Cash Converters International Limited · ASX:CCV
Cash Converters International — H1 FY2021 Earnings Presentation
13 slides from Cash Converters International's earnings presentation, Feb 25, 2021
Slide 1: H1 FY2021 Investor Presentation
H1 FY2021 Investor Presentation 25 February 2021 1
Slide 2: Business Overview
Business Overview Network CCV 13-month Share Price 152 70 Corporate $0.25 Australian Stores $0.20 • Unsecured Loans (up to $5,000) 82 Franchise • Vehicle Loans $0.15 • Pawnbroking Online • Secondhand Retail $0.10 548 International $0.05 Segment Reporting $- 4 Business Units Jan-20 Feb-20 Mar-20 Apr-
Slide 3: Our Competitive Advantage
Our Competitive Advantage ✓ Large, loyal, domestic and international customer base Our Customers ✓ Industry-leading customer satisfaction (NPS 60+) ✓ High brand recognition, trusted and important part of the community ✓ Proprietary retail and lending platforms Our Technology ✓ First Non-ADI integrat
Slide 4: Regulated vs Unregulated Credit
Regulated vs Unregulated Credit Regulated Unregulated We operate within: ✓ National Consumer Credit Protection Act 2009 (National Credit Act) ✓ Credit Licensing: Responsible Lending Conduct (RG209) Buy-Now-Pay-Later ✓ Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) ✓ Fin
Slide 5: H1 FY 2021 Metrics
H1 FY 2021 Metrics Our unique business model continued to demonstrate its strength as we leveraged our extensive store and online network to combat the impact of COVID-19. $98.4m $8.6m $12.7m Revenue 31% Operating Cash Flow Gross Bad Debt Expense 56% $7.7m $16.0m $5.0m Operating^ NPAT 28% Pawnbrokin
Slide 6: Gross Loan Book Value
Gross Loan Book Value 12-Month Gross Loan Book Value $100m Stimulus Q2 FY 2021 Loan Book Recovery $90m $10.2m Supplement Stimulus $80m Crisis $70m $60m Increase in SACC^ Loan Book $50m $40m $30m $5.0m $20m Increase in MACC Loan Book $10m $m Jan-20 Feb-20 Mar-20 Apr-20 SACC May-20 Jun-20 MACC Jul-20
Slide 7: Cash Flow Strength
Cash Flow Strength 31 Dec 2020 31 Dec 2019 Variance EBITDA $24.6m ($12.6m) $37.2m Net non-cash items ($0.6m) ($1.5m) $0.9m Net Repayment / (funding) of loan books $4.0m ($9.0m) $13.1m • Included in Cash Flows from Investing Working capital changes ($12.7m) $16.3m ($28.9m) Activities is $3.3m in fran
Slide 8: Outlook
Outlook Cash Converters has observed early signs of recovery in the Australian market, with demand for credit and consumer sentiment improving. This is the perfect environment for Cash Converters to continue towards its strategic objectives, focusing throughout FY21 and beyond, on the key pillars of
Slide 9: Thank you
Thank you 9
Slide 10: Appendix 1 | Reconciliations
Appendix 1 | Reconciliations Reconciled EBITDA^ 31 Dec 2020 31 Dec 2019 Variance EBITDA as reported basis $24.6m ($12.6m) N/A Class Action Litigation (claim & costs) - $42.9m -100.0% EBITDA Operating^^ Basis $24.6m $30.4m -18.8% Reconciled Profit 31 Dec 2020 31 Dec 2019 Variance Reported Profit/ (lo
Slide 11: Appendix 2.1 | Reporting Terms
Appendix 2.1 | Reporting Terms Description On 21 October 2019 Cash Converters announced that the class action commenced against subsidiaries of Cash Converters by Sean Lynch (Lynch v Cash Converters Personal Finance Pty Ltd & Another NSD 900 of 2015) was settled. Class Action Settlement • Cash Conve
Slide 12: Appendix 2.2 | Product Terms
Appendix 2.2 | Product Terms Division Description Personal Finance / CCPF / Financial Unsecured personal loan business transacted online and in-store Services GLA Green Light Auto Group Pty Ltd, a wholly owned subsidiary that provides automotive vehicle finance SACC Small Amount Credit Contract, tra
Slide 13: 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
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