Credit Corp Group Limited (CCP) 2022年年度報告「ASX」.pdf

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1、MOMENTUMCREDITCORPGROUP.COM.AUANNUAL REPORT 2022BUILDINGThe Wallet Wizard brand is created,offering the lowestcost and most sustainable option for customers in the creditimpaired consumer segment.Credit Corp undertakes the first debt sale transaction in Australia.Credit Corp is listed on the ASX on

2、4 September 2000.Credit Corp partners with Uniting Kildonan.Credit Corp launches its consumer lending business.Credit Corp commences US operations.201420141985198520002000200920092011201120122012THIS IS CREDIT CORPTHIS IS CREDIT CORPCredit Corp is Australias largest provider of sustainable financial

3、 services in the creditimpaired consumer segment.We are committed to providing sustainable and responsible financial solutions for our customers,with the goal of improving their financial situation.Our success and reputation is based on a culture of strong compliance systems and transparency,combine

4、d with a respectful and understanding approach to our customers.Our superior analytics capabilities,advanced technology and sustainable approach are key to staying ahead of the market.MOMENTUMOUR TIMELINEINTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTSCREDIT COR

5、P GROUP ANNUAL REPORT 2022Credit Corp enters the S&P ASX 200 index.Credit Corp achieves 10 years of consecutive double digit growth,averaging 27 per cent per annum,and an inaugural profit from its US debt buying operation.The acquisition of Baycorp increases Credit Corps commitment to agency operati

6、ons.A second US collection centre opens in Washington State.Launch of Credit Corps first Reconciliation Action Plan.Completion of the largest single purchased debt ledger transaction in Australian history with the acquisition of the Collection House book.Credit Corp acquires the Radio Rentals applia

7、nce leasing business from Thorn Group Limited.2015201520182018201920192021202120222022BUILDING MOMWe have established a large pipeline of new products and business improvements to ensure we have the potential to be the market leader across all business segments.CREDIT CORP HAS BUILT MOMENTUM DESPITE

8、 A CHALLENGING AND VOLATILE ENVIRONMENT,AND IS WELL POSITIONED TO REALISE FUTURE OPPORTUNITIES.ABOUT THIS REPORTABOUT THIS REPORTCredit Corps Annual Report is our primary statutory and regulatory reporting disclosure.It comprises information about our activities,strategy,and financial results over t

9、he reporting period.Credit Corp is publicly listed in Australia,and the Annual Report is lodged with the Australian Securities and Investments Commission and ASX Limited.View our Annual Reports online1 DIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM FINANCIALHIGHL

10、IGHTS2022HIGHLIGHTSOur leadership has delivered a consistent record of success and the resilience to respond to changing external conditions.$420.6M 2%VS.PCP$96.2M1NET PROFIT AFTER TAX 9%VS.PCP$411.2MREVENUE 10%VS.PCP$835.7M 39%VS.PCP142.21 9%VS.PCP74.0PRE-TAX OPERATING CASH FLOWINCOME GENERATING AS

11、SETSEARNINGS PER SHAREDIVIDENDS PER SHARE 3%VS.PCP(EPS)(DPS)1.Statutory NPAT of$100.7 million and EPS of 148.9 cents includes$4.5 million US Paycheck Protection Program loan forgiveness.INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONS2 CREDIT CORP GROUP ANNUAL REPORT 2022

12、HIGHLIGHTSOUR PEOPLEThe diversity of our people is key to our successOur relationships are built on respect and collaborationWe aim to provide a pathway to mainstream financial inclusionCUSTOMERSCOMMUNITYMaintained91%positions filled internallyLEADERSHIP7THgranting a scholarship through the Jan Pent

13、land foundationYEAR$1.71Bof debts in ongoing repayment arrangementsIN FACE VALUE1,000 KGfrom our Australian officesOF E-WASTE RECYCLED59%operational managerial rolesWOMEN IN$11.65Bof receivables globallyIN FACE VALUE1,8401,338across the globewithin 30 days or agreed arrangementsEMPLOYEESSUPPLIERS PA

14、IDlowestin Australian industryEDR COMPLAINT RATErated response by the financial counsellors in Rank the Banks survey(Dec 2019)highestCONSUMER HARDSHIP3.1MgloballyCUSTOMERS58,910training deliveredHOURSREVENUE($M)NPAT($M)2015REVENUEREVENUE IMPACT OF COVID-19 ADJUSTMENTS2016201720182019202020212022PRE-

15、TAX OPERATING CASH FLOW($M)215.62015242.42016274.12017 305.0 2018330.72019394.7202020212022420.6413.5INCOME GENERATING ASSETS($M)2015201620172018201920202021202220152016201720182019202020212022 1NPATNPAT IMPACT OF COVID-19 ADJUSTMENTS38.445.955.264.370.388.1602.5559.9586.5513.0469.2363.7244.3191.122

16、6.7266.0299.0324.3382.0313.4374.8411.296.2835.779.615.51.Excludes US Paycheck Protection Program receipt of an after-tax$4.5 million.DIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM 3 3 OUR PURPOSE:THIS IS WHY WERE HERETo grow longterm shareholder wealth through su

17、ccessfully operating within the creditimpaired consumer segment of financial services in a sustainable way by providing customers with genuine solutions as a pathway towards increased financial inclusion.ABOUTUSSUSTAINABILITY&COMPLIANCEOPERATIONAL EXCELLENCEANALYTICSACCOUNTABILITYTRANSPARENCYDISCIPL

18、INEENTREPRENEURSHIP&ORGANIC EXPANSIONOUR GOALTo be the leading global provider of sustainable&responsible financial services in the creditimpaired consumer segmentOUR VALUES:THIS IS WHAT WE BELIEVE INOur values reveal what we believe in as an organisation and are apparent in everything we do.The mom

19、entum reflected in the Companys performance and outlook has been built on a strong commitment to our values.Being open and honestTRANSPARENCYTransparency means being open and honest in all that we do,drawing attention to challenges and problems in our business,so that we can overcome them.Doing the

20、right thingDISCIPLINEDoing the right thing means having an ethical and controlled approach to everything we do.Making it happenACCOUNTABILITYMaking it happen is all about delivering the right results by taking responsibility for setting targets and measuring outcomes.INTRODUCTIONOUR BUSINESSCHAIRMAN

21、/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTS4 CREDIT CORP GROUP ANNUAL REPORT 2022ABOUT USOUR PERFORMANCE:THIS IS WHAT WE HAVE ACHIEVEDOUR STRATEGY:THIS IS HOW WE GET THERE SUPERIOR ANALYTICS Our businesses succeed through effectively pricing investments and managing risk.We objectively analyse la

22、rge volumes of data to ensure we deliver an acceptable return on our investments using analytics,technology and systems to develop an indepth understanding of our customers and to efficiently allocate our resources.OPERATIONAL EXCELLENCE We create business outcomes by communicating with our customer

23、s.Our ability to communicate effectively requires exceptional operational performance.We combine analytics and technology with skilful and motivated people to achieve outstanding results.SUSTAINABILITY AND COMPLIANCE The community has high expectations of financial services providers that go beyond

24、minimum legal requirements.We are committed to meeting these expectations to ensure the success of our business and to protect our clients and other stakeholders.We pride ourselves on providing our customers with genuine and affordable financial solutions tailored to their needs.ENTREPRENEURSHIP&ORG

25、ANIC EXPANSION Our strong core business and industry leadership is a platform for organic expansion.Multiple sources of growth give us the opportunity to continue to invest in our ongoing success without compromising our overall rate of return.We are considered in our approach to growth,developing t

26、est models and establishing pilot operations before launching new products or entering new markets.We constantly monitor performance against our expectations and adopt a patient and iterative approach towards ultimate success.5 DIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEME

27、NTSMOMENTUM For information on our operational perfomance,read our Review of Operations Our market is comprised of people who have had trouble with credit.Most consumers in our segment have either defaulted on a previous credit obligation or do not have a stable earnings history.These consumers are

28、excluded from the sorts of readily available finance provided by mainstream lenders that many people in society take for granted.CREDIT CORPCUSTOMERImproved ability to borrow through updated credit recordOffers market-leading finance productsAGREES FLEXIBLE REPAYMENT PLAN TO REPAY ACCOUNTPATHWAY TO

29、MAINSTREAM FINANCIAL INCLUSIONFINANCIAL DIFFICULTYCREDIT CORPCUSTOMERUnable to pay credit obligations Buys debt at superior prices for clientsOur Company has been listed on the Australian Securities Exchange since 2000 and forms part of the S&P ASX 200 index.$11.65BTotal face value of receivables1,8

30、40EMPLOYEES3.1MAcrossCUSTOMERSCredit Corp is Australias largest provider of sustainable financial services to the creditimpaired consumer segment.PHILIPPINES359NEW ZEALAND 96AUSTRALIA 9971,840 employees60%female employees40%male employeesacross the globeUNITED STATES 388OURBUSINESS9 CITIES58,910deli

31、veredHOURS OF TRAINING1,796programs completedCAREER PATHWAYWE SPECIALISE IN WORKING WITH OUR CUSTOMERS BY PROVIDING SUSTAINABLE FINANCIAL SOLUTIONS AS A PATHWAY TO MAINSTREAM FINANCIAL INCLUSION.INTRODUCTIONABOUT USCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTSOUR BUSINESS6 CREDIT CORP GROUP

32、 ANNUAL REPORT 2022OUR US DEBT BUYING BUSINESS IS NOW ONE OF THE TOP FIVE IN THAT MARKET.Debt Buying and CollectionIn our debt buying business,we work with consumers who have found themselves in default of their credit obligations.We engage with our customers to create affordable repayment plans as

33、a pathway to debt relief and mainstream financial inclusion.Our clients are the major banking,finance,telecommunications and utility providers.We buy defaulted consumer debts from these clients.We look to provide our clients with the highest prices possible,while ensuring we will be able to produce

34、an acceptable return on our outlay.We then work with our newly acquired customers to agree flexible repayment plans to suit their individual circumstances.The debts we acquire are generally at least six months in arrears and have already been through a collection process both in-house with the credi

35、t issuer and with external service providers.Our clients are looking to realise an immediate return on these defaulted debts while relieving themselves of the costs of the collection process.They also want assurance that their former customers will be treated with understanding and respect in accord

36、ance with relevant laws and standards.Credit Corp has a strong compliance record and reputation as a sustainable and responsible service provider.We have never been the subject of a regulatory order or undertaking and have one of the lowest rates of external dispute resolution complaints in the indu

37、stry.We work closely with regulators,consumer advocates and financial counsellors to ensure continual improvement in our approach.We have exported the successful model used in our Australian and New Zealand debt buying and collection business to the largest consumer credit market in the world the US

38、A.Over the last 10 years,we have grown a profitable business in this market and expanded our presence from our base in Utah to Washington State.Our US debt buying business has experienced another record year of purchasing and is now one of the top five debt buyers in that market,providing a platform

