Cash Converters International Limited · ASX:CCV
Cash Converters International — H1 FY2024 Earnings Presentation
22 slides from Cash Converters International's earnings presentation, Feb 29, 2024
Slide 1: H1 FY2024 Results Presentation
H1 FY2024 Half-year ended 31 December 2023 Results Presentation Cash Converters International Limited (ASX:CCV) February 2024
Slide 2: About Us
About Us A global store network powering the circular economy, supporting good borrowers 40 years in operation ASX listed 1997 • Provide a solution to customer cash needs through our stores globally and online • Our core competency is using our data to build a risk profile of good borrowers that ot
Slide 3: Our Global Store Network
Our Global Store Network Across Australia, New Zealand and the United Kingdom, Cash Converters operates 144 United Corporate owned stores and is the Master Franchisor of a franchise network of stores. Kingdom 42 United Belgium Kingdom The balance of the international operations are run by Master Fra
Slide 4: Our strategy
Our strategy Cash =)
Slide 5: Growth Strategy
Growth Strategy We continue to invest our capital to sensibly acquire stores from franchisees, establish new loan books and expand our store network reach throughout Australia and the UK. • Acquire AU and UK franchisees • Grow European ‘Hub’ (UK) Inorganic • Establish new greenfield sites Expansion
Slide 6: Our Stores – New Look & Feel
6 Our Stores – New Look & Feel ✓ New Formats (ranging from 100-500sqm) ✓ Exposed ceiling services (black or natural) and more industrial finish e.g polished concrete floors are now balanced against natural timber finishes, grooved acoustic panelling and neutral colours. ✓ Additional experiential ele
Slide 7: Our Technology – Integrated / Agile / Scalable
Our Technology – Integrated / Agile / Scalable ✓ Proprietary point of sale & lending platform ✓ Online & smart phone assets - retail, lending and customer self-serve portal ✓ In-house banking platform, New Payment Platform integrated ✓ Cloud Hosted ✓ Proprietary Machine Learning Powered Credit Model
Slide 8: Business Model – 'Powering up' | FY24 – FY28
Business Model – ‘Powering up’ | FY24 – FY28 CCV has identified upside to the current business, leveraging our business model The Loan Book is structurally shifting away from the small loan product due to across an expanding geographic footprint Australian legislative changes (implementation mandate
Slide 9: Our Ecosystem = Scale
Our Ecosystem = Scale Growing online presence integrated with our stores; serving a large and growing customer base in growing markets. Australian Addressable Market CCV has a high Retail customer satisfaction Personal Finance Vehicle Finance NPS 68+1 $62bn+ Australian Circular Economy2 $2bn+ Austra
Slide 10: Our Competitive Advantage
Our Competitive Advantage Substantial scale and data repository provides our business with a competitive advantage. Large Customer Base Leading Tech Platform Healthy Balance Sheet Sustainability Regulation ✓ Scale business and growing ✓ Proprietary platforms built ✓ $48.8m in cash at 31 ✓ Facilitati
Slide 11: Financial Highlights
Financial Highlights
Slide 12: Key Highlights
Key Highlights H1 FY2024 $191.5m $32.6m $9.8m 1c per share Network reach Revenue Operating EBITDA Operating NPAT Half-year dividend Added declared 3 Australian stores 42 store Up 34% on pcp Up 13% on pcp Down 5% on pcp 7th straight half-year international ($142.7m in H1 FY2023) ($28.8m in H1 FY2023)
Slide 13: Gross Loan Book
Gross Loan Book Gross Loan Book, $M Diversifying loan product mix with strong growth ✓ Small loans weighting dropped further to 21% of the loan book from 32% in 1H FY2023 ✓ MACC and newly launched loan products increasingly contributing to growth Gross Loan Book By Product, $M Gross Loan Book By Pro
Slide 14: Outlook – Powering Up
Outlook – Powering Up Annual Revenue, $M Operating EBITDA, $M Operating NPAT, $M Growth Drivers Half-year ✓ Strong demand driving loan book growth Revenue, $M Gross loan book, $M ✓ Revenue and EBITDA contribution from recent strategic acquisitions with NPAT optimisation to follow ✓ New product relea
Slide 15: Thank you & Q&A
Thank you & Q&A
Slide 16: Appendices
Appendices
Slide 17: Gross Loan Books ($m)
Gross Loan Books ($m) PCP 30 Jun 31 Dec 30 Jun 31 Dec Dec 2023 vs Dec 2023 vs Dec 2022 2022 2023 2023 Jun 2023 2022 Loan Book $75.6m $82.2m $78.0m $63.1m Small Loan1 -23% -19% % Of Total 35% 32% 29% 21% Loan Book $76.1m $90.9m $99.9m $110.2m 21% 10% Medium Loan2 % Of Total 36% 36% 37% 37% Loan Book
Slide 18: Loan Book Performance
Loan Book Performance Net bad debt expense & Expected Credit Loss* (“ECL”) movement 31 Dec 2023 31 Dec 2022 Variance • Net Bad Debt Expense for 1H FY2024 was $25.3m, up from $20.2m in the prior $m $m $m comparative period (pcp), driven by loan book growth during the period. Bad debts written off 28.
Slide 19: Free Cash Flow
Free Cash Flow 31 Dec 2023 31 Dec 2022 Variance $m $m $m Receipts from customers 142.3 91.8 50.5 • Strong operating cash flow facilitating loan book Interest received from personal loans 41.3 43.4 (2.1) funding and investing activities including the Other receipts 0.7 0.3 0.4 acquisition of Capital
Slide 20: Segment Revenue & Operating EBITDA
Segment Revenue & Operating EBITDA 31 Dec 2023 31 Dec 2022 Variance • Demand for credit products remained strong across the half. During the first half of FY2024 $m $m $m we received over 390,000 applications for our REVENUE Australian credit products. Personal Finance 53.5 52.9 0.6 Vehicle Financin
Slide 21: ESG Framework
ESG Framework Operating for over 40 years, we understand the importance of adding value to the lives of our customers by operating a sustainable business over the long term. Environmental Social Governance • Our retail trade is driven by pre-owned (second-hand) • Our business serves as an essential
Slide 22: 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 relied upon
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