Cash Converters International Limited · ASX:CCV
Cash Converters International — FY2022 Earnings Presentation
19 slides from Cash Converters International's earnings presentation, Aug 31, 2022
Slide 1: FY 2022 Investor Presentation
FY 2022 Investor Presentation Cash Converters (ASX:CCV) August 2022
Slide 2: About Us
About Us Supporting good borrowers. We are Australia’s leading non-bank lender, providing responsible cash solutions through a well-established store and online network. Our core competency is helping good borrowers with challenging credit profiles, and we aim to support the millions of Australians
Slide 3: Our Strategic Priorities
Our Strategic Priorities Australia International • Acquire franchisees. • Acquire loan books. • Increase equity ownership. Consolidate • Optimise core business. • Establish European ‘Hub’. Maximise • Fund strategic expansion. • Enhance customer value. • Increase free cash flow. • Invest in adjacent
Slide 4: Our Competitive Advantage
Our Competitive Advantage Large Customer Base Leading Tech Platform Healthy Balance Sheet Sustainability Regulation ✓ NPS 62+ indicates high ✓ Proprietary lending and ✓ $58.1m in cash, and ✓ Facilitating circular ✓ Already meeting National trust and satisfaction. POS platforms built in- $79.8m in un
Slide 5: FY 2022 Highlights
FY 2022 Highlights Revenue Growth | Operating Profit Growth | Loan Book Growth | Strong Free Cashflow | Dividend Declared • Strong Revenue and Operating Profit growth • Significant loan book growth, up 20% $245.9m $52.7m $19.0m • Future expected loan book income (fees and Earnings interest)2 of $65.
Slide 6: Quality Lending Growth
Quality Lending Growth Cumulative SACC/MACC Loss Rate3 Since Loan Disbursal Total Gross Loan Book 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 $213.9m $200m $167.0m 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 COVID ‘second wave’ 36% 35% 22% $140.5m COVID low-
Slide 7: Revenue & EBITDA
Post COVID Recovery $300m $25m $20.7m $250m $19.0m $20m $200m $15.0m $15m Revenue & EBITDA $12.9m NPAT $150m $281.6m $262.0m $245.9m $10m $100m $201.3m $52.1m $50.0m $52.7m $5m $50m $39.8m $m $m 6 6 FY 2019 FY 2020 [restated] FY 2021 [restated] FY 2022 Revenue Operating EBITDA Operating NPAT 7
Slide 8: Strategy Update
Strategy Update Acquisitions & Expansion H2 FY 2022 H1 FY 2023 Acquiring strategic loan books, franchises, ✓ 3 potential acquisitions advancing. • Acquire strategic loan books and businesses. and businesses to expand our distribution ✓ New store development progressing. • Disciplined franchise acqui
Slide 9: ESG Framework
ESG Framework Operating for 38 years, we understand the importance of adding value to the lives of our customers by running a sustainable business over the long term. Environmental Social Governance • Our retail trade is fueled by pre-owned items, • Our business serves as an essential and • We suppo
Slide 10: ESG In Practice – The Circular Economy
ESG In Practice – The Circular Economy Value is generated at each stage; the seller receives cash for unwanted goods, Cash Converters generates revenue through resale, the new owner acquires an item of value, and our combined contribution to waste reduction benefits the environment. Items of Value a
Slide 11: Outlook
Outlook Credit Demand • Elevated credit demand (vs PCP) anticipated throughout H1 FY 2023. ✓ Elevated credit demand expected to continue into H1 FY 2023. • Increased earnings anticipated (vs PCP) from an expanded Gross Loan Book. ✓ New product releases designed to lower costs and originate new young
Slide 12: Appendix
Appendix cashédnverters
Slide 13: Gross Loan Books
Gross Loan Books FY 2019 FY 2020 FY 2021 FY 2022 Y-o-Y Loan Book $89.8m $63.1m $67.6m $75.6m +12% SACC10 % Of Total 41% 38% 38% 35% Loan Book $45.3m $31.7m $49.4m $76.1m +54% MACC % Of Total 21% 19% 28% 36% Loan Book $67.0m $61.5m $44.3m $46.7m +5% GLA11 % Of Total 31% 37% 25% 22% Loan Book $17.1m $
Slide 14: Free Cash Flow
Free Cash Flow 30 June 2022 30 June 2021 [restated]6 Variance FY 2021 • Working capital includes $10.0m final $'000 $'000 $'000 class action settlement payment EBITDA13 41,532 49,958 (8,426) FY 2022 Net non-cash items 19,595 (7,148) 26,743 • Non-cash items includes the $11.2m Working capital changes
Slide 15: IFRS / non-IFRS Reconciliations
IFRS / non-IFRS Reconciliations 30 June 2022 30 June 2021 [restated]6 $'000 $'000 EBITDA13 Reported Basis 41,532 49,958 Impairment expenses 11,196 - EBITDA Operating Basis 52,728 49,958 EBIT Reported Basis 27,850 33,243 Impairment expenses 11,196 - EBIT Operating Basis 39,046 33,243 NPAT Reported Ba
Slide 16: Cash Converters (CCV) Share Price FY 2020 – FY 2022
Cash Converters (CCV) Share Price FY 2020 – FY 2022 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 16
Slide 17: Glossary
Glossary 1. The operating results for 2022 are presented excluding the non-cash impairment expense of $11.196 million ($7.837 million after tax effect) on the carrying value excluding goodwill of the assets of individual corporate stores where forecast cash flows have been negatively impacted due to
Slide 18: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Cash Converters and its activities current at the date of the presentation. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be
Slide 19: Thank you
Thank you cashédnverters
Cash Converters International — FY2022 Earnings Presentation on 6ix