Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (October 2024)
20 slides from Cash Converters International's investor presentation, Oct 29, 2024
Slide 1: Australian Microcap Conference
Australian Microcap Conference 29 October 2024 Cash Converters International Limited (ASX:CCV)
Slide 2: What we do
What we do • 40 years in operation Retail We are the largest global store network focused on • Multi-channel global in-store and online repurposing pre-owned items – circular economy presence • Regulated and responsible lender • Retail stores 669 stores globally and 1.7m repurposed items in Australi
Slide 3: About Us
About Us To work together in pursuit of a world free from financial bias, where choice and opportunity is possible for all A diverse global Facilitating the Loved by our Reacquiring our business circular economy customers franchise network • Earnings from a network of retail • Largest worldwide stor
Slide 4: Our Global Network
Our Global Network 143 Across Australia, New Zealand United 47 Kingdom and the United Kingdom, Cash United Belgium Kingdom Converters operates Corporate owned stores and is the Master Franchisor of a franchise 72 France / 37 Belgium 11 Belgium network of stores Switzerland ROW / Lux. The balance of
Slide 5: The need for personal finance is growing
The need for personal finance is growing • We are the largest operator offering small and medium loans in our Australian near-prime and sub-prime credit originations Scale markets Growing • Target market spanning sub-prime and near-prime borrowers in market Australia estimated at over $4b1 Cash Conv
Slide 6: Retail
Retail Pre-owned retail is changing • Growing luxury goods focus • AI-powered solutions for product verification enabling confident trade in high-end luxury markets • Luxury focused store concepts underway 6
Slide 7: Prahan store walkthrough video
Prahan store walkthrough video 7
Slide 8: Our Technology
Our Technology • Proprietary machine learning based credit risk tools, trained using over 170m data points • Over 770,000 loan applications scored and assessed in FY24 • Open Banking, New Payments Platform, Custom Banking Infrastructure • AI enabled product authentication enabling new markets • App
Slide 9: Our strategy
Our strategy Cas|i
Slide 10: Growth Strategy
Growth Strategy Risk managed, customer centric growth Inorganic Expansion • Well established franchise network helped grow our business • Acquire AUS & UK franchisees • Greenfield site expansion • Grow European ‘Hub’ (UK) Domestic Target 200 stores (up from 153) Organic Optimisation Reacquire Franch
Slide 11: Store Acquisition
Store Acquisition Strong track record, well known targets and demonstrated profit contribution United Kingdom • 42 stores acquired in Jul-23, contributing $3.4m PBT in FY24 • A further 5 stores acquired June 2024 • Forward pipeline of 12 stores under immediate consideration with further opportunitie
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Key Highlights
Key Highlights FY2024 $382.6m $288.0m $69.1m $20.8m 1c per share Revenue Gross Loan Book Operating EBITDA Operating NPAT Half-year dividend paid Up 26% on pcp Up 6% on pcp Up 21% on pcp Up 4% on pcp 8th straight half-year FY23: $302.7m FY23: $271.4m FY23: $57.2m FY23: $20.1m dividend declared Q1 FY2
Slide 14: Revenue
Revenue Revenue momentum positions us well to achieve our strategic goals Quarterly Revenue ($m) Highlights • Quarterly revenue increased by 1% on pcp to $95.8m driven by strong UK trading results and continued momentum in the Australian business: CAGR: 20% • Stores: Aus and UK retail store revenue
Slide 15: Gross Loan Book
Gross Loan Book Loan Book resilience adapting to regulatory changes and GLA wind-down Gross Loan Book ($m) Highlights • The Gross Loan Book at $274m has remained relatively steady on pcp, CAGR: 18% reflecting strong underlying customer demand • As the GLA (auto) portfolio winds down and the transiti
Slide 16: Quarterly Net Loss Rate
Quarterly Net Loss Rate Enhancing portfolio quality – transitioning product mix Quarterly Net Loss Rate % Highlights 22% pcp • Quarterly Net Loss Rate decreased to 3.7% from 4.8% pcp, well within our target range, demonstrating our ongoing commitment to providing customer-centered financial solution
Slide 17: Outlook
Outlook Grow • Additional franchise store acquisition opportunities under review in our core markets of Australia & UK - following the acquisitions of 50 franchise stores in these markets in FY24 • Underlying credit demand strong in an under-serviced customer segment • Securitisation facility in pla
Slide 18: Appendices
Appendices
Slide 19: ESG Framework
ESG Framework Operating for 40 years, we understand the importance of adding value to the lives of our customers by operating a sustainable business over the long term Environmental Social Governance • Our retail trade is driven by pre-owned (second-hand) • Our business serves as an essential and re
Slide 20: About Cash Converters
About Cash Converters: Cash Converters International Limited (ASX: CCV) is an Australian based consumer lender and second-hand goods retailer with owner operated (corporate) and Franchise operated stores across Australia and overseas. Key corporate markets include Australia, New Zealand and the Unit
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