Credit Corp Group Limited · ASX:CCP
Credit — Corporate Update (May 2009)
11 slides from Credit's corporate update, May 21, 2009
Slide 1: Market update – 21 May 2009
For personal use only Market update – 21 May 2009 Thomas Beregi Chi f E Chief Executive ti Offi Officer Todd Vogel Chief Financial Officer
Slide 2: NPAT at upper end of February guidance range
NPAT att upper end d off February F b guidance id range For personal use only Financials to April 09 YTD Actual FY09 Guidance(2) ( ) FY09 Guidance(2) ( ) 10 months to April 09 (1) Updated May 09 Issued Feb 09 PDL acquisitions $28.5m $35-40m $35-45m R Revenue $128 3 $128.3m EBITDA $79.8m $93-95m $87-
Slide 3: Further improvement in financial position
F th improvement Further i t in i financial fi i l position iti For personal use only • Gearing G i att lowest l t level l l since i 2005 (1) $ million Apr 09 H109 H208 H108 PDL carrying value 175.5 182.2 203.1 215.7 Net bank debt 89.9 98.4 125.0 142.8 Net debt / carrying value (%) 51.2% 54.0% 61.5%
Slide 4: Recent purchases continue to yield acceptable returns
Recent purchases continue to yield acceptable returns… t For personal use only Average March 08 to Apr 09 purchases Cumulative percentage of purchase price collected by month FY09 Guide 230% 225%-250% 50% 47% Actual Forecast 41% 44% 40% 33% 35% % of 30% purchase 22% price 25% collected 20% 18% 10% 0
Slide 5: …and we have improved the performance of older PDLs
…and d we h have iimproved d th the performance f off older ld PDLs PDL For personal use only PDL Revenue by date of purchase 100 14% 16% 90 21% 25% 31% 80 38% 43% 37% 23% 70 26% 27% > 2 years 60 1-2 years 50 35% < 1 year % 41% 33% 37% 40 40% 63% 30 58% 52% 20 40% 28% 26% 24% 10 22% 0 Q1 Q2 Q3 Q4 Q1
Slide 6: Operational improvement initiatives are on track
O Operational ti l iimprovementt initiatives i iti ti are on ttrack k For personal use only Debt Purchase Productivity (direct collection staff only) $250 $239 $238 $234 $231 2008/09 $229 $229 $227 $227 $225 Revenue $214 FY09 Guide per hour $212 $209 $210-$220 $200 $204 $197 $194 $194 Dec qtr 2007/0
Slide 7: Growing our debt purchase operation…
G Growing i our debt d bt purchase h operation… ti For personal use only Headcount by function (FTE) 600 Debt Purchase Operations 500 Process Serving g / Mercantile 400 Malaysian Mercantile 300 Support 200 100 0 FY04 FY05 FY06 FY07 FY08 H109 Apr 09 Function FY04 FY05 FY06 FY07 FY08 H109 Apr 09 FY09
Slide 8: …in line with increased purchasing
…in i liline with ith iincreased d purchasing h i For personal use only • H1 purchases of $13.3m • H2 projected purchases of $24.2m * • $30m of FY10 purchasing committed • Currently part of the debt sale programme of 3 of the 4 major banks • Increased purchasing will drive earnings in FY10 * May 09
Slide 9: Accelerated impairment of PDLs in FY09
A Accelerated l t d iimpairment i t off PDL PDLs iin FY09 For personal use only Drivers of additional impairment include: • Above forecast collection revenue • Modest purchasing to date Impairment expense YTD Apr 09 FY08 Percentage of PDL revenue 45% 42% Percentage of average PDL 36% 31% carrying va
Slide 10: Continued focus on our FY09 priorities
C ti Continued d ffocus on our FY09 priorities i iti For personal use only • Improved asset management • Additional initiatives to drive productivity • Closer relationships with clients (debt sellers) • Generating free cash flow to reduce debt 10
Slide 11: Questions
For personal use only Market update – 21 May 2009 Questions