39、 for growth for years to come.LendingIn our consumer lending business,we provide the cheapest and most sustainable loan products to consumers who have limited borrowing alternatives.Our innovative products are the most economical and flexible offerings in our segment of the market.Our aim is to assi

40、st consumers in a responsible way.All of Credit Corps products feature interest and fee rates below the caps applicable to mainstream consumer lending.To date,Credit Corp has helped more than 269,000 Australians avoid higher cost and unsustainable products through our market-leading alternatives.In

41、developing our affordable and flexible loans,we have been able to leverage Credit Corps leading position in analytics,technology and customer interaction.This has reduced our costs and resulted in one of the most automated,accurate and responsible lending processes in the industry.Credit Corps super

42、ior collections platform ensures that credit losses are efficiently minimised.The attractiveness of our loan products is apparent in the growth of new customers and our high retention rate.Suppliers and other stakeholders have appreciated our role in helping customers avoid other high-cost products

43、in the market.This has freed us from restrictions imposed on competitors and facilitated access to efficient conventional funding.In Australia,our loan products are delivered under a portfolio of brands,including Wallet Wizard and CarStart.In 2022,leveraging the market knowledge gained from our lend

44、ing business in Australia together with our debt buying business in the US,we commenced a lending pilot within that market.While it is in the early stages,we are optimistic about the growth potential this presents.Collection ServicesCredit Corp also offers agency collection services to its clients w

45、ho wish to outsource collection of debt prior to any decision to undertake debt sale.Credit Corp operates one of the largest agency businesses across Australia and New Zealand under National Credit Management Limited(NCML)and Baycorp.The agency business operates from locations in Australia,New Zeala

46、nd and the Philippines.Our client base ranges from large corporate organisations and government departments through to small and medium sized businesses.CREDIT CORP HAS THREE KEY BUSINESSESDEBT BUYING&COLLECTION1COLLECTION SERVICES2LENDING3CREDIT CORP HAS HELPED MORE THANAVOID HIGHER COST AND UNSUST

47、AINABLE PRODUCTS THROUGH OUR MARKET-LEADING ALTERNATIVES269,000AUSTRALIANSDIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM 7 7 Building momentum requires navigating a range of conditions to maintain performance and growth.It is all about creating the resilience and

48、 capability to respond to changing external conditions and delivering outcomes for stakeholders.In increasingly volatile times,I am pleased to report that Credit Corp continued to build momentum in 2022.CHAIRMANSREPORTSTRONG BUSINESSES ARE BUILT BY PEOPLE&A POSITIVE CULTURE.During the year Credit Co

49、rp expanded on the foundations established over a long period.These foundations comprise a strong portfolio of businesses leveraging a core expertise in working with credit-impaired consumers and the ongoing development of unique capabilities to ensure sustained performance.It is this focus on maint

50、aining and enhancing a portfolio of businesses and capabilities that has continued to provide the Company with the flexibility to respond to varying circumstances,while preserving Credit Corps long-term prospects.The success of the strategic diversification of Credit Corp,which has taken place over

51、many years,was starkly demonstrated in 2022.The Companys commitment to sound strategic planning has long recognised the challenges of sustaining growth as a listed debt buyer operating in Australia and New Zealand.Both strategic growth initiatives in consumer lending and US debt buying have develope

52、d organically over the last decade and have transformed Credit Corp into the diversified financial services business it is today.In 2022,these growth initiatives produced over 40 per cent of earnings,and in 2023 are expected to account for half of earnings.Alongside these growth initiatives,the Boar

53、d recognises the continued importance of the core business,debt buying,on which the foundations of the Company have been built.A Strong Portfolio of BusinessesThe Australian and New Zealand debt purchasing segment made a positive contribution to the Companys performance despite ongoing adverse marke

54、t conditions.The core business continued to serve as an excellent base for the development of resources critical to the growth of the Company as a whole.In 2022,this comprised the transfer of key talent and the development of common systems.During 2022,some 98 people were transferred or seconded to

55、other segments.The platform facilitating digital interaction with customers was enhanced and an initial implementation of speech analytics was completed.These important systems will facilitate ongoing improvements in customer experience and are now scheduled to be deployed across the US debt purchas

56、ing and lending segments.COVID has had an adverse impact on the supply of purchased debt ledgers(PDL)from traditional credit issuers in Australia and New Zealand.The accumulation of consumer savings arising from the COVID response continued to suppress both credit arrears and mainstream unsecured cr

57、edit demand.As has been the case over recent years,Credit Corp was able to apply its strong balance sheet and superior analytics to secure some attractive one-off purchased debt ledger acquisitions.Following the purchase of Baycorp for$65 million in 2019 and Collection Houses Australian PDLs for$160

58、 million in 2021,Credit Corp secured Thorn Groups Radio Rentals assets for$63 million and Collection Houses New Zealand PDLs for$12 million in 2022.These purchases helped produce a solid earnings result for the year.The US debt purchasing segment demonstrated its potential for sustained growth.While

59、 COVID had a similar adverse impact on the supply of PDLs to that experienced in Australia,US unsecured credit demand recovered rapidly over the course of the year.Credit Corp took the opportunity to increase share from existing clients while establishing some new relationships.Purchasing accelerate

60、d over the last few months of 2022 as PDL supply increased,delivering a strong investment pipeline for 2023.As a consequence,Credit Corps US business grew to become one of the leading debt purchasers in the market.Operating metrics show that the business remains very competitive and ongoing improvem

61、ents should enhance this position.Increased purchasing has established the operation as among the five largest US debt purchasers.A key challenge,however,for the growing US business has been workforce shortages.Various actions were taken to address this,including the redeployment of a component of t

62、he Companys Philippine workforce to the US.This ability to divert resources to businesses with greater investment opportunity demonstrates the flexibility of Credit Corps portfolio approach.Credit Corps category-leading Wallet Wizard cash lending product produced strong loan volumes during the year.

63、As the impacts of COVID stimuli dissipated and the economy re-opened,credit-impaired consumers returned to borrowing.As the cheapest and most sustainable offering in its category,Wallet Wizard experienced strong demand.This combined with a re-launch of the Companys auto lending product to grow the l

64、oan book to a record balance of$251 million by the end of the year,beyond its pre-COVID peak of$230 million.$63MSecured Thorn Groups Radio Rentals assets forINTRODUCTIONABOUT USOUR BUSINESSBOARDREVIEW OF OPERATIONSHIGHLIGHTS8 CREDIT CORP GROUP ANNUAL REPORT 2022CHAIRMAN/CEO REPORTERIC DODDChairmanEn

65、hanced CapabilitiesStrong businesses and the flexibility to adapt to changed circumstances must be supported by key capabilities.Credit Corp has always worked hard to ensure that it has been a leader in sustainable practice,operational performance and analytics to support investment and other decisi

66、ons.During 2022,Credit Corp continued to critically assess these capabilities with a view to continuous improvement.In terms of sustainable and compliant practices,Credit Corp maintained its record of low complaint rates and the delivery of genuine solutions to customers.Expectations of conduct are,

67、however,always increasing and it is important that Credit Corp strives to achieve high standards.Building on an existing control framework,new automated tools were implemented to better monitor customer interactions.These tools will help ensure day-to-day adherence while identifying opportunities fo

68、r further systemic improvements to the control framework over time.Operational performance in 2022 was strong,with the Company reporting high asset turnover and low costs to collect across debt purchasing operations and a consistent return on assets for lending operations.Credit Corp operates in inc

69、reasingly competitive markets and must ensure that it remains at the forefront of performance.Enhanced digital and scheduling capabilities were implemented to support collection operations.Ongoing refinements were made to improve the accuracy of lending decisions and marketing expenditures.These imp

70、rovements will help enhance Credit Corps long-term competitive position.Credit Corp maintained its disciplined and analytical approach to investment decisions during 2022.Ongoing development identified additional variables and learnings which will help improve the accuracy of PDL pricing and lending

71、 decisions into the future.Positive CultureStrong businesses and capabilities are built by people and a positive culture.The values of transparency,accountability and discipline define the culture at Credit Corp.Transparency to honestly appraise business prospects,identify shortcomings and set a pla

72、n of action.Accountability to embrace challenging goals.Discipline to follow through with the right execution to deliver sustainable long-term outcomes.It is the day-to-day application of these values by Credit Corps people that underpins the actions and outcomes that are building momentum.I thank m

73、y fellow Directors,our CEO Thomas Beregi and his management team for their leadership of Credit Corp,particularly during what have been challenging business and economic conditions over the last two years.On behalf of the Board and shareholders,I also thank all employees for their ongoing commitment

74、 and dedication to the Company.Eric DoddChairmanDIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYMOMENTUM OTHERFINANCIAL STATEMENTS9 9 CEOSREPORTIn 2022,our Net Profit after Tax grew by nine per cent to$96.2 million($100.7 million on a statutory basis).We increased total investment and,notwithstand

75、ing a challenging and volatile external environment,our prospects for long-term growth remain intact.The momentum reflected in the Companys performance and outlook has been built on a strong commitment to our values.Credit Corps values are readily understood and translated into action.Being open and

76、 honest means having the transparency to fairly appraise situations and readily confront issues in order to set a plan of action.Making it happen requires embracing accountability to achieve challenging goals in accordance with the Companys plans.Doing the right thing is following through with disci

77、plined execution to ensure sustainable long-term outcomes.Credit Corps values are a useful prism through which the Companys performance in 2022 can be described.Being Open and HonestDuring 2022,we transparently appraised emerging conditions to identify investment opportunities and respond to operati

78、onal challenges.We started 2022 with the expectation of a recovery in purchased debt ledger(PDL)supply over the course of the year.While all major Australian and New Zealand credit issuers who were selling immediately prior to COVID had returned to sale,as the year got underway,volumes failed to sho

79、w any recovery.Furthermore,key lead indicators,including aggregate unsecured credit statistics,suggested that any recovery might be deferred for an extended period.Having assessed the outlook,we set about identifying alternative one-off purchases in the core Australian and New Zealand market,while e

80、xploring opportunities to increase consumer lending volumes and US purchasing.This response facilitated two significant core market PDL transactions.In December 2021,Credit Corp concluded the$63 million purchase of the Radio Rentals receivables book from Thorn Group Limited.The purchase of Collectio

81、n Houses New Zealand PDL book was secured in February 2022.Both acquisitions were priced to yield Credit Corps targeted return and helped offset the impact of reduced PDL acquisitions from more traditional sources.As it became clear that any recovery in core market PDL volumes would be delayed,we re

82、adily confronted the need to re-balance resourcing across business segments.Purchasing in the US business was growing,but labour market challenges inhibited the achievement of commensurate workforce growth.Consequently,a decision was taken to re-deploy a component of Credit Corps Philippine team to

83、the US business segment as an offshore workforce.Making it HappenIn 2022 we readily accepted accountability for achieving outcomes that should continue to build momentum over the long-term.The US PDL market has always been a considerable source of growth for Credit Corp.Capturing the opportunity has

