Slide 1: FY13 Results Presentation
For personal use only FY13 Results Presentation Thomas Beregi Chief Executive Officer Michael Eadie Chief Financial Officer
Slide 2: Strong core business result, while growth initiatives gain momentum
Strong core business result, while growth initiatives gain momentum For personal use only US Expansion • Second collection site • PDL book at $5m (2) Core strength • NPAT up 12% to $29.9m(1) • Record PDL outlay of $137m • Healthy purchasing pipeline for 2014 Consumer lending growth • Loan book $19m
Slide 3: Core business delivers earnings growth
Core business delivers earnings growth For personal use only FY13 Financials versus prior year Actual May13 Guidance PDL acquisitions up 48% to $136.8m $125 - $130m Revenue - underlying(1) up 11% to $138.3m NPAT - underlying(1) up 12% to $29.9m $28 - $29m NPAT – reported $32.0m $30 - $31m EPS (basic
Slide 4: Operating cash flow reinvested for growth
Operating cash flow reinvested for growth For personal use only $ million FY13 FY12 FY11 FY10 Gross operating cash flow 158.2 136.5 119.5 103.2 PDL acquisitions, lending and capex (148.5) (99.6) (95.7) (62.7) Net operating (free) cash flow 9.7 36.9 23.8 40.5 PDL carrying value 147.2 129.1 147.0 147.
Slide 5: Disciplined investment decisions
Disciplined investment decisions For personal use only Cumulative Collections (Initial Expectations versus Actual) (July 08 – Jun 13) 800.0 750.0 700.0 650.0 600.0 Actual 550.0 Cash Cumulative 500.0 Collections Collections 450.0 $m 400.0 350.0 300.0 250.0 Initial 200.0 Projections 150.0 100.0 50.0 0
Slide 6: Continued management of collection life-cycle
Continued management of collection life-cycle For personal use only PDL Collections by date of purchase 65.0 $m 60.0 55.0 24% 25% 23% 50.0 28% 27% 25% 27% 27% 45.0 31% 34% 13% 14% 32% 13% > 3 years 40.0 34% 13% 9% 12% 10% 12% 2-3 years 35.0 8% 18% 16% 1-2 years 11% 7% 30.0 7% 20% 22% 22% < 1 year 20
Slide 7: Collection efficiency tracking to expectation
Collection efficiency tracking to expectation For personal use only Debt Purchase Productivity (direct collection staff only) Domestic Productivity Total Productivity PDL PDL Collections Collections per hour per hour $300 $300 $261 $247 $250 $250 12 month Average: $197 $272 $200 $200 $183 12 month A
Slide 8: Solid payers base growth
Solid payers base growth For personal use only Total Portfolio Jun 13 Dec 12 Jun 12 Dec 11 Jun 11 Dec 10 Face value $4.0bn $3.8bn $3.6bn $3.4bn $3.2bn $2.9bn Number of accounts 711,000 650,000 598,000 496,000 413,000 319,000 Payment arrangements Face value $742m $666m $639m $627m $598m $542m Number
Slide 9: Growing domestic collection capacity in line with PDL investment
Growing domestic collection capacity in line with PDL investment For personal use only Headcount by function (FTE) 1000 900 800 Financial Services 700 Support Mercantile 600 Debt Purchase 500 Operations 400 300 200 100 0 FY09 FY10 FY11 FY12 FY13 Function FY09 FY10 FY11 FY12 FY13 Debt Purchase Ops 43
Slide 10: Strong purchasing year
Strong purchasing year For personal use only $137m $93m $92m $90m Purchases FY14 Purchasing $m $65m Guide: $70 - $90m $47m $37m Contracted as at July 2013(1) FY09 FY10 FY11 FY12 FY13 FY14 Actual Actual Actual Actual Actual Current (1) Includes US purchases 10
Slide 11: Purchasing conditions remain challenging
Purchasing conditions remain challenging For personal use only > Increased competition has reduced share over the second half > A strong pipeline was secured in the first half > Supply remains relatively static − Limited unsecured credit growth − Low arrears > Domestic purchasing likely to contract
Slide 12: Continued operational improvement in the US
Continued operational improvement in the US For personal use only > Recent performance has improved to pro-forma levels > Further enhancements planned > Initial site has reached capacity with 41 staff > Second site with 200+ capacity secured in Salt Lake City, UT > The US purchasing environment is u
Slide 13: Further growth in consumer lending
Further growth in consumer lending For personal use only > Loan book has increased to $19m (1) > Majority of the loans written are unsecured instalment loans − Product branded as ‘MoneyStart’ − Terms of 1-3 years and amounts up to $5,000 − For consumers with previous credit defaults − Digital media
Slide 14: FY14 initial guidance
FY14 initial guidance For personal use only FY14 Guidance PDL acquisitions $70 - $90m NPAT $31 - $33m EPS (basic) 67 - 71 cents Dividends per share 34 - 37 cents 14
Slide 15: FY13 Results Presentation Questions
For personal use only FY13 Results Presentation Questions