Cash Converters International Limited · ASX:CCV
Cash Converters International — H1 FY18 Earnings Presentation
16 slides from Cash Converters International's earnings presentation, Feb 19, 2018
Slide 1: H1 FY18 Investor Presentation
H1 FY18 Investor Presentation For personal use only FY17 Investor February 2018 Presentation –22 August 2017 – Mark Reid Mark Chief Executive Reid Officer Chief Executive Officer– –
Slide 2: Disclaimer
Disclaimer For personal use only 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 no
Slide 3: Key Highlights
Key Highlights For personal use only ➢ Exceeded NPAT guidance - $9.4m vs $9.2m H2 FY17 ➢ EBITDA +6% on H2 FY17 ➢ Combined loan book growing on H2 FY17 – up 35% ➢ Bad debt down from 21.5% to 11.3% of principal advanced ➢ Strengthened balance sheet & cash position ➢ UK continuing to improve contributi
Slide 4: Trading Update H1 FY18
Trading Update H1 FY18 For personal use only Loan books growing Revenue growth returning Personal Finance +33% Revenue Green Light Auto +57% stronger H2 FY18 from 30 June 2017 Quality of book Operations Net bad debt written - Strengthened balance sheet off down from 21.5% - Enforceable Undertaking c
Slide 5: Investor Commitments Achievements
Investor Commitments Achievements All comparisons to H1 FY17 unless otherwise indicated For personal use only Medium Amount Credit Contract (MACC) loan book YTD $2.8m per month growth; ✓ growth >$2m per month MACC loan book up 125.0% on H2 FY17 to $30.1m Stabilised Small Amount Credit Contract (SACC
Slide 6: H1 FY18 Key Achievements
H1 FY18 Key Achievements Digital platform delivery For personal use only NPS at record highs GLA maiden profit reported Foundation for Funding secured for the next 3 years growth in place… Enforceable Undertaking (EU) completed with ASIC Improving loan book quality Significant loan book growt
Slide 7: Loan Book & Revenue
Loan Book & Revenue SACC Loan Book For personal use only • Loan book revenue for both __ $77.4m H1 FY18 +14% SACC & MACC on a growth trajectory heading to H2 FY18. __ $68.0m H2 FY17 MACC Loan Book __ $30.1m H1 FY18 +125% Dec/16 Jan/17 Feb/17 Mar/17 Apr/17 May/17 Jun/17 Jul/17 Aug/17 Sep/17 Oct/17 No
Slide 8: H1 FY18 Overview
H1 FY18 Overview For personal use only H1 FY18 H2 FY17 Variance H1 FY17 Variance Consolidated basis ($m) ($m) (%) ($m) (%) • Statutory H1 FY18 NPAT $9.4m exceeding guidance of $9.2m H2 FY17. Revenue 122.9 130.8 -6.0 140.4 -12.5 • Revenue of $122.9 million, delivering EBITDA of $21.5 million. EBITDA
Slide 9: H1 FY18 Divisional EBITDA
H1 FY18 Divisional EBITDA For personal use only Franchise Operations • United Kingdom EBITDA up $0.4m - from $1.0m to $1.4m Divisional* H1 FY18 H2 FY17 Variance H1 FY17 Variance • New Zealand’s 25% equity contribution up $0.3m to $0.5m, EBITDA ($m) ($m) (%) ($m) (%) from $0.2m • Australian EBITDA co
Slide 10: H1 FY18 Balance Sheet
H1 FY18 Balance Sheet For personal use only Dec 17 Jun 17 Variance ($m) ($m) (%) Loan receivables Cash and cash equivalents 99.4 80.6 +23.3 • A strong half year has seen growth across all lending Loan receivables 135.2 102.0 +32.5 products, with the largest growth areas MACC & secured vehicle loans,
Slide 11: Strategy for Growth – H2 FY18 & Beyond
Strategy for Growth – H2 FY18 & Beyond For personal use only 1 - Diversify loan book portfolio Continue NPAT growth from both new/existing products - Invest in digital capabilities creating:- and channels • An enhanced customer experience 2 • Greater operational efficiencies Continue to diversify an
Slide 12: Summary
Summary For personal use only ▪ Key Highlights Recap: “The first half results for the 2018 financial year demonstrate that our transition of the Cash Converters ➢ Exceeded NPAT guidance : $9.4m vs $9.2m H2 FY17 business is achieving all that we set out to do. The significant growth in the ➢ EBITDA +
Slide 13: Appendices
For personal use only Appendices
Slide 14: Appendix 1: Corporate Overview
Appendix 1: Corporate Overview – The Company has a worldwide network of 725 stores in 18 countries For personal use only Cash Converters is a leading – In Australia, there are 152 Cash Converters outlets with over 1,750 employees Australian (and international) franchisor operating in retail, – Opera
Slide 15: Appendix 2: Division Detail
Appendix 2: Division Detail For personal use only Division Description • Royalties and licence fees from 16 countries with franchised Cash Converters operations as well as Cash Converters UK Ltd (CCUK), a wholly owned subsidiary of the Company, which during the previous financial year was restructur
Slide 16: Appendix 3: Glossary of Terms
Appendix 3: Glossary of Terms For personal use only Division Description Personal Finance ; PF ; Financial • Unsecured personal loan business transacted online and in store, short/medium and long term and amount unsecured Services personal loans GLA • Green Light Auto Group Pty Ltd, a wholly owned s
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