Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (May 2018)
26 slides from Cash Converters International's investor presentation, May 30, 2018
Slide 1: Entitlement Offer Investor Presentation
FY17 Investor Entitlement Presentation Offer 22 August 2017 – Investor Presentation Mark Reid May Chief Executive 2018 Officer –
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This investor presentation (Presentation) is dated 30 May 2018 and has been prepared by Cash Converters or indirectly, in the United States unless the securities have been registered under the Securities Act (which Cash International Limited (ACN 069 141 546) (Cash Co
Slide 3: Important Notice and Disclaimer (cont.)
Important Notice and Disclaimer (cont.) Past performance Past performance, including past share price performance of Cash Converters and pro-forma financial information Lead Manager’s related bodies corporate or affiliates and officers, directors, employees, agents and advisers: given in this Presen
Slide 4: Table of Contents
Table of Contents Section Content Introduction • Corporate Overview Offer • Offer Overview • Shareholder Support • Use of Funds • Financial Impact of Offer • Pro-forma Statement of Financial Position • Basis of Preparation of Financial Information • Indicative Timetable Business/Trading Update • Cor
Slide 5: Corporate Overview
Corporate Overview Capital Structure Share Price Chart ASX Code CCV ~52% share price 5,000,000.00 $0.4500 CCV Share Price Volume Shares on Issue 493.1 million increase from 52 week 4,500,000.00 Share Price (28 May 2018) $0.365 low of 24c… 4,000,000.00 $0.4000 Market Capitalisation $180 million 3,500
Slide 6: Entitlement Offer
6 Entitlement Offer 6
Slide 7: Offer Overview
Offer Overview Offer • Cash Converters is undertaking an underwritten pro-rata non-renounceable entitlement offer (Offer) of new fully paid ordinary shares in the Company (New Shares) at an issue price of 32 cents per New Share • Under the Offer, approximately 123.3 million New Shares will be issued
Slide 8: Support of Major Shareholder
Support of Major Shareholder • Cash Converters’ major shareholder, EZCORP (31.75% shareholder), has committed to take up its full pro-rata entitlement of 31.75% of the New Shares and to apply for up to a further $6 million worth of New Shares1 either through the Oversubscription Facility or through
Slide 9: Use of Funds
Use of Funds • The proceeds from the Offer, together with the Company’s existing cash balance, will enable the Company to strengthen its balance sheet. Sources of Funds A$m Use of Funds A$m Existing cash and cash equivalents Repayment of FIIG Bond 60.0 99.4 (31 December 2017) Retained cash & cash eq
Slide 10: Financial Impact of Offer
Financial Impact of Offer • The Offer is expected to have the following impact on Cash Converters: Pre-Offer (31 Dec 2017) Post-Offer Pro-forma (31 Dec 2017) Cash & Cash Equivalents A$99.4m1 A$77.4m Net Debt2 A$56.8m A$18.8m Gearing (net debt / equity) 21.0% 6.1% • Covenants applicable under both: B
Slide 11: Pro-forma Statement of Financial Position
Pro-forma Statement of Financial Position Reported as at Debt Pro-forma as at Offer 1 31 December 2017 repayment 2 31 December 2017 ($m) ($m) ($m) ($m) Cash and cash Notes: 99.4 38.0 (60.0) 77.4 1. Funds received from the Offer are net of estimated $1.5 million equity equivalents raising costs. 2. P
Slide 12: Basis of Preparation of Financial Information
Basis of Preparation of Financial Information The basis of preparation in compiling the Pro-forma Statement of Financial Positions post Offer as disclosed on underlying loan books at that point in time. The modelling is complex and is in the process of being finalised slide 11 of this presentation (
Slide 13: Indicative Timetable
Indicative Timetable EVENT DATE1 Announcement of Offer Wednesday, 30 May 2018 Shares commence trading ex-entitlement Friday, 1 June 2018 Record Date 5pm (Perth time) Monday, 4 June 2018 Offer opens Tuesday, 5 June 2018 Last day to extend Offer closing date Wednesday, 13 June 2018 Offer closes 5pm (P
Slide 14: Business / Trading Update
Business / Trading Update 14
Slide 15: Corporate Overview
Corporate Overview –– The core business of Cash Converters is the ownership and franchising of retail and financial services stores Cash Converters is a leading –– The Company has built unique brand strength in Australia and internationally operator and franchisor in retail, –– Cash Converters has a
Slide 16: FY18: H1 Highlights & Trading Update
FY18: H1 Highlights & Trading Update ➢ H1 FY18 EBITDA $21.5m; NPAT $9.4m. ➢ FY18 NPAT guidance of a stronger H2 FY18 (vs. H1 FY18) remains on track. “The first half results for the 2018 ➢ Continuing Loan Book Growth – H1 FY18 up to $155.7m (+35% vs. H2 financial year demonstrate that our FY17) with
Slide 17: Outlook – Strategy for Growth
Outlook – Strategy for Growth 1 ✓ Continued Revenue Growth Continue NPAT growth from both new/existing products - Transforming the Company’s digital capabilities and channels - Ongoing development of new products & channels 2 - Transformation of Green Light Auto business Continue to diversify - Expl
Slide 18: Key Risks
Key Risks 18
Slide 19: Key Risks
Key Risks This section discusses some of the key risks associated with any investment in Cash Converters, which may affect the value of Cash Converters securities. The risks set out below are not listed in order of importance and do Cash Converters operates in a highly regulated industry and such la
Slide 20: Key Risks (cont.)
Key Risks (cont.) Risks relating to Cash Converters (cont.) Retail environment and general economic conditions risk Cash Converters may experience liquidity or refinancing pressures Cash Converters financial performance is sensitive to the current state of, and future changes in, the retail A loss o
Slide 21: Key Risks (cont.)
Key Risks (cont.) Risks relating to Cash Converters (cont.) Impact of changes to Australian Accounting Standards and Interpretations Cash Converter’s is in the process of modelling the impact of the changes on the impairment of customer Data loss, theft or corruption receivables based on the 30 Apri
Slide 22: Key Risks (cont.)
Key Risks (cont.) Risks relating to the Offer an adverse impact on the amount of proceeds raised under the Offer, which may limit Cash Converters’ ability to Risks associated with an investment in shares use the proceeds as described in this Presentation and may cause the Offer to be withdrawn. Ther
Slide 23: International Offer Restrictions
International Offer Restrictions 23
Slide 24: International Offer Restrictions
International Offer Restrictions This Presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In Singapore particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, This document and any other mat
Slide 25: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Market
Slide 26: Investor Presentation
FY17 Investor Presentation 22 August 2017 – Mark Reid Chief Executive Officer – 26
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