Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (November 2015)
17 slides from Credit's shareholder meeting presentation, Nov 5, 2015
Slide 1: 2015 Annual General Meeting Performance Update
For personal use only 2015 Annual General Meeting Performance Update Thomas Beregi | Chief Executive Officer Michael Eadie | Chief Financial Officer
Slide 2: Competitive leadership in the credit-impaired consumer segment
Competitive leadership in the credit-impaired consumer segment For personal use only • PDL acquisitions and lending • Improved operating metrics growth • Strong outlook • Returns achieved • Compliance leadership • Sustainability delivers strengthened stakeholder relationships 2015 Annual General Mee
Slide 3: Operational leadership delivers improved outlook
Operational leadership delivers improved outlook For personal use only Full year guidance update Aug-15 Expectation Nov-15 Update • PDL acquisitions of $90 - $120m • Favourable forward-flow renewals • Now on track for $125 - $145m • Operational improvement maintains returns • Net lending volume of $
Slide 4: Leadership in sustainability strengthens relationships and drives growth: core debt purchasing
Leadership in sustainability strengthens relationships and drives growth For personal use only Unrivalled sustainability and compliance Core debt purchasing – Impeccable record, despite being the largest and longest-established debt buyer and collector − Never subject to a regulatory order or undert
Slide 5: Leadership in sustainability strengthens relationships and drives growth: lending business
Leadership in sustainability strengthens relationships and drives growth For personal use only Unrivalled sustainability and compliance Lending business – Impeccable record, despite operating in the credit-impaired segment − Never subject to a regulatory order or undertaking − No reportable EDR syst
Slide 6: Leadership underpins financial strength and returns
Operational leadership underpins financial strength and returns For personal use only Domestic International Credit Collection Pioneer Cash Thorn Encore Baycorp PRA Corp House Credit Converters Group Capital Carrying value of financial $244m $256m $93m $82m $124m $323m $3,474m $2,621m assets (PDLs /
Slide 7: Financial capacity for growth
Financial capacity for growth For personal use only – Strengthened relationship with principal banker – Westpac facility increased to accommodate near-term asset growth − Short-term increase from $75 to $85m – Reviewing long-term alternatives in light of the strong growth outlook across all business
Slide 8: Putting competitive leadership to work - improved purchasing outlook
Putting competitive leadership to work - improved purchasing outlook For personal use only − Compelling proposition for clients − Operational improvement has facilitated strong pricing − Leading sustainability and compliance delivers brand / reputation − Recently expiring forward flows have been ren
Slide 9: Operating metrics - return disciplines maintained
Operational metrics - return disciplines maintained For personal use only Cumulative collections $m 1,800 1,600 Actual cash collections 1,400 1,200 1,000 800 Initial projections 600 400 200 - Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Oct
Slide 10: Operating metrics improved - collection life-cycle
Operational metrics improved - collection life-cycle For personal use only PDL collections by date of purchase $m On track for record collections 85 +10% 80 75 70 31% 65 23% 28% 24% 26% 27% 31% 31% 60 30% 55 24% > 3 years 25% 24% 23% 13% 17% 50 27% 12% 2-3 years 27% 27% 12% 12% 45 11% 13% 14% 15% 1-
Slide 11: Operating metrics improved - productivity
Operational metrics improved - productivity For personal use only Debt purchase productivity (direct collection staff only) PDL collections per hour $350 $300 $250 $200 Average: FY15/16 $210 FY14/15 $200 $150 $100 FY 2014/2015 FY 2015/2016 2015 Annual General Meeting | 11
Slide 12: Operating metrics improved - payers base
Operational metrics improved - payers base For personal use only Total portfolio Oct 15 Jun 15 Dec 14 Jun 14 Dec 13 Jun 13 Face value $5.1bn $4.9bn $4.8bn $4.7bn $4.5bn $4.0bn Number of accounts 696,000 703,000 698,000 744,000 759,000 711,000 Payment arrangements Face value $1,081m $1,044m $963m $90
Slide 13: Consumer lending growth momentum maintained
Consumer lending growth momentum maintained For personal use only Gross loan book excluding provisions S$130m $m $112m $120m $100m $72m Annualised $63m Interest $51m revenue $m $35m $19m $11m Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Oct-15 Jun-16 * Gross loan book excluding provisions Annualised re
Slide 14: Longer duration products an increased proportion of the loan book
Longer duration products an increased proportion of the loan book… For personal use only Loan book $m $112m $100m $10m $10m Auto Personal Loan SACC $92m $77m $13m $10m Jun-15 Oct-15 2015 Annual General Meeting | 14
Slide 15: …but we will withdraw from the SACC segment by March 2016
…but we will withdraw from the SACC segment by March 2016 For personal use only – Inaccurate application of the term ‘payday loan’ to all SACCs regardless of duration – Unacceptable impact on our reputation and relationships – Pejorative connotations discourage legitimate providers – We will work ha
Slide 16: US business is moving forward despite unchanged conditions
US business is moving forward despite unchanged conditions For personal use only – Supply conditions remain constrained − Recent consent orders (enforceable undertakings) by major issuers (Chase) and debt buyers (Encore and PRA) provide a regulatory template − Proposed rules still unlikely to be rel
Slide 17: Updated FY16 guidance
Updated FY16 guidance For personal use only Issued Aug-15 Updated Nov-15 PDL acquisitions $90 - $120m $125 - $145m Net lending $30 - $40m $30 - $40m NPAT $40 - $42m $42 - $44m EPS (basic) 86 - 91 cents 91 - 95 cents 2015 Annual General Meeting | 17
Credit Corp Group — Shareholder Meeting (November 2015) on 6ix