84、 required establishing the Company as a reliable and sustainable service provider with a large number of US credit issuers.We have worked consistently over a long period to build a rigorous and well-documented control framework capable of meeting very explicit standards set by many US credit issuers

85、.We have also developed testing protocols to ensure compliance with ongoing monitoring requirements set by clients.These functional measures have been supplemented with a relationship management approach,emphasising our values of transparency and discipline.As a consequence,we have earned a positive

86、 reputation in the US market.This positive reputation was applied to deliver strong US purchasing outcomes in 2022.Credit Corp increased its share of purchasing across the majority of its existing relationships.At the same time,three new purchasing relationships were commenced during the year.These

87、achievements produced a 182 per cent increase in US purchasing to$223 million in 2022 and a very strong pipeline of US purchasing for 2023 of$150 million.CREDIT CORP IS WELL-POSITIONED TO CONTINUE TO PERFORM STRONGLY IN THE FUTURE.$96.2M1 NET PROFIT AFTER TAX 9%VS.PCP$411.2M REVENUE 10%VS.PCPCredit

88、Corps commitment to developing sustainable advantage,encapsulated in the theme Building Momentum,has produced a solid result,while positioning the Company to realise opportunities for growth into the future.1.Statutory NPAT of$100.7 million includes$4.5 million US Paycheck Protection Program loan fo

89、rgiveness.THOMAS BEREGIChief Executive OfficerINTRODUCTIONABOUT USOUR BUSINESSBOARDREVIEW OF OPERATIONSHIGHLIGHTS10 CREDIT CORP GROUP ANNUAL REPORT 2022CHAIRMAN/CEO REPORTCredit Corps record of long-term growth has been built on the successful development of new businesses and products.The innovativ

90、e Wallet Wizard loan was first marketed in 2014 and has established the Company as one of the largest providers of unsecured loans to the credit-impaired consumer segment in Australia.Credit Corp,however,has remained one of the smaller operators in the corresponding segment of the auto lending marke

91、t.The auto loan product was re-launched late in the preceding year and volumes grew steadily over the course of 2022,building this component of the loan book to$35 million by the end of the year.In keeping with Credit Corps vision of delivering affordable and responsible financial inclusion to credi

92、t-impaired consumers,new product development activities were accelerated.During 2022,pilots were commenced in buy now pay later and US lending.The results of both initiatives have been assessed with a view to further activity in 2023.Additional new products reached the final stages of development in

93、 2022 and are scheduled for pilot commencement during 2023.One of these is a sale of goods by instalment offering,designed to provide consumers with a cheaper and more transparent alternative to a traditional consumer lease.It is envisaged that this product will prove attractive to the Radio Rentals

94、 customer base acquired in 2022.Another innovative offering nearing completion will look to provide credit-impaired consumers with an unsecured credit experience as close as possible to that enjoyed by mainstream consumers.It is our objective that both these solutions will be viewed by consumers and

95、 other stakeholders as uniquely affordable and responsible.Doing the Right ThingDisciplined adherence to return criteria was a key feature of our investment decision-making in 2022.While Credit Corp has historically been the leading purchaser of large one-off portfolios in Australia and New Zealand

96、it was outbid on a number of opportunities during the year.The sustained reduction in market sale volumes led to instances of intense competition for certain one-off portfolios.Credit Corp applied its considerable data and analytical expertise to offer strong prices for these opportunities but was n

97、ot prepared to compromise its minimum return criteria.Instead,investment was diverted to the Australian consumer lending and US purchasing businesses where required returns could more readily be achieved.A similar level of discipline was applied to credit settings for the Australian consumer lending

98、 business.Losses on the Wallet Wizard unsecured loan book have been very low over the last 24 months.In undertaking our program of regularly updating credit models we have consciously excluded this uncharacteristically favourable period from consideration.It is our expectation that credit performanc

99、e will revert to historical levels as savings arising from the COVID response are exhausted.Excluding this favourable period should ensure that losses remain within pro-forma expectations as conditions normalise.Looking AheadCredit Corp is well-positioned to continue to perform strongly in the futur

100、e.The outlook for the US debt purchasing and Australian consumer lending segments is for another year of solid profit growth.Over the latter stages of 2022 we invested heavily in the US and will start 2023 with an enlarged book and additional personnel from the Philippines to grow collections and se

101、gment earnings.Similarly,we will start 2023 with a consumer loan book that has recovered to its pre-pandemic peak and continued strong lending demand.We also retain substantial headroom in our borrowing facility,which can be applied to any sizeable opportunities for additional investment as they ari

102、se.In closing my report for 2022 I want to thank all of Credit Corps 1,840 people across four countries for their ongoing commitment to Credit Corp and its values.I am excited about the prospect of working with them to meet the challenges and opportunities that lie ahead.Thomas BeregiChief Executive

103、 OfficerDIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM 11 11 BOARD OFDIRECTORSERIC DODD Chairman,Non-Executive DirectorAppointed:Appointed as a Non-Executive Director in July 2009 and Chairman on 4 February 2021.Board Committees:Member of the Audit and Risk Commi

104、ttee Member of the Remuneration and HR Committee Member of the Nomination CommitteeSkills and experience:Eric has more than 45 years experience in the insurance,finance,banking and healthcare sectors.Eric previously held the position of CEO of Insurance Australia Group,and Director and CEO of MBF Au

105、stralia Limited for a six-year period,before being appointed as Managing Director of the combined organisation when MBF merged with BUPA Australia in June 2008.Eric is also a past Managing Director and CEO of NRMA Insurance Limited,and has held a number of senior positions within the financial servi

106、ces industry.Directorships and other executive roles:Currently,Eric is Chairman of First American Title Insurance Company of Australia Pty Limited and Chairman of Integrity Insurance Group.Qualifications:Eric holds a Bachelor of Economics,is a Fellow of the Institute of Chartered Accountants Austral

107、ia and New Zealand,and is a Fellow of the Australian Institute of Company Directors.LESLIE MARTIN Non-Executive DirectorAppointed:March 2014Board Committees:Chairman of the Nomination CommitteeSkills and experience:Leslie has 30 years experience in commercial banking in several countries and is a sp

108、ecialist in payments and corporate cash management.She has been in the start-up phase of businesses with Chase Manhattan(now JP Morgan Chase)in New York and Hong Kong.She joined Westpac in 1994 as a General Manager to establish its transaction banking capability and later led the Working Capital Ser

109、vices business at the Commonwealth Bank.Directorships and other executive roles:Currently,Leslie is a Director of IMA Asia,an independent economics advisory firm,and acts on the advisory boards of two technology start-up companies.She has held board positions with subsidiaries of the Commonwealth Ba

110、nk and a variety of payment industry bodies.Qualifications:Leslie holds a Bachelor of Arts,a Master of Business Administration,and is a Fellow of the Australian Institute of Company Directors.TRUDY VONHOFF Non-Executive DirectorAppointed:September 2019 Board Committees:Chairman of the Remuneration a

111、nd HR Committee Skills and experience:Trudy is an experienced Non-Executive Director and has over 25 years experience in retail and business banking,corporate banking,financial markets and strategy.Past executive roles include General Manager,Operations and General Manager of Commercial and Agribusi

112、ness Banking for Westpac Banking Corporation and Chief Financial Officer of AMP Bank Limited.Directorships and other executive roles:Previous board roles include Non-Executive Director of AMP Bank Limited,Cabcharge Australia(ASX:A2B),Ruralco Holdings(ASX:RHL)and Tennis NSW.Her current board roles in

113、clude Iress Limited(ASX:IRE),Cuscal Limited and Australian Cane Farms Limited.Qualifications:Trudy holds a Bachelor of Business(Hons),a Master of Business Administration,and has completed Executive Development courses at Harvard Business School.She is a Graduate Member of the Australian Institute of

114、 Company Directors and a Senior Fellow of FINSIA.The Credit Corp Board of Directors is committed to strong corporate governance policies and practices,and guides the business and affairs of the Group on behalf of shareholders.Left to right:James M.Millar AM,Phillip Aris,Leslie Martin,Eric Dodd,Trudy

115、 Vonhoff,Richard ThomasINTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTREVIEW OF OPERATIONSHIGHLIGHTS12 CREDIT CORP GROUP ANNUAL REPORT 2022BOARDRICHARD THOMAS Non-Executive DirectorAppointed:September 2006Board Committees:Member of the Nomination CommitteeSkills and experience:Richard brings ove

116、r 50 years management experience in banking,finance and related industry sectors to Credit Corps Board.Richard is a professional Company Director and has previously held senior executive roles,including Group Executive,Australian Banking Services with Westpac,Managing Director of AGC Limited and Exe

117、cutive Vice President of US-based Avco Financial Services.Directorships and other executive roles:Richard was Acting Chairman between 11 February and 30 June 2008.Qualifications:Richard is a Fellow of the Australian Institute of Company Directors.PHILLIP ARIS Non-Executive DirectorAppointed:July 202

118、1 Board Committees:Member of the Audit and Risk Committee Member of the Remuneration and HR CommitteeSkills and experience:Phillip brings extensive senior executive and board experience from a range of roles within the financial services and technology sectors across Australia,the United Kingdom and

119、 Asia.Past executive roles include Head of Credit Cards for Commonwealth Bank of Australia,Chief Executive Officer of CountPlus Limited,and Regional Head of Strategy&Business Development for Thorn-EMI Asia Pacific,working across Australia,the UK and Hong Kong.Directorships and other executive roles:

120、Currently,Phillip is Non-Executive Chairman of Xponential Technologies Limited.Qualifications:Phillip holds a Bachelor of Economics and a Masters of Management.JAMES M.MILLAR AM Non-Executive DirectorAppointed:December 2021 Board Committees:Chairman of the Audit and Risk Committee Skills and experie

121、nce:James brings extensive senior leadership experience to the Credit Corp Board from both his professional services and Non-Executive Director careers.He has had a distinguished professional services career,initially in Corporate Reconstruction,and culminating in his role as Chief Executive Officer

122、 of the Oceania Region for EY where he served the firms global operations.Directorships and other executive roles:James is currently a Director and Chair of the Audit,Risk and Compliance Committee of Mirvac Limited(ASX:MGR).He is also the Chairman of Export Finance Australia and the Vincent Fairfax

123、Family Foundation.He has previously served on the Boards of Slater and Gordon,Fairfax Media,Macquarie Media,Helloworld,Fantastic Furniture and as Chairman of the Forestry Corporation of NSW.Qualifications:James holds a Bachelor of Commerce,is a retired Fellow of the Institute of Chartered Accountant

124、s Australia and New Zealand,and a Fellow of the Australian Institute of Company Directors.Our Board is a strong,diverse team,which enables it to guide the strategic management of the Company and ensure that controls are in place to meet standards of performance set by shareholders,clients and the co

