Cash Converters International Limited · ASX:CCV
Cash Converters International — FY2021 Earnings Presentation
18 slides from Cash Converters International's earnings presentation, Aug 30, 2021
Slide 1: FY 2021 Investor Presentation
FY 2021 Investor Presentation 30 August 2021
Slide 2: Cash Converters
Cash Converters As Australia’s largest sub-prime, non-bank lender, we are delivering value through an omni-channel network with high brand recognition and a large loyal customer base. Our Vision An established brand with over 37 years of experience and customer data, now leveraging technology to inn
Slide 3: Our Ecosystem
Our Ecosystem Growing online presence complementing our 155 Australian stores, serving a large and growing customer base in growing markets. High customer satisfaction NPS 611 Retail Personal Finance Vehicle Finance $46b+ Australian Circular Economy2 $2bn+ Australian Sub-prime Market Demand3 512k+ A
Slide 4: New Product Strategy
New Product Strategy FY 2022 will see the introduction of new low-cost cash solutions that leverage our new Current Product Stats technology and platform to better meet customer needs. Personal Finance • Customers traditionally entered our Personal Finance business via Cash Advance1 loans. • We are
Slide 5: Our Cash Solutions
Our Cash Solutions New product releases will continue to transition our personal finance offering away from short-term, high-loss products to lower-cost, longer- term cash solutions to meet our customers needs. Short Term – High Loss Long Term – Low Loss Early Wage Access SACC1 MACC2 Risk-rated Vehi
Slide 6: Our Strategy
Our Strategy We continue to grow our customer reach, innovate new product releases and focus on operational excellence to deliver shareholder value. Product Development Australian Network Expansion Operational Excellence FY 2021 FY 2021 FY 2021 Enhance existing product suite Expand network to reach
Slide 7: FY 2021 Financial Results
FY 2021 Financial Results cashédnverters
Slide 8: FY 2021 Highlights
FY 2021 Highlights Strong earnings growth despite recurring lockdowns reflects significant investment in digital assets and underlying business momentum. Strong Financial Result (pcp unless otherwise indicated) Quality Underwriting & Collections Improvements Revenue $201.3m (down 23%) Gross bad debt
Slide 9: Segment Earnings
Segment Earnings The Cash converters business model evolution has seen the Personal Finance segment grow to contribute over 53% of earnings 1 $38.6m $13.8m $11.7m $8.4m Personal Finance Corporate Stores Vehicle Finance Franchising Personal Finance – 53% of EBITDA Personal Finance is the largest cont
Slide 10: Origination Recovery
Origination Recovery Accelerating credit demand in the second half pushed personal finance loan applications up 32% and vehicle finance applications up 125% respectively (H2 on H1 FY 2021). Monthly Outgoings $25m 3 SACC 1 MACC 2 GLA $20m $15m $10m $5m $m Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan
Slide 11: Loan Book Recovery
Loan Book Recovery COVID-impacted short term loan books are growing strongly, up 27% from FY 2021 low point. COVID Stimulus $250m $231.1m Gross Loan Books 31 Dec 2019 30 Jun 2020 31 Dec 2020 30 Jun 2021 Y-o-Y $210.5m $178.1m Loan Book $93.0m $63.1m $59.8m $67.6m $200m SACC1 +7% COVID-affected low-po
Slide 12: Free Cash Flow
Free Cash Flow Earnings recovery, borrowing optimisation and investing activities are facilitating shareholder returns. 30 June 2021 30 June 2020 Variance • $45.3m EBITDA has delivered strong operational cash flow, utilised to fund loan book $'000 $'000 $'000 and inventory rebuild. EBITDA 45,312 19,
Slide 13: Outlook
Outlook We have steadily repositioned our business to capitalise on market opportunities as they occur. Our Business Our Market ✓ Significant investment in digital strategy over recent years. o Overall economic health and credit demand returning. ✓ Moving away from higher cost, short term lending. o
Slide 14: Thank You
Thank You cashédnverters
Slide 15: Appendix 1: Reconciliations
Appendix 1: Reconciliations 30 June 2021 30 June 2020 $’000 $’000 EBITDA1 45,312 19,168 Class Action settlement - 42,500 Class Action legal fees - 448 Normalised EBITDA 45,312 62,116 EBIT 28,800 (693) Class Action settlement - 42,500 Class Action legal fees - 448 Normalised EBIT 28,800 42,255 Profit
Slide 16: Appendix 2: Sustainability Update
Appendix 2: Sustainability Update A partnership has been formed between Carrefour and Cash Converters to ‘promote more sustainable consumerism’. Carrefour is a French based global hypermarket operator with over 12,225 stores in over 30 countries reaching some 104 million households a year worldwide,
Slide 17: Appendix 2: Sustainability Update Continued
Appendix 2: Sustainability Update Continued Environmental and social risks where the Board considers that Cash Converters has exposure include: • Reducing the environmental impact of landfill by facilitating the recycling and repurposing of products through our circular (re-use) retail operation; •
Slide 18: 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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