Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (November 2009)
13 slides from Credit's shareholder meeting presentation, Nov 10, 2009
Slide 1: 2009 Annual General Meeting – YTD to October 2009 Update
For personal use only 2009 Annual General Meeting YTD to October 2009 Update 10 November Thomas Beregi – Chief Executive Officer
Slide 2: On track to achieve FY10 guidance
On track to achieve FY10 guidance For personal use only FY10 Financials October 09 Aug 09 versus prior i year A t l Actual FY10 G Guidance id PDL acquisitions up 76% to $17.3m $45-60m Revenue up 9% to $60.2m EBITDA up 16% to $39.9m $88-92m NPAT up 11% to $4.9m $11-13m EPS (basic) up 11% to 11.1 cent
Slide 3: Further strengthening in financial position
Further strengthening in financial position For personal use only $ million 31 Oct 09 30 Jun 09 31 Dec 08 PDL carrying i value l 157 9 157.9 170 2 170.2 182 2 182.2 Net bank debt 63.6 81.2 98.4 Net debt / carrying value (%) 40.3% 47.7% 54.0% 4
Slide 4: Purchases continue to yield acceptable returns
Purchases continue to yield acceptable returns returns… For personal use only Average FY09/FY10 purchases Cumulative percentage of purchase price collected by month 230% FY10 Guide 225%-250% Month 72 (6 years) *part month depending on timing 4
Slide 5: …and we have improved the performance of older PDLs
…and and we have improved the performance of older PDLs For personal use only PDL Revenue by date of purchase 5
Slide 6: Operational improvement initiatives are on track
Operational improvement initiatives are on track track… For personal use only Debt Purchase Productivity (direct collection staff only) 2009/10 2008/09 FY10 Guide $205-$215 6
Slide 7: …and the business is now poised for growth
…and and the business is now poised for growth For personal use only • Existing portfolio positioned to deliver consistent returns • Financial capacity expanded • Purchasing set to increase • Productive capacity growing 7
Slide 8: Existing portfolio returns underwritten by payment arrangement growth
Existing portfolio returns underwritten by payment arrangement growth For personal use only Total Portfolio Oct 2009 June 2009 Dec 2008 June 2008 Dec 2007 Face value $2.3bn $2.2bn $2.2bn $2.2bn $1.9bn Number of accounts 285 000 285,000 284 000 284,000 319 000 319,000 370 000 370,000 388 000 388,000
Slide 9: Extended bank facility secures the ability to purchase $60m+ pa
Extended bank facility secures the ability to purchase $60m+ pa over the next two years For personal use only • Considerable unutilised headroom Actual ratio at October 09: 2.3x Facility min 2.00x Asset Cover 1.75x Ratio* 1.70x (x multiple) $120m Facility limit ($m) $45m Amount drawn at Oct 09: $67m
Slide 10: Purchasing growth will drive future earnings
Purchasing growth will drive future earnings For personal use only Purchases by half year FY09 Actual FY10 Committed FY10 Guide $37m $51m $45-$60m $m Committed/optioned A Actual l as at Oct 09 10
Slide 11: Collection capacity is growing in line with purchasing
Collection capacity is growing in line with purchasing For personal use only Headcount by function (FTE) Function FY04 FY05 FY06 FY07 FY08 FY09 Oct 09 FY10 Guide Debt Purchase Ops 39 80 182 294 405 435 444 440-460 Process Serving/Mercantile 45 61 30 86 95 4(2) 4 Support 21 33 51 68 52(1) 50 49 Total
Slide 12: Guidance refined
Guidance refined For personal use only FY10 Updated Nov 09 Issued Aug 09 PDL acquisitions $50 - 60m $45 - $60m EBITDA $94 - $98m $88 - $92m NPAT $12 - $13.5m $13 5m $11 - $13m EPS (basic) 27 - 30 cents 25 - 29 cents Guidance excludes potential: (1) business sales (2) shareholder litigation costs (3)
Slide 13: Questions
For personal use only Annual General Meeting YTD to October 2009 Update Questions
Credit Corp Group — Shareholder Meeting (November 2009) on 6ix