Credit Corp Group Limited · ASX:CCP
Credit — Corporate Update (April 2015)
15 slides from Credit's corporate update, Apr 30, 2015
Slide 1: FY15 April Update
For personal use only FY15 April Update 30 April 2015 Thomas Beregi, CEO Michael Eadie, CFO
Slide 2: Leveraging our leadership in the credit-impaired consumer segment
Leveraging our leadership in the credit-impaired consumer segment For personal use only Core Australian debt buying business Credit-impaired consumer lending Leverage • Apply our experience with credit- strengths to impaired consumers • Sustainable and affordable products expand into high • Segment
Slide 3: Core business continues to deliver despite a period of reduced purchasing
Core business continues to deliver despite a period of reduced purchasing For personal use only • Operational metrics maintained • Collections on track to emulate the FY14 record • Improved purchasing over H2 Purchases Collections $m $m H1 FY12 H2 FY12 H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 H2 FY15
Slide 4: Operational metrics maintained – pricing discipline and accuracy
Operational metrics maintained – pricing discipline and accuracy For personal use only Cumulative Collections $m 1,400 Actual cash collections 1,200 1,000 800 Initial Projections 600 400 200 - Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Ma
Slide 5: Operational metrics maintained – collection life-cycle
Operational metrics maintained – collection life-cycle For personal use only PDL collections by date of purchase $m 75 70 65 24% 24% 27% 28% 60 25% 25% 30% 55 25% 25% 23% 24% 13% 50 28% 12% > 3 years 27% 12% 31% 27% 27% 12% 12% 13% 45 32% 34% 2-3 years 34% 15% 13% 13% 14% 16% 40 13% 17% 1-2 years 9%
Slide 6: Operational metrics maintained - productivity
Operational metrics maintained - productivity For personal use only Debt purchase productivity (direct collection staff only) PDL collections per hour $350 $300 $250 YTD avg. FY14/15 $200 FY13/14 $195 $200 $150 $100 FY 2014/2015 FY 2013/2014 FY15 Update April 2015 | 6
Slide 7: Operational metrics maintained – payers base
Operational metrics maintained – payers base For personal use only Total Portfolio Mar 15 Dec 14 Jun 14 Dec 13 Jun 13 Dec 12 Face value $4.8bn $4.8bn $4.7bn $4.5bn $4.0bn $3.8bn Number of accounts 679,000 698,000 744,000 759,000 711,000 650,000 Payment arrangements Face value $995m $963m $909m $791m
Slide 8: Operational headcount to drive future collections
Operational headcount to drive future collections For personal use only Period end headcount (FTE) 1,100 1,000 900 Support 800 Financial Services 700 Mercantile Debt Purchase Ops 600 500 400 300 200 100 0 FY10 FY11 FY12 FY13 FY14 H1 FY15 Mar-15 Function FY10 FY11 FY12 FY13 FY14 H1 FY15 Mar 15 Debt P
Slide 9: PDL purchasing improved during the year
PDL purchasing improved during the year For personal use only • Price growth has moderated • Expiring forward flows renewed and additional volumes secured • Purchases projected to achieve hurdle return Purchases $m $145m Revised FY15 $137m purchasing $135m $130 -$135m $93m $92m Contracted as at $65m
Slide 10: Consumer lending book growing more rapidly…
Consumer lending book growing more rapidly… For personal use only • Relatively modest growth during H1 • Annualised revenue of $35m shows the significance of this business Gross loan Annualised book $85m interest excluding revenue provisions $m $72m $m $63m $35m $35m $19m $11m $6m $2m Dec-11 Jun-12
Slide 11: …with the introduction of our new brand
…with the introduction of our new brand For personal use only Sustainable online loans • Merges our Small Amount Credit Contract (SACC) and Personal Loan (PL) products • Seamless graduation into lower cost finance • Supported by a fast automated decision engine • National advertising campaign launch
Slide 12: The sustainable and responsible alternative
The sustainable and responsible alternative For personal use only Sustainable online loans • Not a payday lender ̵ Loan amounts up to $5,000 ̵ Minimum term of 4 months up to 3 years (avg. SACC 8 months, PL 2.4 years) ̵ Lower rates and fees, substantially below legislated caps ̵ No early repayment fe
Slide 13: US debt buying market remains in disequilibrium, despite improved outlook
US debt buying market remains in disequilibrium, despite improved outlook For personal use only • Supply conditions set to improve - Major credit issuers have indicated they will return to market • Continued operational improvement - Telephone collection outcomes compare favourably to competitors -
Slide 14: FY15 Guidance updated
FY15 Guidance updated For personal use only Jan-15 Updated Apr-15 PDL acquisitions $120 - $130m $130 - $135m Net lending $40 - $50m $40 - $50m NPAT $36 - $38m $37 - $38m EPS (basic) 78 - 83 cents 80 - 83 cents FY15 Update April 2015 | 14
Slide 15: Questions
For personal use only Questions FY15 Update April 2015 | 15