Credit Corp Group Limited · ASX:CCP

Credit — Shareholder Meeting (November 2011)

14 slides from Credit's shareholder meeting presentation, Nov 8, 2011

  1. Slide 1: 2011 Annual General Meeting

    For personal use only 2011 Annual General Meeting YTD to October 2011 update 8 November 2011 Thomas Beregi Chief Executive Officer Michael Eadie Chief Financial Officer

  2. Slide 2: Strong start to the year

    Strong start to the year For personal use only FY12 Financials versus prior Four months to Aug 11 FY12 year Oct 11 Actual Guidance PDL acquisitions up 1% to $23.8m $45 - $65m PDL collections and fee income up 14% to $77.8m Revenue up 19% to $44.1m NPAT up 31% to $10.4m $21 - $23m EPS (basic) up 28%

  3. Slide 3: Strong balance sheet platform

    Strong balance sheet platform For personal use only Four months ended $ million 31 Oct 11 31 Oct 10 Operating cash flow(1) 46.0 35.4 PDL acquisitions and capex (24.8) (25.6) Free cash flow 21.2 9.8 PDL carrying value 136.6 139.5 Net bank debt 7.2 33.5 Net debt / carrying value (%) 5.1% 24.0% (1) Ope

  4. Slide 4: Purchases meet ingoing projections

    Purchases meet ingoing projections… For personal use only Cumulative Collections (Initial Expectations versus Actual) (July 08 – Oct 11) 650 600 550 500 Actual Cumulative 450 Cash Collections 400 Collections $m 350 300 250 200 150 Initial 100 Projections 50 - Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-0

  5. Slide 5: We continue to drive collections from older PDLs

    …and we continue to drive collections from older PDLs… For personal use only PDL Collections by date of purchase 60.0 $m 55.0 50.0 28% 45.0 31% 32% 34% 34% 40.0 31% 31% 9% > 3 years 31% 35.0 31% 19% 29% 8% 2-3 years 27% 11% 7% 7% 30.0 28% 15% 21% 1-2 years 18% 21% 19% 16% 18% < 1 year 25.0 22% 21% 1

  6. Slide 6: While maintaining collection efficiency

    …while maintaining collection efficiency For personal use only Debt Purchase Productivity (direct collection staff only) $275 $256 $257 $255 $250 $243 $245 $245 $239 $241 $238 $235 $230 2011/12 $227 $224 $236 $225 $231 2010/11 $231 PDL $228 $228 $226 $225 $224 $224 Collections per hour $213 $211 $20

  7. Slide 7: Our strong payers base suggests this will continue

    And our strong payers base suggests this will continue For personal use only Total Portfolio Oct 11 Jun 11 Dec 10 Jun 10 Dec 09 Jun 09 Dec 08 Face value $3.3bn $3.2bn $2.9bn $2.6bn $2.5bn $2.2bn $2.2bn Number of accounts 449,000 413,000 319,000 302,000 306,000 284,000 319,000 Payment arrangements Fa

  8. Slide 8: We have increased collection capacity

    We have increased collection capacity… For personal use only Headcount by function (FTE) 700 600 Support / New Initiatives 500 Process Serving / Mercantile 400 Debt Purchase Operations 300 200 100 0 FY07 FY08 FY09 FY10 FY11 Oct 11 Function FY07 FY08 FY09 FY10 FY11 Oct 11 Debt Purchase Ops 294 405 43

  9. Slide 9: Offshore operations driving recent growth

    Offshore operations driving recent growth For personal use only • Commenced in November 2010, grown to 106 FTE in October 2011 • Replaced existing offshore third party collection agents • Collecting into Australia and New Zealand • Profitable in 5th month of operation • Located in Manila, the Philip

  10. Slide 10: Solid FY12 purchasing pipeline

    Solid FY12 purchasing pipeline For personal use only $92.6m $65m $65m FY12 Purchasing Purchases Guide: $50 - $37m $65m $46.7m Contracted as at Oct 2011 FY09 FY10 FY11 FY12 Actual Actual Actual 10

  11. Slide 11: We will maintain our purchasing discipline in FY12

    …while we will maintain our purchasing discipline in FY12 For personal use only • Credit Corp continues to improve operational execution to maintain attractive PDL prices • Recent evidence that competitor pricing is beyond the levels required to meet our minimum return criteria • FY12 purchasing gui

  12. Slide 12: In FY12 we will deliver solid results leveraging recent initiatives

    In FY12 we will deliver solid results while leveraging recent initiatives to produce sustained performance For personal use only • Continue to improve operational performance ƒ in-house technological innovation ƒ asset management ƒ low cost platform • Utilise platforms developed in FY11 to ƒ initiat

  13. Slide 13: Revised guidance

    Revised guidance For personal use only FY12 Updated Nov 11 Issued Aug 11 PDL acquisitions $50 - $65m $45 - $65m NPAT $23 - $25m $21 - $23m EPS (basic) 50 - 55 cents 46 - 51 cents Guidance excludes potential shareholder litigation costs over the balance of the year 13

  14. Slide 14: General questions

    For personal use only 2011 Annual General Meeting General questions

Credit Corp Group — Shareholder Meeting (November 2011) on 6ix