CREDIT CORP GROUP LIMITED - Annual Report 2021

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CREDIT CORP ANNUAL REPORT 2021

BUILDING MOMENTUM

IN 2021 CREDIT CORP RECOVERED ITS GROWTH TRAJECTORY, AND IS NOW BUILDING MOMENTUM FOR SUSTAINED GROWTH INTO THE FUTURE.

We 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.

1985

Credit Corp undertakes the first debt sale transaction in Australia.

2000

Credit Corp is listed on the ASX on 4 September 2000.

2009

Credit Corp partners with Uniting Kildonan.

2010

Credit Corp opens its offshore call centre in Manila, Philippines.

2011

Credit Corp launches its consumer lending business.

2012

Credit Corp commences US operations.

2014

The Wallet Wizard brand is created, offering the lowest‑cost and most sustainable option for customers in the credit‑impaired consumer segment.

2015

Credit Corp enters the S&P ASX 200 index.

2018

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.

BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

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CATCH THE OPPORTUNITY

1 INTRODUCTION 2 HIGHLIGHTS 4 ABOUT US 6 OUR BUSINESS 8 CHAIRMAN'S REPORT CEO’S REPORT BOARD OF DIRECTORS REVIEW OF OPERATIONS OUR PEOPLE STORIES

SUSTAINABILITY

CORPORATE GOVERNANCE STATEMENT DIRECTORS’ REPORT REMUNERATION REPORT FINANCIAL STATEMENTS GLOSSARY AND ABBREVIATIONS CORPORATE DIRECTORY

100

101

THIS IS CREDIT CORP

Credit Corp is Australia’s largest provider of sustainable financial services in the credit‑impaired 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, combined 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.

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ABOUT THIS REPORT

~~2019~~

~~2020~~

The acquisition of Credit Corp’s response Baycorp increases Credit to consumer hardship Corp’s commitment to rated as the highest among agency operations. financial service providers in Financial Counselling A second US Australia’s “Rank the Banks” collection centre opens member survey.

A second US collection centre opens in Washington State.

~~20~~ 21

Launch of Credit Corp’s 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’s annual report is our primary statutory and regulatory reporting disclosure. It comprises information about our activities, strategy, and financial results over the 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 REPORT ONLINE

2021 HIGHLIGHTS

FINANCIAL HIGHLIGHTS

OUR LEADERSHIP HAS DELIVERED A CONSISTENT RECORD OF SUCCESS AND THE FLEXIBILITY TO ACT DECISIVELY WHEN CIRCUMSTANCES CHANGE.

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NET PROFIT AFTER TAX
$88.1
11 [%]
MILLION
VS. PCP [ 1]
REVENUE
$374.8
2 [%]
MILLION
VS. PCP [ 1]
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REVENUE ($M)

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382.0 374.8
324.3
299.0
313.4
266.0
226.7
191.1
174.0
2014 2015 2016 2017 2018 2019 2020 2021
REVENUE REVENUE IMPACT OF COVID-19 ADJUSTMENTS
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PRE-TAX OPERATING CASH FLOW $ MILLION 3[%] 413.5 VS. PCP INCOME GENERATING ASSETS $ 602 . 5 MILLION 8[%] VS. PCP EARNINGS PER SHARE (EPS) 130 . 9 CENTS 11[%] VS. PCP[ 1] DIVIDENDS PER SHARE (DPS) 72 . 0 CENTS 100[%] VS. PCP

NPAT ($M)

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88.1
79.6
70.3
64.3
55.2
45.9
38.4
34.8
15.5
2014 2015 2016 2017 2018 2019 2020 2021
NPAT NPAT IMPACT OF COVID-19 ADJUSTMENTS
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Before COVID-19 impairments and provisions.

BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

OUR PEOPLE

CUSTOMERS

COMMUNITY

THE DIVERSITY OF OUR PEOPLE IS KEY TO OUR SUCCESS.

OUR RELATIONSHIPS ARE BUILT ON RESPECT AND COLLABORATION.

WE AIM TO PROVIDE A PATHWAY TO MAINSTREAM FINANCIAL INCLUSION.

58[%]

WOMEN IN OPERATIONAL MANAGERIAL ROLES

MAINTAINED

LOWEST EDR COMPLAINT RATE IN AUSTRALIAN INDUSTRY

CONSUMER HARDSHIP RESPONSE RATED THE HIGHEST BY FINANCIAL COUNSELLORS IN RANK THE BANKS SURVEY (DEC 2019)

1,733 EMPLOYEES ACROSS THE GLOBE

2.2 MILLION CUSTOMERS GLOBALLY

1,300 SUPPLIERS PAID WITHIN 30 DAYS OR AGREED ARRANGEMENTS

29,800 HOURS TRAINING DELIVERED

113 AUSTRALIAN EMPLOYEES

WHO ATTAINED A TAFE CERTIFICATION

$ 1.78

BILLION

IN FACE VALUE OF DEBTS IN ONGOING REPAYMENT ARRANGEMENTS

$ 11.26 BILLION

IN FACE VALUE OF RECEIVABLES GLOBALLY

6[TH]

YEAR GRANTING

A SCHOLARSHIP THROUGH THE JAN PENTLAND FOUNDATION

500 KILOGRAMS

OF E-WASTE RECYCLED FROM OUR AUSTRALIAN OFFICES

PRE-TAX OPERATING CASH FLOW ($M)

INCOME GENERATING ASSETS ($M)

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586.5 602.5
394.7 413.5 559.9
513.0
330.7 469.2
305.0
274.1
363.7
242.4
200.5 215.6
244.3
203.7
2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021
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ABOUT US

OUR PURPOSE THIS IS WHY WE’RE HERE

Our purpose is to grow long‑term shareholder wealth through successfully operating within the credit‑impaired consumer segment of financial services in a sustainable way by providing customers with genuine solutions as a pathway towards increased financial inclusion.

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OUR GOAL
TO BE THE LEADING
GLOBAL PROVIDER OF
SUSTAINABLE & RESPONSIBLE
FINANCIAL SERVICES IN
THE CREDIT-IMPAIRED
CONSUMER SEGMENT
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DOING THE RIGHT THING

DISCIPLINE

MAKING IT HAPPEN

ACCOUNTABILITY

BEING OPEN AND HONEST

TRANSPARENCY

CREDIT CORP GROUP ANNUAL REPORT 2021

OUR STRATEGY THIS IS HOW WE GET THERE

Our strategy is to grow our business in a sustainable and disciplined way. We achieve this by applying our key strengths.

SUPERIOR ANALYTICS

Our businesses succeed through effectively pricing investments and managing risk. We objectively analyse large volumes of data to ensure we deliver an acceptable return on our investments using analytics, technology and systems to develop an in depth understanding of our customers and to efficiently allocate our resources.

OPERATIONAL EXCELLENCE

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GROW INTO THE FUTURE
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We create business outcomes by communicating with our customers. 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 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 & ORGANIC 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 test 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.

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OUR PERFORMANCE THIS IS WHAT WE HAVE ACHIEVED

FOR INFORMATION ON OUR OPERATIONAL PERFORMANCE, READ OUR REVIEW OF OPERATIONS

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OUR BUSINESS 1,733
EMPLOYEES 2021
9
CITIES
ACROSS
THE GLOBE
4
COUNTRIES PHILIPPINES 350
1,085
CAREER PATHWAY
PROGRAMS COMPLETED
29, 800
HOURS OF TRAINING
DELIVERED NEW ZEALAND 62
52
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CREDIT CORP IS AUSTRALIA’S LARGEST PROVIDER OF SUSTAINABLE FINANCIAL SERVICES TO THE CREDIT-IMPAIRED CONSUMER SEGMENT.

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TOTAL FACE VALUE ACROSS 1,733 $OF RECEIVABLES11.26 2..2 EMPLOYEES BILLION

2..2 M CUSTOMERS

OUR COMPANY HAS BEEN LISTED ON THE AUSTRALIAN SECURITIES EXCHANGE SINCE 2000 AND FORMS PART OF THE S&P ASX 200 INDEX.

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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 excluded from the sorts of readily available finance provided by mainstream lenders that many people in society take for granted.

WE SPECIALISE IN WORKING WITH OUR CUSTOMERS BY PROVIDING SUSTAINABLE FINANCIAL SOLUTIONS AS A PATHWAY TO MAINSTREAM FINANCIAL INCLUSION.

