Slide 1: FY'16 Investor Presentation
(ASX: CGR) FY’16 Investor Presentation Daniel Riley – CEO August 2016
Slide 2: Executive Summary
Executive Summary FY’16 Highlights Y/E 30 Jun ($m) FY’15 A FY’16 A Δ pcp Finance 3.5 11.4 329% • Finance Division EBITDA up 440% to $5.4m Other2 19.8 15.7 (21%) – Loan Book up 325% to $69.9m Revenue2 23.3 27.1 16% Finance1 1.0 5.4 440% • Group EBITDA up 263% to $5.3m Other2 1.7 1.6 (5%) – Earnings f
Slide 3: CML Group Overview
CML Group Overview
Slide 4: Overview
Overview Key Stats Capital Table • CML Group (CML) provides a range of business finance • Board own ~23% solutions to help their clients’ businesses Board (20 Jun 16) Shareholding Capital Structure (26 Aug 16) Greg Riley Non-Executive Chairman 22,011,163 Share Price $0.195 Daniel Riley MD & CEO 3,17
Slide 5: History
History CML has transformed into a significant player in the invoice financing market • Loan Book has grown to ~$70m (since the establishment of the Finance business in February 2012), of which ~$44m was acquired Key Milestones Acquired Debt / Hybrid Year End Loan Book Funding Acquisitions / Divestm
Slide 6: Consolidated Financials
Consolidated Financials
Slide 7: Comprehensive Income Statement
Comprehensive Income Statement Strong earnings improvement has continued, driven by growth in the Finance division Y/E 30 Jun ($m) FY’15 A FY’16 A Δ pcp Comments Finance Revenue 3.5 11.4 226% Revenue driven by increase in Invoices Purchased Other Revenue 19.8 15.7 (21)% Does not include divested Les
Slide 8: Comprehensive Financial Position
Comprehensive Financial Position Borrowings have increased in line with Loan Book growth Y/E 30 Jun ($m) As at 30 Jun. 15 As at 30 Jun. 16 Comments Cash 14.1 14.7 Cash available to lend Trade Receivables 39.5 114.6 Reflects Finance division Loan Book growth Other 3.6 10.1 Includes $9.6m Lester asset
Slide 9: Statement of Cash Flows
Statement of Cash Flows Cash flows reflect growth in loan book, driven by rising volume of Invoices Purchased Y/E 30 Jun ($m) As at 30 Jun. 15 As at 30 Jun. 16 Comments Receipts from Customers 157.1 450.2 Both increase with growth in Invoices Purchased / Loan Book Payments to Suppliers & Staff (165.
Slide 10: Finance Division
Finance Division
Slide 11: Loan Book
Loan Book Loan book growth accelerated by acquisitions • Strong organic growth has been bolstered in FY’16 by the acquisition of CA and 180 loan books Loan Book Statistics (June 2016) Funds in use ~$230,000 Debtor days 49 days Loan to value ratio 62% Loan Book $75m 180 acquisition CA acquisition $50
Slide 12: Finance Divisional Performance
Finance Divisional Performance Growth in Invoices Purchased has underpinned improved performance in Finance division Y/E 30 Jun ($m) FY’15 A FY’16 A Δ pcp Invoices Purchased 94.7 406.5 329% Revenue 3.5 11.4 226% Gross Margin 3.7% 2.8% Underlying EBITDA* 1.0 5.4 440% Underlying EBITDA Margin* 28.6% 4
Slide 13: Finance Division – Key Drivers
Finance Division – Key Drivers CML achieved greater volumes of Invoices Purchased and EBITDA margins Invoices Purchased ($m) & Gross Margin (%) Finance Divisional EBITDA* & Interest Cost ($m) 300 3.7% 4% 4 60% 50.5% 42.7% 50% 2.9% 2.8% 3 3% 40% 200 28.6% 2 30% 2% 20% 100 1 1% 10% - - - - FY'15 1H'16
Slide 14: Funding Strategy
Funding Strategy CML has secured appropriate funding with sufficient headroom for organic growth to $90+ million of funds in use • Loan Book growth has required debt funding: Funding Quantum Cost – $10.4m Convertible Note (February 2015) Convertible Note $10.4m 9.0% – $25m Corporate Bond #1 (May 201
Slide 15: Other & Corporate Divisions
Other & Corporate Divisions
Slide 16: Other & Corporate Divisional Performance
Other & Corporate Divisional Performance CML completed the divestment of non-core Lester Associates business; remaining businesses remain profitable Y/E 30 Jun ($m) FY’15 A FY’16 A Δ pcp Other Revenue 19.8 15.7 (21)% Other EBITDA 1.7 1.6 (5)% Other EBITDA Margin 8.5% 10.2% Corporate EBITDA (1.2) (1.
Slide 17: Outlook
Outlook
Slide 18: Outlook
Outlook Guidance of $10.6m+ in FY’17 • CML expects the strong growth momentum achieved in FY’16 to continue into FY’17 • Reaffirmation of previously stated guidance of EBITDA of $10.6m+ and despite loss of earnings from sale of Lester $m FY’16 A FY’17 Guidance Δ pcp Group EBITDA 5.3 10.6+ 98%+ • FY’
Slide 19: Appendix
Appendix
Slide 20: Group History
Group History Organic and acquisitive growth has built CML into a significant player in the invoice financing market Acquisitions / Divestments Business launched Divested 2002 2010 2011 2012 2015 2016 $5.2m $15m Corp. Listed on $10.4m $25m Corp. $25m Corp. Placement Established Bond #2 ASX Con. Note
Slide 21: Finance Revenue Model
Finance Revenue Model CML is targeting a Gross Margin of 2.8%+ on total Invoices Purchased There are 4 key drivers to Finance division 1. Invoices Purchased Finance Divisional Earnings Model – The gross amount of cash flow against which CML provides Invoices Purchased $100 working capital assistance
Slide 22: Clients
Clients CML has 350+ clients, covering 13 industries • CML has a portfolio 350+ clients Finance Division Clients – Clients are spread across 13 industries 400 – Average client tenure of 4+ years 180 acquisition 300 • CML has built a sales and business development team of 12 CA acquisition – Seeking
Slide 23: Disclaimer
Disclaimer The information presented herein contains predictions, estimates and other forward looking statements that are subject to risk factors that are associated with the human resource management sector. The persons involved in or responsible for the production and publication of this report be