Cash Converters International Limited · ASX:CCV
Cash Converters International — H1 FY2016 Earnings Presentation
11 slides from Cash Converters International's earnings presentation, Feb 29, 2016
Slide 1: Investor Presentation Financial Results Half-Year Ending 31 December 2015
For personal use only Investor Presentation Financial Results Half-Year Ending 31 December 2015
Slide 2: HY16 Highlights
For personal use only HY16 Highlights • Return to profits. NPAT of $15.9 million ( 1H15: $5.3 million loss) • Return to dividend. Interim payout of 2.0 (two) cents fully franked • Australia clear driver of revenue and profit growth – built on brand, customer satisfaction and network leadership • Uni
Slide 3: Solid growth in revenue and profit
For personal use only Solid growth in revenue and profit Statutory 31 December 2015 31 December 2014 Variance Revenue $m 198.6 187.7 +5.8% EBITDA $m 36.5 2.8 +1,182.2% EBIT $m 29.7 (1.7) +1,883.6% NPAT $m 15.9 (5.3) +400.0% EPS Cps 3.30 (1.21) +372.7% EPS (Normalised) Cps 3.50 3.53 -0.8% EBITDA Norm
Slide 4: Underlying performance strong
For personal use only Underlying performance strong Normalised EBITDA 31-Dec-15 31-Dec-14 Variance EBITDA Statutory $m 36.5 2.8 +1,182.2% - Stamp Duty on Store Acquisitions $m - 0.4 - - Ausgroup Provision $m - (1.1) - - Kentsleigh Agency Termination Payment $m - 29.6 - - Termination Fees – Bank Faci
Slide 5: Australia drives results
For personal use only Australia drives results Divisional EBITDA Divisional EBITDA (Normalised) HY2015 HY2014 Movement Franchise Operations 3.2 3.6 -12.3% Store Operations 8.2 10.5 -21.7% Financial Services - Administration 6.8 6.1 +12.6% Financial Services – Personal Loans 31.4 22.5 +39.1% Green Li
Slide 6: Personal lending a key contributor
For personal use only Personal lending a key contributor Australian Personal Loan Book 120 Total Loan Book volume steady 100 186,994 active customers 80 A$ Millions Produced EBITDA of $30.8m (1H15: $25.5m) 60 Bad debts written off at 7.1% (1H15: 6.3%) 40 20 Online loans up 42.5% to $44.6m 0 Dec Jan
Slide 7: Australian Cash Advance attracts more customers
Australian Cash Advance attracts more customers For personal use only Australian Cash Advance – Principal Advanced EBITDA contribution up 15.7% to $6.2m 25.0 Total principal loaned down 3.7% to $123.5m 20.0 Average loan amount up from $417 to $430 Total customers up 10.4% to 627,069 15.0 A$ Millions
Slide 8: Online growth continues to be strong in Australia
Online growth continues to be strong in Australia For personal use only Online Personal Loan Volumes Online Cash Advance Volumes 12.0 1,800.0 1,600.0 10.0 1,400.0 8.0 1,200.0 A$ Thousands A$ Millions 1,000.0 6.0 800.0 4.0 600.0 400.0 2.0 200.0 0.0 0.0 Dec- Jan- Feb Mar Apr May June July Aug Sept Oct
Slide 9: New banking arrangements will underpin future growth
New banking arrangements will underpin future For personal use only growth • Securing new banking arrangements was a pleasing outcome • The Fortress facility covers five years – an initial three years with an option for a two year extension • It allows for a drawdown of up to $100 million ( $70 mill
Slide 10: Productive involvement in Australian regulatory review
Productive involvement in Australian regulatory For personal use only review • Government review of small amount credit contract laws • Preliminary findings released December 2015 • Recommendations due end of February 2016 • We have been engaged in industry and company discussions with government, a
Slide 11: Outlook
Outlook For personal use only • Positive outlook for prospects in Australia – growth in demand for short-term lending expected to continue • United Kingdom industry market in transition. Impact of regulation on profits, combined with company scale and capability issues necessitate changes to strateg
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