125、mmunity.33%FEMALE DIRECTORSDIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM 13 13$96.2M1 NET PROFIT AFTER TAX 9%VS.PCP142.21 EARNINGS PER SHARE 9%VS.PCPREVIEW OFOPERATIONSNPAT AND RETURN ON ASSETSSEGMENT PROFIT$120m18%1261614108421008060402000FY14FY15FY16FY17FY18FY

126、19FY20FY21FY22TOTAL NPAT(LHS)US DEBT BUYINGAUS/NZ DEBT BUYINGAUS/NZ LENDINGUS DEBT BUYINGAUS/NZ DEBT BUYINGAUS/NZ LENDINGPRE-COVID ADJUSTMENTS NPAT(LHS)ROA(RHS)FY2021FY2022$88.1MNPAT TOTAL$96.2M1NPAT TOTALUltimately Credit Corp was able to grow NPAT by nine per cent over FY2022 as a result of$75 mil

127、lion of secondary purchases including the Radio Rentals consumer leasing book and the Collection House New Zealand ledger book.These acquisitions enabled earnings in the core AUS/NZ purchased debt ledger segment to grow modestly,and combined with strong growth in the US debt buying and consumer leas

128、ing segments,produced solid overall growth.Credit Corp enters FY2023 with no sign of any re-growth in debt ledger sale volumes in AUS/NZ and the consequent risk of lower segment earnings.Any decline will need to be straddled by anticipated growth in NPAT from the US debt buying and consumer lending

129、segments.Higher interest rates and economic uncertainty may create further secondary investment opportunities similar to the Baycorp,Collection House and Radio Rentals investments over recent years,to offset ongoing low organic volume.Lower anticipated investment in FY2023 will produce substantial f

130、ree cash flow that will release funding lines to maximise opportunistic investment.Overview As Credit Corp entered 2022,challenging market conditions continued in the core Australia/New Zealand debt buying business,exacerbated by the COVID19 Delta variant that resulted in lockdowns and other restric

131、tions in the eastern Australian states.Net Profit after Tax(NPAT)was expected to be flat relative to FY2021 at the midpoint of the initial FY2022 guidance.1.Statutory NPAT of$100.7 million and EPS of 148.9 cents includes$4.5 million US Paycheck Protection Program loan forgiveness.INTRODUCTIONABOUT U

132、SOUR BUSINESSCHAIRMAN/CEO REPORTBOARDHIGHLIGHTS14 CREDIT CORP GROUP ANNUAL REPORT 2022REVIEW OF OPERATIONSAustralian and New Zealand Debt BuyingAlthough credit issuers selling at the start of the pandemic are actively participating in the debt buying market,financial services volumes remain modest.T

133、his is reflected in interest-bearing credit card balances,which,as reported by the Reserve Bank of Australia,remain almost 40 per cent below pre-COVID levels.Whilst credit card balances have not grown in real terms for many years due to regulatory and other reasons,the pandemic saw substantial prepa

134、yment.Credit Corp acquired almost$100 million of organic ledgers in FY2022,representing an estimated share of more than 50 per cent of a substantially diminished market.This level of investment,although strong in share terms,was insufficient to offset run-off in the book.Secondary opportunities were

135、 executed during the year to acquire the Radio Rentals consumer lease book and Collection House New Zealand ledger book for a combined total consideration of$75 million.These investments generated sufficient incremental collections to grow earnings from the core AUS/NZ segment in FY2022 against FY20

136、21.Without these secondary investments in FY2022,and the Baycorp and Collection House acquisitions in FY2020 and FY2021 respectively,collections and earnings from the core AUS/NZ debt buying segment would already be in run-off.In the absence of a catalyst for the re-growth of unsecured credit volume

137、s or a substantial increase in arrears and losses,the ingoing FY2023 expectation is for run-off in the PDL book and declining collections and earnings.Executing on secondary opportunities will be required to offset this.The balance sheet position remains strong and will improve further with anticipa

138、ted lower investment in FY2023,providing substantial capacity to execute on further secondary opportunities that may arise,especially given ongoing economic uncertainty.US Debt BuyingIn contrast to domestic market conditions,US unsecured consumer credit volumes have re-grown to pre-pandemic levels a

139、nd charge-off rates are increasing.These favourable conditions enabled Credit Corp to invest a record A$223 million in US ledgers in FY2022.Particularly significant growth in investment occurred in the final quarter of the year as individual issuers saw growth in charge-off volumes after a period of

140、 strong credit growth.The major challenge the US operation faces is tight labour market conditions limiting growth in onshore headcount.A Philippines evening shift comprising 100 experienced customer service team members commenced collecting US debts at the start of FY2023 and will supplement onshor

141、e resourcing.The existing scale of Credit Corps Philippine operation allows this evening shift to grow quickly.Other labour initiatives are underway to grow US onshore resourcing even while labour market conditions remain tight.As a result of the strong investment in FY2022 and the present resourcin

142、g shortfall,investment is likely to be lower in FY2023,with a large proportion of purchasing already contracted with an ingoing FY2023 investment pipeline of$150 million.The US continues to provide a strong pathway for growth with the prospect of increased market volumes in the medium term as charge

143、-off rates revert to pre-COVID levels.Annual purchasing of A$200 million per year in a steady state is sufficient to produce similar earnings to those achieved from the core AUS/NZ debt buying segment.The strong FY2022 investment and increased resourcing should produce another year of NPAT growth in

144、 the US debt buying segment in FY2023.Credit Corp is substantially progressed in establishing a platform to support the objective of consistent annual purchasing in excess of A$200 million.AUS/NZ COLLECTIONS(A$M)COLLECTIONS ON DIRECT FROM ISSUER PURCHASESTOTAL COLLECTIONS INCLUDING BAYCORP/COLLECTIO

145、N HOUSE/RADIO RENTALSUS NPAT(LHS)US COLLECTIONS(RHS)$400m3002001000FY15FY16FY17FY18FY19FY20FY21FY22US PURCHASING(A$M)$250m200150100500FY18FY19FY20FY21FY22US COLLECTIONS&NPAT(A$M)$28m$240m210180150120906030242016128400FY19FY20FY21FY22DIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL ST

146、ATEMENTSMOMENTUM 15 15 Consumer lendingPandemic restrictions,including Eastern State lockdowns,curtailed demand for consumer loans at the start of FY2022.It then re-grew strongly in the December quarter and continued through the second half of the year record annual originations of$267 million,inclu

147、ding$153 million,also a record.The strong demand in the second half of the year was stimulated by the decision to continue television advertising through the June quarter for the first time.The strong settled volumes resulted in a record closing loan book of$251 million,including Wallet Wizard brand

148、ed cash loans of$210 million.The auto loan book component was a record$35 million,with solid origination volumes achieved following the relaunch of the product at the end of FY2021.The Wallet Wizard cash loan product is already strongly penetrated within the credit-impaired space.Pilots of a buy now

149、 pay later product as well as unsecured cash lending in the US commenced with a view to broadening the product offering.Other products are planned and further pilots will be launched in FY2023.The loss experience on expired loans is substantially lower than the pro-forma assumptions in recent period

150、s,which necessitated a review of the level of the life-of-loan loss provision.This resulted in a reduction in the level of the provision from 26 per cent of the gross loan book balance to 21 per cent to recognise the excess provision on these expired loans.The level of provisioning against the loan

151、book is still regarded as prudent in light of the short average duration of the book,and continued use of pre-COVID credit settings.The high starting loan book puts Credit Corp on track for healthy consumer lending segment NPAT growth in FY2023.CONSUMER LENDING BOOK AND REVENUE$300m2001000Sep 20Dec

152、20Mar 21Jun 21Sep 21Dec 21Mar 22Jun 220$200m100GROSS LOAN BOOK(EXCL.PROVISIONS)(LHS)AUTO/OTHER LOAN(LHS)ANNUALISED REVENUE(RHS)CONSUMER LENDING SETTLEMENTS$35m30252015105JulSep20212022AugOctNovDecJanFebAprMarMayJun0JulSep20212022AugOctNovDecJanFebAprMarMayJun$110mLENDING VOLUMES INDEXED TO PRE-COVID

153、 COMPARATIVE PERIOD 200%1000INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDHIGHLIGHTS16 CREDIT CORP GROUP ANNUAL REPORT 2022REVIEW OF OPERATIONSCapital ManagementRecord US investment and lending settled volumes resulted in net debt of$99 million at the end of FY2022,with undrawn funding lin

154、es of$212 million.Anticipated lower FY2023 investment is expected to result in significant free cash flow generation and to increased undrawn lines.Credit Corp is in the process of extending its$100 million consumer lending warehouse and also enabling the financing of auto loans within the warehouse

155、.Credit Corp achieved a Return on Equity(ROE)of 17 per cent in FY2022 after adjusting for a pro-forma level of gearing of 30 per cent.This is in line with Credit Corps hurdle ROE range of 16-18 per cent with a conservative capital structure.FACILITY HEADROOM AND GEARING$400m2000FY18FY19FY20FY21FY220

156、50%30402010NET BORROWINGSUNDRAWN FACILITIES AND CASH(LHS)GEARING%(RHS)FREE CASH FLOW($M)$150m10050(50)(150)(100)FY19FY20FY210(100)65(3)FY2238DIRECTORS REPORTOUR PEOPLESTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM 17 Our people are the cornerstone of our success and we are committed to pr

157、oviding them with the ability to succeed in their roles and develop their careers.THOMAS BEREGI Chief Executive Officer 15 years with Credit Corp Priorities:Thomas is responsible for strategic leadership and execution to deliver solid long-term growth and strong returns on invested capital.Experienc

158、e:Thomas joined Credit Corp in 2007 as Chief Financial Officer,before being appointed Chief Executive Officer in 2008.Prior to Credit Corp,Thomas held senior finance and operational roles in organisations such as Jones Lang LaSalle,Diageo and Pepsico.MATT ANGELL Chief Operating Officer 16 years with

159、 Credit Corp Priorities:Matt is responsible for oversight of the revenue-generating businesses of Credit Corp across all geographies.He is committed to delivering on the revenue and profit objectives of the Group each year,whilst also overseeing the execution of strategic priorities that will drive

160、growth into the future.Experience:Matt has over 25 years of management experience and prior to joining Credit Corp ran software development and consulting teams in Australia and the USA.MICHAEL EADIE Chief Financial Officer 13 years with Credit Corp Priorities:Michael is accountable for the financia

161、l management of Credit Corp,including ASX reporting,forecasting,taxation,treasury and capital management.Alongside the CEO and COO,he is responsible for the strategic planning and execution that has underpinned the growth and diversification of Company earnings over the last decade.Experience:Michae

162、l joined Credit Corp in 2009 as Financial Controller before becoming Chief Financial Officer in 2010.Prior to joining Credit Corp,Michael held a variety of senior roles in leading financial services companies,including 10 years at Macquarie.These roles were primarily commercially focused,supporting

