Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (November 2016)
17 slides from Credit's shareholder meeting presentation, Nov 3, 2016
Slide 1: 2016 Annual General Meeting
For personal use only 2016 Annual General Meeting Don McLay, Chairman 3 November 2016
Slide 2: Performance Update
For personal use only 2016 Annual General Meeting Performance Update Thomas Beregi, Chief Executive Officer Michael Eadie, Chief Financial Officer 2016 Annual General Meeting | 2
Slide 3: Competitive leadership in the credit impaired consumer segment
Competitive leadership in the credit impaired consumer segment… For personal use only ANALYTICS & OPERATIONAL SUSTAINABILITY • Long-term growth DISCIPLINE EXCELLENCE & COMPLIANCE • ROE 16 - 18% • Low gearing Core Australian / NZ debt buying • Largest database • Highest asset turnover • No adverse or
Slide 4: Producing sustainable growth and returns
…producing sustainable growth and returns For personal use only Cents per share ROE % 23% 17% 98 EPS CAGR 22% 83 75 70 58 50 47 44 40 37 31 29 20 8 FY10 FY11 FY12 FY13 FY14 FY15 FY16 DPS EPS ROE 2016 Annual General Meeting | 4
Slide 5: FY17 outlook is for another strong year
FY17 outlook is for another strong year For personal use only Full year guidance update Aug 2016 expectation Nov 2016 update • PDL acquisitions of $180 - $200m 1 • Upgraded to $195 - $215m including NCML • Pipeline reflects rollover of forward flows • Limited contested volume over remainder of FY17
Slide 6: Operational metrics maintained - pricing discipline and accuracy
Operational metrics maintained - pricing discipline and accuracy For personal use only Cumulative collections $ 2,000m $2.0bn Actual cash collections $ 1,500m $1.5bn $1.0bn $ 1,000m Initial projections $ $0.5bn 500m - * For all PDLs held at Jun 08, initial projections represent the forecast at Jun 0
Slide 7: Operational metrics maintained - collection life-cycle
Operational metrics maintained - collection life-cycle For personal use only PDL collections by vintage $105m +11% 1 $90m $75m 32% 31% 23% 30% 32% 32% 24% 28% $60m 25% 26% 29% 31% 32% 13% 15% 12% 15% 12% 12% 17% 17% 15% 11% $45m 13% 14% 16% 15% 17% 15% 19% 16% 20% 22% 15% 19% 15% 25% 23% $30m 22% 48
Slide 8: Operational metrics maintained - productivity
Operational metrics maintained - productivity For personal use only Debt purchase productivity (direct collection staff only) PDL collections per hour $ 300 YTD average FY17: $209 FY16: $210 $ 250 2016/17 $ 200 2015/16 $ 150 $ 100 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2016 Annual General M
Slide 9: Operational metrics maintained - payers base
Operational metrics maintained - payers base For personal use only Dec 14 Jun 15 Dec 15 Jun 16 Oct 16 Total portfolio Face value $4.8bn $4.9bn $5.1bn $5.3bn $5.8bn Number of accounts 698,000 703,000 687,000 673,000 748,000 Payment arrangements Face value $963m $1,044m $1,099m $1,171m $1,215m Number
Slide 10: Purchasing is on track for a strong result
Purchasing is on track for a strong result For personal use only • Roll over of forward flows reflects compliance credentials • More limited contested volume over remainder of FY17 • US purchasing in line with prior year Purchases FY17 purchasing guide: $195 - $215m $232m Contracted as at $190m Octo
Slide 11: Consumer lending book growing in line with expectation
Consumer lending book growing in line with expectation For personal use only Gross loan book excl. provisions $143m $135m $121m $100m $72m $63m $35m $19m $11m $6m Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Oct 16 2016 Annual General Meeting | 11
Slide 12: Strong platform for continued growth in consumer lending
Strong platform for continued growth in consumer lending For personal use only • Wallet Wizard brand well-established - Increased brand recognition post FY16 television campaign - Further television campaign now underway - Referral channels established • Market leading offering - uniquely sustainabl
Slide 13: Loan book growth drives earnings towards pro-forma
Loan book growth drives earnings towards pro-forma • Profitability on track to improve in FY17 For personal use only • Expected to achieve pro-forma return in FY18 Average net book size 1 ROA % NPAT $125m 12.0% $12.0m $100m 8.0% $8.0m $75m 4.0% $4.0m $50m - - $25m (4.0%) ($4.0m) - (8.0%) ($8.0m) FY1
Slide 14: US market conditions improving
US market conditions improving For personal use only • Price decreases reported by competitors - “We are seeing, in certain segments, between a 10% and 15% price reduction…” 1 - “We believe that pricing in the industry is declining as large and mid-tier debt purchasers seek higher returns for their
Slide 15: US operations well-positioned for transitioning market
US operations well-positioned for transitioning market For personal use only • Strong credentials in the new compliance-focused market - Market leading CFPB compliance metrics 1 Name 2015 CFPB complaints per collector Credit Corp Solutions Inc. (Credit Corp) 0.11 • Ongoing operational improvement -
Slide 16: Updated FY17 guidance
Updated FY17 guidance For personal use only Issued Aug 2016 Updated Nov 2016 PDL acquisitions $180 - $200m 1 $195 - $215m Net lending $35 - $45m $35 - $45m NPAT $52 - $54m $53 - $55m EPS (basic) 110 - 114 cents 112 - 116 cents 1. Adjusted to include NCML acquisition announced on 12 September 2016 20
Slide 17: General Questions
For personal use only 2016 Annual General Meeting General Questions 2016 Annual General Meeting | 17
Credit Corp Group — Shareholder Meeting (November 2016) on 6ix