Credit Corp Group Limited · ASX:CCP

Credit — Shareholder Meeting (November 2010)

14 slides from Credit's shareholder meeting presentation, Nov 9, 2010

  1. Slide 1: 2010 Annual General Meeting

    For personal use only 2010 Annual General Meeting YTD to October 2010 update 9 November 2010 Thomas Beregi – Chief Executive Officer

  2. Slide 2: Growth from increased purchasing

    Growth from increased purchasing For personal use only FY11 Financials versus prior October 10 Aug 10 FY11 year Actual Guidance PDL acquisitions up 35% to $23.6m $45-60m PDL collections and fee income up 15% to $68.3m Revenue up 21% to $37.2m Adjusted EBITDA(1) up 14% to $45.5m $108-112m NPAT(2) up

  3. Slide 3: Superior financial position

    Superior financial position For personal use only Four months ended $ million 31 Oct 10 31 Oct 09 Adjusted EBITDA(1) 45.5 39.9 Operating cash flow (2) 35.4 35.7 PDL acquisitions and capex (25.6) (17.6) Free cash flow 9.8 18.1 PDL carrying value 139.5 157.9 Net bank debt 33.5 63.6 Net debt / carrying

  4. Slide 4: Recent purchases are yielding acceptable returns

    Recent purchases are yielding acceptable returns… For personal use only Average purchases over the 16 months to October 2010 Cumulative percentage of purchase price collected by month 230% Month 72 (6 years) * part month depending on timing 5

  5. Slide 5: We continue to drive collections from older PDLs

    …and we continue to drive collections from older PDLs… For personal use only PDL Collections by date of purchase 35% 24% 32% 25% 12% 27% 15% 22% 20% 9% 19% 27% 15% 22% 28% 27% 23% 21% 16% 13% 41% 16% 12% 13% 41% 36% 23% 40% 40% 36% 37% 33% 28% 22% 27% 23% • Pro-rated to a quarterly average 6

  6. Slide 6: Maintaining our focus on the certainty of returns

    …while maintaining our focus on the certainty of returns For personal use only Total Portfolio Oct 10 Jun 10 Dec 09 Jun 09 Dec 08 Jun 08 Dec 07 Face value $2.8bn $2.6bn $2.5bn $2.2bn $2.2bn $2.2bn $1.9bn Number of accounts 309,000 302,000 306,000 284,000 319,000 370,000 388,000 Payment arrangements

  7. Slide 7: We have grown our collection capacity

    We have grown our collection capacity… For personal use only Headcount by function (FTE) Function FY06 FY07 FY08 FY09 FY10 Oct 10 Debt Purchase Ops 182 294 405 435 516 540 Process Serving /Mercantile 30 86 95 4(2) 4 4 Support 51 68 52(1) 50 55 57 Total 263 448 552 489 575 601 Support % 19% 15% 9% 10

  8. Slide 8: While maintaining collection efficiency

    …while maintaining collection efficiency For personal use only Debt Purchase Productivity (direct collection staff only) 2009/10 2008/09 9

  9. Slide 9: Solid FY11 purchasing pipeline

    Solid FY11 purchasing pipeline… For personal use only 70 65 $60m 60$70 FY11 Purchasing $65$65m 52 50 Guide: $45-60m $57 $60 37 $52m 40 $50 30 $37m $40 $40 $million 20 Contracted $30 10 as at Oct 2010 $20 0 $10 FY09 Actual FY10 Actual FY11 $0 FY09 FY10 FY11 10

  10. Slide 10: Clients are benefitting from our operational improvement

    …and clients are benefitting from our operational improvement For personal use only • Deterioration in quality of charged-off debt - rationing of personal credit over calendar 2009 - modest increase in 90 day+ card arrears reported by major banks(1) - increased proportion of ‘change of circumstances

  11. Slide 11: FY11 initiatives are on-track

    FY11 initiatives are on-track For personal use only • Expand collections capacity to drive returns from PDLs • Combine disciplined operating approach with in-house technological innovation to improve collection effectiveness and efficiency • Continue to deliver the benefits of improved operations to

  12. Slide 12: Revised guidance

    Revised guidance For personal use only FY11 Updated Nov 10 Issued Aug 10 PDL acquisitions $55 - $60m $45 - $60m Adjusted EBITDA (1) $112 - $116m $108 - $112m NPAT $18 - $20m $16 - $18m EPS (basic) 39 - 44 cents 35 - 40 cents (1) Adjusted EBITDA allows for add-back of amortisation netted against coll

  13. Slide 13: Appendix – Revenue and EBITDA reconciliations

    Appendix 1 – Revenue and EBITDA reconciliations For personal use only $ ‘000s Revenue YTD Oct 10 FY10 FY09 PDL Collections & Fee Income 68,819 178,806 152,950 Less: PDL Amortisation 31,585 87,609 70,181 Revenue 37,234 91,197 82,769 Adjusted EBITDA (1) NPAT 7,966 13,543 10,862 Plus: Tax 3,539 6,215 4

  14. Slide 14: General questions

    For personal use only 2010 Annual General Meeting General questions

Credit Corp Group — Shareholder Meeting (November 2010) on 6ix