163、the financial management and capital allocation decisions of operating divisions.SENIORMANAGEMENT TEAM18 CREDIT CORP GROUP ANNUAL REPORT 2022INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTSCHRISTOPHER MIDLAM Head of Client Services 15 years with Credit Corp Prio

164、rities:Chris is responsible for key client relationships and business development for debt purchase and agency collections.His priorities are maintaining strong client relationships with Credit Corps existing client base whilst exploring and developing future growth opportunities.Experience:Chris jo

165、ined Credit Corp in 2007 and has held a number of senior roles across the Groups front line operation as well as support services.Prior to joining Credit Corp,Chris led the service and sales division of Citizen Australia.TIM CULLEN Chief Information Officer 8 years with Credit Corp Priorities:Tim is

166、 responsible for information technology,security(including cyber,fraud and physical security),business continuity,client administration and facilities for the Credit Corp Group.His priorities are to improve and deliver operational excellence,customer experience and drive competitive advantage throug

167、h automation,digitisation and smart technologies.Experience:Tim has more than 30 years experience in Technology and Financial Services.Prior to joining Credit Corp,Tim held roles at NAB and MLC leading their Direct Channels,Digital and eSecurity business,as well as leading Technology functions in th

168、e Retail Bank.DAVID BRAND Head of Marketing 8 years with Credit Corp Priorities:David is responsible for the development and implementation of the marketing strategy for Credit Corps lending operations.Experience:David brings extensive senior marketing experience across a variety of sectors.Past exe

169、cutive roles include senior appointments in Fast Moving Consumer Goods,Alcoholic Beverages,Consumer Electronics and Quick Service Restaurants.STEPHANIE PALMER Head of Human Resources 6 years with Credit Corp Priorities:Stephanie is responsible for Group HR,ensuring equitable and engaging people proc

170、esses are established in all business units globally.Her priorities are the attraction and retention of staff,as well as creating interesting career pathways and developing internal talent to support the Companys growth in new markets and geographies.Experience:Stephanie has 25 years experience in H

171、R,predominantly with an international remit.Prior to joining Credit Corp,Stephanie was with Peugeot Citroen in the UK and Paris for 13 years,ultimately becoming HR Director for the UK,Ireland and Scandinavia.MARTIN WU Head of Analytics 8 years with Credit Corp Priorities:Martin manages a team respon

172、sible for the forecasting,analytics and data reporting that underscores decision-making for debt purchase and lending operations across the Group.His focus is on enhancing and embedding advanced analytics capabilities into business processes to inform strategy and execution.Experience:Martin has mor

173、e than 20 years of experience in debt purchase,consumer lending,general insurance and actuarial consulting environments.Prior to joining Credit Corp,Martin held a number of roles with PricewaterhouseCoopers and Suncorp,responsible for claims valuation,pricing,core-banking model validation and financ

174、ial modelling.DAVID ACHEATEL Chief Operating Officer USA 10 years with Credit Corp Priorities:David is responsible for operational strategy and performance,compliance,business development,and vendor management for the US operations.His priority is improving efficiencies to maximise returns,increasin

175、g and diversifying our PDL investments and client base,and ensuring regulatory compliance.Experience:David has 17 years experience in financial services and investment management,including 13 years in the collections industry.Prior to joining Credit Corp,he was the Chief Executive Officer of a debt

176、buyer and collection agency.DIRECTORS REPORTSTORIESCGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM 19 19 OUR PEOPLECUSTOMERSTORIESEVERY CUSTOMER HAS A STORY.CREDIT CORP LISTENS*Some names and identifying details have been changed to protect the privacy of individuals.Elaine was going through a di

177、fficult time in her life following an accident that resulted in lifelong impairment,impacting her return to work and bringing a period of financial hardship.Overwhelmed by her situation,Elaine initially chose to avoid discussing her financial situation with Credit Corp.When Jazz was finally able to

178、connect with Elaine,she took the time to listen and reassure her that they would work together to resolve her debt by tailoring a solution to her circumstances.Jazz was able to suggest an affordable and flexible repayment option suited to Elaines financial position.While Elaine felt vulnerable,Jazz

179、took the time to comfort her and make the process as easy as possible.Elaine has since successfully sustained her repayment plan for almost a year,and is well on her way to resolving her debt situation.Roberts wife was suddenly diagnosed with a serious illness requiring ongoing treatment.This was ov

180、erwhelming for the family and meant they were unable to make their monthly repayments.Jentry worked together with Robert to better understand the situation and find a repayment solution that would help ease the financial pressure they were facing during this difficult time.“Jentry was absolutely ama

181、zing and caring in our time of need.By working through a solution with us,she gave us the breathing space we needed to focus on my wifes health and we are very grateful for this.”“Jazz contacted me about my debt to arrange payment from me.As someone who has very little income after suffering catastr

182、ophic injuries in an accident three years ago and dealing with some very difficult life situations,Jazz was able to help me through the process with kindness,and that really means a lot.I want to pass my thanks to her and to Credit Corp for dealing with my situation in a caring manner.”Meet Elaine,A

183、USMeet Robert,USAINTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDHIGHLIGHTS20 CREDIT CORP GROUP ANNUAL REPORT 2022REVIEW OF OPERATIONSPROVIDING OUR EMPLOYEES WITH OPPORTUNITIES TO ACHIEVE THEIR CAREER ASPIRATIONS.Niamh joined Credit Corp in 2012 as a Customer Relationship Manager after takin

184、g a break from studying a degree in Information Technology.Since then Niamh has had the opportunity to work in a number of different roles across the business,including in the IT function where she started as a Service Desk Analyst and was subsequently promoted into a leadership role as global Servi

185、ce Desk Team Leader.Niamhs analytical approach and her ability to build strong relationships has seen her progress within Credit Corp.She was recently promoted to Security Support Analyst where she maintains Credit Corps strict data compliance requirements and raises security awareness within the or

186、ganisation.Niamh considers a strength of Credit Corp to be how it empowers you to take the lead in your career development and challenge yourself.Janelle joined Credit Corp in 2015 as a Customer Relationship Manager after a number of years working in hospitality.After returning from travel,Janelle w

187、as referred to Credit Corp by a friend,attracted by the comprehensive training given to new starters at an entry-level.During her time at Credit Corp she has worked across different departments,including Workflow,Insolvency and Legal.Crediting the support and encouragement from her managers,as well

188、as the knowledge gained from participating in the career pathway training programs JUMP,RISE and IGNITE for her progression into a leadership role,she is currently a Team Performance Manager for Legal Services.Kimberley started at Credit Corp in 2015 as a Customer Relationship Manager in Brisbane an

189、d since then has worked across a variety of roles,such as a Senior Customer Relationship Manager,a Team Performance Manager and an Onboarding Manager.In 2017,she commenced a Bachelor of Secondary Education and completed her university placements during her time at Credit Corp.She has been able to ut

190、ilise the transferable skills and knowledge gained in her university degree to further her career at Credit Corp.Kimberley has always strived to join the Learning and Development team and in early 2022,started her current position as a Learning and Development Specialist for Collection Services.“Wor

191、king at Credit Corp has afforded me so many opportunities to grow and develop my career.If you had told me nine years ago Id be working in cybersecurity within the same organisation,I definitely wouldnt have believed you!I am appreciative for the support and guidance of my mentors within Credit Corp

192、 who,over the years,have helped shape not only my career,but my personal growth and development.”“I am grateful to Credit Corp for setting my career in a new direction.At the end of my travels,I came to Australia with the intention of working here for a year before returning home to New Zealand.I qu

193、ickly realised that Credit Corp was somewhere that I could learn,build my career and make friendships.Its fantastic that there are so many internal opportunities and training programs available,and everyone has the chance to succeed.My managers have always supported the path I have chosen to take.”“

194、I am grateful for the support and encouragement Credit Corp has given me.I remember being quite nervous about approaching my manager to request extended leave for my threeweek university placement when I was a Team Performance Manager.My request was met with empathy,and I felt supported in my decisi

195、on to study whilst performing my role.Even though I was studying a degree that wasnt directly related to my work,this didnt impact on my development.The same support has continued across different managers,and has in turn influenced me to work harder and succeed in each role Ive had.There is so much

196、 growth at Credit Corp and Im excited for the future opportunities.”Meet Niamh,AUSEMPLOYEESTORIESMeet Janelle,AUS Meet Kimberley,AUS21 DIRECTORS REPORTOUR PEOPLECGSSUSTAINABILITYOTHERFINANCIAL STATEMENTSMOMENTUM STORIESOUR COMMITMENTTO SUSTAINABILITYWe are committed to being a leader in sustainabili

197、ty and compliance.Financial services is one of the most scrutinised sectors of the economy and plays an important role in the broader community.We apply our values to ensure the creation of sustainable outcomes for our customers,people,clients,shareholders and the community.Strengthening Culture and

198、 AccountabilityThe relationship between our people and our customers is based on respect.Our Employee Code of Conduct defines our workplace principles and sets expectations around how our people should act.To embed the Code of Conduct into our processes and keep it front of mind,we undertake annual

199、refresher training for all employees,as well as mandatory monthly refresher training with our operational employees.In the 2022 financial year,zero matters went to an employment tribunal and 0.02 matters per 100 employees were lodged with the Fair Work Commission(FWC).The matters related to unfair d

200、ismissal and general protections,and all have since been resolved.Developing our PeopleWe provide a positive workplace that supports employees safety,wellbeing and development.Despite the challenges posed by COVID-19 over the last two years,our in-house training team,who are all Certificate IV Techn

201、ical and Adult Education qualified,continued to support employee learning through virtual training sessions,with some of the innovative virtual delivery methods trialled proving to be very effective.The return of many employees to the office in 2022 has seen training move to a flexible combination o

202、f face-to-face and virtual sessions.Our in-house training programs focus on a mix of technical and soft skills that lay the foundation for operational success and career growth in operational leadership,including resilience,decision making,workplace partnering,coaching,negotiation and investigative

203、work.All new operational employees undergo an extensive induction and onboarding training program when they join,administered by the Companys training and operational teams.We have recently launched a development hub for our leaders aimed at providing a one-stop shop for self-paced learning,where th

204、ey have access to e-learning modules,podcasts,chatbots,simulations and games to complement more formal training being undertaken.A total of 1796(2021:1,085)employees have completed one of the training programs that form part of our career pathway model.The training benefits those looking for career

205、progression and/or leadership development,for both frontline manager and other management roles.In Australia,we have a partnership with TAFE NSW(RTO Code 90003)to deliver a nationally recognised and accredited Certificate III and IV qualification in Financial Services to our employees.To date this h

206、as enabled our debt collection employees to attain an external qualification on the job,at no cost to them,rather than having to find the time outside of work hours.It has proven to be a successful way for employees to build the foundations for a career in financial services.We have recently broaden

207、ed the availability of Certificate III to our Collection Services teams located in Australia and New Zealand.12(2021:93)employees attained a Certificate III in 2022.155 are presently on track to complete a Certificate III and 16 are progressing towards their Certificate IV qualification.Engaging our

