Credit Clear Limited · ASX:CCR
Credit Clear — Investor Presentation (April 2023)
15 slides from Credit Clear's investor presentation, Apr 26, 2023
Slide 1: Q3 FY23 Results Presentation
Q3 FY23 Results Presentation ASX: CCR | 26 April 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by, and is the sole responsibility of Credit Clear No representation or warranty, express or implied, is made by any person as to the Limited ACN 604 797 033 (Company). The information contained in this presentation was fairness, accuracy, completeness
Slide 3: Business overview
Business overview Diverse client base, from An ASX-listed Unmatched hybrid energy providers, water Credit Clear’s technology company service offering (digital utilities, telco operators, technology improves that is disrupting the and traditional) that has state and local customer engagement, traditi
Slide 4: Credit Clear: Our mission
Credit Clear: Our mission Our mission is to dramatically improve the customer experience during the debt collections process and thereby enhance the collections outcome for our clients (collect more and collect faster). CUSTOMER QUOTES: “ As I'm on a disability pension & already used the disaster mo
Slide 5: Key metrics
Key metrics $8.6m 89 1.1m $0.2m $5.0m Q3 Revenue New clients Active files EBITDA on an Cash underlying +41% PCP +$3.2m in +52% PCP (nil debt) operational basis2 Potential Revenue $1.2m improvement PCP Revenue ($m) Active files (m) EBITDA underlying operational basis2 ($m) 1.2 0.4 10 1 9 0.2 8 0.8 0
Slide 6: Q3 FY23 Highlights
Q3 FY23 Highlights Revenue Profitability Clients Technology • Revenue of $8.6m up • $0.2m EBITDA2 on an • Signed 89 new clients in • Developed technology 41% PCP1 underlying operational Q3 to automate and • New clients signed in basis • Total active clients of optimise hybrid FY23 contributing • Sca
Slide 7: Revenue and new clients
Revenue and new clients • Targeting materially larger clients that are deeply Revenue ($m)2 embedded 10 • Signed a big four bank post quarter end 9 • $1.7m1 revenue earned from new clients signed in FY23, up from $0.7m announced in 1H23 8 • Strategic focus on prioritising higher quality revenue 7 th
Slide 8: Continued focus on profitability
Continued focus on profitability Cash flow operations ($m) EBITDA on an underlying operational basis1 ($m) 1 0.5 • Q3 FY23 cashflow includes 0.5 0.3 0.2 $3m ARMA earn-out and 0.1 $700k in annual 0 prepayments -0.5 -0.3 • Q2 and Q3 P&L impacted -0.5 by expected seasonal -1 -0.8 -1 ($3m one off earnou
Slide 9: The digital customer wave
The digital customer wave 50% decline Open rate in letters for SMS is being sent 94%* On average people 87% of people spend 5.5 hours of the won't answer the phone day on their phones to numbers that they don’t recognise 54% of people get frustrated if they 86% open can’t send a business within 3 mi
Slide 10: Strong growth in digital collections
Strong growth in digital collections Digital Collections ($m) Digital Transactions (#) 20 5000 18 4500 16 4000 14 3500 12 3000 10 2500 8 2000 6 1500 4 1000 2 500 - 0 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 • Higher margin digital collections are up 94% on PCP and 21% QoQ • Digital transactions processed are u
Slide 11: Multiple tailwinds driving growth
Multiple tailwinds driving growth Fewer competitors Cost of living Less debt being sold • M&A activity has driven • High inflation impacting consumers • Companies are less likely to sell consolidation in the industry and across the income spectrum debt than pre-2020 already resulted in new business
Slide 12: Data from ARMA's Consumer Collections Division
Data from ARMA’s Consumer Collections Division • Debt files referred to ARMA’s consumer collections team provide a clear indication that over and above new clients signed and Sum of Debt Average of Debt winning additional work from Files Referred Referred Referred existing clients, the value of debt
Slide 13: Outlook
OUTLOOK • Focus on realising remaining $7.7m in potential revenue from new clients signed in FY23 (not including clients signed post quarter end) still to be earned • Strong pipeline across consumer, commercial, insurance and government NEW CLIENTS • Winning multiple tier-1 clients in past four mont
Slide 14: Thank you for joining us today
Thank you for joining us today
Slide 15: Timeline of customer journey
Timeline of customer journey Activity Months Client onboarding, integration, contracting, no revenue 0–3 Initial files received, small portfolio of debt, part of panel to 2 – 3 other providers, champion / challenger and 3–9 performance reporting Increased share of business, ramp up to full potential