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Improved ability to borrow
through updated credit record
CUSTOMER CUSTOMER
PATHWAY TO
Unable to pay MAINSTREAM
credit obligations AGREES
FINANCIAL
FLEXIBLE
INCLUSION
REPAYMENT
Buys debt at superior PLAN TO REPAY
prices for clients
ACCOUNT
CREDIT CORP CREDIT CORP
Offers market-leading
finance products
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FINANCIAL
DIFFICULTY
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BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

CREDIT CORP COMPRISES OF THREE CORE BUSINESSES — DEBT BUYING & COLLECTION, AGENCY COLLECTIONS & LENDING.

DEBT BUYING & COLLECTION

In our core business of debt buying 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 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 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 credit 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 accordance with relevant laws and standards.

Credit Corp has an impeccable 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 industry. 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 / New Zealand debt buying and collection business to the largest consumer credit market in the world – the USA. We have grown a profitable business in this market and have expanded our presence from our base in Utah to Washington State.

AGENCY COLLECTIONS

Credit Corp has always offered agency collection services to its clients who 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 the National Credit Management Limited (NCML), Baycorp and Credit Corp brands.

The agency business operates from locations in Australia, New Zealand and the Philippines.

Our client base ranges from large corporate organisations and government departments through to small and medium sized businesses.

CREDIT CORP HAS HELPED MORE THAN 240,000 AUSTRALIANS

AVOID HIGHER COST AND UNSUSTAINABLE PRODUCTS THROUGH OUR MARKET-LEADING ALTERNATIVES

LENDING

In 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 assist consumers in a responsible way. All of Credit Corp’s products feature interest and fee rates below the caps applicable to mainstream consumer lending. To date, Credit Corp has helped more than 240,000 Australians avoid higher cost and unsustainable products through our market-leading alternatives.

In developing our affordable and flexible loans, we have been able to leverage Credit Corp’s 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 Corp’s superior collections platform ensures that credit losses are efficiently minimised.

The attractiveness of our loan product 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 in the market. This has freed us from restrictions imposed on competitors and facilitated access to efficient conventional funding.

Our loan products are delivered under a portfolio of brands, including Wallet Wizard and CarStart.

FIND OUT MORE ABOUT SUPPORT FOR OUR CUSTOMERS DURING COVID-19

GROW INTO THE FUTURE

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CHAIRMAN’S REPORT

It gives me great pleasure, in my first year as Chairman, to report on a strong performance for the year under review, and a promising outlook. Throughout my career I have had the good fortune to work with some brilliant organisations, but I regard Credit Corp as one of the best companies I have had the privilege of being associated with. Credit Corp’s 2021 performance demonstrates why it is a truly great company with excellent prospects for the future.

THE FOUNDATIONS OF SUCCESS

The basis of our success has been to continually take steps to improve our operational performance, and whilst maintaining a forward-looking approach, not seek to predict the future.

These steps have involved leveraging and improving existing strengths with a view to market leadership and positive differentiation across a breadth of operations. Credit Corp has applied its ability to understand and work with credit-impaired consumers to develop new businesses capable of delivering ongoing opportunities for growth. The Company has leveraged common infrastructure and capabilities for sustained competitive advantage. There has been a relentless focus on continuous improvement to ensure that Credit Corp has the potential to be the leading operator in all its markets. Products and services have been structured to provide genuine customer solutions and a strong culture of compliance has been supported by an effective control framework to ensure that Credit Corp always stands out for responsible and sustainable conduct.

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REVENUE
$374.8
MILLION 2 [%]
VS. PCP [ 1]
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These foundations were evident in Credit Corp’s ability to successfully navigate through an unfavourable environment to deliver strong results in 2021.

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NET PROFIT AFTER TAX
$88.1
MILLION 11 [%]
VS. PCP [ 1]
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AUSTRALIAN AND NEW ZEALAND DEBT PURCHASING

The core Australian and New Zealand debt purchasing business faced difficult and uncertain conditions. A significant proportion of the Company’s customer base was being supported by government programs, including JobKeeper, and these programs were progressively being withdrawn. A number of major credit issuers had ceased sale as part of their approach to COVID-19 forbearance. Organic purchasing volumes were further reduced as the impact of forbearance programs and stimulus payments temporarily suppressed charge-offs. The core business faced the prospect of rapidly declining collections and dramatically reduced investment.

Staying true to the foundations of our long-term success has helped avoid the prospect of adverse results. Operating disciplines ensured that collections were maintained as customers moved away from government support and into alternative employment. Credit Corp’s leadership in responding to financial hardship and sustainable practices provided several major credit issuers with the confidence to resume sale and award their volume to Credit Corp. Through a combination of superior pricing analytics, leading operational capability and unrivalled financial capacity, the Company was able to acquire the Collection House purchased debt ledger (PDL) book at an attractive price. This transaction was promptly integrated, contributing to strong collections in 2021 and the years ahead.

1. Before COVID impairments and provisions.-19 impairments and provisions.

BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

ERIC DODD

CHAIRMAN

CONSUMER LENDING

The lending business also encountered a challenging operating environment. It was necessary to tighten lending criteria to account for the prospect of rising unemployment as government support was withdrawn. At the same time stimulus payments, including the early access to superannuation, were suppressing demand for unsecured credit and producing a high incidence of loan prepayment. As a consequence, the consumer loan book was running off rapidly.

Once again, Credit Corp turned to the disciplines that have made it successful in the past. With each progressive reduction in government support, the impact on repayment behaviour was assessed and lending criteria adjusted. As stimulus subsided existing customers returned to the cheapest and most sustainable product in its category. A decision to resume television advertising during the first half lifted new customer demand and helped deliver record lending volume over the second half of the year.

US DEBT PURCHASING

By the start of 2021 Credit Corp had developed a US business capable of being a market leader. Key operating metrics showed that Credit Corp was competitive with the most successful operators in the country. While its share of purchasing was still small at just three per cent it was the sixth largest buyer in terms of purchasing outlay, one of the largest in terms of in-house collection workforce and had established a diversified range of purchasing relationships.

At the same time there was still concern for the US outlook because COVID-19 was spreading rapidly and consumer support was scheduled to end during the first month of the year. Stimulus and forbearance had temporarily reduced total market PDL supply by as much as 50 per cent. Much of the country, however, remained open and over the first half of the year the Company’s collection experience showed that the US consumer was in a solid position. With the change of federal administration stimulus was re-introduced and layered on top of a substantially recovered consumer economy. Despite initial concerns and tight PDL supply, it became clear that the US would present an opportunity to accelerate growth.

LOOKING AHEAD

Having recovered during 2021 Credit Corp now looks ahead to reporting another year of solid growth and returns. 2022 has started with a record pipeline of contracted PDL purchasing and considerable excitement around new product and business improvement initiatives to sustain growth well into the future.

After a successful year I want to thank my fellow directors, our CEO Thomas Beregi and his management team for their leadership of Credit Corp over a challenging period. On behalf of the Board and shareholders, I also thank all of our employees for their ongoing commitment and dedication to the Company.

ERIC DODD CHAIRMAN

Credit Corp seized the opportunity to increase its level of PDL investment in the US. It increased its share from existing clients and established three new purchasing relationships. This combined with operational improvement and a strong consumer position to produce a 26 per cent increase in collections and a doubling in segment earnings.

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CEO'S REPORT

To consistently deliver for stakeholders over the long-term requires a resilient culture committed to leading through values. Organisations can produce strong short-term results and can perform consistently over a number of years when conditions are favourable, even when their culture is weak or fragile. Only companies with a strong unifying culture, however, can recover from significant setbacks and comprehensively recoup value for all stakeholders in an adverse environment. Credit Corp’s successful turnaround in 2021, encapsulated in the theme ‘building momentum’, is testament to a very strong culture capable of meeting and exceeding stakeholder expectations well into the future.

A strong culture is one where every individual is committed to working together to realise a common objective by operating with well-understood values. Credit Corp’s values encapsulate its culture and are the prism through which the turnaround in 2021 can best be described.

Everyone at Credit Corp knows the importance of doing the right thing by always maintaining discipline. This means keeping our objectives in mind and never succumbing to the temptation of the path of least resistance before assessing the facts and data to determine the right path. We don’t cut corners and we adhere to established controls, regardless of the pressures we may be feeling.

When circumstances are against us we know that we have to make it happen by stepping up and taking accountability for achieving results. People at Credit Corp don’t make excuses or spend any time crafting elaborate justifications for underperformance. Instead they focus on identifying the reasons for underperformance and working out what needs to change to produce a better outcome. They establish targets for themselves and their teams and set about achieving them.