208、 LeadersIn 2022,we introduced Engaging Leadership training,with over 250 of our leaders participating.Having highly engaged leaders has always been a priority,heightened more recently by hybrid working.The training has provided our leaders with a practical toolkit on how to foster more engaging and

209、productive relationships with their teams,colleagues and more broadly across the organisation.Our people are the key to our success.They represent our culture by applying our values every day,and their diverse abilities enable us to interact effectively with our customers and to achieve exceptional

210、results.COMMITMENT TO OUR PEOPLE250+PARTICIPATINGEngaging Leadership trainingINTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTSView our Employee Code of Conduct22 CREDIT CORP GROUP ANNUAL REPORT 2022Our workforce at a glance4Countries20Ethnicities50+Languages spok

211、en9CitiesAGE34%50 yrs old1,840EMPLOYEES(FTE)40%MALE60%FEMALE“As an employee who has recently been promoted,the VIRTUS program gave me the opportunity to improve on aspects of my leadership capabilities,including coaching,decision making and emotional intelligence.I am now better equipped to support

212、and develop both my team and my colleagues.”TylerCollections Manager,WA on completing the IGNITE and VIRTUS training programs176INTERNAL PROMOTIONS91%OF LEADERSHIP POSITIONSfilled internally“Having the career pathway training to work through,from JUMP,to RISE,to IGNITE and now VIRTUS,has been an inv

213、aluable experience.After being a Team Performance Manager for a number of years,the VIRTUS program provided a timely refresher on whats important in running a successful and engaged team.The training gave me easy to use tools to use throughout the day and as an added bonus,I found the tools equally

214、valuable outside of work.”Renee Team Performance Manager,Qld on completing the JUMP,RISE,IGNITE and VIRTUS training programs23 DIRECTORS REPORTOUR PEOPLESTORIESCGSOTHERFINANCIAL STATEMENTSMOMENTUM SUSTAINABILITY23 23 COMMITMENT TO OUR PEOPLE CONT.Gender equality is a key principle of our diversity s

215、trategy.Driving Change from Within Following the IWD Panel,Credit Corp reaffirmed its commitment to driving change internally,taking a comprehensive approach,and asked employees to be part of the change as well.The executive team committed to looking into processes,providing education,and making cha

216、nges to remove any bias from decision making to ensure the playing field is level for everyone.Managers were asked to proactively speak to their teams about what they want from their careers in the short,medium and longer term,and to encourage them,regardless of gender,to put themselves forward,and

217、if they werent quite ready to step up to take active steps to fill any skills gaps.Individuals were invited to be brave,make their ambitions known,step up for opportunities even if they dont feel fully ready yet,and challenge.Change takes time,and we want to create something that lasts.Our commitmen

218、t to hire internally remains strong,and we want to ensure women and other minority groups are given plenty of opportunity to progress in their careers at Credit Corp.Being Mindful of Unconscious BiasOur IWD host,a specialist in female development and unconscious bias,held workshops for our managemen

219、t teams,exploring why unconscious bias matters,how it shows up,and how to challenge it so collectively we are in the best position to level the playing field.Creating a Diverse,Inclusive CultureWe believe a diverse and inclusive workplace leads to better business outcomes.Employing people from diver

220、se backgrounds and experiences enables us to provide exceptional customer service to our equally diverse customer base.We aim to attract,develop and retain great talent and to create a more diverse and inclusive workplace where everyone is valued and treated equally regardless of their ethnicity,sex

221、ual orientation,gender,background or any other personal characteristic.View our Diversity PolicyTo celebrate International Womens Day(IWD)we held our first-ever live streamed IWD Panel Discussion with over 1,000 employees participating globally.Hosted by an external facilitator,our panellists,includ

222、ing female leaders and our CEO,shared their insights,from how we can all#breakthebias,to enabling more women at Credit Corp to maximise their potential,challenge themselves and be brave.The session brought to life many stories about female career progression in the business and increased awareness a

223、mongst others that the same was possible for them.CELEBRATING INTERNATIONAL WOMENS DAY1,000EMPLOYEESparticipating globallyINTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTS24 CREDIT CORP GROUP ANNUAL REPORT 2022Celebrating NRW and NAIDOC WeeksWe recognise that Nat

224、ional Reconciliation Week(NRW)and the lens through which it is viewed is different for everyone.To bring one perspective to life,our RAP Working Group member,Jasmine,reflected on her own family history and cultural identity,and shared this with our employees.Through shared understanding,we believe w

225、e can all contribute to achieving reconciliation in Australia.It was a privilege to hear Jasmines moving story,an extract of which is below;“Hearing about the trauma of my ancestors I still have a tough time understanding what it must have been like for them.With young girls of my own,they are growi

226、ng up learning all about their family and culture.Annual events like NRW help them to understand a bit more about their culture,and it gives them a sense of identity and pride in their heritage.We can work together towards building a future of recognition,understanding and pride in the culture of ou

227、r First Nations People.I hope that by sharing my story I have helped provide an insight into why NRW is so important to our people.It is about healing from our generational trauma,celebrating our rich and ancient culture and learning how we can all walk forward together as one”Advancing Reconciliati

228、onAs part of our commitment to a more inclusive future,in 2021 Credit Corp joined the reconciliation effort to build relationships,respect and trust between Aboriginal and Torres Strait Islander peoples and the wider Australian community.Since the launch of our first Reconciliation Action Plan(RAP)i

229、n 2021,we have finalised the deliverables and are working on our next phase,our Innovate RAP.Our vision for reconciliation is a future that bridges the gap between Aboriginal and Torres Strait Islander peoples and nonIndigenous Australians.We envision a future where everyone has equal access to empl

230、oyment and sustainable financial solutions.By bridging the gap in knowledge and understanding,Credit Corp is committed to fulfilling this goal by accurately representing Aboriginal and Torres Strait Islander history and culture.As an organisation,we will embrace cultural protocols and use our sphere

231、 of influence to provide long-term sustainable financial solutions for everyone in the community.Our RAP Working Group comprises 13 members and brings together people from across our different business units and locations,including Aboriginal and Torres Strait Islander staff.In line with the commitm

232、ents in our RAP,we are looking for opportunities to build relationships and support Aboriginal and Torres Strait Islander owned individuals and businesses.We have recently started purchasing recycled,ethically sourced and Indigenous office supplies for use across our Australian business from Cultura

233、l Choice,a 100%Indigenous Australian owned and operated office supply company.For every Culture Choice product purchased,they will donate a percentage to the Cultural Choice Association which aims to support the prevention of Aboriginal youth suicide and its related causes in Australia.To further su

234、pport Aboriginal and Torres Strait Islander communities,our RAP Working Group has established relationships with local artists in each of our seven Australian locations to commission traditional Aboriginal artworks with local significance to be displayed in our offices.SUPPORTING ABORIGINAL&TORRES S

235、TRAIT ISLANDER OWNED BUSINESSESView our Reconciliation Action PlanOur Brisbane team engaged Frazer Watson to produce an artwork for the office and join employees for a morning tea during NAIDOC Week.Frazer is a proud Mununjali,Wangerriburra and Ghungalu man who grew up on Turrbal and Yuggera country

236、,Meanjin(Brisbane).His artwork depicts the meeting place.The meeting place was where Frazers old people,the Mununjali elders,would meet with the Turrbal and Yuggera people and trade hunting weapons such as spears and boomerangs for fish along the crystal clear water of Meanjin.DIRECTORS REPORTOUR PE

237、OPLESTORIESCGSOTHERFINANCIAL STATEMENTSMOMENTUM SUSTAINABILITY25 COMMITMENT TO OUR PEOPLE CONT.Our WHSPerformance202220212020Injuries per 100 employees0.310.270.21Work-related fatalities number000Prioritising Health,Safety&WellbeingThe workplace health and safety(WHS)of our people continues to be a

238、priority and this year we have renewed our focus on wellbeing after feedback indicated employees would like to hear more from us in this space.Recognising that everyones wellbeing journey is individual,we offered a variety of initiatives giving people the opportunity to restore balance,refill their

239、tanks and improve their overall health and wellbeing.We launched the four-week Activate Your Wellbeing Challenge,a series of informative and interactive online streams and activities.It covered a range of topics,from building support and social connections to the importance of self-care,relaxation,h

240、ealthy diet and mindful eating.Many employees found this timely and relevant,especially during periods of prolonged COVID-19 restrictions.We offered a structured,ongoing fitness program through a partnership with a local Sydney based gym,which developed a bespoke training program for all employees,r

241、egardless of where they were located globally.A Wellness Committee was established for employees keen to share their passion for wellbeing and to build on the momentum in the wellbeing space.We continued our support for mental health,launching the My Mental Fitness app,to sit alongside the Mental He

242、alth First Aiders who accompany the First Aiders in each of our locations.Our Mental Health First Aiders receive external training from organisations offering a certificate recognised by Mental Health First Aid Australia,and act as a first point of contact for people experiencing mental health probl

243、ems in emergency situations.Resilience training was also launched using cognitive behaviour therapy as the basis,and will form part of our regular induction and onboarding program moving forward.Our Work Health Safety Policy,which is readily accessible to all staff,forms part of the induction proces

244、s for new employees and complements our mandatory annual refresher training for all employees.We are committed to a safety culture.We are continuously evaluating and improving our work processes and environment to ensure the safety and wellbeing of all employees.We regularly review potential risks t

245、o minimise the occurrence of injuries and occupational diseases.All incidents are logged and reported monthly at Board level and appropriate changes are made to further improve health and safety.Embracing New Ways of WorkingThroughout the pandemic we supported our employees to work at home safely.Af

246、ter listening to their feedback,we are currently trialling a hybrid work from home/return to the office model aimed at giving employees the flexibility they value,but allowing time in the office together for collaboration,development and engagement purposes.THIS YEAR WE HAVE RENEWED OUR FOCUS ON WEL

247、LBEING AFTER FEEDBACK INDICATED EMPLOYEES WOULD LIKE TO HEAR MORE FROM US IN THIS SPACE.INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTS26 CREDIT CORP GROUP ANNUAL REPORT 2022Energising our PeopleOur people have shown resilience,empathy and determination,working

248、 together to face the challenges posed by COVID-19 over the past couple of years.To help support our employees,we increased communications,tracked engagement and introduced new wellbeing initiatives.We connect with our employees through channels such as our intranet shared hub and our monthly newsle

249、tter,and directly via individual and team meetings,emails,roadshows and feedback tools.Throughout 2022 we held two employee virtual roadshows where employees were able to ask the CEO,members of the executive team and senior management anything whether related to business strategy,the future of the C

250、ompany or employee initiatives.Culture and EngagementAn important focus this year has been on employee engagement and taking action on feedback.In May 2022,employees participated in our annual employee engagement survey to share how they felt about working for Credit Corp,and help us focus our energ

