Cash Converters International Limited · ASX:CCV
Cash Converters International — FY2016 Earnings Presentation
16 slides from Cash Converters International's earnings presentation, Jun 30, 2016
Slide 1: Building on our strengths
Building on our strengths Investor Presentation Year ending 30 June 2016
Slide 2: FY16 Highlights
FY16 Highlights • Strategy reset and restructuring to build on company strengths • Underlying profit growth • Diverse revenue streams provide resilience • High brand recognition and customer satisfaction
Slide 3: FY16 Financial Results Overview
FY16 Financial Results Overview • Underlying EBITDA profit up 10.2 per cent to $69.1 million • Revenue higher at $379.3 million ( FY15: $374.3 million) • Net loss after tax $11.1 million ( FY15: $21.4 million) • Channel mix reduces impact of business volatility and regulatory change • Dividend of on
Slide 4: FY16 Financial Results Summary
FY16 Financial Results Summary 30 June 2016 Full Year ($ million) FY 2016 FY 2015 Statutory reporting basis REVENUE 379.3 374.3 EBITDA 17.3 9.1 EBIT 6.4 (7.5) NPAT (11.1) (21.4) BASIC EPS (cents) (2.30) (4.69) EBITDA NORMALISED (underlying profit) 69.1 62.7
Slide 5: FY16 Financial Results Adjustments
FY16 Financial Results Adjustments Normalisation Adjustments FY2016 FY2015 ($ million) Statutory EBITDA 17.3 9.3 Restructure costs 33.3 - Compliance provision 12.5 - Class action legal fees 2.4 1.8 Agency termination payment - 29.6 Class action settlement - 23.0 Other normalisation adjustments 3.6 (
Slide 6: Solid contributions from all segments
FY16 Financial Results Segments Solid contributions from all segments Normalised consolidated segment results ($ million) Segment FY2016 FY2015 Franchise operations 7.1 5.9 Store operations 13.8 15.8 Financial services – admin 13.6 12.5 Financial services – PL 57.9 48.5 Vehicle leasing (2.3) (1.7) T
Slide 7: Australia continues to drive results
FY16 Financial Results Australia Australia continues to drive results Australian segment results FY2016 FY2015 ($ million) Franchise operations 3.6 3.7 Store operations 18.2 18.8 Financial services – admin 12.4 11.5 Financial services – PL 58.3 54.3 Vehicle leasing (2.3) (1.9) Totals 90.2 86.4 Corpo
Slide 8: United Kingdom recovery well underway
FY16 Financial Results United Kingdom United Kingdom recovery well underway UK segment results FY2016 FY2015 ($ million) Franchise operations 3.0 1.8 Store operations (4.4) (2.9) Financial services – admin 1.1 1.0 Financial services – PL (0.4) (5.7) Totals 0.7 (5.8) Corporate office costs (3.4) (3.2
Slide 9: Our online channels continue to grow strongly
FY16 Financial Results Online channels Our online channels continue to grow strongly. They are a key part of our customer service and product innovation Australia United Kingdom Webshop registered users 103,636 313,000 Webshop sales $6.5 million £4.8 million (+37.4%) (+37.6%) Personal loans advanced
Slide 10: Strategy Overview
FY16 Strategy Overview Our strategy is to maximise the value of our brand and franchise network through a focus on high return businesses • Invest for sustainable market leadership and profitable growth in Australia • Operate in the United Kingdom as a profitable master franchise • Build brand prese
Slide 11: Strategy Progress
FY16 Strategy Progress We have made good progress with our strategy implementation • Exited UK corporate stores ( 44 sold and 15 closed) • New UK organisational structure. Now operating as a master franchise servicing 201 franchise stores held between 50 franchisees • Expect to have UK personal loan
Slide 12: More initiatives planned for 2017
Strategy More initiatives planned for 2017 We have more strategy initiatives planned for 2017 • Expand corporate and franchise network in Australia • New MACC product launched • Increase Green Light Auto Finance sales • Review SACC market and reduce lending to Centrelink segment • Increase investmen
Slide 13: FY17 Outlook
FY17 Outlook Efficient execution of strategy and restructuring continues to be a priority • Demand for well established retail and pawn broking services to remain solid • Strategic decision to reduce activity and volume in some SACC segments • Volume from GLA Finance and MACC lending to grow • Unite
Slide 14: Clear direction and measures
Additional comment Clear direction and measures Our strategic direction and performance measures are clear Strategic To be the leader in our chosen markets through responsible customer service Direction Key Leading customer High team Attractive shareholder High market share Imperatives satisfaction
Slide 15: Brand, network and customer strengths
Additional comment Brand, network and customer strengths In Australia we will continue to build on Cash Converters’ brand, network and customer satisfaction strengths • Market leading brand awareness: 97% brand awareness • Market leading distribution: 152 stores nationwide. Online retail and financi
Slide 16: Finance and banking arrangements
Additional comment Finance and banking arrangements We have new finance and banking arrangements to underpin our strategy and ongoing operations • Five year arrangement with Fortress Investment Group on improved, market competitive terms • Loan securitisation facility with a drawdown of up to $100 m
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