Ann: Investor Presentation-CCV.AX, page-2

My notes from the presentation. Looks like another tough year ahead I'm afraid. Note the point RF made about M3 in answer to Noels question:

CCV Presentation – 30 August 2016

Peter Cummins and Ralph Froome

Initially Peter talked through the Investor Presentation. Some points: Building the GLA business as a secured loan book. MACC product to be released Nov-2016. Further investment to go into webshop. 25% interest in CCV NZ to be expanded. NPAT in 2017 to be in 20-23million. Moving away from certain customer segments within SACC. Reduction of the SACC volumes to hit the bottom line for short to medium term. New MACC product forecast to take up the $ drop from the SACC over the next few years.

Q&A
Romano – Catana Asset Mgt:

Q – What % of SACC loans are currently under review. Does this tie into the Senate Panel Review? How does this relate to ASIC?
A – 30% of loans in that segment. It is separate to the senate review but it does capture the lower income clients who would be part of that review. ASIC have advised us not to say anything about that process.
Q Your forecast indicates a sizeable reduction in underlying profit? Why? Is it the move away from the SACC?
A Yes, attributable to a reduction in SACC lending. Preference is now to build a sustainable MACC based business. Moving away from the negativity associated with SACC. Won’t walk away from SACC altogether however but move away from that lower end of the market..

J Stewart - Hartleys

Q This is the first time you provided guidance, strange given the uncertain regulatory environment. Why have you provided 20-23m. Would it capture CCV being in compliance with the panel review recommendations?

A: We have based that number based on our assessment of the transition away from the market segment SACC. Can’t really comment on impact of other regulation but tried to take into account in forecast. No change to div policy.
Q Full tax rate in 2017? Work back up to EBITDA?
A Yes full tax rate? EBITDA agreed to be in the region of 50 million.

J Hodder-  Helms Capital

Q The 20-23 number. Does it included possible one offs for 2017 year. Could any items written out as part of this forecasting processbe written back in? What do you sell through webshop? Any chance you might take over SACC services from the government?
A Nothing on the horizon in relation to one offs that we are aware of. Any additional amounts that may be written back are not included in that forecast. The webshop is accessible to all corporate stores and makes it available to put all their merchandise on line. In terms of SACC there is no chance of being contracted as the SACC provider for the federal government.

Noel – (Super fund?)

Q Cash converters and Money3 in SACC segment but M3? Is it possible to operate effectively in this segment?
A Money3 may have announced an ASIC investigation? Cant comment as ASIC investigations are ongoing but it is possible to stay profitable in this segment
Q Online personal lending business are they in the MACC segment?
A Yes. There are a variety of segments that relate to the online space.