Credit Clear Limited · ASX:CCR
Credit Clear — H1 FY2023 Earnings Presentation
16 slides from Credit Clear's earnings presentation, Feb 28, 2023
Slide 1: 1H FY23 Results Presentation
For personal use only 1H FY23 Results Presentation ASX: CCR | 28 February 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by, and is the sole responsibility of Credit Clear No representation or warranty, express or implied, is made by any person as to the Limited ACN 604 797 033 (Company). The information contained in this presentation fairness, accuracy, completeness or c
Slide 3: Business overview
Business overview For personal use only Diverse client base, Unmatched hybrid from energy providers, An ASX-listed technology service offering (digital Credit Clear’s technology water utilities, telco company that is and traditional) that has improves customer operators, state and local disrupting t
Slide 4: Credit Clear: Our mission
Credit Clear: Our mission Our mission is to dramatically improve the customer experience during the debt collections process and For personal use only thereby enhance the collections outcome for our clients (collect more and collect faster). CUSTOMER QUOTES: “ As I'm on a disability pension & alread
Slide 5: Strong revenue growth and sustainable profitability
Strong revenue growth and sustainable profitability For personal use only $17.4m 964 950,129 $1.0m $9.3m 1H FY23 Revenue1 Total clients Active files Normalised EBITDA2 Cash +17% on 2H22 182 new clients +14% on 2H22 +114% on 2H22 (nil debt) +161% PCP +176% PCP +67% PCP Revenue ($m) Active files Norma
Slide 6: 1H FY23 Highlights
1H FY23 Highlights For personal use only Revenue Profitability Clients Technology • Strong growth in revenue of • Achieved positive cash flow • Signed 182 new clients in • Developed technology to 17% on 2h22 to $17.4m1 from operations with a gross 1H23 automate and optimise • Growth driven by new an
Slide 7: 1H revenue growth from new clients
1H revenue growth from new clients For personal use only Revenue ($m)1,2 Revenue 20 • Targeting materially larger clients that 18 are deeply imbedded 17% 16 • $0.7m revenue booked from new clients 14 signed in 1H23, or 12% of the $6.2m expected annual revenue 12 • Depending on client preparedness an
Slide 8: EBITDA - Normalised vs Statutory Result
EBITDA - Normalised vs Statutory Result For personal use only 1H'22 2H'22 1H'23 $000's $000's $000's Normalised EBITDA Normalised EBITDA Pre Tech Dev ($m) Revenue 6,651 14,811 17,374 2 Expenses Employee Benefits (4,481) (9,095) (10,675) 1 114% Other (3,619) (5,264) (5,731) - Normalised EBITDA Pre Te
Slide 9: The digital customer wave
The digital customer wave For personal use only 50% decline Open rate in letters for SMS is being sent 94%* On average people 87% of people spend 5.5 hours of the won't answer the phone day on their phones to numbers that they don’t recognise 54% of people get frustrated if they 86% open can’t send
Slide 10: Strong growth in digital collections
Strong growth in digital collections For personal use only Digital collections ($m) Transactions processed 35,000.00 7000 30,000.00 35% 6000 37% 25,000.00 5000 20,000.00 4000 15,000.00 3000 10,000.00 2000 5,000.00 1000 - 0 1H FY22 2HFY22 1HFY23 1H FY22 2HFY22 1HFY23 • Developed technology to automat
Slide 11: Multiple tailwinds driving growth
Multiple tailwinds driving growth For personal use only Fewer competitors Cost of living Less debt being sold • M&A activity has driven • High inflation impacting consumers • Companies are less likely to sell consolidation in the industry and across the income spectrum debt than pre-2020 and debt al
Slide 12: Data from ARMA's Consumer Collections Division
Data from ARMA’s Consumer Collections Division For personal use only Consumers are in more debt More debt being referred to ARMA Date #Referrals Ave. Debt Date #Referrals Total value Ave. Debt Control group Jan 2022 19,814 $696 Total referrals Jan 2022 22,132 $12,761,594 $577 Jan 2023 20,762 $977 Ja
Slide 13: Board update
Board update For personal use only Paul Dwyer: Hugh Robertson: Andrew Smith: Chairman Non-executive director MD and CEO Co-founder PSC Insurance, extensive Director, Bell Potter Securities, Co-founder ARMA Group, owner global growth experience and deep extensive capital markets experience, operator
Slide 14: Outlook
Outlook For personal use only WHERE ARE WE CURRENTLY? • CCR has annualised revenue of $34.8m1 • Adding additional expected revenue of $5.3m from new clients already signed in 1H23, puts the business on an annual revenue run rate of $40.1m $2.5bn • Consistently adding ~30 clients each month and in di
Slide 15: Q&A
For personal use only Q&A 15
Slide 16: Thank you for joining us today
For personal use only Thank you for joining us today