Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (October 2024)
16 slides from Credit's shareholder meeting presentation, Oct 29, 2024
Slide 1: For personal use only
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Slide 2: Leadership of the credit impaired sector
Leadership of the credit impaired sector… For personal use only Analytics and discipline Operational excellence Responsibility & compliance AUSTRALIAN / NZ DEBT BUYING • Large database • High asset turnover 1 • Low dispute rate TARGET • History of pricing accuracy • Low cost to collect 2 • $1.3bn in
Slide 3: Solid start to FY25
…has delivered a solid start to FY25 For personal use only US debt buying • Continued operational improvement • Collections up by 12 per cent over the prior year • Strong starting investment pipeline of $106 million Australian / NZ lending • Moderated new customer volume in line with expectations •
Slide 4: US operational improvement has continued
US operational improvement has continued… • Sustained year on year collections growth despite: For personal use only - Reduced purchasing - Ongoing impact of elevated delinquency (since late FY23) US Productivity Per Hour (US $) US Collections and Arrangement Book (US $m) 250 40 YoY collections grow
Slide 5: AU/NZ collections are holding up well
…and AU/NZ collections are holding up well… • Strong Q4 FY24 purchasing has converted to collections in Q1 FY25 For personal use only • Loss of operating leverage is stabilising • Limited run-off of payment arrangement book will underpin collections over the balance of the year AU/NZ Collections & I
Slide 6: Providing a platform for increased investment
…providing a platform for increased investment • Ongoing uncertainty on the position of the US consumer has led to a focus on: For personal use only - Shorter collection duration credit cards - Operational improvement to build purchasing confidence • Solid growth in AU/NZ pipeline over recent months
Slide 7: Lending book stable with moderating demand
Lending book stable with moderating demand • New customer volume is moderating For personal use only • Follows a period of strong post-COVID growth - New customer volume for Q1 FY25 is 6 per cent below the pcp but remains above the pre-COVID peak Consumer Lending Book and Annualised Revenue ($m) Len
Slide 8: On track for strong earnings growth in FY25
On track for strong earnings growth in FY25 • On track for earnings growth of 17 per cent 1 at the mid-point of the FY25 guidance range For personal use only FY25 Guidance FY25 Guidance Issued Jul-24 Confirmed Oct-24 Ledger investment $200 - $250 million $200 - $250 million Net lending $45 - $55 mil
Slide 9: Appendices: Key Operating Metrics
APPENDICES: For personal use only KEY OPERATING METRICS Credit Corp Group AGM Update 2024 — 9
Slide 10: Appendices: Key Operating Metrics
APPENDICES: KEY OPERATING METRICS For personal use only APPENDIX 1: AU/NZ & US debt buying operational metrics 11 APPENDIX 2: Payers base 12 APPENDIX 3: Productivity 13 APPENDIX 4: Collections life cycle 14 APPENDIX 5: Operational and total headcount 15 Credit Corp Group AGM Update 2024 — 10
Slide 11: Appendix 1: AU/NZ & US Debt buying operational metrics
Appendix 1: AU/NZ & US Debt buying operational metrics For personal use only AU/NZ Debt Buying Q1 FY25 Δ Q1 FY24 Collections $69m (5%) Productivity $326 per hour 2% Operations headcount 1 606 (7%) Payers book (face value) 1 $1,316m (1%) US Debt Buying Q1 FY25 Δ Q1 FY24 2 Collections $53m 12% 2 Produ
Slide 12: Appendix 2: Payers base
Appendix 2: Payers base For personal use only Portfolio summary: Debt buying Combined AU/NZ/US 1 Total portfolio Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Sep-24 Face value $11.8b $12.7b $12.8b $12.9b $13.0b $13.0b Number of accounts 2,863,000 2,993,000 2,952,000 2,904,000 2,820,000 2,810,000 Payment arran
Slide 13: Appendix 3: Productivity
Appendix 3: Productivity Productivity per Hour (A$) 1 For personal use only 400 YTD SEP-24 350 average FY25: $324 300 FY24: $291 250 200 150 100 50 - Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 12m to Sep-23 12m to Sep-24 1. Combined AU/NZ and US segment productivity Credit Corp Group AGM Update
Slide 14: Appendix 4: Collections life cycle
Appendix 4: Collections life cycle PDL Collections by Vintage ($m) 1 For personal use only 160 Steady 2 140 120 34% 29% 33% 33% 30% 32% 33% 37% 100 33% 32% 33% 33% 40% 39% 40% 35% 41% 43% 40% 44% 34% 19% 44% 34% 34% 12% 12% 80 18% 13% 14% 19% 15% 19% 15% 15% 15% 14% 16% 18% 16% 14% 17% 17% 60 18% 25
Slide 15: Appendix 5: Operational and total headcount
Appendix 5: Operational and total headcount For personal use only Period End Headcount (FTE) 2,500 Jun-23 Jun-24 Sep-24 2,000 Debt buying operations 1,255 1,142 1,107 1,500 Collection services 571 628 614 Lending 231 254 252 1,000 Support 204 207 201 500 Total 2,261 2,231 2,174 Support % 9% 9% 9% -
Slide 16: Creating opportunity
Creating opportunity
Credit Corp Group — Shareholder Meeting (October 2024) on 6ix