Cash Converters International Limited · ASX:CCV
Cash Converters International — FY2017 Earnings Presentation
17 slides from Cash Converters International's earnings presentation, Aug 22, 2017
Slide 1: FY17 Investor Presentation
FY17 Investor FY17 Investor Presentation Presentation 22 August 2017 – August 2017 22 – Mark Reid Mark Reid Chief ChiefExecutive Officer Executive Officer ––
Slide 2: Corporate Overview
Corporate Overview • The Company has a worldwide network of 740 stores in 19 countries. Cash Converters is a leading • In Australia, there are more than 150 Cash Converters outlets with over 1,750 employees. Australian (and international) franchisor operating in the retail, • Internationally the Com
Slide 3: Our Ambition
Our Ambition Cash Converters is • We aim to become Australia’s most trusted personal finance and second hand retail goods provider. looking to deliver on our ‘customer-first’ focus in • We are building a strong culture of social responsibility and evolving our brand to be synonymous with ‘value’ eve
Slide 4: FY17 Achievements
FY17 Achievements Restructure Green Light Auto is now growing Progressing well UK business profitable Complete Clearer segment reporting Complete Regulatory changes SACC lending enhancements Complete Successful introduction of MACC product Complete EU remediation and compliance review Progressing we
Slide 5: FY17 Financial Results
01 FY17 Financial Results –
Slide 6: FY17 Overview
FY17 Overview • Statutory NPAT $20.6m in line with guidance and FY17 FY16 Variance Consolidated basis up from a $5.3m* loss in the prior year. ($m) ($m) (%) Revenue 271.5 310.0 -12.4% • Revenue from continuing operations $271.5m down from $310.0m previous corresponding EBITDA 45.7 47.7 -4.1% period
Slide 7: FY17 Divisional EBITDA
FY17 Divisional EBITDA Franchise Operations FY17 FY16 Movement • United Kingdom EBITDA of $1.7m Divisional* EBITDA ($m) ($m) (%) • Australian revenue steady at $4.1m • International revenue up 55.8% to $739k Franchise operations 10.5 6.9 +51.5% • New Zealand’s 25% equity contribution of $314k profit
Slide 8: FY17 Balance Sheet
FY17 Balance Sheet FY17 FY16 Movement ($m) ($m) (%) Loan Receivables • The reduction in Small Amount Credit Contracts Cash and cash equivalents 80.6 73.6 +9.5% has driven an overall reduction in loan Loan receivables 102.0 104.5 -2.4% receivables, however the introduction of Medium Amount Credit Con
Slide 9: Funding
Funding Cash $80.6m • Net debt down 56% to $26.7m Bond $60.0m • Securitisation borrowings down in proportion to the decreased SACC Loan book • Issued by FIIG Securities. • Matures September 2018. • Negotiations underway to secure additional • 7.95% cost of funds. funding for MACC and GLA finance loa
Slide 10: Loan Book Performance
Loan Book Performance • January 2017 saw online SACC book credit score Increasing lending exceed store loans for the first time. Bad debt written off Reducing • Personal loan book balance down 17.6% to $81.4m at 30 MACC applications and approvals Increasing June 2017 and stable. • Loan application v
Slide 11: Addressing Risks
Addressing Risks Description Mitigant Enhanced lending platform technology, process, guidelines, training and audits, Legal and Regulatory combined with ongoing monitoring and new product development. Franchisee Oversight Internal audit process being developed to be consistent with corporate stores
Slide 12: Looking Forward… Strategy for Growth
02 Looking Forward… Strategy for Growth –
Slide 13: Strategy for Growth – FY18 & Beyond
Strategy for Growth – FY18 & Beyond 1 Significantly grow NPAT from both • Focus on growing loan books – MACC, GLA, Pawnbroking. new/existing brands, products and channels • Improving bad debts due to a higher quality and lower risk personal finance loan book. 2 • Continued focus on improvement in op
Slide 14: Summary
Summary • Build on our current growth strategy. “I am genuinely excited • Improve our service delivery to our existing customers. about the substantial • Leveraging our brand with new products into new markets. opportunities for • Focus on cost and process efficiencies. growth in our business, • Dri
Slide 15: Questions?
Questions? –
Slide 16: Appendix 1: Division Detail
Appendix 1: Division Detail Division Description • Royalties and licence fees from 16 countries with franchised Cash Converters operations as well as Cash Converters UK Ltd (CCUK), a wholly owned subsidiary of the Company, which during the previous financial year was restructured to Franchise operat
Slide 17: Disclaimer
Disclaimer 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
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