Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (March 2016)
14 slides from Credit's shareholder meeting presentation, Mar 30, 2016
Slide 1: 2011 Annual General Meeting
2011 Annual General Meeting YTD to October 2011 update 8 November 2011 Thomas Beregi Chief Executive Officer Michael Eadie Chief Financial Officer
Slide 2: Strong start to the year
Strong start to the year FY12 Financials versus prior Four months to Aug 11 FY12 year Oct 11 Actual Guidance PDL acquisitions up 1% to $23.8m $45 - $65m PDL collections and fee income up 14% to $77.8m Revenue up 19% to $44.1m NPAT up 31% to $10.4m $21 - $23m EPS (basic) up 28% to 23 cents 46 - 51 ce
Slide 3: Strong balance sheet platform
Strong balance sheet platform Four months ended $ million 31 Oct 11 31 Oct 10 Operating cash flow(1) 46.0 35.4 PDL acquisitions and capex (24.8) (25.6) Free cash flow 21.2 9.8 PDL carrying value 136.6 139.5 Net bank debt 7.2 33.5 Net debt / carrying value (%) 5.1% 24.0% (1) Operating cash flow in 20
Slide 4: Purchases meet ingoing projections…
Purchases meet ingoing projections… Cumulative Collections (Initial Expectations versus Actual) (July 08 – Oct 11) 650 600 550 500 Actual Cumulative 450 Cash Collections 400 Collections $m 350 300 250 200 150 Initial 100 Projections 50 - Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10
Slide 5: …and we continue to drive collections from older PDLs…
…and we continue to drive collections from older PDLs… PDL Collections by date of purchase 60.0 $m 55.0 50.0 28% 45.0 31% 32% 34% 34% 40.0 31% 31% 9% > 3 years 31% 35.0 31% 19% 29% 8% 2-3 years 27% 11% 7% 7% 30.0 28% 15% 21% 1-2 years 18% 21% 19% 16% 18% < 1 year 25.0 22% 21% 15% 18% 20% 13% 20% 20.
Slide 6: …while maintaining collection efficiency
…while maintaining collection efficiency Debt Purchase Productivity (direct collection staff only) $275 $256 $257 $255 $250 $243 $245 $245 $239 $241 $238 $235 $230 2011/12 $227 $224 $236 $225 $231 2010/11 $231 PDL $228 $228 $226 $225 $224 $224 Collections per hour $213 $211 $200 $175 $150 Nov-10Dec-
Slide 7: And our strong payers base suggests this will continue
And our strong payers base suggests this will continue Total Portfolio Oct 11 Jun 11 Dec 10 Jun 10 Dec 09 Jun 09 Dec 08 Face value $3.3bn $3.2bn $2.9bn $2.6bn $2.5bn $2.2bn $2.2bn Number of accounts 449,000 413,000 319,000 302,000 306,000 284,000 319,000 Payment arrangements Face value $628m $598m $
Slide 8: We have increased collection capacity…
We have increased collection capacity… Headcount by function (FTE) 700 600 Support / New Initiatives 500 Process Serving / Mercantile 400 Debt Purchase Operations 300 200 100 0 FY07 FY08 FY09 FY10 FY11 Oct 11 Function FY07 FY08 FY09 FY10 FY11 Oct 11 Debt Purchase Ops 294 405 435 516 615 637(3) Proce
Slide 9: Offshore operations driving recent growth
Offshore operations driving recent growth • Commenced in November 2010, grown to 106 FTE in October 2011 • Replaced existing offshore third party collection agents • Collecting into Australia and New Zealand • Profitable in 5th month of operation • Located in Manila, the Philippines Readily access
Slide 10: Solid FY12 purchasing pipeline
Solid FY12 purchasing pipeline $92.6m $65m $65m FY12 Purchasing Purchases Guide: $50 - $37m $65m $46.7m Contracted as at Oct 2011 FY09 FY10 FY11 FY12 Actual Actual Actual 10
Slide 11: …while we will maintain our purchasing discipline in FY12
…while we will maintain our purchasing discipline in FY12 • Credit Corp continues to improve operational execution to maintain attractive PDL prices • Recent evidence that competitor pricing is beyond the levels required to meet our minimum return criteria • FY12 purchasing guidance of $50 - $65m 11
Slide 12: In FY12 we will deliver solid results while leveraging recent initiatives
In FY12 we will deliver solid results while leveraging recent initiatives to produce sustained performance • Continue to improve operational performance in-house technological innovation asset management low cost platform • Utilise platforms developed in FY11 to initiate geographic expansion
Slide 13: Revised guidance
Revised guidance FY12 Updated Nov 11 Issued Aug 11 PDL acquisitions $50 - $65m $45 - $65m NPAT $23 - $25m $21 - $23m EPS (basic) 50 - 55 cents 46 - 51 cents Guidance excludes potential shareholder litigation costs over the balance of the year 13
Slide 14: 2011 Annual General Meeting
2011 Annual General Meeting General questions