Credit Corp Group Limited · ASX:CCP

Credit — Shareholder Meeting (November 2021)

17 slides from Credit's shareholder meeting presentation, Nov 4, 2021

  1. Slide 1: AGM Update 2021: Building Momentum

    2 = : p Group @) p) =) , : va S SoA | x + BUILDING (GENERAL MEETING MOMENTUM ene Beregi, CEO LL

  2. Slide 2: Continued leadership in the credit-impaired consumer segment

    For personal use only Continued leadership in the credit-impaired consumer segment … ANALYTICS & DISCIPLINE OPERATIONAL EXCELLENCE SUSTAINABILITY & COMPLIANCE Australian / NZ debt buying  Largest database  Highest asset turnover 1  No adverse orders or undertakings  History of pricing accuracy 

  3. Slide 3: A solid operational start to FY2022

    For personal use only … has delivered a solid operational start to FY2022 …  Collections on track  Strong result despite limited investment  Improved productivity  Q12020 comparative demonstrates impact of Government stimulus on Q12021 result  Operational capacity recovering  Return to more ‘n

  4. Slide 4: A growing purchasing outlook

    For personal use only … and a growing purchasing outlook … PDL INVESTMENT $ 300m $ 250m FY2022 purchasing guidance $ 200m $220 - $240m  Increased share in all markets $ 150m FY2022 purchasing offset by subdued PDL supply pipeline of $210m $ 100m contracted at  Opportunity to accelerate October 202

  5. Slide 5: Supported by industry leading compliance metrics

    For personal use only … supported by industry leading compliance metrics … FY2021 AUS EDR rate 1 12 months to Jun-21 US dispute rate 2 Credit Corp Credit Corp Publicly traded Other debt buyer A  Continued industry leadership debt buyers Publicly traded  Lowest EDR rate in AU 1 and low US dispute d

  6. Slide 6: Potential for additional growth as PDL supply recovers

    For personal use only … with the potential for additional growth as PDL supply recovers …  Strong US credit growth should see charge-off rates increase in  Lockdowns and restrictions in Aus have suppressed unsecured medium-term credit use but consumer credit card usage is increasing as restriction

  7. Slide 7: The capital to seize opportunities as conditions change

    For personal use only … and the capital to seize opportunities as conditions change FACILITY HEADROOM AND GEARING 50% $ 396m $ 400m $ 372m $ 350m $ 350m $ 300m 40% $ 300m  Capital position critical to securing $ 250m $ 212m opportunities like the Collection House PDL $ 200m 30% acquisition $ 150m $

  8. Slide 8: Lending impacted by lockdowns, but recovering strongly

    For personal use only Lending impacted by lockdowns, but recovering strongly  Loan book run off during Q1 FY2022  Strong recovery as lockdown eased in NSW/VIC  Advertising in place to drive volume over the upcoming seasonal peak LENDING VOLUMES INDEXED TO PRE-COVID CONSUMER LENDING BOOK AND REVEN

  9. Slide 9: New product development on track, including US commencement

    For personal use only New product development on track, including US commencement  Pilot underway  Wallet Wizard branded loan US Consumer Lending  Pilot commenced in one state, expanding to 7 over coming months (population: 50 million) Product relaunched in Q4 FY2021 Auto Lending  Record monthly

  10. Slide 10: Refined guidance reflects strong investment pipeline

    For personal use only Refined guidance reflects strong investment pipeline FY2022 initial guidance FY2022 revised guidance Ledger investment $200 - $240 million $220 - $240 million Net lending $45 - $55 million $45 - $55 million NPAT $85 - $95 million $85 - $95 million EPS (basic) 126 - 141 cents 12

  11. Slide 11: Appendices: Key Operating Metrics

    For personal use only Appendices: Key Operating Metrics Appendix 1: Pricing discipline and accuracy Appendix 2: Collections life cycle Appendix 3:Productivity Appendix 4: Operational metrics Appendix 5: Payers base Appendix 6: Operational and total headcount Credit Corp Group AGM Update 2021 Credit

  12. Slide 12: Pricing discipline and accuracy

    APPENDIX 1 For personal use only Pricing discipline and accuracy PRICING DISCIPLINE AND ACCURACY Cumulative collections $ 4,500m $ 4,000m $ 3,500m Actual cash $ 3,000m collections $ 2,500m $ 2,000m $ 1,500m $ 1,000m Initial $ 500m projections 1 - 1. For all PDLs held at June 2008, initial projection

  13. Slide 13: Collections life cycle

    APPENDIX 2 For personal use only Collections life cycle PDL COLLECTIONS BY VINTAGE $ 160m 20%1 $ 140m (3%)1 $ 120m 33% 34% $ 100m 32% 32% 33% 32% 34% 35% 31% 29% 30% 12% 12% $ 80m 31% 32% 33% 32% 30% 30% 32% 13% 14% 30% 32% 18% 15% 16% 16% 13% $ 60m 15% 15% 15% 12% 10% 11% 14% 18% 17% 17% 13% 14% 19

  14. Slide 14: Productivity

    APPENDIX 3 For personal use only Productivity PDL COLLECTIONS PER HOUR $ 350 YTD Oct -2021 average $ 300 FY2022: $323 12m to Sep-21 $ 250 FY2021: $300 1 $ 200 12m to Sep-20 $ 150 $ 100 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 1. Prior year restated for Q1 FY2022 YTD average exchange rate Cred

  15. Slide 15: Operational Metrics

    APPENDIX 4 For personal use only Operational Metrics Q1 FY2022 ∆ Q1 2021 1 ∆ Q1 2020 1 AU/NZ debt buying Collections $93m (7%) 11% Productivity $315 per hour - 13% Operations headcount 2 911 (1%) 4% Payers book 2 $1,512m 10% 18% Q1 FY2022 ∆ Q1 2021 1 ∆ Q1 2020 1 US Collections $37m 6% 48% debt buyin

  16. Slide 16: Payers base

    APPENDIX 5 For personal use only Payers base PORTFOLIO SUMMARY: AU/NZ DEBT BUYING ONLY Total portfolio Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Sep-21 Face value $6.0b $6.2b $6.4b $7.8b $7.7b $8.6b $8.5b $8.2b Number of accounts 710,000 753,000 786,000 1,268,000 1,193,000 1,392,000 1,326,000

  17. Slide 17: Operational and total headcount

    APPENDIX 6 For personal use only Operational and total headcount PERIOD END HEADCOUNT (FTE) PERIOD END HEADCOUNT (FTE) 2,000 Jun-20 Jun-21 Sep-21 1,800 Debt buying 1,378 1,261 1,249 1,600 operations 1,400 Agency 251 218 235 1,200 Lending 118 111 129 1,000 800 Support 135 143 146 600 Total 1,882 1,73

Credit Corp Group — Shareholder Meeting (November 2021) on 6ix