If you are committed to delivering for stakeholders in the long-term you must act with transparency by being open and honest. While we may strive for perfection we know we will never achieve it. Mistakes will be made, things will go wrong and there will always be threats to continued success. Only by embracing problems can they be overcome and it is important that we always share a complete picture with our stakeholders to promote longterm understanding and credibility.

SHAREHOLDER OUTCOMES

In 2021 we restored value for shareholders and recovered our strong pre-COVID-19 growth trajectory despite adverse market conditions. Net Profit After Tax (NPAT) of $88.1 million, represented 11 per cent growth over the prior year before COVID-19-related impairments and provisions. Strong returns were delivered with a Return on Equity (ROE) of 14 per cent, despite the Company being debt-free and holding substantial cash and undrawn credit lines of $372 million.

We recognised that conditions were adverse and openly shared this with our shareholders in communications throughout the year. We reported the uncertain consumer position in Australia and New Zealand as support and stimulus was withdrawn throughout the year. We reported a temporary contraction in purchased debt ledger (PDL) supply of approximately 50 per cent across all markets. We disclosed the stimulusinduced loan book run-off affecting our consumer lending business.

In 2021 we recognised these issues and seized accountability for addressing them. In Australia we used our strengths in analytics, operating performance and financial capability to apply adverse conditions to our advantage by securing the largest secondary PDL purchase in Australian history through the acquisition of the Collection House PDL book for $146 million. In the US we responded by using our relatively small market share, competitive operation and diversified client base to rapidly grow share in a contracted market to generate growth. In our lending business we monitored demand and repayment behaviour to continually adjust approval criteria and commit to advertising to produce record second half loan volume.

Not only was a strong result delivered for the year but by adhering to our disciplines we have built considerable momentum for continued performance. We enter 2022 with positive collection performance, a record contracted pipeline of purchasing and a growing consumer loan book.

10 BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

THOMAS BEREGI

CHIEF EXECUTIVE OFFICER

CUSTOMER OUTCOMES

Our customers are the consumers we interact with each day. In our debt purchasing business we work with consumers who have, for various reasons, found themselves in default of their credit obligations. We work with these customers to agree affordable repayment plans to resolve their financial difficulty as a pathway to increased financial inclusion. In our lending business we responsibly provide consumers who have limited borrowing options with the cheapest and most affordable loans available to them.

In 2021 large numbers of customers experienced the impact of COVID-19 and the progressive withdrawal of support measures.

We continued to do the right thing for our debt purchasing customers. We grew the number of customers on affordable repayment plans by approximately 12 per cent to 217,000 people over the course of the year. And we maintained a very low complaint rate, with results reported by the Australian Financial Complaints Authority (AFCA) for the six months to December 2020 showing that the incidence of a complaint per one million dollars collected for Credit Corp was half that of its nearest competitor.

We continued to sustainably provide our market leading loan products. Many of our existing customers, who might have repaid us through stimulus receipts, rewarded us for providing them with such a great alternative by returning to Credit Corp over the second half of the year. During the first half of the year we comprehensively upgraded our loan approval system to improve our ability to ensure that every loan is responsibly provided and this helped us accommodate increased demand from new customers over the second half of the year.

As part of our commitment to doing the right thing by promoting financial inclusion we continue to look for ways to deliver better lending solutions to customers with limited alternatives. In 2021 we relaunched our car loan product and have experienced encouraging early results. We have a range of other new products in both pilot and development and we look forward to enlarging our capacity to serve our customers by providing them with better alternatives for all their financial needs.

CLIENT OUTCOMES

Our clients are major banks, finance companies, education financiers, telecommunications and utility providers across Australia, New Zealand and the US.

By maintaining a strong capital position and a leading approach to consumer hardship and vulnerability we provided our clients with the confidence to continue or resume sale during the year. Several clients rewarded us for our commitment to doing the right thing by allocating all their sale volume to Credit Corp.

Our clients have also rewarded us for the open and honest approach to our dealings. In 2020 we agreed price reductions to account for the early impacts of COVID-19 on the collection performance of newly acquired PDLs. As conditions stabilised throughout 2021 we proactively approached our clients with increased prices. Some clients have consequently agreed extended sale agreements.

PEOPLE OUTCOMES

Credit Corp relies on the quality of the interactions its people have with customers and clients every day. Our people are critical to delivering results for all stakeholders.

Our people have lived our values throughout. As part of doing the right thing during late 2020 and early 2021 our people aligned their remuneration with the loss of value experienced by shareholders. Directors and key executives reduced fees and base salaries by up to 50 per cent for four months and 2020 short-term incentives were reduced to zero.

Notwithstanding this, our people remained determined to make it happen for shareholders and other stakeholders in 2021. Everyone readily agreed challenging targets for 2021 and set about doing everything necessary to ensure that these were achieved, and in many instances exceeded.

Having built momentum and restored our growth trajectory we are now creating opportunities for our people as we continue to expand. Open and honest communication means that our people know what they need to do to develop great careers and they appreciate the importance of strong company performance to provide opportunities for new and exciting roles.

In closing my report for 2021 I want to thank all of Credit Corp’s 1,733 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 which lie ahead.

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CEO’S REPORT
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THOMAS BEREGI

CHIEF EXECUTIVE OFFICER

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BOARD OF DIRECTORS

ERIC DODD

Chairman, Non-Executive Director

Appointed:

Appointed as a Non-Executive Director in July 2009 and Chairman on 4 February 2021

Board Committees:

— Audit & Risk Committee

— Remuneration & HR Committee

— Nomination Committee

Skills 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 Australia 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 numerous senior positions within the financial services industry.

Directorships and other current appointments:

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 degree, is a Fellow of the Institute of Chartered Accountants and is a Fellow of the Australian Institute of Company Directors.

DON MCLAY

Non-Executive Director

Appointed:

Appointed as a Non-Executive Director in March 2008 and was Chairman from 30 June 2008 – 4 February 2021

Board Committees:

— Chairman of the Audit & Risk Committee

— Remuneration & HR Committee

Skills and experience:

Don has more than 40 years’ experience in financial markets, investment banking and broad business services. He has previously held executive roles at a number of local and overseas investment management and investment banking organisations, working in London, Singapore, Auckland and Sydney.

Directorships and other current appointments:

Currently, Don is Chairman of Torres Industries Pty Ltd, an unlisted investment group. Don was appointed Chairman of Clime Investment Management Limited on 1 March 2015 and became a company director of Registry Direct Limited on 30 May 2016 where he was appointed Chairman in May 2018 after its listing on 1 November 2017. Don retired from the Boards of both Clime Investment Management Limited and Registry Direct Limited in October 2020.

Qualifications:

Don holds a Bachelor of Commerce and is a Chartered Accountant, a Chartered Secretary and a Senior Fellow of the Financial Services Institute of Australasia.

LESLIE MARTIN

Non-Executive Director

Appointed: March 2014

Board Committees:

— Chairman of the Nomination Committee

— Audit and Risk Committee

Skills and experience:

Leslie has 30 years’ experience in commercial banking in several countries and is a specialist 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 Services business at the Commonwealth Bank.

Directorships and other current appointments:

Currently, Leslie is a Director of IMA Asia, an independent economics advisory firm, as well as acting on the advisory boards of two technology start-up companies. She has held board positions with subsidiaries of the Commonwealth Bank 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.

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From left to right: Don McLay, Leslie Martin, Trudy Vonhoff, Eric Dodd, Richard Thomas and Phillip Aris.

BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

TRUDY VONHOFF

Non-Executive Director

Appointed: September 2019

Board Committees:

Chairman of the Remuneration
& HR Committee
Nomination 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 Agribusiness Banking for Westpac Banking Corporation (ASX: WBC) and Chief Financial Officer of AMP Bank Limited.

Directorships and other current appointments:

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 include Iress Limited (ASX:IRE), Cuscal Limited and Australian Cane Farms.

RICHARD THOMAS

Non-Executive Director

Appointed: September 2006

Board Committees:

Audit and Risk Committee

Skills and experience: Richard brings over 50 years’ management experience in banking, finance and related industry sectors to Credit Corp’s 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 Executive Vice President of US-based Avco Financial Services.

Directorships and other current appointments:

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 Director

Appointed: July 2021

Board Committees:

— Nil

Skills and experience:

Phillip brings extensive senior executive and board experience across a range of roles within the financial services and technology sectors across Australia, the United Kingdom and Asia. Past executive roles include Head of Credit Cards for Commonwealth Bank of Australia (ASX: CBA), Chief Executive Officer of CountPlus Limited (ASX: CUP), and Regional Head of Strategy & Business Development for Thorn-EMI Asia Pacific, working across Australia, the UK and Hong Kong.

