Credit Corp Group Limited · ASX:CCP

Credit — Investor Presentation (May 2024)

15 slides from Credit's investor presentation, May 9, 2024

  1. Slide 1: Market Update

    For personal use only 9 MAY 2024 MARKET UPDATE THOMAS BEREGI MICHAEL EADIE CEO CFO

  2. Slide 2: Focus on core competencies in the credit impaired consumer segment

    FOCUS ON CORE COMPETENCIES IN THE CREDIT IMPAIRED CONSUMER SEGMENT… ANALYTICS AND DISCIPLINE OPERATIONAL EXCELLENCE SUSTAINABILITY AND COMPLIANCE TARGET For personal use only Australian / NZ debt buying Long term growth  Large database  High asset turnover 1  Low dispute rate ROE 16% - 18%  Hist

  3. Slide 3: Has facilitated continued investment

    …HAS FACILITATED CONTINUED INVESTMENT…  Consumer lending will account for ~62% of gross investment in FY24 For personal use only PDL Investment and Lending Volumes $m 400 AU/NZ debt buying 300 AU/NZ secondary: Baycorp / Collection House / Radio 200 Rentals / Other US debt buying 100 Lending volume

  4. Slide 4: In challenging conditions

    …IN CHALLENGING CONDITIONS… SEGMENT ASSESSMENT OF MARKET CONDITIONS CREDIT CORP RESPONSE For personal use only US debt buying  Collection environment more challenging since late FY23  Operational improvement focus  Uncertainty as to outlook for US credit-impaired consumer  Raise required return

  5. Slide 5: With recent signs of operational improvement in the US

    …WITH RECENT SIGNS OF OPERATIONAL IMPROVEMENT IN THE US…  Collection conditions remain unchanged since late FY23 deterioration For personal use only  Operational initiatives producing more favourable results in Apr-24 US Collections and Arrangement Book US Productivity per hour US$m US$m US$ 35 30

  6. Slide 6: Creating the prospect of sustained purchasing in favourable US investment conditions

    …CREATING THE PROSPECT OF SUSTAINED PURCHASING IN FAVOURABLE US INVESTMENT CONDITIONS  PDL demand impacted by higher borrowing costs and restricted access to credit For personal use only  Credit data points to increasing PDL supply US Revolving Credit Growth US$b 1,200 5% 1,000 4% 800 3% 600 2% 40

  7. Slide 7: On track to enter FY25 with enlarged loan book

    ON TRACK TO ENTER FY25 WITH ENLARGED LOAN BOOK  Strong underlying demand continuing For personal use only - Moderate decline in new customer volumes over recent months  Arrears and losses remain within pro-forma  Enlarged loan book should produce strong FY25 earnings Lending Volumes by Half Year

  8. Slide 8: Guidance remains intact

    GUIDANCE REMAINS INTACT For personal use only FY24 GUIDANCE FY24 GUIDANCE REFINED JAN-24 CONFIRMED MAY-24 Ledger investment $230 - $250 million $230 - $250 million Net lending $140 - $150 million $140 - $150 million NPAT pre-impairment $80 - $90 million $80 - $90 million NPAT statutory $35 - $45 mil

  9. Slide 9: Appendices: Key operating metrics

    APPENDICES: For personal use only KEY OPERATING METRICS Credit Corp Group FY24 Market Update – 9

  10. Slide 10: Appendices: Key operating metrics

    APPENDICES KEY OPERATING METRICS Appendix 1: Payers base 11 For personal use only Appendix 2: Productivity 12 Appendix 3: Collections life cycle 13 Appendix 4: Operational and total headcount 14 Credit Corp Group FY24 Market Update – 10

  11. Slide 11: Appendix: Payers base

    APPENDIX 1 PAYERS BASE Portfolio Summary: Debt buying For personal use only AU/NZ COMBINED AU / NZ / US 1 TOTAL PORTFOLIO JUN-21 DEC-21 JUN-22 DEC-22 JUN-23 DEC-23 APR-24 Face value $8.5b $7.9b $11.8b $12.7b $12.8b $12.9b $13.0b Number of accounts 1,326,000 1,252,000 2,863,000 2,993,000 2,952,000 2,

  12. Slide 12: Appendix: Productivity

    APPENDIX 2 PRODUCTIVITY Productivity Per Hour (A$) 1 For personal use only $ 350 310 270 YTD APR-24 AVERAGE: FY24: $300 230 FY23: $285 190 150 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 12m to Apr-23 12m to Apr-24 1. Combined AU/NZ and US segment productivity Credit Corp Group FY24 Market Updat

  13. Slide 13: Appendix: Collections life cycle

    APPENDIX 3 COLLECTIONS LIFE CYCLE PDL Collections by Vintage 1 For personal use only $m 160 (7%) 2 140 120 34% 29% 33% 33% 30% 32% 33% 37% 100 33% 32% 33% 33% 40% 39% 40% 35% 41% 32% 34% 40% 44% 30% 34% 12% 12% 19% 80 31% 34% 18% 13% 14% 19% 15% 20% 15% 15% 15% 13% 14% 16% 16% 18% 16% 14% 17% 17% 60

  14. Slide 14: Appendix: Operational and total headcount

    APPENDIX 4 OPERATIONAL AND TOTAL HEADCOUNT Period End Headcount (FTE) For personal use only 3,000 DEC-22 JUN-23 DEC-23 APR-24 2,500 Debt buying operations 1,401 1,255 1,184 1,144 2,000 Collection services 558 571 613 628 1,500 Lending 243 231 253 258 1,000 Support 217 204 213 211 Total 2,419 2,261 2

  15. Slide 15: For more information, please contact

    For personal use only FOR MORE INFORMATION, PLEASE CONTACT: THOMAS BEREGI MICHAEL EADIE Chief Executive Officer Chief Financial Officer Tel +61 2 8651 5777 Tel +61 2 8651 5542 tberegi@creditcorp.com.au meadie@creditcorp.com.au

Credit Corp Group — Investor Presentation (May 2024) on 6ix