Credit Corp Group Limited · ASX:CCP

Credit — Shareholder Meeting (November 2020)

15 slides from Credit's shareholder meeting presentation, Nov 5, 2020

  1. Slide 1: FY2021 Performance Update

    For personal use only FY2021 Performance Update Thomas Beregi CEO Michael Eadie CFO

  2. Slide 2: Continued Leadership in the credit-impaired consumer segment

    Continued Leadership in the credit-impaired consumer segment… For personal use only ANALYTICS & DISCIPLINE OPERATIONAL EXCELLENCE SUSTAINABILITY & COMPLIANCE Australian / NZ debt buying  Largest database  Highest asset turnover 1  No adverse orders or undertakings Target  History of pricing accu

  3. Slide 3: Producing solid debt buying operational metrics

    …producing solid debt buying operational metrics… For personal use only  Collections on track  Strong first quarter  AUS/NZ tracking to guidance expectation with step-down in October in-line with reductions in government and private sector support  US ahead of expectation despite expiry of key s

  4. Slide 4: Strong cash flow to deploy as opportunities arise

    …and strong cash flow to deploy as opportunities arise For personal use only $ 600m $522m $ 500m $405m $ 400m  Enhanced ability to meet client needs as charge-off $ 300m volumes rise  $400m of immediate investment capacity  Capital to secure potential one-off opportunities $ 200m  Combined with

  5. Slide 5: Industry leading compliance metrics

    Industry leading compliance metrics… For personal use only FY2020 AU EDR Rate 1 12 months to Jun-20 US Dispute Rate 2 Credit Corp Credit Corp  Continued industry leadership  Lowest EDR rate in AU and low US dispute rate Publicly traded Other debt buyer A  Highest rating from consumer stakeholders

  6. Slide 6: Supporting an improved purchasing pipeline

    …are supporting an improved purchasing pipeline For personal use only PDL investment pipeline $ 200m  Improved Aus/NZ pipeline reflects: $ 150m FY2021 purchasing guidance $120-$180m  Re-commencement of sale by 2 major sellers $ 100m  Alignment of pricing with collection outlook FY2021 purchasing

  7. Slide 7: Consumer lending book stabilising earlier than expected

    Consumer lending book stabilising earlier than expected For personal use only  Demand and applicant quality has improved over recent months  Application volume increasing as superannuation withdrawal and other support is wound back  New customer approval rate now at 67% of pre-COVID levels compar

  8. Slide 8: Solid start to FY2021 in line with expectations

    Solid start to FY2021 in line with expectations… For personal use only Ingoing Assumption FY2021 experience to dateFY2  Strong Q1 collections benefitting from  Strong Q1 collections with step-down in October government and private sector Aus/NZ debt buying support, followed by deterioration  Aus/

  9. Slide 9: Supports confirmation of FY2021 guidance

    …supports confirmation of FY2021 guidance For personal use only FY2021 guidance PDL investment $120 - $180m Net lending ($5) - $5m NPAT $60 - $75m EPS (basic) 89 - 112 cents DPS 45 - 55 cents Credit Corp Group FY2021 Performance Update 9

  10. Slide 10: Appendices: Key Operating Metrics

    For personal use only Appendices: Key Operating Metrics Appendix 1: Pricing discipline and accuracy Appendix 2: Collections life cycle Appendix 3: Productivity Appendix 4: Payers base Appendix 5: Operational and total headcount 10

  11. Slide 11: Pricing discipline and accuracy

    APPENDIX 1 Pricing discipline and accuracy For personal use only Pricing discipline and accuracy Cumulative collections $ 3,500m Actual cash collections $ 3,000m $ 2,500m $ 2,000m $ 1,500m $ 1,000m Initial $ 500m projections - * For all PDLs held at June 2008, initial projections represent the forec

  12. Slide 12: Collections life cycle

    APPENDIX 2 Collections life cycle For personal use only PDL collections by vintage +16%1 $ 160m $ 140m $ 120m 33% 34% $ 100m 30% 30% 30% 32% 29% 12% 12% $ 80m 30% 32% 32% 31% 33% 32% 13% 14% 14% $ 60m 17% 17% 15% 15% 15% 11% 18% 2 12% 10% 21% 25% 23% 19% 22% 29% 2 $ 40m 15% 15% 16% 15% 19% 21% 37% $

  13. Slide 13: Productivity

    APPENDIX 3 Productivity For personal use only PDL collections per hour $ 350 YTD Sep-2020 average $ 300 FY2021: $268 $ 250 12m to Sep-20 FY2020: $255 $ 200 12m to Sep-19 $ 150 $ 100 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Credit Corp Group FY2021 Performance Update 13

  14. Slide 14: Payers base

    APPENDIX 4 Payers base For personal use only PORTFOLIO SUMMARY: AU/NZ DEBT BUYING ONLY Total portfolio Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Sep-20 Face value $5.9b $6.0b $6.2b $6.4b $7.8b $7.7b $7.4b Number of accounts 710,000 710,000 753,000 786,000 1,268,000 1,193,000 1,137,000 Payment arrang

  15. Slide 15: Operational and total headcount

    APPENDIX 5 Operational and total headcount For personal use only PERIOD END HEADCOUNT (FTE) PERIOD END HEADCOUNT (FTE) 2,000 Jun-18 Jun-19 Jun-20 1 Sep-20 1,800 1,600 Debt buying 1,208 1,250 1,378 1,281 operations 1,400 Agency 77 90 251 241 1,200 1,000 Lending 110 119 118 114 800 Support 102 108 135

Credit Corp Group — Shareholder Meeting (November 2020) on 6ix