Directorships and other current appointments:

Currently, Phillip is Non-ExecutiveChairman of Xponential Technologies Limted.

Qualifications:

Phillip has a Bachelor of Economics and a Masters of Management.

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BOARD
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Qualifications:

Trudy has 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 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.

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Our Board members have a diversity of experience and knowledge that enables them 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 community.

33[%] FEMALE DIRECTORS

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REVIEW OF OPERATIONS

OVERVIEW

Entering 2021, Credit Corp was confronted with challenging and uncertain operating conditions which included significantly reduced market volumes in both the Australian/New Zealand and US markets, high levels of government and private sector stimulus supporting consumers and the consumer loan book in run-off as a result of reduced demand and permitted early superannuation withdrawals. Initial expectations for 2021 were for a material reduction in Net Profit after Tax (NPAT) from the levels of 2020, pre-COVID-19 related impairment and provisions.

Credit Corp leveraged its core strengths to execute a significant turnaround from these ingoing expectations. In a diminished market, Credit Corp increased its market share in US debt buying by broadening its purchasing relationships. Consumer lending demand was stimulated by a strategic decision to commence abovethe-line marketing in advance of demand returning. Working flexibly with domestic credit issuers, combined with Credit Corp’s long-term industry leadership, ensured the sustainability of the market despite a substantial reduction in market volumes.

Late in the first half of 2021, a combination of the Company’s analytical strengths, operational infrastructure and financial strength combined to secure the largest ledger investment in Credit Corp’s history, the $146 million outlaid for Collection House’s Australian ledger book. The purchase, which included a large payment arrangement book, enabled Australian/ New Zealand collections and earnings to be sustained in a year of significant contraction in investment volumes.

SEGMENT PROFIT

FY2020 PRE-COVID RELATED ADJUSTMENTS

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NPAT total
$79.6M
US debt buying
AUS/NZ debt buying
AUS/NZ lending
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US segment NPAT more than doubled in 2021, with increased market share following strong investment in recent years. As the loan book re-grew, the lending segment produced a record halfyear profit in the second half. Together with sustained earnings in the core Australian/ New Zealand debt buying business, the consolidated NPAT was a record $88.1 million. The 11 per cent growth in earnings was in line with the pre-COVID-19 growth trajectory of the Company.

FY2021

Credit Corp enters 2022 with a record ledger investment pipeline reflecting the NPAT total breadth and depth of its client relationships $88.1M both domestically and in the US, renewed consumer lending growth and substantial financial capacity to enable investment to be accelerated and/or seize one-off opportunities as they arise. US debt buying AUS/NZ debt buying AUS/NZ lending

NPAT AND RETURN ON ASSETS ($M)

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($M) (%)
100 20.0
80 16.0
60 12.0
40 8.0
20 4.0
0 0
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
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TOTAL NPAT (LHS) COVID ADJUSTMENTS NPAT (LHS) ROA (RHS)
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CREDIT CORP GROUP ANNUAL REPORT 2021

Credit Corp’s continued industry-leading sustainability proposition includes best-in-class external dispute metrics and a superior hardship response, rated as the best across all financial services providers by Financial Counselling Australia. In a period of both compliance and financial challenges experienced by some competitors, Credit Corp’s superior compliance offering was critical in issuers continuing to sell and for those who paused at the start of the pandemic, to return to selling debts.

AUSTRALIAN AND NEW ZEALAND DEBT BUYING

In a year which started with significant uncertainty, Credit Corp ended 2021 retaining its market leadership in its core Australian and New Zealand debt buying and collection segment. Collections and earnings were sustained in 2021 despite market volumes reducing by approximately 50 per cent in response to pandemic-related debt prepayment driven by substantial government stimulus as well as consumer forbearance by banks and other credit issuers.

Based on feedback received from debt sale clients, Credit Corp anticipates volumes of charged-off debts will re-grow further in 2022 which, at the Company’s present market share, will allow operational outcomes and earnings to be sustained.

Collection outcomes on the starting book tracked close to ingoing expectations, whilst strong outcomes, in line with prepandemic expectations, were achieved on 2021 investments where Credit Corp achieved a strong share of an initially diminished investment market. Chargeoff volumes commenced re-growing in the second half which, together with the Collection House investment, resulted in total collections near-emulating the record of 2020 despite the reduced market for charged-off debts.

US DEBT BUYING

After initial uncertainty as to the impact of the pandemic and especially the withdrawal of early pandemic stimulus, strong US operational outcomes were sustained throughout the first-half of the year. The second-half enjoyed the fillip of further Federal government stimulus implemented by the new Administration.

Throughout the year, Credit Corp’s workforce operated on a hybrid of home and office-based work in accordance with the health guidance in different jurisdictions. Not only did this have the added benefit of providing more flexibility for the Company’s employees but this shift in working patterns was executed without any loss of efficiency or effectiveness.

Investment volumes were impacted by the level of consumer debt prepayment, with charge-off volumes approximately halving. Despite this, Credit Corp was able to leverage its diverse purchasing relationships and increase its market share. This diversity of issuer relationships was illustrated by ledger investments being consummated with three new credit issuers during 2021.

US COLLECTIONS AND US NPAT (A$M)

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12 90
8 60
4 30
0 0
1H FY2019 2H FY2019 1H FY2020 2H FY2020 1H FY2021 2H FY2021
US NPAT (LHS) US COLLECTIONS (RHS)
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Credit Corp’s platform continues to produce efficiency and effectiveness metrics that are comparable with the US publicly-traded debt buyers. The re-fit of the Washington State operational site, together with the long-established Utah site, provides for over 700 seats. This provides sufficient operational infrastructure to facilitate the medium term objective of ~AU$200 million of annual purchasing.

Average purchasing of ~AU$100 million p.a. over the last three years and the strong operational performance produced 2021 collections which were 26 per cent higher than the prior year. The operating leverage of Credit Corp’s competitive debt buying and collection platform produced segment NPAT that more than doubled in 2021.

Unsecured consumer credit has started to re-grow from pandemic lows, which is a lead indicator of growth in market volumes. Industry participants expect charge-off volumes to grow by mid-2022. Credit Corp enters 2022 with a record investment pipeline of AU$110 million and the prospect of increasing investment as market supply grows. This increased investment will drive further NPAT growth.

US PURCHASING (A$M)

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150
100
50
0
FY2018 FY2019 FY2020 FY2021
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REVIEW OF OPERATIONS

CONSUMER LENDING

The consumer lending segment started 2021 as 2020 ended, with unprecedented levels of prepayment as a result of significant government and private sector stimulus and forbearance measures as well as the second permitted early superannuation withdrawal. Demand re-grew after the first quarter and by the end of 2021, settled volumes were indexing in excess of pre-COVID-19 levels resulting in record second-half NPAT for the segment.

The loan book ended the year slightly higher than it started and on an upwards trajectory. This was supported by the re-launched auto loan product distributed both online as well as via finance brokers. Encouraging early volumes of the auto product were written during the June quarter. Arrears and losses were at record low levels although underwriting settings were maintained at pre-COVID-19 levels. Record low arrears and losses meant that loan provisioning has increased in anticipation of a reversal as economic conditions normalise post-pandemic.

Segment profitability declined in 2021 due to the high levels of prepayment experienced in late 2020 and early 2021 but is poised for growth in 2022. Medium-to long-term growth will be driven by the development of new products to meet additional credit needs of our customers. Several product pilots were commenced in 2021 which will be reviewed during 2022 and further pilots are planned.

CONSUMER LENDING BOOK AND REVENUE ($M)

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300
250
$230m
$212m
200
$181m $176m $184m
$168m
150 $153m
100
$86m
50
0
JUN 19 DEC 19 JUN 20 SEP 20 DEC 20 MAR 20 JUN 21
GROSS LOAN BOOK (EXCLUDING PROVISIONS) ANNUALISED REVENUE
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LENDING VOLUMES INDEXED TO PRE-COVID COMPARATIVE PERIOD[ 1] ($M)

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120
108%
100
90%
86%
80
65%
60
40
20
0
Q1 FY2021 Q2 FY2021 Q3 FY2021 Q4 FY2021
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All quarters indexed against prior year, with the exception of Q4 FY2021 which is indexed against Q4 FY2019 as Q4 FY2020 was severely COVID-19 impacted

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CREDIT CORP GROUP ANNUAL REPORT 2021

CAPITAL MANAGEMENT

During 2021, near-record ledger investment and net lending was able to be fully funded from available cash. This included funding the acquisition of the Collection House Australian ledger book. Dividend payments also resumed in 2021 after a brief pause at the start of the pandemic.

