Credit Corp Group Limited · ASX:CCP
Credit — Shareholder Meeting (November 2017)
18 slides from Credit's shareholder meeting presentation, Nov 2, 2017
Slide 1: 2017 Annual General Meeting
For personal use only 2017 Annual General Don McLay, Chairman 2 November 2017 4 Credit Corp Group
Slide 2: 2017 Annual General Meeting Performance Update
For personal use only 2017 Annual General Meeting Performance Update Thomas Beregi, Chief Executive Officer Michael Eadie, Chief Financial Officer 2017 Annual General Meeting | 2
Slide 3: Leadership in the credit impaired consumer segment
=, Leadership in the credit impaired consumer segment... Credit Corp Group + Long-term growth * ROE 16% - 18% DISCIPLINE EXCELLENCE & COMPLIANCE - Low gearing ANALYTICS & OPERATIONAL SUSTAINABILITY Core Australian / NZ debt buying + Largest database * Highest asset turnover 1 * No adverse orders or
Slide 4: Return disciplines have generated sustained performance
Cc ...and return disciplines have generated sustained performance... credit Corp Group Cents per share 140 120 100 80 60 40 20 a oe asta - . eeteee wosocncccesee® ook oe? a ee EPS CAGR 28% FY08 FY09 FY10 FY11 FY12 FY13 ma EPS ROE % 24% 50 FY16 FY17 2017 Annual General Meeting | 4
Slide 5: Positioning CCP for the next wave of opportunity
…while positioning CCP for the next wave of opportunity For personal use only Segment Market conditions CCP response AUS / NZ • Pricing remains strong • Operational momentum from past Debt buying • Indications of segment stress point to purchasing opportunity ahead • Maintain discipline • Utilise ca
Slide 6: Disciplined deployment of financial capacity
=, Disciplined deployment of financial capacity... Credit Corp Group ¢ Reduced core business purchasing outlay due to lower pricing and disciplined bidding * Opportunistic $13m acquisition of Cashfirst book at attractive return « Favourable US pricing means an 14% increase in outlay delivers 31% inc
Slide 7: Supported by ongoing operational improvement
…supported by ongoing operational improvement For personal use only Pricing accuracy and returns on track Efficiency and productive capacity growth • Total cumulative collections above aggregate • Productivity up by 8% over the pcp (YTD October) expectations • US debt buying operations staff up 10%
Slide 8: Consumer lending continues to grow strongly
Consumer lending continues to grow strongly =, Credit Corp Group ¢ Rapid profit growth * Settled loan volumes above pcp NPAT ROA $ 16m steecees 16% $ 12m i. : | 12% $8m : > | a% $4m 4% YTD FY18 FY16 FY17 FY18 Forecast mmm NPAT ——ROA coves ROA (projected) $ 50m $ 40m $ 30m $ 20m $ 10m Loan volumes se
Slide 9: Product superiority critical to Lending success
Product superiority critical to Lending success For personal use only • Pricing below the cap applicable to mainstream lending - Free of supplier / marketing restrictions applicable to competing products - Access to efficient conventional funding - High rates of retention and referral • Integration
Slide 10: US is now delivering earnings growth
cS US is now delivering earnings growth... Credit Corp Group ¢ FY17 labour productivity improved by 20% over the prior year ¢ Sustainable bank of payments established - Payment arrangements now 60% of collections - Litigation pipeline developed ¢ Automation initiatives set to produce further improve
Slide 11: Market conditions have improved
…and market conditions have improved… For personal use only • Reduced demand - Industry consolidation over the past 3 years - Major debt buyer placed into bankruptcy (SquareTwo) 1 • Enlarged supply - Charge-off rates increased from 3.03% (Q2 2016) to 3.54% (Q2 2017) 2 • Competitors report improved r
Slide 12: Accelerating CCP's US expansion
...accelerating CCP’s US expansion Cc Credit Corp Group * Collection headcount growing ¢ Purchasing from new issuers US purchasing and headcount $m Headcount $ 60m 300 $ 40m 200 $ 20m 100 FY15 FY16 FY17 FY18 Pipeline at October 2017 mam PDL purchasing —— Headcount 2017 Annual General Meeting | 12
Slide 13: Updated FY18 guidance
Updated FY18 guidance For personal use only Initial guidance Upgraded guidance Aug 2017 Nov 2017 PDL acquisitions $140 - $170m $170 - $190m Net lending $35 - $45m $35 - $45m NPAT $60 - $63m $62 - $64m EPS (basic) 126 - 132 cents 130 - 134 cents 2017 Annual General Meeting | 13
Slide 14: Appendix - Key operating metrics
For personal use only Appendix - Key operating metrics 2017 Annual General Meeting | 14
Slide 15: Operational metrics - pricing discipline and accuracy
=, ] Appendix 1 | Operational metrics - pricing discipline and accuracy Credit corp Group Cumulative collections $2.5bn Actual cash $2.0bn collections $1.5bn \ Initial projections $1.0bn $0.5bn * For all PDLs held at June 2008, initial projections represent the forecast at June 2008 2017 Annual Gene
Slide 16: Operational metrics - collection life-cycle
For personal use only Cc ij Appendix 2 | Operational metrics - collection life-cycle Credit Corp Group $ 100m PDL collections by vintage OO 30% 80m $ 32% 29% 33% 32% 31% 30% 32% 32% 28% 13% $ 60m 29% 31% 32% 11% $ 40m $ 20m Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 4months Sep-14 Dec-14 Mar-15 Jun-15 Sep-
Slide 17: Operational metrics - productivity
=, {] Appendix 3 | Operational metrics - productivity Credit Corp Group Debt purchase productivity (direct collection staff only) PDL collections per hour $ 300 YTD average FY17: $209 FY18: $225 $ 250 +2e@ + 2017/18 $ 200 —s— 2016/17 $ 150 $ 100 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2017 A
Slide 18: Operational metrics - payers base
For personal use only Cc 7 Appendix 4 | Operational metrics - payers base Credit Corp Group Total portfolio Dec 15 Jun 16 Dec 16 Jun 17 Oct 17 Face value $5.1bn $5.3bn $5.7bn $5.8bn $5.9bn Number of accounts 687,000 673,000 699,000 716,000 710,000 Payment arrangements Face value $1,099m $1,171m $1,2
Credit Corp Group — Shareholder Meeting (November 2017) on 6ix