Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (November 2013)
14 slides from Credit's shareholder meeting presentation, Nov 7, 2013
Slide 1: 2013 Annual General Meeting
For personal use only 2013 Annual General Meeting Don McLay - Chairman
Slide 2: 2013 Annual General Meeting Performance Update
For personal use only 2013 Annual General Meeting Performance Update 7 November 2013 Thomas Beregi Chief Executive Officer Michael Eadie Chief Financial Officer
Slide 3: Positive start to the year
Positive start to the year For personal use only US expansion PDL book at $9m (1) Headcount at 150 (1) Core strength • PDL acquisitions ahead of expectation • NPAT on track Consumer lending growth Loan book to $29m (1), (2) (1) As at 31 October 2013 (2) Gross loan book excluding provisions 3
Slide 4: Continued purchasing discipline
Continued purchasing discipline For personal use only Cumulative Collections (Initial Expectations versus Actual) (July 08 – Oct 13) 800.0 750.0 700.0 650.0 Actual 600.0 Cash 550.0 Collections Cumulative 500.0 Collections 450.0 $m 400.0 350.0 300.0 250.0 Initial 200.0 Projections 150.0 100.0 50.0 0.
Slide 5: Sustained management of collection life-cycle
Sustained management of collection life-cycle For personal use only PDL Collections by date of purchase 75.0 $m 70.0 65.0 23% 60.0 55.0 24% 23% 27% 25% 25% 13% 50.0 27% 28% > 3 years 27% 45.0 31% 32% 13% 14% 2-3 years 34% 34% 13% 17% 40.0 9% 13% 12% 12% 1-2 years 10% 35.0 8% 11% 18% 16% < 1 year 7%
Slide 6: Collection efficiency tracking to expectation
Collection efficiency tracking to expectation For personal use only Debt Purchase Productivity (direct collection staff only) PDL Collections per hour YTD Average: 2013/14 $205 2012/13 $198 6
Slide 7: Solid payers base growth
Solid payers base growth For personal use only Total Portfolio Oct 13 Jun 13 Dec 12 Jun 12 Dec 11 Jun 11 Dec 10 Face value $4.5bn $4.0bn $3.8bn $3.6bn $3.4bn $3.2bn $2.9bn Number of accounts 761,000 711,000 650,000 598,000 496,000 413,000 319,000 Payment arrangements Face value $776m $742m $666m $63
Slide 8: Significant growth in collection capacity
Significant growth in collection capacity For personal use only Headcount by function (FTE) 1200 1100 1000 Lending/Other 900 Support 800 Mercantile 700 600 Debt Purchase Operations 500 400 300 200 100 0 FY09 FY10 FY11 FY12 FY13 Oct-13 Function FY09 FY10 FY11 FY12 FY13 Oct 13 Debt Purchase Ops 435 51
Slide 9: FY14 purchasing pipeline has grown strongly
FY14 purchasing pipeline has grown strongly For personal use only Purchases $137m Revised FY14 Purchasing $m $120m Guide: $110 - $120m $93m $92m $65m $95m Contracted $37m as at 31 October 2013 FY09 FY10 FY11 FY12 FY13 FY14 Actual Actual Actual Actual Actual Current 9
Slide 10: Purchasing conditions remain challenging
Purchasing conditions remain challenging For personal use only > Our share of recurring business has declined as we hold prices > We have benefited from some unexpected one-off purchases > Strong competition has continued with competitors bidding strongly > Recurring supply remains relatively static
Slide 11: Performance and growth in the US
Performance and growth in the US For personal use only > Recent performance is at pro-forma levels > Roll-out of Salt Lake City site has lifted headcount to 150 FTE > US purchasing environment remains in flux: ‒ Regulatory change has temporarily reduced supply ‒ Prices have escalated as buyers chase
Slide 12: Accelerated growth in consumer lending
Accelerated growth in consumer lending For personal use only > Loan book has increased to $29m(1) > Majority of the loans written are unsecured instalment loans − Terms of 1-3 years and amounts up to $5,000 − For consumers with previous credit defaults − Digital media advertising driving growth > Ar
Slide 13: Refined guidance
Refined guidance For personal use only FY14 Updated Nov 13 Issued Aug 13 PDL acquisitions $110 - $120m $70 - $90m NPAT $31 - $33m $31 - $33m EPS (basic) 67 - 71 cents 67 - 71 cents 13
Slide 14: General Questions
For personal use only 2013 Annual General Meeting General Questions
Credit Corp Group — Shareholder Meeting (November 2013) on 6ix