Cash Converters International Limited · ASX:CCV
Cash Converters International — Coffee Microcaps Conference (March 2024)
22 slides from Cash Converters International's conference presentation, Mar 12, 2024
Slide 1: H1 FY2024 Investor Presentation
H1 FY2024 Investor Presentation Coffee Microcaps Conference Sam Budiselik Managing Director Cash Converters International Limited (ASX:CCV) March 2024
Slide 2: About Us
About Us A global store network powering the circular economy, supporting good borrowers 40 years in operation ASX listed 1997 • Provide a solution to customer cash needs through our stores globally and online • Our core competency is using our data to build a risk profile of good borrowers that ot
Slide 3: Our Global Store Network
Our Global Store Network Across Australia, New Zealand and the United Kingdom, Cash Converters operates 144 United Corporate owned stores and is the Master Franchisor of a franchise network of stores. Kingdom 42 United Belgium Kingdom The balance of the international operations are run by Master Fra
Slide 4: Our Stores – New Look & Feel
4 Our Stores – New Look & Feel ✓ New formats, smaller footprints ✓ Luxury goods… handbags, watches, collectible sneakers and consumer electronics. ✓ Exposed ceiling services; polished concrete floors ✓ Additional elements such as the ‘tech table’ used to improve customer interaction. 4
Slide 5: The 'Cashies' Business Model
The ‘Cashies’ Business Model CCV has identified upside to the current business, leveraging our business model The Loan Book is structurally shifting away from the small loan product due to across an expanding geographic footprint Australian legislative changes (implementation mandated on 12 June 202
Slide 6: Our Ecosystem = Scale
Our Ecosystem = Scale Growing online presence integrated with our stores; serving a large and growing customer base in growing markets. Australian Addressable Market CCV has a high Retail customer satisfaction Personal Finance Vehicle Finance NPS 68+1 $62bn+ Australian Circular Economy2 $2bn+ Austra
Slide 7: Our strategy
Our strategy Cash =)
Slide 8: Our Competitive Advantage
Our Competitive Advantage Substantial scale and data repository provides our business with a competitive advantage. Large Customer Base Leading Tech Platform Healthy Balance Sheet Sustainability Regulation ✓ Scale business and growing ✓ Proprietary platforms built ✓ $48.8m in cash at 31 ✓ Facilitati
Slide 9: Growth Strategy
Growth Strategy Invest, Create, Innovate – Truly Customer Centric. • Well established franchise network helped grow our business • Acquire AUS & UK franchisees (where we are the ‘master’) Inorganic • Establish new greenfield sites Expansion • Integrate and grow NZ • Grow European ‘Hub’ (UK) Domestic
Slide 10: Acquire stores where we are the 'Master Franchisor'
Acquire stores where we are the ‘Master Franchisor’… 144 United Kingdom 42 United Belgium Across Australia, New Zealand and the Kingdom United Kingdom, Cash Converters operates Corporate owned stores and is the Master Franchisor of a franchise network of stores. 35 EBITDA multiples of 3-4.5x dependi
Slide 11: Leverage Our Technology – Online Retail & Lending
Leverage Our Technology – Online Retail & Lending ✓ Build & release new products, grow new loan books ✓ Loan origination in our market is complex, need to build reg. tech + big data ✓ Proprietary point of sale & lending platforms ✓ AI credit models ✓ Online & smart phone assets ✓ New Payment Platfor
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Key Highlights
Key Highlights H1 FY2024 $191.5m $32.6m $9.8m 1c per share Network reach Revenue Operating EBITDA Operating NPAT Half-year dividend Added declared 3 Australian stores 42 store Up 34% on pcp Up 13% on pcp Down 5% on pcp 7th straight half-year international ($142.7m in H1 FY2023) ($28.8m in H1 FY2023)
Slide 14: Gross Loan Book
Gross Loan Book Gross Loan Book, $M Diversifying loan product mix with strong growth ✓ Small loans weighting dropped further to 21% of the loan book from 32% in 1H FY2023 ✓ MACC and newly launched loan products increasingly contributing to growth Gross Loan Book By Product, $M Gross Loan Book By Pro
Slide 15: Outlook – Powering Up
Outlook – Powering Up Annual Revenue, $M Operating EBITDA, $M Operating NPAT, $M Half-year Growth Drivers Gross loan book, $M ✓ Strong demand driving loan book growth Revenue, $M ✓ Revenue and EBITDA contribution from recent strategic acquisitions ✓ New product releases delivering new growing loan b
Slide 16: Thank you
Thank you
Slide 17: Appendices
Appendices
Slide 18: Segment Revenue & Operating EBITDA
Segment Revenue & Operating EBITDA 31 Dec 2023 31 Dec 2022 Variance • Demand for credit products remained strong across the half. During the first half of FY2024 $m $m $m we received over 390,000 applications for our REVENUE Australian credit products. Personal Finance 53.5 52.9 0.6 Vehicle Financin
Slide 19: Gross Loan Books ($m)
Gross Loan Books ($m) PCP 30 Jun 31 Dec 30 Jun 31 Dec Dec 2023 vs Dec 2023 vs Dec 2022 2022 2023 2023 Jun 2023 2022 Loan Book $75.6m $82.2m $78.0m $63.1m Small Loan1 -23% -19% % Of Total 35% 32% 29% 21% Loan Book $76.1m $90.9m $99.9m $110.2m 21% 10% Medium Loan2 % Of Total 36% 36% 37% 37% Loan Book
Slide 20: Loan Book Performance
Loan Book Performance Net bad debt expense & Expected Credit Loss* (“ECL”) movement 31 Dec 2023 31 Dec 2022 Variance • Net Bad Debt Expense for 1H FY2024 was $25.3m, up from $20.2m in the prior $m $m $m comparative period (pcp), driven by loan book growth during the period. • Success in growing the
Slide 21: ESG Framework
ESG Framework Operating for over 40 years, we understand the importance of adding value to the lives of our customers by operating a sustainable business over the long term. Environmental Social Governance • Our retail trade is driven by pre-owned (second-hand) • Our business serves as an essential
Slide 22: The material contained in this presentation is intended to be general background information on
The material contained in this presentation is intended to be general background information on Cash Converters and its activities current at the date of the presentation. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon
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