Cash Converters International Limited · ASX:CCV
Cash Converters International — Shareholder Meeting (November 2016)
13 slides from Cash Converters International's shareholder meeting presentation, Nov 23, 2016
Slide 1: AGM Presentation November 2016
For personal use only AGM Presentation November 2016
Slide 2: At this time last year
For personal use only At this time last year At last years AGM we were facing the following challenges • The Bank had terminated our transactional banking and debt facilities as well as forcing a suspension of our final year dividend • A Panel had been appointed by Government to review the small amo
Slide 3: FY16 Strategy Overview
FY16 Strategy Overview For personal use only Announced in February 2016 Our strategy is to maximise the value of our brand and franchise network through a focus on high return businesses. • Focus our investment and resources toward maintaining market leadership and sustainable profit growth in Austr
Slide 4: FY16 Strategy Progress
FY16 Strategy For personal use only Progress We have made good progress with our strategy implementation • Exited UK corporate stores ( 44 sold and 15 closed) • Ceased lending in May and expect to have the UK personal loan book closed by December 2016 • Implemented a new UK organisational structure.
Slide 5: Good progress
For personal use only Good progress We have made good progress on the remaining challenges • The Government appointed Panel completed its review of the SAAC laws and made 24 recommendations to the Minister in a report dated March 2016. To date these recommendations are still with the Minister. • We
Slide 6: 2016 Financial Results
For personal use only 2016 Financial Results
Slide 7: FY16 Financial Results Summary
FY16 Financial Results For personal use only Summary 30 June 2016 Full Year ($ million) FY 2016 FY 2015 Statutory reporting basis REVENUE 379.3 374.3 EBITDA 20.4 9.1 EBIT 9.7 (7.5) NPAT (5.3) (21.4) BASIC EPS (cents) for all operations (1.09) (4.69) EBITDA NORMALISED (underlying profit) 71.9 62.7 FU
Slide 8: FY16 Financial Results Adjustments
For personal use only FY16 Financial Results Adjustments Normalisation Adjustments FY2016 FY2015 ($ million) Statutory EBITDA 20.4 9.3 Restructure costs 33.3 - Compliance provision now ASIC EU 12.5 - Class action legal fees 2.4 1.8 Agency termination payment - 29.6 Class action settlement - 23.0 Oth
Slide 9: FY16 Financial Results Segments
FY16 Financial Results For personal use only Segments Solid contributions from all segments Normalised consolidated segment results ($ million) Segment FY2016 FY2015 Franchise operations 7.1 5.9 Store operations 13.8 15.8 Financial services – admin 13.6 12.5 Financial services – PL 57.9 48.5 Vehicle
Slide 10: Enforceable Undertaking
For personal use only Enforceable Undertaking • On the 4 November 2016 the Company entered into an Enforceable Undertaking (EU) with ASIC • In accordance with the EU, the Company will remediate certain customers who applied for and were granted small amount credit contracts via the Cash Converters w
Slide 11: FY17 Outlook
For personal use only FY17 Outlook Efficient execution of strategy continues to be a priority • Demand for our well established retail and pawn broking service remains solid • UK business returned to profit • Strategic decision to reduce activity and volume in some SAAC market segments will impact o
Slide 12: First Quarter Results
First Quarter Results For personal use only On track to meet guidance • UK produced an Quarter ending EBITDA profit of Segment $383.7K and 30 September 2016 returned so far $6.3m of cash from loan book Revenue $73,678,386 • GLA Finance EBITDA $13,069,289 produced an EBIT $11,449,941 EBITDA loss of $
Slide 13: Regulatory Environment
Regulatory Environment For personal use only Australia– Regulatory Environment The Government established a panel to review the small amount credit contract (SAAC) laws. The panel completed its review and made 24 recommendations to the Minister in a report dated 15 March 2016. To date these recommen
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