Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (November 2014)
15 slides from Credit's shareholder meeting presentation, Nov 6, 2014
Slide 1: 2014 Annual General Meeting Performance Update
For personal use only 2014 Annual General Meeting Performance Update Thomas Beregi | Chief Executive Officer Michael Eadie | Chief Financial Officer
Slide 2: Leveraging our leadership in the credit-impaired consumer segment
Leveraging our leadership in the credit-impaired consumer segment For personal use only Core Australian debt buying business Credit-impaired consumer lending • Apply our experience with credit- impaired consumers • Sustainable and affordable products • Segment not serviced by mainstream credit issue
Slide 3: Solid start against ingoing expectations
Solid start against ingoing expectations For personal use only Aug-14 Expectation Nov-14 Update • PDL acquisitions to reduce from $145m in • On track for $80 - $90m in FY15 FY14 to $70 - $90m in FY15 • Net lending volumes of $40 - $50m in FY15 • Presently behind pro-rata requirement • Volumes expect
Slide 4: Improved purchasing outlook
Improved purchasing outlook For personal use only • Recently expiring forward flows have been renewed $145m $137m • Purchasing guidance has been refined towards the upper-end Purchases - $m • Market share remains lower $93m $92m $90m Revised FY15 Purchasing than in FY14 Guide: $80 - $90m $65m $65m C
Slide 5: Operational metrics maintained – return disciplines
Operational metrics maintained – return disciplines For personal use only Cumulative 1,400 Collections $m Actual cash 1,200 collections 1,000 800 600 Initial Projections 400 200 - Note: For all PDLs held at June 2008, initial projections represent the forecast at June 2008 2014 Annual General Meetin
Slide 6: Operational metrics maintained - collection life-cycle
Operational metrics maintained - collection life-cycle For personal use only PDL collections by date of purchase 75.0 $m 70.0 65.0 24% 24% 28% 60.0 25% 25% 55.0 24% 25% 25% 23% 13% 50.0 27% 12% 28% 12% 12% > 3 years 27% 27% 12% 45.0 31% 32% 34% 13% 14% 2-3 years 13% 16% 40.0 34% 9% 12% 13% 17% 10% 1
Slide 7: Operational metrics maintained - productivity
Operational metrics maintained - productivity For personal use only Debt purchase productivity (direct collection staff only) PDL $350 collections per hour $300 $250 YTD avg. $200 FY14/15 $202 FY13/14 $205 $150 $100 FY 2014/2015 FY 2013/2014 2014 Annual General Meeting | 7
Slide 8: Operational metrics maintained – payers base
Operational metrics maintained – payers base For personal use only Total Portfolio Oct 14 Jun 14 Dec 13 Jun 13 Dec 12 Jun 12 Face value $4.8bn $4.7bn $4.5bn $4.0bn $3.8bn $3.6bn Number of accounts 711,000 744,000 759,000 711,000 650,000 598,000 Payment arrangements Face value $943m $909m $791m $742m
Slide 9: Continued leadership in compliance and respectful practice
Continued leadership in compliance and respectful practice For personal use only • EDR complaints / $ million collected (1) FY14 FY13 General 0.6 0.6 Credit reporting (2) 0.6 0.5 Total 1.2 1.1 • Recognised leader in dealing with consumer hardship: - consulted directly by Treasury and ASIC - engaged
Slide 10: Growth in the consumer lending book has slowed temporarily
Growth in the consumer lending book has slowed temporarily For personal use only • Attention diverted to Gross loan book excluding provisions establishing foundations for next phase of accelerated $67m growth $63m • Accelerated principal run off as book matures • Temporary hiatus in auto lending $35
Slide 11: A range of products to deliver growth
A range of products to deliver growth For personal use only Credit impaired consumer lending products % of loan Pro-forma book economics Secured Term: 3 - 4 Years 11% Principal: Up to $20K (avg. $16K) Term: 1 - 3 Years Principal: Up to $5K 80% Unsecured (avg. $3K) Term: 4 - 12 months Principal: Up t
Slide 12: Lending business now a significant growth driver
Lending business now a significant growth driver For personal use only MoneyStart monthly revenue and up-front provisioning • Has delivered 80% of YTD revenue growth 1.5 • On track for profit in FY15 $'m 1 0.5 0 Interest revenue Loss provision expense 2014 Annual General Meeting | 12
Slide 13: US debt buying market remains in a state of flux
US debt buying market remains in a state of flux For personal use only • Market conditions remain unchanged pending finalisation of new regulations: - Credit issuers who temporarily withdrew have not yet returned - The rule-making process by new regulator is proceeding slowly • Operation being manag
Slide 14: Refined FY15 guidance
Refined FY15 guidance For personal use only Issued Aug-14 Refined Nov-14 PDL acquisitions $70 - $90m $80 - $90m Net lending $40 - $50m $40 - $50m NPAT $36 - $38m $36 - $38m EPS (basic) 78 - 83 cents 78 - 83 cents 2014 Annual General Meeting | 14
Slide 15: General Questions
For personal use only 2014 Annual General Meeting General Questions 2014 Annual General Meeting | 15
Credit Corp Group — Shareholder Meeting (November 2014) on 6ix