Credit Corp ended the year with over $372 million of cash and undrawn credit lines which, after extending its credit lines by two years, now expire in March 2024 and 2025. The strong capital position allows the Company to maximise its investment at its hurdle return in 2022. It also allows the Company to accelerate investment if market conditions improve more rapidly than anticipated as well as seize any one-off opportunities that might arise. The importance of maintaining capital headroom to execute on one-off opportunities was illustrated in 2020 by the Collection House acquisition.

Despite the strategic decision to retain substantial capital headroom, Credit Corp achieved a Return on Equity (ROE) in excess of its hurdle 16-18 per cent, after adjusting for pro-forma gearing. This reflects the ongoing investment discipline of Credit Corp in deploying capital.

FACILITY HEADROOM AND GEARING

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($M)
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(%)
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400 50
$396m
$372m
$350m
300 40
$300m
200 $212m 30
100 $120m 20
0 10
FY2018 FY2019 FY2020 FY2021
NET BORROWINGS (LHS) UNDRAWN FACILITIES AND CASH (LHS) GEARING % (RHS)
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PRE-TAX OPERATING CASH FLOW

($M)

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$413.5m
400 $394.7m
$330.7m
$305.0m
300
$274.1m
$242.4m
$215.6m
200 $200.5m
100
0
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
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OUR PEOPLE

OUR PEOPLE ARE THE CORNERSTONE OF OUR SUCCESS AND WE ARE COMMITTED TO PROVIDING THEM WITH THE ABILITY TO SUCCEED IN THEIR ROLES AND DEVELOP THEIR CAREERS.

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THOMAS BEREGI Chief Executive Officer

14 years with Credit Corp

Priorities:

Thomas is responsible for the strategic leadership and execution of Credit Corp to deliver solid long-term growth and strong returns on invested capital.

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CHRISTOPHER MIDLAM Head of Client Services

14 years with Credit Corp

Priorities:

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 Corp’s existing client base whilst exploring and developing future growth opportunities.

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MICHAEL EADIE Chief Financial Officer

12 years with Credit Corp

Priorities:

Michael is accountable for the financial 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.

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TIM CULLEN Chief Information Officer

7 years with Credit Corp

Priorities:

Tim is responsible for information technology, security, client administration and facilities for the Credit Corp Group. His priorities are to improve and deliver operational excellence, customer experience and drive competitive advantage through automation, digitisation and smart technologies.

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CREDIT CORP GROUP ANNUAL REPORT 2021

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MATT ANGELL Chief Operating Officer

15 years with 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 which will drive growth into the future.

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STEPHANIE PALMER Head of Human Resources

5 years with Credit Corp

Priorities:

Stephanie is responsible for providing a complete HR service with equitable people processes to all business units globally. Her priorities are the attraction and retention of staff, as well as developing interesting and engaging career pathways in a challenging industry, whilst supporting the Company’s growth in new markets and geographies.

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MARTIN WU Head of Analytics

7 years with Credit Corp

Priorities:

Martin manages a team responsible 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.

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DAVID BRAND Head of Marketing

7 years with Credit Corp

Priorities:

David is responsible for the development and implementation of the marketing strategy for Credit Corp’s lending operations.

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DAVID ACHEATEL Chief Operating Officer - USA

9 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, increasing and diversifying our PDL investments and client base, and ensuring regulatory compliance.

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OUR PEOPLE
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CUSTOMER AND EMPLOYEE

EVERY CUSTOMER HAS A STORY. CREDIT CORP LISTENS. Some names and identifying details have been changed to protect the privacy of individuals.

CUSTOMER STORIES

MEET OPHELIA, USA

“Aaron is a nice guy and has a good spirit. His whole approach has made me feel comfortable and helped me work my situation out.”

Ophelia found herself going through a difficult time in her life and was initially reluctant to speak with Credit Corp to discuss her situation.

That was until she spoke with Aaron, who became her Customer Relationship Manager. Aaron developed a rapport with Ophelia, and over time as trust grew she became comfortable outlining her situation to him. Aaron was able to suggest a range of affordable repayment options for Ophelia to consider and ultimately agree.

Aaron and Ophelia’s relationship strengthened to the extent that she called in one day to remind him to call his mother and even spoke to his manager to make sure she knew what a great job he was doing!

MEET JOHN, AUS

John was going through a difficult time in his life, unwell and unable to work. He was overwhelmed by several debts and had anxiously chosen to avoid rather than manage the situation.

When Adam was finally able to speak with John he reassured him that they would work together to resolve his debt by considering the options available and tailoring a solution to his circumstances.

Through listening to John it became apparent to Adam that he was in a vulnerable positon. To ease his financial stress, and give him time to get back on his feet, Adam provided a debt moratorium to John, and agreed that his situation would be reviewed again at the expiration of the moratorium period.

“Working with Adam has taken a load off my mind, just knowing that there are options available to help me get my finances in order. Thank you. The experience has been positive and I only wish I had made the call to Credit Corp one and a half years ago, rather than putting it off.”

John messaged Credit Corp to express his appreciation.

20 BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

EMPLOYEE STORIES

PROVIDING OUR EMPLOYEES WITH OPPORTUNITIES TO ACHIEVE THEIR CAREER ASPIRATIONS.

MEET STANLEY, AUS

“Working at Credit Corp has helped me grow professionally and personally. I have the opportunity to help customers on a daily basis and contribute positively to the organisation’s success. The training and development pathways here are incredible. There is equal opportunity and processes are in place to ensure everybody understands their role, what success looks like and how to get there.”

Stanley started at Credit Corp in 2010 as a Customer Relations Manager and since then has had the opportunity to work across a number of different roles, including managing a team of Customer Service Officers and the Loan Verification Team. He is now in a leadership role as a Team Performance Manager for the Lending Hardship team.

After completing his Bachelor of Commerce at Murdoch University in Western Australia, Stanley set his heart on working for an ASX 200 company. His passion for leadership and coaching, together with his analytical approach to maximising the performance and growth of every team he leads has seen him progress his career with Credit Corp. According to Stanley, the strength of Credit Corp’s leadership stands out.

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“Credit Corp has shaped my personal growth and career development. It has helped me gain a range of skills that I believe has been fundamental to my success. All the managers I have worked with over the years have been strong leaders and role models. I firmly believe this is the essence of what sets Credit Corp apart from other organisations.”

MEET NATALIE, AUS

Natalie joined Credit Corp in 2018 as a Customer Service Officer after a number of years working as a gaming assistant in hospitality. She was attracted by the opportunities for career advancement.

She was recently promoted to Senior Customer Service Officer in the Lending team. Her next goal is to progress to a Team Performance Manager to gain valuable leadership experience in the financial services industry.

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Natalie considers the opportunities for growth offered through the career pathway program at Credit Corp to be critical in helping her progress.

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MEET DEVONTE, USA

Devonte joined Credit Corp’s new Washington State office in December 2019 as a Customer Relationship Manager through the Talent Development Program. Coming from a retail background, Devonte successfully applied his customer service experience and was promoted to a senior role not long after joining.

Devonte expressed an interest in progressing into other leadership roles within our support functions. The skills he developed during the program, his ability to build strong peer relationships, combined with on the job mentoring, led to a cross functional move into the Learning and Development team in November 2020.

Devonte considers Credit Corp to be a leader when it comes to developing its people.

“I am grateful for the opportunity to be a part of something so special here at Credit Corp. I have learned in my life that you don’t just ‘go through’, but you ‘grow through’. In my time here I believe that every step I’ve taken has helped me be successful. I am a firm believer that if you can stay ‘teachable’ you can stay ‘reachable.’ I always want to be in a place where I can grow and learn every day and be able to reach and help people. I feel I have found this place in Credit Corp and I’m excited for what the next chapter holds for us in Washington State as we continue to grow the business.”

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OUR COMMITMENT TO SUSTAINABILITY

WE ARE COMMITTED TO BEING A LEADER IN SUSTAINABILITY 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.

COMMITMENT TO OUR PEOPLE

Our people are the key to our success. They represent our culture by applying our values every day. Their diverse abilities enable us to interact effectively with our customers and to achieve exceptional results.

