Credit Corp Group Limited · ASX:CCP

Credit — Investor Presentation (May 2023)

17 slides from Credit's investor presentation, May 4, 2023

  1. Slide 1: Market Update

    4 May 2023 MARKE T UPDATE Thomas Beregi Michael Eadie CEO CFO Cc Credit Corp Group

  2. Slide 2: Leadership of the credit impaired financial services segment

    Leadership of the credit impaired financial services segment … For personal use only ANALYTICS & DISCIPLINE OPERATIONAL EXCELLENCE SUSTAINABILITY & COMPLIANCE Australian / NZ debt buying  Large database  High asset turnover 1  Low dispute rate  History of pricing accuracy  Low cost to collect 2

  3. Slide 3: Produced record first-half investment

    … produced record first-half investment …  Accelerated growth in Wallet Wizard lending For personal use only  Increased purchasing from existing US forward flows  Investment to moderate in H2 PDL INVESTMENT AND LENDING VOLUME $ 450m $ 400m $ 350m Lending volume (gross) $ 300m $ 250m US debt buyin

  4. Slide 4: On track to convert to earnings in H2

    … which is on track to convert to earnings in H2 … For personal use only NPAT $ 120m $ 100m $ 80m $51m $45m $62m $ 60m $41m $37m $ 40m $ 20m $39m $42m $46m $34m $32m - 1 2 3 FY2019 FY2020 FY2021 FY2022 FY2023 H1 H2 1. FY2020 Pre-COVID NPAT 2. Statutory NPAT of $100.7 million and EPS of 148.9 cents i

  5. Slide 5: With key issues being addressed

    ... with key issues being addressed For personal use only BUSINESS SEGMENT ISSUES RESPONSE Australian / NZ debt buying  Reduced direct from issuer sale volumes  Late H1 one-off secondary purchase  Collections run-off  Deep collection focus  Cost management US debt buying  Excess purchasing  P

  6. Slide 6: Solid AU/NZ operational performance

    Solid AU/NZ operational performance  Operational headcount run-off in line with reduced collections For personal use only AU/NZ COLLECTIONS AND HEADCOUNT $ 100m 1,000 $ 90m 900 $ 80m 800 $ 70m 700 $ 60m 600 $ 50m 500 $ 40m 400 $ 30m 300 $ 20m 200 $ 10m 100 - - Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY202

  7. Slide 7: Improved US performance

    Improved US performance …  Collections uplift  Headcount stabilised For personal use only  Productivity recovering US COLLECTIONS AND ARRANGEMENT BOOK (A$m) US PRODUCTIVITY PER HOUR (A$) $ 60m $400m $400 $ 50m $300m $ 40m $300 $ 30m $200m $200 $ 20m $100m $100 $ 10m - - $0 Q3 FY2022 Q4 FY2022 Q1

  8. Slide 8: US data points to improved investment conditions

    US data points to improved investment conditions …  Potential to resume purchasing in a more favourable environment For personal use only US REVOLVING CREDIT MARKET $ 1,000bn 5% $ 950bn 4% $ 900bn $ 850bn 3% $ 800bn $ 750bn 2% $ 700bn 1% $ 650bn $ 600bn - 2019 2019 2019 2019 2020 2020 2020 2020 202

  9. Slide 9: Consumer lending growth slowed

    Consumer lending growth slowed  March quarter book growth in line with seasonal norm  On track for strong FY24 starting book For personal use only CONSUMER LENDING BOOK AND REVENUE $ 400m $ 361m $ 350m $ 331m $ 300m $ 251m $ 250m $ 200m $ 200m $ 150m $ 161m $ 100m $ 146m $ 110m $ 81m $ 50m - Dec-2

  10. Slide 10: On track to achieve earlier guidance

    On track to achieve earlier guidance For personal use only FY2023 REVISED GUIDANCE FY2023 GUIDANCE CONFIRMED FEB-23 MAY-23 Ledger investment $290 - $295 million $290 - $295 million Net lending $140 - $150 million $140 - $150 million NPAT $90 - $97 million $90 - $97 million EPS (basic) 133 - 143 cent

  11. Slide 11: Appendices - Key Operating Metrics

    Appendices - Key Operating Metrics For personal use only Appendix 1: Pricing discipline and accuracy Appendix 2: Collections life cycle Appendix 3: Productivity Appendix 4: Payers base Appendix 5: Operational and total headcount 11

  12. Slide 12: Pricing discipline and accuracy

    APPENDIX 1 Pricing discipline and accuracy PRICING DISCIPLINE AND ACCURACY For personal use only Cumulative collections $ 5,000m Actual cash $ 4,000m collections $ 3,000m $ 2,000m Initial $ 1,000m projections 1 - 1. For all PDLs held at June 2008, initial projections represent the forecast at June 2

  13. Slide 13: Collections life cycle

    APPENDIX 2 Collections life cycle For personal use only PDL COLLECTIONS BY VINTAGE 1 $ 160m (9%) $ 140m $ 120m 33% 34% 29% 30% 33% 33% 37% $ 100m 33% 33% 32% 32% 33% 35% 40% 36% 32% 34% 34% 12% 12% 19% 18% $ 80m 30% 30% 31% 34% 19% 15% 13% 14% 20% 15% 15% 15% 13% 14% $ 60m 14% 14% 16% 16% 18% 16% 18

  14. Slide 14: Productivity

    APPENDIX 3 Productivity For personal use only PRODUCTIVITY PER HOUR $ 400 $ 350 YTD Mar-23 average $ 300 12m to Mar 23  FY2023: $286 $ 250 12m to Mar-22¹  FY2022: $312 1 $ 200 $ 150 $ 100 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 1. Constant currency basis 14

  15. Slide 15: Payers base

    APPENDIX 4 Payers base For personal use only PORTFOLIO SUMMARY: DEBT BUYING AU/NZ Combined AU/NZ/US 1 Total portfolio Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Mar-23 Face value $8.6b $8.5b $7.9b $11.8b $12.7b $12.7b Number of accounts 1,392,000 1,326,000 1,252,000 2,863,000 2,993,000 2,991,000 Payment arr

  16. Slide 16: Operational and total headcount

    APPENDIX 5 Operational and total headcount For personal use only PERIOD END HEADCOUNT (FTE) Dec-21 Jun-22 Dec-22 Mar-23 2,600 Debt buying 1,285 1,296 1,401 1,360 2,400 operations 2,200 2,000 Agency 223 229 558 1 569 1 1,800 1,600 Lending 129 162 243 242 1,400 1,200 Support 147 153 217 1 204 1 1,000

  17. Slide 17: For more information, please contact

    For personal use only For more information, please contact: Thomas Beregi Michael Eadie Chief Executive officer Chief Financial Officer Tel: +61 2 8651 5777 Tel: +61 2 8651 5542 tberegi@creditcorp.com.au meadie@creditcorp.com.au 17

Credit Corp Group — Investor Presentation (May 2023) on 6ix