251、ies on what will make the most difference to them,now and into the future.An external company,CultureAmp,ran the survey.Overall employee engagement improved by 9%across all parts of the business since the last survey 12 months ago.One opportunity identified was for more collaboration and communicati

252、on between functions.At a corporate level,this,along with a continued focus on leadership,will be our priority for the next 12 months.92%PROUD TO WORKfor Credit Corp 9%INCREASEin employee engagementFeedback was overwhelmingly positive,with over 95%of employees finding the roadshow to be useful and i

253、nformative and 92%sharing that they are proud to work for Credit Corp.DIRECTORS REPORTOUR PEOPLESTORIESCGSOTHERFINANCIAL STATEMENTSMOMENTUM 27 27 SUSTAINABILITYSUPPORTING OUR CUSTOMERS20NPSLENDING CUSTOMERSWe aim to deliver the best outcomes for our customers and believe Net Promoter Score(NPS)is a

254、good overall measure of our customers experience with us as it subtracts our detractors from our promoters.Our NPS includes surveyed customers in all groups,including new and returning customers,approved and declined customers,as well as those customers who have withdrawn or let their application ex

255、pire.Sustainable and Responsible LendingWe are the market leader in the fast consumer loan segment,providing affordable and sustainable loans to our customers.Credit Corps market-leading loan products are lower cost and more sustainable than products of competitors operating in our segment.In fact,o

256、ur flagship fast cash loan product Wallet Wizard is up to 76 per cent cheaper than competitor products.Australian fast cash loan pricing 1Credit Corp$141Typical competitor$6001.Total interest and fees based on a$1,500 loan over nine fortnights.Our flagship fast loan product76%competitor productsCHEA

257、PER THANCustomer EngagementA good relationship with our customers is critical to agreeing appropriate financial solutions.We are collaborative and respectful in our approach.We engage in a constructive dialogue and take an understanding approach to each customers situation.We work with our customers

258、 to ensure a sustainable and realistic repayment solution.85 per cent of collections are received from mutually agreed repayment arrangements in Australia and New Zealand.Understanding our customers is fundamental to our success.Our relationships with our customers are built around respect and colla

259、boration with the goal of providing affordable financial solutions tailored to their needs as a pathway towards mainstream financial inclusion.Credit Corp maintains a number of proactive controls to identify and respond to hardship,sensitive issues or dissatisfaction in order to provide the best ser

260、vice to our customers.In addition to this,we have measures to identify and assist customers facing unprecedented personal and economic challenges,whether this may be due to COVID-19 or natural disasters such as bushfires or floods.We reinforce contact points within our business with Financial Counse

261、lling Australia(FCA)for escalation of any particular cases their members may wish to discuss.Lowest Industry Complaint RatesWe maintain the lowest number of external dispute resolution(EDR)complaints per million dollars collected in our industry,as published results by our EDR provider.In the US,we

262、maintain a dispute rate per million dollars collected significantly lower than our publicly-traded competitors,as reported by the federal regulator.OUR COMMITMENTTO SUSTAINABILITY 2%VS.PCP28 CREDIT CORP GROUP ANNUAL REPORT 2022INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATI

263、ONSHIGHLIGHTS$1.71Bof receivables in ongoing repayment arrangementsIN FACE VALUE$11.65Bof receivables globallyIN FACE VALUEEnhancing Customer Experience through DigitalWe continue to evolve and innovate our digital collection capabilities through integrating self-service technologies and digital cus

264、tomer engagement channels.Our self-service portal delivers a positive customer experience and provides a range of functionality that allows automated negotiations and the ability to establish sustainable repayment arrangements 24/7.Our digital capabilities are underpinned by advanced analytics to en

265、sure our offerings and messaging are tailored to the individual circumstances of our customer.Rather than a collections strategy that relies too heavily on one channel,we take a holistic approach,combining advanced digital capabilities with the skills of our highly trained collections teams.This app

266、roach makes it easier for customers to get what they need,in the way they want.Overall,this results in maximising the customer experience and achieving superior results across all business segments1.6MCUSTOMERSUS debt purchase1.2MCUSTOMERSAUS/NZ debt purchase195KCUSTOMERSLending3.1MCUSTOMERSglobally

267、H1 FY22 AUS EDR RATE 102.04.06.0CREDIT CORPOTHER DEBT BUYERS12 MONTHS TO MAR-22 US DISPUTE RATE 200.51.01.52.0CREDIT CORPPUBLICLY TRADED DEBT BUYER BPUBLICLY TRADED DEBT BUYER A1.No.of complaints reported by External Dispute Resolution(EDR)provider(The Australian Financial Complaints Authority)for t

268、he 6 month period to December 2021 divided by total annual PDL collections expressed in millions of dollars.2.Complaint metrics from Consumer Financial Protection Bureau(CFPB)database for the 12 months to Mar-2022 divided by reported collections https:/www.consumerfinance.gov/data-research/consumer-

269、complaints/search/?from=0&searchField=all&searchText=&size=25&sort=created_date_desc.DIRECTORS REPORTOUR PEOPLESTORIESCGSOTHERFINANCIAL STATEMENTSMOMENTUM 29 29 SUSTAINABILITY7.8/10ACHIEVED BY ANY FINANCIAL SERVICES PROVIDERRANKED CREDIT CORPS CONSUMER HARDSHIP RESPONSE THE 2019 FINANCIAL COUNSELLIN

270、G AUSTRALIAS“RANK THE BANKS”SURVEYHIGHEST SCORE1.Financial Counselling Australia:Rank the Banks and Other Creditors 2019-Rating of response to consumer hardship,July 2020,pages 7 and 19FINANCIAL COUNSELLOR RATINGOF BANKS AND DEBT BUYERS 1CREDIT CORPHIGHEST RANKED BANKOTHER DEBT BUYERS02.04.06.08.0Cu

271、stomer AdvocacyWe work closely with financial counsellors and consumer advocates to develop sustainable financial solutions for our customers.We offer a dedicated escalation point for financial counsellors through our Customer Experience function.We recognise the important role financial counsellors

272、 play in assisting vulnerable consumers and we sponsor a number of financial counsellor conferences every year.This year we continued to sponsor and participate in conferences in New South Wales and Western Australia,as well as the National Conference in Cairns,virtually and in person.We train all o

273、f our frontline operations staff to identify and respond to financial hardship,whether raised by a customer or financial counsellor,and empower them to apply appropriate concessions to address hardship at the first point of contact.We have a longstanding relationship with Uniting Kildonan,a leading

274、not-for-profit financial counselling service that involves the hosting of training sessions for our Australian employees on respectful engagement and customer circumstances,including matters such as domestic violence.These sessions help our people to better understand issues that may be impacting ou

275、r customers and to develop appropriate solutions to suit their individual situations.Our market-leading fast loan product conforms to interest and fee parameters recommended by consumer advocacy groups during regulatory consultation.In December 2019,Financial Counselling Australias member survey rec

276、ognised Credit Corp as having the highest ranked response to financial hardship of all financial services providers across Australia.Jan Pentland scholarshipFor the last seven years,Credit Corp has granted an annual scholarship through the Jan Pentland Foundation,aimed at providing a recipient in th

277、e not-for-profit sector with an opportunity to gain their Diploma in Financial Counselling.The Foundation honours Jan Pentland,who championed the cause for financial counselling and campaigned for a better deal for people on low incomes or who were vulnerable.The 2022 scholarship winner was announce

278、d at the FCA National Conference in May.This years recipient,Alicia,is from North Queensland and has been working in Cape York Communities since 2007.Once qualified herself,she plans to make a real impact by mentoring First Nations financial capability workers to themselves qualify as financial coun

279、sellors and stay in the sector.Rather than referring cases on,they would be able to follow through the important work they have started.”I actually met Jan Pentland at a day dedicated to those working with First Nations clients.She looked after us and ensured everyones voices were heard.I honestly t

280、hink thats when my passion was ignited,”Alicia said.Alicia impressed us with her passion and determination to further her education and make a difference to her local community.SUPPORTING OUR CUSTOMERS CONT.INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTS30 CRED

281、IT CORP GROUP ANNUAL REPORT 2022Our Approach to Human Rights and Modern SlaveryWe recognise that human rights are universal and acknowledge that our role in respecting and promoting the fundamental human rights of our people,suppliers,customers and the communities impacted by our operations and supp

282、ly chain is an important one.Credit Corp commits to the principles of the United Nations Global Compact on human rights,labour standards and anti-corruption,as well as local labour standards wherever we operate.We commit to fair pay and working conditions in keeping with or in excess of the minimum

283、standards required in each country in which we operate.We respect our employees and do not discriminate against any attribute protected by law,including free association.Treating Data with Care Privacy and Data SecurityProtecting the personal data of our customers and employees,as well as our confid

284、ential business information,is a priority across our organisation.To do this,we have implemented customer,client and employee privacy policies and continually strengthen our systems.Our people are key to helping us protect the information we hold,and we regularly educate our people through ongoing m

285、onthly compliance refresher training.Credit Corp is ISO 9001 certified in quality management and ISO 27001 certified in information security management.Minimising the Risks of Modern SlaveryWe have no tolerance for modern slavery and human trafficking.Whether in our operations or our supply chain,we

286、 are committed to taking all necessary steps to operate our business in an ethical,sustainable and responsible manner,and to mitigate the risk of modern slavery and human trafficking.In December 2021,we published our second Modern Slavery and Human Trafficking Statement for the 2021 financial year.M

287、anaging our Supply ChainWe work with over 1,300 Australian and international suppliers and during the year procured goods and services worth more than$35 million to support our global operations.It is important we fulfil our responsibilities to those businesses as well as manage potential risks.We g

288、enerally pay small business suppliers within 30 days and in line with our contractual arrangements with them.Our Supplier Code of Conduct outlines how we manage supply chain risks such as data security and privacy,human rights,environmental impact and conflicts of interest.We require suppliers to ac

289、knowledge this code as part of their contractual agreement with us.Read our Modern Slavery Statement in line with the Modern Slavery Act 2018(Cth)OUR COMMITMENTTO SUSTAINABILITYGOOD BUSINESS PRACTICEAll new operations employees undergo an extensive induction training program before they commence wor

290、k.Data handling training is provided to all relevant staff and is audited and monitored through regular refresher training and testing modules.Credit Corp adopts a Data Security and Data Protection Policy and maintains a data breach incident response plan.Managements approach to identifying and addr

291、essing data security risks involves regular internal and external penetration tests and 24/7 third party monitoring of the security perimeter.Third party suppliers to Credit Corp are subject to robust external security and privacy assessments to ensure compliance with the Companys policies and proce

292、dures.Credit Corps data security and privacy controls are subject to regular auditing by our clients.As a consequence,we are continually upgrading our controls and systems.The Credit Corp Group Privacy Policy details how we collect,use,disclose,store and secure personal information.We prioritise sta

293、ff training on secure information handling practices and our people complete mandatory privacy training annually.DIRECTORS REPORTOUR PEOPLESTORIESCGSOTHERFINANCIAL STATEMENTSMOMENTUM 31 31 View our Supplier Code of ConductView our Privacy Policy SUSTAINABILITYCombating Financial CrimeCredit Corp is

294、committed to the detection,deterrence and disruption of money laundering,financing of terrorism and other serious financial crimes.We are committed to conducting our business in accordance with all applicable laws and regulations,maintaining our reputation as a compliance leader within the industry.