STRENGTHENING CULTURE AND ACCOUNTABILITY

The 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 refresher training for all employees as well as mandatory monthly refresher training with our operational employees.

VIEW OUR EMPLOYEE CODE OF CONDUCT

In the 2021 financial year, zero matters went to an employment tribunal and 0.12 matters per 100 employees were lodged with the Fair Work Commission (FWC).

DEVELOPING OUR PEOPLE

We provide a positive workplace that supports employees’ safety, wellbeing and development. Despite the challenges posed by COVID-19 over the last year, our in-house training team who are all Certificate IV Technical and Adult Education qualified, continued support by moving from face to face virtual training sessions. Some of the innovative virtual delivery methods trialled have continued beyond COVID-19 as they have proven to be very effective.

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 work.

All new operational employees undergo an extensive induction and on-boarding training program administered by the Company’s training and operational teams when they join.

1 , 085 EMPLOYEES COMPLETED OUR TRAINING PROGRAMS

29 , 800 TRAINING HOURS DELIVERED

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CREDIT CORP GROUP ANNUAL REPORT 2021

Starting my career with Credit Corp was daunting as this was my very first office job. Having the career pathway training to work through, from the first program JUMP, to RISE then on to IGNITE really helped drive my progression within the Company. Learning skills such as giving and receiving feedback was a game changer for me personally and professionally. The career pathway delivers on providing a clear cut path to your career at Credit Corp.

Daniel,

Senior Customer Relationship Manager, QLD on completing the JUMP, RISE and IGNITE programs

CREATING A DIVERSE, INCLUSIVE CULTURE

We believe a diverse and inclusive workplace leads to better business outcomes. Employing people from diverse 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, sexual orientation, gender, background or any other personal characteristic.

VIEW OUR DIVERSITY POLICY

The JUMP program has proven invaluable to my career progression and since completion I have been promoted to a Senior Customer Relationship Manager role within my team. JUMP helped me better understand that people respond differently to the same information, giving me the knowledge to tailor my feedback to each situation or individual.

George, Senior Customer Relationship Manager, Parramatta on completing the JUMP program

Undertaking Certificate III in Financial Services I learnt all the skills, systems and compliance requirements to excel in my role. Taking the course in-house allowed me to use real life examples from the workplace to show my competence. It has given me the necessary tools to draw on, which in turn has raised my confidence.

Ken, Customer Relationship Manager, Parramatta on completing the Certificate III in Financial Services

1,085 (2020:958) employees have completed one of the training programs that form part of our career pathway model. The training benefits those looking for career progression and/or leadership development, for both frontline manager and other management roles.

Our training programs have been the recipient of several prestigious awards, including the Brandon Hall Training Excellence Awards (Gold), LearnX Training Impact Awards (Platinum) and a selection of Australian Institute of Training and Development Excellence Awards.

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 staff.

GENDER EQUALITY IS

A KEY PRINCIPLE OF OUR DIVERSITY STRATEGY

60[%] 57[%]

FEMALE EMPLOYEES

58[%] 49[%] OPERATIONAL MANAGERS ARE FEMALE

33[%] 33[%]

WOMEN ON THE BOARD 2021 2020

20 ETHNICITIES IN OUR EMPLOYMENT

COLLECTIVELY, OUR TEAM SPEAKS OVER 50 LANGUAGES

151 INTERNAL PROMOTIONS

87[%]

OF LEADERSHIP POSITIONS FILLED INTERNALLY

93 (2020: 111) employees attained a Certificate III and 20 (2020: 4) went on to complete a Certificate IV qualification.

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OUR COMMITMENT TO SUSTAINABILITY

ADVANCING RECONCILIATION

As part of our commitment to a more inclusive future, Credit Corp is joining the reconciliation effort to build relationships, respect and trust between the wider Australian community and Aboriginal and Torres Strait Islander peoples.

In line with this, we have launched our first Reconciliation Action Plan (RAP), which formalises our commitment to increasing First Nations’ participation in the financial services sector. From celebrating First Nations cultures and histories, to providing more education and employment opportunities, it sets out the initial steps we will take towards reconciliation within our sphere of influence. Our RAP puts us in a great position to make it happen through meaningful actions and initiatives that we hope will contribute towards Australia’s reconciliation with our First Nations peoples.

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. One of the members, Amber Kerdel, is an Indigenous artist based in our Adelaide office.

VIEW OUR RECONCILIATION ACTION PLAN

ABOUT THE ARTIST

Amber Wombat Kerdel is a strong and proud Wirangu, Kokotha, Mirning woman from the Far West Coast of South Australia who lives on Kaurna country. She is strongly connected to her Munda (country) and passionate about her Aboriginal culture and community.

Her artwork is an expression of who she is and showcases the beauty and depth of her culture; the love, connectedness and strength of her community and the spiritual depth, vastness, layers and deep beauty of her Munda.

From her cultural ancestry Amber is able to capture and represent the intricacies and relationships of family and country with each other and individually through an array of colours and symbols. This is her expression of storytelling from the heart and soul.

As the youngest of three sisters, family, community and connection are important to Amber and clearly identifiable through her expressive artwork. It’s more than paint on canvas, it’s a contemporary celebration of her Aboriginal family and culture as the oldest living culture on the planet.

ABOUT THE ARTWORK

Amber’s artwork design brings to life Credit Corp’s reconciliation journey and was born from a collaboration between members of the RAP Working Group.

The artwork depicts the beginning of Credit Corp’s journey along the path to reconciliation, and the continuous efforts of employees to grow and develop, both together and within their widespread communities.

Through her artwork, Amber tells a story of connection and shared knowledge amongst our geographically dispersed teams, reaching out to our customers and the broader community. This connectivity is what allows us to further the understanding of our nation, and strengthen our path to reconciliation.

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CREDIT CORP GROUP ANNUAL REPORT 2021
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PRIORITISING HEALTH, SAFETY AND WELLBEING

This year, more than ever, the workplace health and safety (WHS) of our people has been a priority and has included a focus on wellbeing.

To support our staff through the pandemic we developed a COVID-19 hub on our intranet with resources to assist employees. We formalised our Working From Home Policy, with a focus on ensuring that employees had an appropriate and safe work area at home.

We continued to support our Mental Health First Aiders who sit alongside the First Aiders in each of our locations. They receive external training from organisations offering a certificate recognised by Mental Health First Aid Australia, to act as a first point of contact for people experiencing mental health problems in emergency situations.

We are also piloting the Happify app across 100 of our employees. This provides tools to help overcome negative thoughts, stress and life challenges.

Our Work Health Safety Policy is readily accessible to all staff and forms part of the induction process 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. To assist with this we have recently engaged an external consultant to conduct an audit of our WHS policies, systems and processes and make recommendations for improvement.

We regularly review potential risks to 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.

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SUSTAINABILITY
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OUR WHS PERFORMANCE

	2021 2020 2019 Injuries per 100 employees 0.02 0.05 0.09 Occupational disease recorded per 100 employees 0 0 0.01 Work-related fatalities 0 0 0

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OUR COMMITMENT TO SUSTAINABILITY

SUPPORTING OUR CUSTOMERS

We know that understanding our customers is fundamental to our success. Our relationships with our customers are built around respect and collaboration with the goal of providing affordable financial solutions tailored to their needs as a pathway towards mainstream financial inclusion.

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SUSTAINABLE AND RESPONSIBLE LENDING

CUSTOMER HIGHLIGHTS

We are the market leader in the fast consumer loan segment, providing affordable and sustainable loans to our customers.

OUR FLAGSHIP FAST LOAN PRODUCT

76[%]

2 . 2 M CUSTOMERS GLOBALLY

Credit Corp’s market-leading loan products are lower cost and more sustainable than products of competitors operating in our segment.

CHEAPER THAN

COMPETITOR PRODUCTS

We aim to deliver the best outcomes for our customers and believe Net Promoter Score (NPS) is a good overall measure of our customers’ experience with us as it subtracts our detractors from our promoters.

722 K CUSTOMERS

In fact, our flagship fast cash loan product Wallet Wizard is up to 76 per cent cheaper than competitor products.

US DEBT PURCHASE

AUSTRALIAN FAST CASH LOAN PRICING[ 1]

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 expire.

Credit Corp Typical competitor	$141 $600

1 . 3 M CUSTOMERS

Total interest and fees based on a $1,500 loan over 9 fortnights.

