Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (March 2019)
18 slides from Cash Converters International's investor presentation, Mar 12, 2019
Slide 1: FY 2019 Half-Year Results Investor Presentation
FY 2019 Half-Year Results Investor Presentation – 11 March 2019 –
Slide 2: Strategic Priorities
2 Strategic Priorities Building trust by delivering value to our Cash Converters’ strategic priority is to customers at every opportunity… remain relevant to our customers, achieving sustainable long term growth… • We take a customer-first approach, understanding our customers’ needs and 1. Improve
Slide 3: Chief Executive Officer Appointment
3 Chief Executive Officer Appointment • As announced on 5 December 2018, Mr. Brendan White was appointed Chief Executive Officer of Cash Converters International Limited and is due to commence 18 March 2019. • Brendan previously served as Group Executive for Bank of Queensland (BOQ) Business over a
Slide 4: Class Action Update
4 Class Action Update Lynch Proceeding • The Company defended the proceeding and trial of the matter was completed in November 2018. The parties presently await judgement. Given the current stage of the Lynch Proceeding, the financial impact of the action on Cash Converters cannot be reliably and ac
Slide 5: H1 FY19 Highlights
H1 FY19 Highlights cashédnverters
Slide 6: H1 FY19 Financial Highlights
H1 FY19 Financial Highlights 6 Loan Books Adjusted EBITDA* • H1 FY19 Net Loss after Tax of $5.2m (NPAT $9.4m previous corresponding period $210.3m $24.8m or ‘pcp’), after settling the McKenzie Proceeding for $16.4m. Up 22.0% Up 9.2% $210.3 m $24.8m • Group revenue increased 11.6% on pcp to $137.3m:
Slide 7: Green Light Auto (GLA) H1 FY19 Growth Continues
Green Light Auto (GLA) 7 H1 FY19 Growth Continues… Overview • GLA is a specialist lender providing loans to consumers who may • Green Light Auto (GLA) EBITDA increased to $1.6m, up 80.7%. be excluded by other financial institutions’ traditional lending • Loan book increase +38.2% from 30 June 2018.
Slide 8: H1 FY19 Financial Results
8 02 – H1 FY19 Financial Results –
Slide 9: H1 FY19 Overview
9 H1 FY19 Overview • Group revenue increased 11.6% on pcp to $137.3m, driven H1 FY19 H1 FY18 Variance by growth in lending and robust corporate store performance. Consolidated basis ($m) ($m) • EBITDA adjusted for: • McKenzie Proceeding $16.4m Revenue 137.3 122.9 +11.6% • Legal fees associated $ 2.5
Slide 10: H1 FY19 Divisional EBITDA
Personal Finance 10 H1 FY19 Divisional EBITDA • Personal Finance EBITDA was down 22.7% on pcp, against loan book growth of 17.6% to $140.7m. H1 FY19 H1 FY18 • Pleasingly, the longer term SACC loan book was up +15.9% on 30 Divisional EBITDA Variance June 2018 (with in store Cash Advance declining 6.1
Slide 11: H1 FY19 Balance Sheet
11 H1 FY19 Balance Sheet Cash and cash equivalents • Settlement of class action for $16.4m, repayment of $60.0m unsecured bond and profit reduction due to bad & doubtful debt increase due to AASB9 reducing cash balances. 31 Dec 18 30 Jun 18 Variance As at Loan receivables ($m) ($m) • A strong half-y
Slide 12: Funding
12 Funding Available Cash $62.3m Cash Balance - Cash on hand and at bank $74.3m • Settlement of class action for $16.4m and Less - Restricted Cash Deposits ($11.9m) repayment of $60m unsecured bond have - Net available Cash Balance $62.4m reduced the cash balance. • Cash available to fund growth cir
Slide 13: Loan Book Composition
13 Loan Book Composition 30 June 2016 7% 3% Gross Bad Debt as • Achieved H1 FY19 combined loan book % of Loan Books growth of 22.0% from 30 June 2018: H1 FY19 vs H1 FY18 ▪ GLA up 38.2%; 20.0% ▪ MACC up 23.4%; ▪ SACC up 15.3%; 18.0% ▪ Pawn Loans outstanding up 7.3%. 90% 16.0% (Cash Advance 6.4%) • SA
Slide 14: Positioned for further growth
Positioned for further growth… 14 Expandable ✓ B2B and B2C business models that can be leveraged and expanded, business model that can be across distribution channels. leveraged across B2B & ✓ Improve and expand our store distribution network. B2C ✓ Digital capabilities developed to complement ‘bric
Slide 15: Appendices
15 Appendices –
Slide 16: Appendix I : Division Details
16 Appendix I : Division Details Division Description • Incorporates the trading results of Mon-E Pty Ltd and Cash Converters Personal Finance Pty Ltd (CCPF). • Mon-E is responsible for providing the administration services for the Cash Converters network in Australia to offer Personal Finance small
Slide 17: Appendix II : Glossary of terms
17 Appendix II : Glossary of terms Division Description Personal Finance; CCPF; • Unsecured personal loan business transacted online and in-store, short/medium and long-term and amount Financial Services unsecured personal loans GLA • Green Light Auto Group Pty Ltd, a wholly owned subsidiary that pr
Slide 18: Disclaimer
18 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
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