considering: in 2021. • COVID 19 which resulted in a substantial slow down in volumes in Mar-Jun period • Distraction as a result of unsuccessful Corporate Activity (COG, Scottish Pacific takeover) No material defaults or losses to
Slide 6: Invoice Finance
Invoice Finance Continued growth in invoices purchased with no material losses due to COVID-19. $m FY'16A FY'17A FY'18A FY'19A FY'20A Invoices Purchased 406.5 1,000.7 1,328.1 1,578.6 1,709.5 Revenue 11.4 26.0 34.4 35.8 30.8 Revenue Margin 2.80% 2.60% 2.59% 2.26% 1.80% EBITDA 5.4 13.4 18.1 19.4 14.0
Slide 7: Invoice Finance
Invoice Finance FY’20 – Creditable in light of COVID No $1.7bn defaults Increase in Invoices Purchased to No material defaults or losses to $1.7bn reflects acquisition of Classic CML’s loan book, demonstrating which was substantially offset by a the robustness of CML’s lending drop in volumes in Q4
Slide 8: FY'21 – Outlook Positive
Invoice Finance Invoice Purchased Volumes already up FY’21 – 15% from COVID low Outlook Positive The current annualised run rate, plus new business momentum, will result in substantial increase on FY’20 • CML is experiencing increasing demand for invoice finance, with the new customer pipeline build
Slide 9: Equipment Finance
Equipment Finance Launched in Jul-17 the Equipment Finance division continues to progress ahead of expectations. $m FY'18A FY'19A FY'20A Revenue 1.0 3.4 11.5 EBITDA 0.3 1.6 7.0 EBITDA Margin 30% 47% 61% Receivables 14.0 27.0 117.1 Funds Advanced 10.0 18.8 95.1 9
Slide 10: Equipment Finance
Equipment Finance FY’20 – Strong Demand through Uncertainty Strong growth driven by Implemented a COVID-19 FY’21 – Classic Acquisition in Nov 19 support policy for existing clients Outlook Positive $117.1m <1% on deferral +++ of receivables ($90.7m acquired Provided a 3-month repayment deferral peri
Slide 11: Underlying Group Results
Underlying Group Results Despite challenging conditions and business disruption, CML produced strong results and is well positioned in 2021. $m FY'19A FY'20A Δ pcp Revenue 47.7 47.5 -1% EBITDA 20.4 19.8 -3% D&A -0.3 -0.8 167% Net Interest -7.1 -9.2 30% Tax -3.6 -0.9 -75% Amortisation of Acquired Ent
Slide 12: Underlying Group Results
Underlying Group Results Despite challenging conditions and business disruption, CML produced strong results and is well positioned in 2021. • EBITDA (adjusted) of $19.8m (FY’19: $20.4m) EBITDA (adjusted) Underlying EPS • Interest expense higher, reflecting an increase in the loan portfolio during F
Slide 13: Group Balance Sheet & Funding Structure
Group Balance Sheet & Funding Structure Robust balance sheet with strong cash position. $m FY'19A FY'20A Δ pcp 21.1 38.2 81% Cash and cash equivalents Receivables - Debtor Finance 191.6 167.7 -12% Receivables - Finance Lease¹ 18.8 95.1 405% Intangible Assets 15.6 26.5 70% Other 4.1 8.5 107% Assets 2
Slide 14: Equipment Finance
Equipment Finance New funding structure delivers material reduction in cost of debt and improves CML’s competitiveness. • Current Facilities and cash are approximately over $329m at an Finance Division 30 Jun’19 30 Jun’20 average cost of sub 6% Trade Receivables 191.6 167.7 • Current headroom of ~$1
Slide 15: Funding to support growth
Funding to support growth CML has Warehousing Facilities for it's key products. Facility Size CML Cost Comment CML anticipates replacing the Bond and Mezzanine debt Invoice Finance with cheaper funding in Q1’FY21, with an expectation of an Warehouse Facility 1 $60m Sub-3% Major Aus bank annualised $
Slide 16: FY'21 Outlook
FY’21 Outlook CML is entering FY’21 is a strong position to resume the growth it experienced prior to FY’20. CML’s products are positioned to assist SME’s as they review working capital requirements to manage the costs associated with recent business disruption, reduced availability of Government as
Slide 17: FY'21 Outlook
FY’21 Outlook CML is entering FY’21 is a strong position to resume the growth it experienced prior to FY’20 Invoice Financing Equipment Finance Corporate Experienced no defaults despite COVID Low client attrition, no material CML has ~$100m of headroom in CML has seen a marked improvement in default
Slide 18: Appendix
Appendix 18 cashflow finance
Slide 19: Underlying to Reported Reconciliation
Appendix Underlying to Reported Reconciliation 1. Includes $2.4m non-cash goodwill impairment on $m FY'19A FY'20A Δ pcp wind-down of legacy recruitment business EBITDA 20.4 19.8 -3% $1.2m (pre-tax) provision for future credit losses in the Classic Funding equipment - -4.7 n/m finance portfolio, acqu
Slide 20: Disclaimer
Appendix Disclaimer The information presented herein contains predictions, estimates and other forward looking statements that are subject to risk factors that are associated with the human resource management sector. The persons involved in or responsible for the production and publication of this