Slide 1: CML Group FY'19 Results
CML Group FY’19 Results CEO Daniel Riley CFO Steve Shin
Slide 2: About CML
About CML A provider of Business Finance solutions, offering Invoice Finance and Equipment Finance, operating under the name Cashflow Finance Business Finance Platform Capital Structure (21st August 2019) Share Price $0.44 Shares on Issue (m) 201.4 Market Capitalisation (m) $88.6 NTA / Share (cents)
Slide 3: FY'19 Highlights
FY’19 Highlights Results driven by increasing volume across all lending products FY’19 Results Operational Highlights • Continued strong performance in core Factoring business, facilitating investment into business expansion initiatives • Commencement of expansion into Invoice Discounting, targeting
Slide 4: Financials
Financials Operating scale has improved EBITDA margins and combined with reducing funding costs is facilitating material Net Profit growth
Slide 5: Comprehensive Income Statement
Comprehensive Income Statement Earnings improvement has continued, driven by growth within the Finance division, new products & improved funding structure $m FY'18 A FY’19 A Δ pcp Comments Invoice Finance 34.4 35.8 4% Revenue growth driven by increase in Invoices Purchased Equipment Finance 1.0 3.4
Slide 6: Historical Growth
Historical Growth Guidance CML of $10.6m+ has delivered in FY’17 year-on-year growth, translating into consistent growth in shareholder returns consistent Invoices Funded Revenue Underlying EBITDA Invoice Factoring Invoice Discounting Finance Revenue Other Divisions 43m 1536m 20.4m 1328m 17.6m 1001m
Slide 7: Invoice Finance Division
Invoice Finance Division Successful investment in platform & expansion of product offering to include Invoice Discounting, servicing larger clients and expanding our addressable market
Slide 8: Invoice Finance
Invoice Finance Continued growth in invoices purchased & EBITDA, with substantial reduction in comparative interest costs Invoices Purchased ($m) & Gross Margin (%) Invoice Finance Divisional EBITDA & Interest Cost ($m) 2.80% 25m 60% 2000m 3% ($m) 2.60% 2.59% 54% 53% 2.26% 20m 51% 1600m 19.4m 47% 18
Slide 9: Equipment Finance
Equipment Finance Launched in Jul-17 the Equipment Finance division continues to progress ahead of expectations • Loans range from $20,000 to $500,000, strong synergies with Invoice Finance in terms of cross-sell and client retention FY'18A FY'19A 30.0m 27.0m 20.0m 20.0m 14.0m 10.0m 10.0m - Receivab
Slide 10: Funding is in place to support growth
Funding is in place to support growth New funding structure delivers material reduction in cost of debt and improves CML’s competitiveness • CML’s average cost of funds is below 6% Funding ($m) FY’19 Cost Issued • This allows CML to compete on similar terms with the leading non- bank Debtor Finance
Slide 11: Strategy and Outlook
Strategy and Outlook FY’19 represented a period of investment in the future of the overall CML business, establishing the foundations for the next leg of the Company’s growth
Slide 12: CML Group Growth Strategy
CML Group Growth Strategy Guidance FY’19 of $10.6m+ represented in of a period FY’17 investment in the future of the overall CML business, establishing the foundations for the next leg of the Company’s growth New Product Strategy Target Facility Size • CML is targeting additional larger clients with
Slide 13: FY'20 Outlook
FY’20 Outlook Following investment in HR, technology, new product development and process improvements CML is now well-positioned to continue to build market share and facilitate growth in business volumes in FY’20 With demonstrated month-on-month improvement in new business volumes CML will increas
Slide 14: Appendix
Appendix cashflow @ f =) cashllow. finance finance Availability = CML Group (aS) | Redhat cashflow finance [> ein |e ic]
Slide 15: Senior Management
Senior Management • Daniel commenced with CML in 2002 and has been CEO since 2010. Daniel launched the Invoice Finance business in 2012 and transitioned CML from a recruitment services firm to a finance business, managing an accelerated growth program, including the acquisition of four key finance c
Slide 16: Risk Mitigation
Risk Mitigation Guidance Debtor of $10.6m+ Finance in FY’17 is a robust, secured, business lending product with minimal exposure to arrears CML’s service offering incorporates both finance and receivables management, with finance provided under the following conditions; 1) Verification on each invoi
Slide 17: Invoice Finance Revenue Model
Invoice Finance Revenue Model CML is the clear number two non-bank invoice factoring business in Australia There are 4 key drivers to earnings: 1. Invoices Purchased – The gross amount of cash flow against which CML provides working capital assistance – CML will provide up to 80% in funds of the fac
Slide 18: Disclaimer
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 report be
Slide 19: CML Group
cashflow S finance Availability [Fai cashflow S finance (Fai CML Group cashflow finance [> ein |e ic]