Credit : Appendix 4D and Interim Financial Statements December 2021

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personalForCredit Corp Group Limited ABN 33 092 697 151

Appendix 4D and

Consolidated Interim

Financial Statements

For the period ended 31 December 2021

CONTENTS

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Appendix 4D half-year report Directors' report

Auditor's independence declaration Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

1. Summary of significant accounting policies
2. Operating segments
3. Revenue
4. Income tax expense
5. Dividends paid and proposed
6. Issuances, repurchases and repayments of equity securities
7. Significant business transactions
8. Contingent liabilities
9. Events subsequent to reporting date
10. Fair value measurement

Directors' declaration

Independent auditor's review report

Historical analysis of performance

Corporate directory

These interim financial statements do not include all the notes of the type normally included in the annual financial statements. Accordingly, these statements are to be read in conjunction with the annual financial statements for the year ended 30 June 2021 and any public announcements made by Credit Corp Group Limited during the half-year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

CREDIT CORP GROUP LIMITED  |  APPENDIX 4D AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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APPENDIX 4D HALF-YEAR REPORT

For the half-year ended 31 December 2021

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Details of the reporting period and the prior corresponding period

Current period:	1 July 2021 to 31 December 2021
Prior corresponding period:	1 July 2020 to 31 December 2020
Results for announcement to the market	31 Dec 2021	31 Dec 2020	Change
Key information		$'000	$'000	%
Revenue		203,879	187,994	8%
Profit from ordinary activities after tax attributable to members	50,183	42,277	19%
Profit attributable to members of the Group	50,183	42,277	19%
				Franked amount
Dividends per ordinary share		Amount per security	per security
2021 Final dividend			36.0 cents	100%
2022 Interim dividend (declared, not yet provided at 31 December 2021)		38.0 cents	100%
Dividends per ordinary share
2021 Final dividend				10 Sep 2021
2022 Interim dividend				11 Mar 2022

Commentary

Please refer to the H1 of 2022 Media Release and the Interim Financial Statements for the half-year ended 31 December 2021 for further explanations of the figures presented at 2.1 - 2.4 above.

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Net tangible assets per ordinary share

			31 Dec 2021	31 Dec 2020
Security			$	$
Ordinary shares			9.84	9.44
Control gained or lost over entities during the period, for those having material effect
No entities were acquired or disposed of during the period which have material effect.
Dividend payments		Total	Franked /
	Cents per share	$'000	unfranked	Payment date
Ordinary share capital
2021 Interim dividend	36.0	24,221	Franked	11 Mar 2021
2021 Final dividend	36.0	24,221	Franked	10 Sep 2021
		48,442
2020 Interim dividend	36.0	19,758	Franked	13 Mar 2020
2020 Final dividend	-	-	N/A	N/A
		19,758

After 31 December 2021 the following dividends were proposed by the directors. The dividends have not been provided for and there are no income tax consequences.

2022 Interim dividend	38.0	25,776	Franked	11 Mar 2022

Dividend or distribution reinvestment plan details

The Dividend Reinvestment Plan (DRP) of Credit Corp Group Limited (the Group) will not apply to the interim dividend.

Investments in associates and joint ventures

No investments in associates and joint ventures are held by the Group.

Accounting standards used by foreign entities

Not applicable as the Group is not a foreign entity.

Audit dispute or qualification

The interim financial statements for the half-year ended 31 December 2021 have been subject to review and are not subject to dispute or qualification.

CREDIT CORP GROUP LIMITED  |  APPENDIX 4D AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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DIRECTORS' REPORT

The directors submit the financial statements of Credit Corp Group Limited and controlled entities (the Group) for the half-year ended 31 December 2021. Credit Corp Group Limited (the Company) is the parent entity of the Group.

