Credit Corp Group Limited · ASX:CCP
Credit — FY2006 Earnings Presentation
18 slides from Credit's earnings presentation, Aug 23, 2006
Slide 1: as
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Slide 2: Highlights
Highlights - » Net Profit increase of 97% on pep to $14.41 million » EBITDA increase of 74% on pep to $54.81 million » EPS increase of 87% on pep to 35.87 cents » ROE up 6% to 34% » Ledger investment of $94.3 million » Improving market share and quality of market share » Significant strengthening of
Slide 3: Financial Results
Financial Results 2005 Revenue $m Tye «50.34 | EBITDA $m 74) 17 A EPS - cents Eien 19.15 | Div / Share - cents es 10.75 | 32% 153° A Revenue & Profit Expense Composition $ million 90 80 70 60 50 40 30 20 10 : FYOt FY02 FYO3 FYO4 FOS Fv06 FY01 Fv02 FY03 FYO4 FYO5 FYO6 mEmployee Expenses —_ Share Base
Slide 4: Balance Sheet
Balance Sheet CURRENT ASSETS Cash and cash equivalents 284 2.04 Trade and other receivables 246 2.02 Other current assets 062 0.18 Available for sale financial assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables 1.20 - Available for sale financial assets 75.51 32.18 Property,
Slide 5: Cash Flow & Investment
Cash Flow & investment CASHFLOW FROM OPERATING ACTIVITIES 2006 2005) Receipts fromcustomers. 810 493 Payments to suppliers and employees (26.2) (8.2) Interest received O14 04 Finance costs (29) (16) Incorre tax paid (6.9 (3.4 Net cash provided by (used in) operating activities 45.9 255 CASH FLOWS FR
Slide 6: Expenses
Expenses: FY0G - % of Revenue B Employee Expenses, Expense VAR 19.73% Employee Expenses Up 4.53% m Share Based Share Based Payments Down -50.83% Payments, 1.10% Collection Expenses Down -28.85% oO Collection Other Expenses Down -3.37% Expenses, 7.33% Ledger Amortisation Down -0.96% B NPAT, 17.67% BO
Slide 7: Key Indicators
Key Indicators Return on Equity Total Shareholder Return since listing 34.00% 32.00% 30.00% 28.00% 26.00% 24.00% 22.00% 20.00% + FYOt Fy02 FY03 FYOd FYOS FYO6 FYOt FYo2 FY03 FYo4 FYO5 FvO6 emt ROE. « Capital Growth MBividends per share Cumulative NPAT Cumulative EPS $ million Cents 93.40 36.00 34.04
Slide 8: Significant Strengthening of Business
Significant Strengthening of Business -» Establishment of Executive Team -» Development of robust operational leadership team through targeted acquisitions and appointments ~» Successful integration of QLD operation ~» Development of Pioneer Credit acquisition for increased capacity, excellence in o
Slide 9: Operational Investment
Operational Investment «* Telephony investment leveraged through dedicated recoveries group already yielding results «“» Continued investment in business improvement and market leadership through structured program office “» Strong analytical capacity due to both database scale and formalised skill
Slide 10: Our People
Our People | Group 2006 2005 VAR 2004 VAR Executive 3 2 50% 2 0% Management 10 10 0% 7 43%) F&A, IT, Analysis, Compliance, HR, L&D, BI 38 21 81% 12 75% Debt Purchase 182 80 128% 39 105% Process Serving / Merc 30 61 -51% 45 36% Total FTE 263 174 51% 105 66% Employee FTE 100% 20% 80% 70% 60% 50% 40% 3
Slide 11: Positive Economic Environment
Positive Economic Environment SO cay Hank Oak interest as a share of household income, % eh § tion Interest as a share cf household income, % * 168 2 ° Credit Debt servicing Interest rates 12 06 4 7 Debt servicing 0 8 8 8 6 ‘ + 4 =» Consumer Credit Market continues strong growth » Bank write off rat
Slide 12: Positive Economic Environment
Positive Economic Environment Petrol price Petrol price —- Fiscal Net impact 50bp rate rise Fiscal benefit Net position impact benefit position Household income Families with a morigage Families without a mortgage $30,000 -47 -76 76 -47 76 29 $40,000 ~52 -100 137 ~52 137 86 $50,000 ~56 -114 137 ~56
Slide 13: 2006 Achievement of Promise
= 2006 Achievement of Promise i v1 Facilities & location — cost benefit * Regional expansion into Brisbane labour centre * Regional expansion into Perth labour centre vi Use of technology — productivity and effectiveness * Telephony investment for efficiency and profitability * Ongoing collection sy
Slide 14: 2006 Achievement of Promise
= 2006 Achievement of Promise i Business Process WI Improve framework for efficiency and risk management * Establishment of internal process re-engineering team — business innovation * Formaiisation of Risk Committee and internal audit process v1 Analytics for market and operations interfaces * Esta
Slide 15: 2006 Achievement of Promise
= 2006 Achievement of Promise i ¥/ Recruitment, skills fit and retention * Recruitment function formalised and has underpinned organic growth * Significant strategic investment in retention v¥| L&D framework and enterprise IQ * Learning & Development business unit formalised * Refinement of inductio
Slide 16: 2006 Achievement of Promise
= 2006 Achievement of Promise i Stakeholder Satisfaction 'v/ Repeatable, high quality experience * Recruitment function formalised and has underpinned organic growth * Significant strategic investment in retention vi Enhanced market perception * Growing brand awareness and knowledge of client organi
Slide 17: 2007 Strategy
2007 Strategy Our Management Our People Our Innovation * Continued pricing discipline * Continued investment in Significant technology and * Ongoing development of recruitment strategies, genuine process refinements business to meet growth induction & training and ongoing ‘+ Business Innovation to c
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