Credit Corp Group Limited · ASX:CCP

Credit — Investor Presentation (May 2012)

14 slides from Credit's investor presentation, May 16, 2012

  1. Slide 1: Market Update – 16 May 2012

    For personal use only Market Update – 16 May 2012 Thomas Beregi Chief Executive Officer Michael Eadie Chief Financial Officer

  2. Slide 2: Strong earnings growth continues

    Strong earnings growth continues For personal use only Financials to April 2012 YTD Actual Feb 12 versus pcp 10 Months to Apr12 FY12 Guidance PDL acquisitions up 3% to $77.8m $75 - $85m Revenue up 11% to $104.4m NPAT up 23% to $22.0m $25 - $27m EPS (basic) up 21% to 48.0 cents 55 - 59 cents Unaudite

  3. Slide 3: Further strengthening of balance sheet

    Further strengthening of balance sheet For personal use only Ten months ended $ million 30 Apr 12 30 Apr 11 Operating cash flow 115.4 96.3 PDL acquisitions, lending and capex (83.7) (78.2) Free cash flow 31.7 18.1 PDL / loan book carrying value 139.2 147.0 Net bank debt 1.9 29.5 Net debt / carrying

  4. Slide 4: Purchases meet ingoing projections…

    Purchases meet ingoing projections… For personal use only Cumulative Collections (Initial Expectations versus Actual) (Jul 08 – Apr 12) 750 700 650 600 Actual Cumulative 550 Cash Collections 500 Collections $m 450 400 350 300 250 200 Initial 150 Projections 100 50 - Jun-08 Sep-08 Dec-08 Mar-09 Jun-0

  5. Slide 5: …and we continue to drive collections from older PDLs…

    …and we continue to drive collections from older PDLs… For personal use only PDL Collections by date of purchase 60.0 $m 55.0 50.0 28% 27% 27% 45.0 31% 32% 34% 34% 40.0 31% 9% > 3 years 31% 31% 31% 10% 12% 35.0 19% 8% 2-3 years 29% 27% 11% 7% 28% 7% 20% 1-2 years 30.0 15% 20% 18% 18% 23% 21% 16% < 1

  6. Slide 6: …while maintaining collection efficiency

    …while maintaining collection efficiency For personal use only Debt Purchase Productivity (direct collection staff only) $300 $288 $257 $269 $269 $261 YTD FY12 $275 $268 $260 Average $263 $275 $256 2011/12 $226 $243 $250 $245 $249 $239 2011/12 $266 $224 $241 $231 Ex-Philippines PDL $230 $257 Collect

  7. Slide 7: Our strong payers base suggests this will continue

    Our strong payers base suggests this will continue For personal use only Total Portfolio Apr 12 Dec 11 Jun 11 Dec 10 Jun 10 Dec 09 Face value $3.6bn $3.4bn $3.2bn $2.9bn $2.6bn $2.5bn Number of accounts 578,000 496,000 413,000 319,000 302,000 306,000 Payment arrangements Face value $640m $627m $598m

  8. Slide 8: We continue to increase collection capacity

    We continue to increase collection capacity For personal use only Headcount by function (FTE) 800 700 Support / New Initiatives 600 Mercantile 500 Debt Purchase Operations 400 300 200 100 0 FY09 FY10 FY11 Dec 11 Apr 12 Function FY09 FY10 FY11 Dec 11 Apr 12 Debt Purchase Ops 435 516 615 644 727(1) Me

  9. Slide 9: Strong FY12 purchasing will underpin solid profits in FY13

    Strong FY12 purchasing will underpin solid profits in FY13 For personal use only $92.6m FY12 Purchasing $65m Guide: $84 - $88m Purchases $m $37m $84m Contracted as at Apr 2012 FY09 FY10 FY11 FY12 Actual Actual Actual Current 9

  10. Slide 10: We continue to maintain our purchasing discipline

    We continue to maintain our purchasing discipline For personal use only • Strong levels of competition to secure PDLs have continued to keep prices at high levels • Credit issuers in low growth / cost reduction mode are taking advantage of high prices by selling increased volumes • Operational impro

  11. Slide 11: Consumer lending delivers positive early results

    Consumer lending delivers positive early results For personal use only • Targeting consumers with impaired credit records • Launched two products during H1 – instalment loans < $5,000 – debt consolidation loans • Current loan book of $4.0 million • To date arrears remain within expectations • Net yi

  12. Slide 12: US debt purchasing operation on track

    US debt purchasing operation on track For personal use only • Purchasing in partnership with a local private buyer / collector • Outlay to date of $1.8 million • Early collections are in line with expectations • Credit Corp operations manager relocated to the US to work with our partners • Direct co

  13. Slide 13: Refined guidance

    Refined guidance For personal use only FY12 Updated May 12 Issued Feb 12 PDL acquisitions $84 - $88m $75 - $85m NPAT $26 - $27m $25 - $27m EPS (basic) 57 - 59 cents 55 - 59 cents 13

  14. Slide 14: Market Update – May 2012: Questions

    For personal use only Market Update – 16 May 2012 Questions

Credit Corp Group — Investor Presentation (May 2012) on 6ix