AUS/NZ DEBT PURCHASE

18 NPS

145 K CUSTOMERS LENDING

LENDING CUSTOMERS

(-5 VS. PCP)

$ 1 . 78

BILLION

IN FACE VALUE OF RECEIVABLES IN ONGOING REPAYMENT ARRANGEMENTS

$11 . 26

BILLION

IN FACE VALUE OF RECEIVABLES GLOBALLY

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CREDIT CORP GROUP ANNUAL REPORT 2021

CUSTOMER ENGAGEMENT

A 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 customer’s situation.

We work with our customers to ensure a sustainable and realistic repayment solution. 84 per cent of collections are received from mutually agreed repayment arrangements in Australia and New Zealand.

We maintain the lowest number of external dispute resolution (EDR) complaints per million dollars collected in our industry as published results by our EDR provider. Our complaint rate is 50 per cent lower than our nearest competitor.

In the US, we maintain a dispute rate per million dollars collected significantly lower than our publicly-traded competitors as reported by the federal regulator.

Credit Corp maintains a number of proactive controls to identify and respond to hardship, sensitive issues or dissatisfaction in order to provide the best service to our customers.

H1 FY2021 AUS EDR RATE[ 1]

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0 0.5 1.0 1.5 2.0
CREDIT CORP OTHER DEBT BUYERS
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12 MONTHS TO MAR 21 US DISPUTE RATE[ 2]

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CREDIT CORP PUBLICLY TRADED DEBT BUYER A PUBLICLY TRADED DEBT BUYER B
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SUPPORT FOR OUR CUSTOMERS DURING COVID-19

In addition to the proactive controls we ordinarily have in place, we introduced new measures to identify and assist customers facing unprecedented personal and economic challenges due to the COVID-19 pandemic.

These included freezing interest accruals on our entire debt purchase portfolio for the period from 1 April to 1 December 2020. We placed some customers on repayment moratoriums for periods up to 6 months and ceased any new legal action for accounts in arrears.

These concessions supported consumers in respect of 343,234 accounts

— Repayment moratoriums were granted on 20,000 AU/NZ customer accounts, deferring collection activity on $169 million in face value of debt

We also ensured that Financial Counselling Australia was aware of the support being offered to our customers and reinforced contact points within our business for escalation of any particular cases their members wished to discuss.

Number of complaints reported by external dispute resolution (EDR) provider (The Australian Financial Complaints Authority) for the six-month period to December 2020 divided by total annual PDL collections expressed in millions of dollars.
Complaint metrics from Consumer Financial Protection Bureau (CFPB) database for the 12 months to Mar-2021 divided by reported collections https:// www.consumerfinance.gov/data-research/consumer-complaints/search/?from=0&searchField=all&searchText=&size=25&sort=created_date_desc

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OUR COMMITMENT TO SUSTAINABILITY

CUSTOMER ADVOCACY

We 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 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 Queensland, Victoria, Western Australia as well as the National Conference in Darwin.

For the last six years, Credit Corp has granted an annual scholarship through the Jan Pentland Foundation, aimed at providing an opportunity for a recipient in the not for profit sector to gain their Diploma in Financial Counselling.

We train all of 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 long standing relationship with Uniting Kildonan, a leading not for profit financial counselling service, involving 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 our customers and 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 Australia’s member survey recognised Credit Corp as having the highest ranked response to financial hardship of all financial services providers across Australia.

THE 2019 FINANCIAL COUNSELLING AUSTRALIA’S

“RANK THE BANKS” SURVEY RANKED CREDIT CORP’S CONSUMER HARDSHIP RESPONSE

7.8/10

HIGHEST SCORE

ACHIEVED BY ANY FINANCIAL SERVICES PROVIDER

FINANCIAL COUNSELLOR RATING OF BANKS AND DEBT BUYERS[ 1]

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0 2.0 4.0 6.0 8.0
CREDIT CORP HIGHEST RANKED BANK
OTHER DEBT BUYERS
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Financial Counselling Australia: Rank the Banks and Other Creditors 2019 - Rating of response to consumer hardship, July 2020, pages 7 and 19

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 2021 scholarship recipient is from rural Western Australia and impressed us with her professionalism and commitment to providing financial counselling services within regional areas.

Eleanor was our inaugural recipient in 2016 and her story illustrates how the scholarship made a difference and helped progress her career in financial counselling.

“ It was a wonderful validation to receive the scholarship as a new financial counsellor. Financially it was invaluable and the industry recognition helped instil a confidence and professional development grounding for me to move forward to where I am today. I have recently joined the National Leadership Team at The Salvation Army Moneycare with an opportunity to mentor others. There I was in 2016 not even sure whether I should apply! Credit Corp’s vocal appreciation of my casework efforts relating to overturning an insolvency agency’s unethical practices was extremely rewarding and reinforced my commitment to promoting social justice.“

28 BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

GOOD BUSINESS PRACTICE

MANAGING OUR SUPPLY CHAIN

We 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 generally 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 acknowledge this code as part of their contractual agreement with us.

VIEW OUR

SUPPLIER CODE OF CONDUCT

WORKING WITH OVER

1 , 300 SUPPLIERS

OUR APPROACH TO HUMAN

RIGHTS AND MODERN SLAVERY

We 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 supply 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 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.

Minimising the risks of Modern Slavery

We have no tolerance for modern slavery and human trafficking. Whether in our operations or our supply chain, we 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.

READ OUR

MODERN SLAVERY STATEMENT

TREATING DATA WITH CAREPRIVACY AND DATA SECURITY

Protecting the personal data of our customers and employees as well as our confidential business information is a priority across our organisation. To do this, we adopt customer, client and employee privacy policies and continually strengthen our systems and educate our people.

Credit Corp is ISO 9001 certified in quality management and ISO 27001 certified in information security management.

All new operations employees undergo an extensive induction training program before they commence work.

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.

Management’s approach to identifying and addressing 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 Company’s policies and procedures.

Credit Corp’s data security and privacy controls are subject to regular auditing by our clients. As a consequence, we are continually upgrading our controls and systems.

in line with the Modern Slavery Act 2018 (Cth)

EXCEEDING COMPLIANCE EXPECTATIONS

The community has high expectations of financial services providers that go beyond minimum legal requirements. We are committed to meeting these expectations and have an impeccable compliance record.

— CREDIT CORP HAS NEVER BEEN THE SUBJECT OF AN ENFORCEMENT ACTION BY THE FINANCIAL SERVICES REGULATOR, THE AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION (ASIC)

— CREDIT CORP HAS NEVER BEEN SUBJECT TO AN ENFORCEABLE UNDERTAKING

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OUR COMMITMENT TO SUSTAINABILITY

PROTECTING THE ENVIRONMENT

As 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 committed 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 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 travel restrictions imposed by COVID-19.

Our largest office, our head office in Sydney, produced 0.48 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 have a power usage effectiveness (PUE) rating of 1.28 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 Sydney 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.

500kgs of e-waste was recycled across our Australian offices.

We have a cartridge recycling program in place for our office printers.

OUR CO2 EMISSIONS

		FY2021	FY2020	FY2019
CO2	emissions – Business air travel (tonnes)	3.18 tonnes	94.02 tonnes	132.39 tonnes
CO2	emissions from energy usage (Sydney offce) per FTE	0.48 tonnes	0.48 tonnes	0.52 tonnes

BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

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:

Morgan Stanley Capital

International (MSCI):

In July 2021, 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 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 LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

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Sustainalytics:

In February 2021, Credit Corp Group received an ESG Risk Rating of 18.9 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 40 or above equals severe risk.

Credit Corp’s ESG Risk Rating places it in the 14th percentile in the Diversified Financials industry assessed by Sustainalyics.

Copyright ©2021 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics. com). Such information and data 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 particular purpose. Their use is subject to conditions available at https://www. sustainalytics.com/legal‑disclaimers.

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SUSTAINABILITY
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Corporate governance statement

CORPORATE GOVERNANCE OVERVIEW

Credit Corp Group Limited (the Company) and its subsidiaries (collectively, the Group) maintains governance policies and practices that provide a framework for and guide our decision-making to meet stakeholder expectations of sound corporate governance, acknowledging Credit Corp’s responsibilities to its shareholders, creditors, clients, customers, employees and the communities in which it operates.

The Group’s corporate governance practices comply closely with the 4th edition of the ASX Corporate Governance Council’s 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 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 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 control framework overseen by the Group’s 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 set 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 year ended 30 June 2021, and is current as at 3 August 2021.

