Cash Converters International : Half Year Financial Results Investor Presentation

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H1 FY 2022 Investor Presentation

Cash Converters (ASX:CCV)

February 2022

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About Us

Supporting good borrowers.

We are Australia's leading sub-prime,non-bank lender, providing responsible cash solutions through a well- established store and online network. Our core competency is helping good borrowers with challenging credit files, and we aim to support the millions of Australians excluded by other lenders on this basis.

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1. 37+ years in operation.

1. 85% Brand Awareness in Australia (Nov 2021). o 155 Stores in Australia.
   o 515 Stores overseas.
   o Growing online customer base.
   o New products reaching younger digital customers.

As at 31 December 2021:

1. Share Price $0.27 | Market Cap. ~$160.0m

1. Net Tangible Assets (NTA) 29.59 cents per share. o Cash & Equivalents $64.1m.
   o EV / Operating EBITDA 4.3x.
   o H1 FY 2022 Dividend $0.01c (100% Franked).

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Why Invest?

✓	Revenue Growth.	✓	Market Expansion.	✓	Balance Sheet Strength.	✓	Dividend Yield.
✓	Diversified Model.	✓	New Products.	✓	ESG Focused.	✓	Acquisition Opportunity.

Our Competitive Advantage

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Large Customer Base

Leading Tech Platform

Healthy Balance Sheet

Sustainability

Regulation

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• Transacting with over 20,000 new customers a month.
• NPS 60+ indicates high trust and satisfaction.
• Attracting younger, value and environmentally conscious customers.
• Geographic customer diversification.

• Proprietary platforms built inhouse, growing digital volumes.
• Machine learning powered credit risk models enable lending decisions to credit impaired borrowers.
• Processing over 400,000 loan apps a year, cash disbursed instantly via the New Payments Platform (NPP).

• Over $64.1m in cash, and ~$80.0m in undrawn funding lines.
• Strong profit and operating cash flow generation, supportive financiers with facility headroom.
• Fully franked 2c dividend declared in FY 2021.

• Facilitating circular economy, ~4.0m second- hand transactions conducted each year.
• Inventory predominantly sourced through our stores which act as our supply chain i.e., no manufacturing or warehousing.
• Essential and responsible financial service provider to millions of Australians.

• Already meeting National Credit Act for all products.
• Regulation risk for unregulated lending sectors (e.g. BNPL) presents opportunities.
• Industry leading lending and compliance platform supports new product releases.

H1 FY 2022 Highlights

Revenue Growth | Loan Book Growth | Online Growth | Strong Free Cashflow | Operating Profit Steady | Dividend Declared

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				• 24% of trading days lost to COVID-19.
	$115.2m	$24.4m	$7.7m	•	Strong revenue growth.
Earnings		ECL net expense variance.
			•	Significant loan book growth resulted in $7.7m
Leverage	Revenue (up 23%)	Operating EBITDA (flat)	Operating NPAT (flat)	• Bad debt expense steady at 9.5% of YTD
		average loan book1.

• $0.01c fully franked dividend declared.

	$134.0m	$192.1m	$43.2m	• Personal Finance loan books growing.
Operating		month of December 2021.
			•	$27.6m in MACC2/SACC3 outgoings in single
Leverage	Total Outgoings (up 36%)	Total Gross Loan Book (up 23%)	MACC1 Outgoings (up 123%)	• Vehicle finance outgoings up 543% to $9.6m.
	•	MACC loan book up 111% on December 2020.

Strategy		• Over 1,600 PayAdvance loans written in first few
	weeks of pilot launch, 75% new customers.
Execution		• Line of Credit (LOC) development in progress.
PayAdvance4 Released	Future New Products	• Store network review progressing.
Inorganic Opportunities

	All comparisons are against Previous Corresponding Period (pcp) being H1 FY 2021.
	1.	Bad debt expense as a % of Year-to-Date (YTD) average loan book excludes Pawnbroking loan book.
4	2.	Medium Amount Credit Contract (MACC) is a regulated unsecured personal loan product, transacted in-store and online, up to $5,000.
3.	Small Amount Credit Contract (SACC) is a regulated unsecured personal loan product, transacted in-store and online, up to $2,000. Cash Converters offers 'Cash Advance' and 'Personal Loan' 'SACC' products.
	4.	PayAdvance is an 'Earned Wage Access' product distributed through Cash Converters' My Loans mobile application.

Quality Lending Growth

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	Total Gross Loan Book			Cumulative SACC/MACC Loss Rate1 Since Loan Disbursal
$200m
				2018 Q1		2019 Q1		2020 Q1		2021 Q1

$192.1m

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

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$140.5m COVID low-point

Months Since Disbursal

36%34%23%

2 32% (H1 FY 2021)

8%

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38% (H1 FY 2021)	20% (H1 FY 2021)	3	10% (H1 FY 2021)

$100m

PayAdvance (launched December 2021)

5	1.	Loss rate based on principal written off as a % of principal advanced (outgoings).
2.	Green Light Auto (GLA) is a fully owned subsidiary of CCV offering secured vehicle loans through a network of brokers and dealers.
	3.	Pawnbroking (PB) loan products offered through stores, corporate store loan book balance showing.