295、Our Anti-Money Laundering and Counter Terrorism Financing Group Statement sets out our core principles in the identification,mitigation and management of the risk that our products or services may be used to facilitate money laundering or terrorist financing.View our AML/CTF StatementExceeding compl

296、iance expectationsThe community has high expectations of financial services providers that go beyond minimum legal requirements.We are committed to meeting these expectations and have a strong compliance record.Position on Political Donations and Industry AssociationsWe belong to a number of industr

297、y associations as part of our normal course of business.While we do not make political donations,we may from time to time,pay to attend political events aimed at the business community.In 2022,we did not participate in any such events and did not contribute to any political party in Australia.Cybers

298、ecurity AwarenessThroughout the year,Credit Corp runs a number of cybersecurity awareness programs organisation-wide focusing on key trends in the industry,including phishing,business email compromise and incident management.Each campaign aims to empower staff with the knowledge required to identify

299、 and respond to cybersecurity incidents at all levels of the business,and demonstrates our commitment to continuous improvement.GOOD BUSINESS PRACTICE CONT.INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTS32 CREDIT CORP GROUP ANNUAL REPORT 2022OUR COMMITMENTTO SU

300、STAINABILITYPROTECTING THE ENVIRONMENTProtecting the EnvironmentAs a non-carbon intensive office and technology-based business,our environmental impact is relatively minimal and primarily arises from the energy used by our offices and three data centres,and from consumables,primarily paper.We are co

301、mmitted to minimising our environmental footprint and have put in place policies and practices aimed at reducing our waste,carbon emissions and other environmental impacts.In line with this,we are currently undertaking a review to better understand our key business environmental impacts,risks and op

302、portunities,with a view to enhanced data collection and disclosure,and to inform our practices moving forward.This will include a climate position statement.In recent years we have focused on reducing our business air travel to lower our CO2/GHG emissions and this has reduced even further with the t

303、ravel restrictions imposed by COVID-19.Our largest office,our head office in Sydney,produced 0.38 tonnes per FTE in CO2 emissions from energy usage consistent with the previous year.The building has a 5-star NABERS energy rating and a 3-star NABERS water rating.Our Australian-managed data centres ha

304、ve a power usage effectiveness(PUE)rating of 1.5 and a 5-star NABERS rating.Our US data centre has a PUE rating of 1.35.Our Australian third party mail house for customer communications is 100 per cent carbon neutral.Waste management and recycling programs are in place at all our locations.At our Sy

305、dney head office this includes a broad range of items being recycled,such as food organics,paper and cardboard,e-waste,coffee cups and commingled items.We have a cartridge recycling program in place for our office printers.WE ARE WORKING TO BETTER UNDERSTAND OUR KEY BUSINESS ENVIRONMENTAL IMPACTS,RI

306、SKS AND OPPORTUNITIES,WITH A VIEW TO ENHANCED DATA COLLECTION AND DISCLOSURE,AND TO INFORM OUR PRACTICES MOVING FORWARD.THIS WILL INCLUDE A CLIMATE POSITION STATEMENT.1,000 KGacross our Australian officesE-WASTE RECYCLEDAroundDIRECTORS REPORTOUR PEOPLESTORIESCGSOTHERFINANCIAL STATEMENTSMOMENTUM 33 3

307、3 SUSTAINABILITYOUR SUSTAINABILITYPERFORMANCEThis table summarises the metrics referred to in the Sustainability section of this report.MetricUnit202220212020Our PeopleTotal fulltime equivalent(FTE)#1,8401,7331,908Australia9979691,013New Zealand966297Philippines359360383USA388352415Headcount#1,9261,

308、8161,944Australia1,1231,0671,064New Zealand646497Philippines358345381USA381340402Employment type(headcount)%Full-time 92.789.688.8Part-time 6.79.910.7Casual0.60.50.5Safety and wellbeing#Injuries per 100 employees0.310.270.21Work-related fatalities 000Parental leave#Employees who have accessed parent

309、al leave:Female 29Male 11Employee traininghrsTraining hours:58,91029,800Leadership levels3,156Frontline employees55,754Average hours per FTE 3217MetricUnit202220212020Our PeopleGender diversity%Women in workforce606057Women in all management roles5251Women in frontline management roles 595849Women i

310、n top management roles2327Women in management roles in revenue-generating functions 5254Women in STEM-related roles3326Female Directors on Board333333Age diversity%50 years old1098HiresNew employee hires#820514717Leadership positions filled by internal candidates%918792Internal promotions#176151Cust

311、omer metricsNet Promoter Score Wallet Wizard#201823EnvironmentC02 Emissions Business air travelt48.023.1894.02C02 Emissions from energy usage(Sydney office)per FTEt0.38 0.480.48E-Waste recycledkg1,000500Power usage effectiveness rating AU-managed data centresPUE1.50 1.28 1.28Power usage effectivenes

312、s rating US-managed data centresPUE1.35 1.35 1.35Note:Some metrics have been reported for the first time in 2022.Where this is the case,the comparative figures have not necessarily been disclosed.INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTS34 CREDIT CORP GRO

313、UP ANNUAL REPORT 2022Morgan Stanley Capital International(MSCI):In June 2022,Credit Corp Group received a rating of“AA”(on a scale of AAA-CCC)in the MSCI ESG Ratings Assessment,unchanged from the year before.THE USE BY CREDIT CORP GROUP OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES(“MSCI”)DATA,AND

314、THE USE OF MSCI LOGOS,TRADEMARKS,SERVICE MARKS OR INDEX NAMES HEREIN,DO NOT CONSTITUTE A SPONSORSHIP,ENDORSEMENT,RECOMMENDATION,OR PROMOTION OF CREDIT CORP BY MSCI.MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS,AND ARE PROVIDED AS-IS AND WITHOUT WARRANTY.MSCI NAMES AND

315、LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.Sustainalytics:In April 2022,Credit Corp Group received an ESG Risk Rating of 18.1 and was assessed by Sustainalytics to be at Low Risk of experiencing material financial impacts from ESG factors.The score is out of 100,where 0 equals negligible risk and

316、 40 or above equals severe risk.Credit Corps ESG Risk Rating places it in the 14th percentile in the Diversified Financials industry assessed by Sustainalytics.Copyright 2022 Sustainalytics.All rights reserved.This section contains information developed by Sustainalytics().Such information and data

317、are proprietary of Sustainalytics and/or its third party suppliers(Third Party Data)and are provided for informational purposes only.They do not constitute an endorsement of any product or project,nor an investment advice and are not warranted to be complete,timely,accurate or suitable for a particu

318、lar purpose.Their use is subject to conditions available at https:/ disclaimers.Assessing our Performance We benchmark our progress as we strive to deliver better economic,social and environmental outcomes.We take part in a range of sustainability indices and surveys,including:DIRECTORS REPORTOUR PE

319、OPLESTORIESCGSOTHERFINANCIAL STATEMENTSMOMENTUM 35 SUSTAINABILITYCORPORATE GOVERNANCESTATEMENTCredit Corp Group Limited(the Company)and its subsidiaries(collectively,the Group)maintains governance policies and practices that provide a framework for and guide decision-making to meet stakeholder expec

320、tations of sound corporate governance,acknowledging Credit Corps responsibilities to its shareholders,creditors,clients,customers,employees and the communities in which it operates.The Groups corporate governance practices comply closely with the 4th edition of the ASX Corporate Governance Councils

321、Corporate Governance Principles and Recommendations released by the ASX Corporate Governance Council.Our purpose is to grow long-term shareholder wealth through successfully operating within the credit-impaired consumer segment of financial services in a sustainable and responsible way by providing

322、customers with genuine solutions as a pathway to increased financial inclusion.Our objective is to be the leading global provider of sustainable and responsible financial services in the credit-impaired consumer segment.Our business demands high standards of governance and control.Financial services

323、 have become a basic need in modern economies and the sector is heavily scrutinised.In our segment of the market we are more likely to encounter consumers suffering from different forms of hardship and vulnerability.Mitigating the risk associated with working with such customers requires a strong co

324、ntrol framework overseen by the Groups Board.Credit Corp has a positive governance culture supported by its values of discipline,accountability and transparency.Discipline involves the adherence to established standards and controls.Accountability ensures that targets for stakeholder outcomes are se

325、t and achieved to deliver continuous improvement.Transparency keeps stakeholders informed of all material aspects of performance and promotes the timely recognition of opportunities for improvement.Our corporate governance practices also reflect these values.This statement relates to the financial y

326、ear ended 30 June 2022,and is current as at 2 August 2022.CORPORATE GOVERNANCE OVERVIEWPRINCIPLE ONE:LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHTBoard ResponsibilitiesThe Boards roles and responsibilities are formalised in the Board Charter,which is published on the Groups website.The Board re

327、serves to itself all functions that are likely to have a material impact on the performance and reputation of the Group.The following functions are reserved to the Board:Providing leadership and setting the strategic objectives and culture of the Group;Appointing the Chairman;Appointing and,when nec

328、essary,replacing the Chief Executive Officer(CEO);Approving the appointment and,when necessary,the replacement of other senior executives;Monitoring senior managements performance,implementation of strategy and allocation of resources;Overseeing managements implementation of the Groups strategic obj

329、ectives and its performance generally;Overseeing the integrity of the Groups accounting and corporate reporting systems,including the external audit;Overseeing the Groups process for making timely and balanced disclosure of all material information concerning the Group that a reasonable person would

330、 expect to have a material effect on the price or value of the Groups securities;Ensuring the Group has in place an appropriate risk management framework and setting the risk appetite within which the Board expects management to operate;Approving the Groups remuneration framework;Approving and monit

331、oring the corporate governance of the Group;and Approving and monitoring operating budgets,major capital expenditure and financial and other reporting.INTRODUCTIONABOUT USOUR BUSINESSCHAIRMAN/CEO REPORTBOARDREVIEW OF OPERATIONSHIGHLIGHTS36 CREDIT CORP GROUP ANNUAL REPORT 2022In fulfilling its roles

332、and responsibilities,the key focus areas of the Board during the 2022 financial year are set out below.Key focus areas of the Board during the 2022 financial year included:Reviewing and refreshing the Groups strategic plan for the next three to five years.Reviewing and approving the Radio Rentals an

333、d Collection House New Zealand secondary ledger book acquisitions.Reviewing the organisation structure of the Group,particularly the management structure supporting US operations.Reviewing business cases and the performance of pilots to diversify the product suite of the lending business.Approving and oversight the geographic expansion of the lending business with the commencement of a US lending