Credit : H1 FY17 Results Presentation

FY17 H1 Results Presentation

31 January 2017

Thomas Beregi, CEO Michael Eadie, CFO

ANALYTICS & DISCIPLINE

OPERATIONAL EXCELLENCE

SUSTAINABILITY

& COMPLIANCE

• Long-term growth

  • ROE 16% - 18%

• Low gearing

Core Australian / NZ debt buying

• Largest database

• History of pricing accuracy

  Australian / NZ lending

• Leverage knowledge of consumer

• Up-front loss provisioning

• Analytical monitoring

  USA debt buying

• Adapted knowledge to US environment

• Large market opportunity

• Highest asset turnover 1

• Lowest cost to collect 2

• Automated decisioning

• Collection strength

• 35% productivity improvement over pcp in H1 FY17

• Sizeable operation ready to take advantage of improved conditions

• No adverse orders or undertakings

• Low complaint rate

• $1.2bn in ongoing repayment arrangements

• APRs below cap applicable to mainstream credit

• Regulatory upside - no 'payday loans'

• Low regulator complaint rate

• Strong client audit outcomes

1. H1 FY17 annualised ratio of cash collections from PDLs to average PDL carrying value of 1.3x

2. H1 FY17 ratio of cash costs of the Debt Ledger Purchasing segment to collections of 36% H1 FY17 Results Presentation | 2

   H1 FY17 financial results

   H1 FY17 H1 FY16 $ Change % Change

   Debt buying 1 $99.4m $86.1m + $13.3m + 15%

   Lending $29.7m $26.1m + $3.6m + 14%

   Total revenue $129.1m $112.2m + $16.9m + 15%

   Debt buying $22.0m $19.8m + $2.2m + 11%

   Lending $3.2m $1.4m + $1.8m + 129%

   NPAT $25.2m $21.2m $4.0m + 19% EPS (basic) 53.5cps 45.7cps + 7.8cps + 17% Dividend 27.0cps 23.0cps + 4.0cps + 17%

3. Debt buying includes agency activities

H1 FY17 Results Presentation | 3

$180m

$120m

$60m

-

H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 *

PDL acquisitions Net lending

* Includes one-off NCML acquisition

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