Cash Converters International Limited · ASX:CCV
Cash Converters International — Investor Presentation (July 2024)
19 slides from Cash Converters International's investor presentation, Jul 30, 2024
Slide 1: TechKnow Investor Roadshow
TechKnow Investor Roadshow Sam Budiselik CEO & Managing Director Full-year period ended 30 June 2024 (unaudited) Cash Converters International Limited (ASX:CCV) July 2024
Slide 2: Who We Are
Who We Are • Established in Perth in 1984 we listed on the ASX in 1997 (ASX:CCV) • From a single store in WA retailing pre-owned goods and pawnbroking, the business has grown to become an international brand • We now have more than 150 stores in Australia with a total of 669 stores across 17 countri
Slide 3: Video: Sunshine Store, VIC
Video: Sunshine Store, VIC 3
Slide 4: Our Purpose
Our Purpose • We exist to provide choice and opportunity for all. • For many Australian households, financial issues are a feature of daily life. • We make aspirational purchases possible by repurposing inventory. • We work to eliminate financial bias for up an estimated 3 million Australians who su
Slide 5: Our Business Model
Our Business Model Customers Channels Technology Activities Revenue Streams Retail Buy/Sell In-house developed Corporate Retail Point of Sale Stores Retails sales from platform second hand goods & pawnbroking Pawnbroking In-house developed Franchise Loans Management Stores Interest revenue from syst
Slide 6: Our Global Network
Master Franchisor = Cash Converters Our Global Network Master Franchisor = Partner Across Australia, New Zealand and the United Kingdom, Cash Converters operates 143 United Corporate owned stores and is the Master Franchisor of a franchise network of stores. Kingdom 47 United Belgium Kingdom The bal
Slide 7: Our Technology
Our Technology Proprietary machine learning based credit risk tools, trained using over 170m data points Over 770,000 loan applications scored and assessed each year Open Banking, New Payments Platform, Custom Banking Infrastructure AI enabled product authentication enabling new markets App and mobi
Slide 8: Pre-Owned Retail is Changing…
Pre-Owned Retail is Changing… AI-powered solutions for product verification enabling new luxury markets, authenticating handbags, verifying lab grown diamonds... 8
Slide 9: Our Finance Customers
Our Finance Customers Loan Applicant Age 40% 35% • Large… and growing customer base 30% • Primary market is sub-prime and near-prime borrowers 25% 20% • These segments represent almost $16b of credit 15% applications* 10% • Loan applicant age concentrated around the 26-35 and 5% 36-45 ranges 0% 18-2
Slide 10: Market Size – credit originations
Market Size – credit originations We are the largest operator offering small and medium loans in our markets. CCV originations – calendar year 2023 SACC Moving away from short term lending $99m Sub-prime Near-prime MACC Growing longer term, lower cost options $680m $3,470m $112m LoC New market entry
Slide 11: The Business Opportunity
The Business Opportunity Leverage customer data insights to develop and improve our product offering Optimise Enhance technology platforms to drive efficiency gains and improve customer experience Empower and develop our people to improve effectiveness of the business model across all channels Execu
Slide 12: Financial Highlights
Financial Highlights
Slide 13: FY24 : Unaudited Financials
FY24 : Unaudited Financials • Revenue up 26% pcp to $382.6m • Net Operating Profit – is not expected to differ materially from the prior period • Gross Loan Book up 6% pcp to $288.1m – product mix change executed • Corporate Store retail revenue increased 11.0% on pcp in Australia, with over 600,000
Slide 14: Strategy and Outlook
Strategy and Outlook Where the Company is the Master Franchisor our primary focus remains on allocating capital to franchise store acquisitions and growing loan books. ✓ Underlying credit demand growing in an under-serviced customer segment; ✓ Increased regulatory focus on non-regulated credit produ
Slide 15: Thank you
Thank you
Slide 16: Appendices
Appendices
Slide 17: Gross Loan Books ($m)
Gross Loan Books ($m) 30 Jun 2024 PCP Jun 2024 vs AUD Millions 30 Jun 2021 30 Jun 2022 30 Jun 2023 31 Dec 2023 Jun 2024 vs Jun Dec 2023 (unaudited) 2023 Loan Book 67.6 75.6 78.0 63.1 54.9 1 Small Loan -30% -13% % Of Total 38% 35% 29% 21% 19% Loan Book 49.4 76.1 99.9 110.2 106.9 7% -3% Medium Loan2 %
Slide 18: ESG Framework
ESG Framework Operating for over 40 years, we understand the importance of adding value to the lives of our customers by operating a sustainable business over the long term. Environmental Social Governance • Our retail trade is driven by pre-owned (second-hand) • Our business serves as an essential
Slide 19: 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 relied upon
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