Cash Converters International Limited · ASX:CCV
Cash Converters International — FY2020 Earnings Presentation
15 slides from Cash Converters International's earnings presentation, Aug 28, 2020
Slide 1: FY 2020 Results Presentation
FY 2020 Results Presentation 28 August 2020 1
Slide 2: Business Overview
Business Overview CCV 12-month Share Price 16 $0.30 $0.25 Countries $0.20 705 $0.15 $0.10 Stores $0.05 83 622 $- Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Corporate Franchise Corporate Profile (as at 30 June 2020) Shares on issue 616,437,946 68 Australian 84
Slide 3: Business Strengths
Business Strengths Meeting the needs of a growing Diversified product range across Proprietary technology delivering Over 36 years of operation and under-serviced market. lending and retail. high customer satisfaction and through various business cycles. bad debt optimisation. Consistent track recor
Slide 4: FY20 Key Metrics
FY20 Key Metrics $279.0m $62.1m $19.6m Operations Revenue (down 0.9%) Operating^ EBITDA (up 51.5%) Operating^ NPAT (up 63.2%) $106.5m 61.2% $8.4m Cash (up 31.4%) Online lending^^ (up from 55.9%) Online Retail sales (up 42.6%) Customers were impacted dramatically by COVID-19, Loan settlement Lending
Slide 5: Group Performance
Group Performance FY 2020 FY 2019 Var Operating EBITDA^ $62.1m up 51.5% EBITDA Margin Revenue $279.0m $281.6m -0.9% Growth Operating NPAT $19.6m up 63.2% EBITDA Margin (on an Operating^^ Basis) Segment FY 2020 FY 2019 Driver Interest revenue reduction as a result of decreased credit demand offset by
Slide 6: Segment Performance
Segment Performance Personal Finance Franchise Operations • Reduced demand and tightened credit criteria in Q4 FY 2020 resulted in revenue • Total franchise revenue $16.9m (-11.8%) was impacted by store closures in the falling to $115.4m (-7.8%). EBITDA for the period increased to $49.2m (+27.6%) Un
Slide 7: Loan Book Performance
Loan Book Performance COVID-19 Stimulus $250m Loan Books (at 30 June 2020) Compared to pcp $200m SACC Loan Book Loan Book Values $150m GLA $59.2m (down 31.9%) MACC Loan Book $100m SACC $31.2m (down 20.8%) $50m GLA Loan Book MACC $58.3m (down 7.3%) $m Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20
Slide 8: Cash Flow Strength
Cash Flow Strength FY20 FY19 • EBITDA is reported with the Class Action Settlement and EBITDA $19.2m $21.5m associated fees included, reflecting strong operational cash flow generation. Net non-cash items ($1.3m) ($1.4m) Net repayment /(funding) of loan books $46.6m ($29.3m) • Settlements on loan bo
Slide 9: Outlook
Outlook Cash Converters remains confident in its ability to meet its customers’ needs as demand returns. With a strong balance sheet and the advantage of a diversified in-store and online offering Cash Converters has an unmatched opportunity to consolidate its position as the lender and retailer of
Slide 10: Thank you
Thank you 10
Slide 11: Appendix | Reconciliations
Appendix 1 | Reconciliations Reconciled NPAT FY 2020 FY 2019 Var NPAT (statutory) ($10.5m) ($1.7m) -519.8% Class Action Litigation claim & costs (ex. tax) $30.1m $13.7m N/A NPAT Operating^ Basis $19.6m $12.0m +63.2% AASB 16 adoption impact $1.6m - N/A NPAT Comparable^^ Basis $21.2m $12.0m +76.9% Rec
Slide 12: Appendix 2.1 | Reporting Terms
Appendix 2.1 | Reporting Terms Description A new Accounting standard adopted effective 1 July 2019 that changes the way the Group reports for leases, resulting in a AASB 16 Leases reduction in rent expense and an increase in depreciation expense and finance costs. There is no cash effect to the Grou
Slide 13: Appendix 2.2 | Division Details
Appendix 2.2 | Division Details Division Description Royalties and licence fees from 16 countries including a Master Franchisor agreement with Cash Converters UK Ltd (CCUK), and Cash Converters Franchise operations NZ (CCNZ) in which a 25% equity interest is held. Revenue from these stores is derive
Slide 14: Appendix 2.3 | Product Terms
Appendix 2.3 | Product Terms Division Description Personal Finance / CCPF / Financial Unsecured personal loan business transacted online and in-store Services GLA Green Light Auto Group Pty Ltd, a wholly owned subsidiary that provides automotive vehicle finance CA Cash Advance product, a 6-12-week s
Slide 15: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Cash Converters and its activities current at the date of the presentation. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be
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