Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (November 2012)
14 slides from Credit's shareholder meeting presentation, Nov 8, 2012
Slide 1: 2012 Annual General Meeting Performance update
For personal use only 2012 Annual General Meeting Performance update 8 November 2012 Thomas Beregi Chief Executive Officer Michael Eadie Chief Financial Officer
Slide 2: Solid start to the year
Solid start to the year For personal use only • Key metrics in line with expectations • PDL acquisitions exceeding guidance • Continued progress on growth initiatives • NPAT on track to achieve full year guidance 2
Slide 3: Purchases meet ingoing projections
Purchases meet ingoing projections… For personal use only Cumulative Collections (Initial Expectations versus Actual) (July 08 – October 12) 850 800 750 700 650 Cumulative 600 Actual Collections 550 Cash 500 450 Collections 400 $m 350 300 250 200 Initial 150 Projections 100 50 - Jun-08 Sep-08 Dec-08
Slide 4: We continue to drive collections from older PDLs
…and we continue to drive collections from older PDLs… For personal use only PDL Collections by date of purchase 65.0 $m 60.0 25% 55.0 28% 27% 27% 27% 50.0 31% 32% 34% 34% 45.0 31% 13% 31% 12% > 3 years 40.0 31% 31% 9% 10% 12% 29% 2-3 years 35.0 19% 27% 8% 20% 22% 28% 11% 20% 1-2 years 15% 7% 7% 23%
Slide 5: While maintaining collection efficiency
…while maintaining collection efficiency For personal use only Debt Purchase Productivity (direct collection staff only) $290 YTD Average 2012/13 $274 Ex-Philippines $270 2011/12 $262 Ex-Philippines $250 PDL Collections 2011/12 $231 per hour $230 $210 2012/13 $201 $190 $170 Nov-11 Dec-11 Jan-12 Feb-
Slide 6: Our strong payers base suggests this will continue
Our strong payers base suggests this will continue For personal use only Total Portfolio Oct 12 Jun 12 Dec 11 Jun 11 Dec 10 Jun 10 Dec 09 Face value $3.7bn $3.6bn $3.4bn $3.2bn $2.9bn $2.6bn $2.5bn Number of accounts 617,000 598,000 496,000 413,000 319,000 302,000 306,000 Payment arrangements Face v
Slide 7: We have consolidated collection capacity
We have consolidated collection capacity For personal use only Headcount by function (FTE) 900 800 700 New Initiatives 600 Support 500 Mercantile 400 300 200 100 0 FY09 FY10 FY11 FY12 Oct-12 Function FY09 FY10 FY11 FY12 Oct 12 Debt Purchase Ops 435 516 615 769 769 Mercantile 4 4 4 4 8 Support 50 55
Slide 8: Recent growth in FY13 purchasing pipeline
Recent growth in FY13 purchasing pipeline For personal use only $92.6m $91.5m $90m Purchases FY13 Purchasing $m $65m Guide: $70 - $90m $37m $66m Contracted as at Nov 2012 FY09 FY10 FY11 FY12 FY13 Actual Actual Actual Actual Current 8
Slide 9: PDL purchasing conditions remain challenging
PDL purchasing conditions remain challenging For personal use only • Strong levels of competition have kept prices at high levels • Credit issuers in low growth / cost reduction mode have taken advantage of high prices by selling increased volumes, but this has now ended • Operational improvements h
Slide 10: Further progress in the US
Further progress in the US For personal use only • Forward flow purchase in place • Operation has grown to 32 staff • Despite early ‘teething’ issues collection performance is improving rapidly • Plans to grow to 70 staff by June 2013 10
Slide 11: Consumer lending continues to grow
Consumer lending continues to grow For personal use only • Current loan book of $8.0 million • To date arrears remain within expectations • Further expansion planned 11
Slide 12: Initiatives for FY13
Initiatives for FY13 For personal use only • Further improvement in collection operations to achieve global competitiveness • Expand US operations • Grow consumer lending 12
Slide 13: Revised guidance
Revised guidance For personal use only FY13 Updated Nov 12 Issued Aug 12 PDL acquisitions $70 - $90m $50 - $70m NPAT $27 - $29m $27 - $29m EPS (basic) 59 - 63 cents 59 - 63 cents 13
Slide 14: General questions
For personal use only 2012 Annual General Meeting General questions
Credit Corp Group — Shareholder Meeting (November 2012) on 6ix