DIRECTORS

The names of the Company's directors who held office during the reporting period and until the date of this report are:

Mr Eric Dodd	Chairman (Non-Executive)
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Ms Leslie Martin	Director (Non-Executive)
Mr Richard Thomas	Director (Non-Executive)
Ms Trudy Vonhoff	Director (Non-Executive)
Mr Phillip Aris	Director (Non-Executive)
Mr James Millar	Director (Non-Executive)
Mr Donald McLay	Director (Non-Executive)

PRINCIPAL ACTIVITIES

(appointed 15 July 2021)

(appointed 21 December 2021)

(retired 18 November 2021)

The principal activities of the Group during the half-year were debt purchase and collection as well as consumer lending.

useREVIEW OF OPERATIONS OVERVIEW

The directors of the Group report a net profit after tax (NPAT) of $50.2 million for the first half of the 2022 financial year. The highlights include the following:

- 8 per cent increase in NPAT to $45.7 million.

- 9 per cent growth in the consumer loan book over the half to $200 million.

- Record half-year investment driven by a step up in US purchased debt ledger (PDL) investment to $150 million+ per annum and the Radio Rentals acquisition.

- On track for strong earnings growth across all segments over the full year.

personalSecondary purchases of the Collection House and Radio Rentals books grew the Australian/New Zealand debt buying segment collections by 6 per cent and NPAT by 5 per cent over the prior corresponding period (PCP). While market volume remains subdued organic purchasing continues to recover, reaching its highest level since the start of the pandemic.

The recently completed Radio Rentals acquisition is expected to sustain collections over the second half in advance of a recovery in organic purchasing. Credit Corp continues to enjoys strong purchasing relationships and is well-positioned as unsecured credit balances recover and charge-off volumes normalise.

In the US, Credit Corp has grown its market share to offset a contraction in PDL supply arising from the pandemic. The Company has secured a full year pipeline of more than $150 million. The outlook is for a strong recovery in PDL supply over the medium term as US consumers rapidly increase their use of unsecured credit.

Australian/New Zealand consumer lending demand accelerated over the December quarter as key markets emerged from COVID lockdown. Record monthly originations were recorded in December.

High settlement volumes suppressed first-half segment earnings due to up-front expected life-of-loan loss provision expense but produced a $200 million loan book at the close of the period. Higher interest revenue derived from the increased book will produce an improved second-half NPAT.

Several lending pilots commenced during the period including the Wizpay Buy Now, Pay Later product, the auto loan re-launch and the US instalment loan pilot. The acquisition of the Radio Rentals business assets has accelerated existing plans to enter the sale of goods by instalment market and adds to the suite of lending pilots already underway. All pilots utilise Credit Corp's leading technology

latform including fast online decisioning and superior collections.

OUTLOOK

ForThe Company is on track to grow earnings in all segments after record first-half investment. Credit Corp remains debt free with undrawn credit lines intact for any one-off opportunities and continued investment growth as market conditions allow.

AUDITOR'S INDEPENDENCE DECLARATION

The auditor's independence declaration, as required under section 307C of the Corporations Act 2001, is set out on page 5. This report is made in accordance with a resolution of the Board of Directors.

ERIC DODD	JAMES MILLAR
Chairman	Non-Executive Director
1 February 2022	1 February 2022

CREDIT CORP GROUP LIMITED  |  APPENDIX 4D AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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AUDITOR'S INDEPENDENCE DECLARATION

For personal use only

CREDIT CORP GROUP LIMITED

ABN 33 092 697 151

AND CONTROLLED ENTITIES

AUDITOR'S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF CREDIT CORP GROUP LIMITED

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Credit Corp Group Limited. As the lead audit partner for the review of the financial report of Credit Corp Group Limited for the half-year ended 31 December 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

1. the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
2. any applicable code of professional conduct in relation to the review.

HALL CHADWICK (NSW)

Level 40, 2 Park Street

Sydney NSW 2000

SANDEEP KUMAR

Partner

Date: 1 February 2022

SYDNEY · PENRITH · MELBOURNE · BRISBANE · PERTH · DARWIN

Liabillity limited by a scheme approved under Professional Standards Legislation

www.hallchadwick.com.au

CREDIT CORP GROUP LIMITED  |  APPENDIX 4D AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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