Cash Converters International Limited · ASX:CCV
Cash Converters International — Shareholder Meeting (November 2016)
13 slides from Cash Converters International's shareholder meeting presentation, November 2016
Slide 1: AGM Presentation
AGM Presentation November 2016
Slide 2: At this time last year
At this time last year At last year’s AGM, we were facing the following challenges: • The bank had terminated our transactional banking and debt facilities as well as forcing a suspension of our final year dividend. • A Panel had been appointed by Government to review the small amount credit contrac
Slide 3: FY16 Strategy Overview
FY16 Strategy Overview Announced in February 2016 Our strategy is to maximise the value of our brand and franchise network through a focus on high return businesses. • Focus our investment and resources toward maintaining market leadership and sustainable profit growth in Australia. • Operate in the
Slide 4: Strategy Progress
FY16 Strategy Progress We have made good progress with our strategy implementation. • Exited UK corporate stores (44 sold and 15 closed). • Ceased lending in May and expect to have the UK personal loan book closed by December 2016. • Implemented a new UK organisational structure. Now operating as a
Slide 5: Good progress
Good progress We have made good progress on the remaining challenges. • The Government-appointed Panel completed its review of the SACC laws and made 24 recommendations to the Minister in a report dated March 2016. To date, these recommendations are still with the Minister. • We continue to defend t
Slide 6: 2016 Financial Results
converters 2016 Financial Results
Slide 7: Financial Results Summary
FY16 Financial Results Summary 30 June 2016 Full Year ($ million) FY 2016 FY 2015 Statutory reporting basis REVENUE 379.3 374.3 EBITDA 20.4 9.1 EBIT 9.7 (7.5) NPAT (5.3) (21.4) BASIC EPS (cents) for all operations (1.09) (4.69) EBITDA NORMALISED (underlying profit) 71.9 62.7 FULL YEAR DIVIDEND 3 cen
Slide 8: Financial Results Adjustments
FY16 Financial Results Adjustments Normalisation Adjustments FY2016 FY2015 ($ million) Statutory EBITDA 20.4 9.3 Restructure costs 33.3 - Compliance provision now ASIC EU 12.5 - Class action legal fees 2.4 1.8 Agency termination payment - 29.6 Class action settlement - 23.0 Other normalisation adjus
Slide 9: Solid contributions from all segments
FY16 Financial Results Segments Solid contributions from all segments Normalised consolidated segment results ($ million) Segment FY2016 FY2015 Franchise operations 7.1 5.9 Store operations 13.8 15.8 Financial services – admin 13.6 12.5 Financial services – PL 57.9 48.5 Vehicle leasing / finance (2.
Slide 10: Enforceable Undertaking
Enforceable Undertaking • On 4 November 2016 the Company entered into an Enforceable Undertaking (EU) with ASIC. • In accordance with the EU, the Company will remediate certain customers who applied for and were granted small amount credit contracts via the Cash Converters website in the period 1 Ju
Slide 11: FY17 Outlook
FY17 Outlook Efficient execution of strategy continues to be a priority • Demand for our well established retail and pawn broking service remains solid. • UK business returned to profit. • Strategic decision to reduce activity and volume in some SACC market. segments will impact on the Company finan
Slide 12: First Quarter Results
First Quarter Results On track to meet guidance • UK produced an Quarter ending EBITDA profit of Segment $383.7K and 30 September 2016 returned so far $6.3m of cash from loan book Revenue $73,678,386 • GLA Finance EBITDA $13,069,289 produced an EBIT $11,449,941 EBITDA loss of $69K. Loan book at Net
Slide 13: Australia – Regulatory Environment
Regulatory Environment Australia – Regulatory Environment The Government established a panel to review the small amount credit contract (SACC) laws. The panel completed its review and made 24 recommendations to the Minister in a report dated 15 March 2016. To date these recommendations are still wit
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