PRINCIPLE ONE: LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT

BOARD RESPONSIBILITIES

The Board’s roles and responsibilities are formalised in the Board Charter, which is published on the Group’s website. The Board reserves 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 necessary, replacing the Chief Executive Officer (CEO);
Approving the appointment and, when necessary, the replacement of other senior executives;
Monitoring senior management’s performance, implementation of strategy and allocation of resources;
Overseeing management’s implementation of the Group’s strategic objectives and its performance generally;
Overseeing the integrity of the Group’s accounting and corporate reporting systems, including the external audit;
Overseeing the Group’s process for making timely and balanced disclosure of all material information concerning the Group that a reasonable person would expect to have a material effect on the price or value of the Group’s 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 Group’s remuneration framework;
Approving and monitoring the corporate governance of the Group; and
Approving and monitoring operating budgets, major capital expenditure and financial and other reporting.

In fulfilling its roles and responsibilities, the key focus areas of the Board during the 2021 financial year are set out below.

Key focus areas of the Board during the 2021 financial year included:

Guiding and supporting management in relation to the Group’s response to the COVID-19 outbreak, with a key focus on the health and safety of the Group’s employees.

Approving the extension of the Group’s banking lines for a further two years to enhance the strong balance sheet position.

Reviewing and updating the strategic plan of the Group including overseeing management’s performance in strategy implementation during FY2021.

Approval of the acquisition of the Collection House Australian purchased debt ledger book for a total consideration of ~$146 million, the largest single investment in the Group’s history, adding significantly to FY2021 profitability and future earnings.

With the assistance of the Audit and Risk Committee, reviewing and refreshing the Group’s risk appetite and risk management framework and monitoring operations to ensure adherence to the risk appetite set by the Board.

Monitoring the Group’s liquidity, financial position and key metrics, including financial covenants.

32 BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

Key focus areas of the Board during the 2021 financial year included:

With the support of the Remuneration and HR Committee, overseeing the Group’s remuneration framework and remuneration outcomes for senior management and the processes in place to attract, develop, motivate and retain talent.

Reviewing and evaluating the adequacy of the Group’s insurance arrangements to ensure appropriate cover for identified operational and business risks.

Reviewing policies, reporting and processes to improve the Group’s system of corporate governance.

Establishing a Nomination Committee to put ongoing focus on Board renewal and performance.

MANAGEMENT RESPONSIBILITIES

The Delegation of Authority Policy detailing functions delegated to management is published on the Group’s website. All matters not specifically reserved to the Board and necessary for the day-to-day operation of the Group are delegated to management. The following functions are delegated to management:

Formulating, recommending and implementing the strategic direction of the Group;
Translating the approved strategic plan into operating budgets and performance objectives;
Managing the Group’s human, physical and financial resources to achieve the Group’s objectives;
Operating within the delegated authority limits set by the Board;
Assuming day-to-day responsibility for the Group’s conformance with relevant laws and regulations and its compliance framework and all other aspects of the day-to-day running of the Group;
Performing against established Key Performance Indicators (KPIs) to deliver the objectives of the Group;
Developing, implementing and managing the Group’s risk management and internal compliance and control systems to ensure the Group is operating within the risk appetite set by the Board;
Developing, implementing and updating policies and procedures;
Advising the Board promptly of any material matters impacting, or potentially impacting, the Group’s operations;
Providing the Board with accurate, timely and clear information to enable the Board to perform its responsibilities; and
Keeping abreast of industry and economic trends in the Group’s operating environment.

APPOINTMENT OF NEW DIRECTORS

The Board, with the support of the Nomination Committee, has responsibility for the selection and nomination to shareholders of new or retiring directors. The Group’s Appointment of Directors Policy is published on its website and sets out the Group’s policy for the selection, appointment and re-election of directors.

Where a candidate is recommended by the Nomination Committee, the Board will assess that candidate against a range of criteria, including skills, experience, expertise, personal qualities and cultural fit with the Board and the Group. In addition, appropriate checks are made of a candidate’s background as well as assessing any actual or perceived issues of independence. If, after carrying out this checking and assessment, the Board appoints the candidate as a director, that director will confirm his or her appointment at the next Annual General Meeting (AGM). All material information in the Group’s possession that is relevant to a decision on whether or not to elect or re-elect the director is provided to shareholders.

New directors are provided with a written agreement in the form of a formal letter of appointment setting out the key terms and conditions of employment, including their duties and responsibilities and requirement to disclose interests affecting independence or conflict of interest. New senior executives also sign an employment contract setting out the terms of their appointment.

ACCOUNTABILITY OF COMPANY SECRETARY

The Company Secretaries are accountable directly to the Board, through the Chairman, on all matters to do with the proper functioning of the Board.

DIVERSITY AND INCLUSION REPORT

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CGS
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The Group recognises the important contribution that people of various cultural backgrounds, ethnicity, experience, gender and age make to the Group. Diversity includes all characteristics that make individuals different from each other, including characteristics such as religion, race, ethnicity, language, gender, sexual orientation, disability, age or any other area of potential difference.

The Group’s diverse workforce is in fact a key to continued growth and improved operating performance. In particular, employees of diverse backgrounds and experience are able to provide exceptional customer service to our equally diverse customer base.

In order to attract and retain a diverse workforce, to service our diverse customer base, the Group is committed to providing an environment where employees are treated with fairness and respect and have equal access to development and promotion opportunities.

The Group has established a Diversity Policy, which outlines the Board’s objectives to achieve diversity. A summary of the policy is available on the Group’s website.

Measurement of progress against these diversity objectives occurs annually by the Board. The Group also has a specific objective for achieving gender diversity in the composition of the Board, which is to have not less than 30 per cent of each gender.

The table below sets out these diversity objectives and the progress made towards achieving them in the 2021 financial year. The Board will review these objectives in the 2022 financial year and report on progress being made towards their achievement.

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Corporate governance statement continued

Objectives

Progress in achieving objectives

The primary goal of the Group’s assessment centre-based recruitment process for all operational roles is to maximise objectivity in the decision-making process for frontline employees.

Provide equal opportunities for candidates regardless of cultural, gender or any other difference.

The Group continues to assess and recruit all frontline candidates against a set of core competencies.
The Group continues to reflect significant gender diversity, including within management levels. The percentage of individuals who identify as females in the Group is as follows:

Retain and encourage a diverse workforce at all levels of the Group.

	2021	2020
Board	33%	33%
CEO and Executive management1	14%	14%
Frontline management	58%	49%
The Group's workforce	60%	57%

The CEO and Executive direct reports of the CEO.
Over the past two years, a number of employees worked under flexible work arrangements to balance family and other commitments with their employment. During the reporting period, 6 per cent of the Group’s workforce utilised a formal flexible work arrangement. Since the onset of the COVID-19 pandemic, more than three-quarters of the Group’s workforce have worked flexibly between remote and office-based work.

Provide development opportunities for employees regardless of cultural, gender or any other difference.

Promote an inclusive culture where all employees are treated with respect and fairness.

The Group provided nationally recognised accredited training to all eligible employees.
Leadership training was provided to all employees in management positions during the year.
Documented career pathways enabled frontline supervisors to support their progression into management roles.
Each year the Group reiterates its zero tolerance policy towards any discrimination, bullying or victimisation of employees with clear escalation channels through which any concerns can be raised.
Annual online training promotes the Group’s expectations and educates employees on their part in creating our inclusive culture.
The annual employee engagement survey enables the Group to gather data on issues relating to equality, respect and fairness and uses this data to set measurable goals.
During 2021, Credit Corp launched its first Reconciliation Action Plan (RAP) in conjunction with Reconciliation Australia. The RAP sets out the initial steps the Group will take to build relationships, respect and trust between the wider Australian community and Aboriginal and Torres Strait Islander peoples. This process will be facilitated by the RAP Working Group established to set relevant objectives and foster understanding across the Group. The RAP Working Group brings together people from across the different business units and locations, including Aboriginal and Torres Strait Islander staff.

— Ensure internal promotion Recruitment procedures for selection into frontline supervisory roles and management decisions within the Group development programs are in place to maximise objectivity in the decision-making process. are merit‑based. — This includes having panels of senior management from Human Resources (HR) and Operations participating in the decision-making process.

BOARD’S AND COMMITTEES’ PERFORMANCE REVIEWS

The Board reviews its performance on a regular basis, including the performance of its Committees and individual directors, in accordance with the Performance Management Policy, which is available on the Group’s website. The Board uses surveys for the purpose of its Board and Committee performance reviews. These reviews ensure that individual directors and the Board work effectively in meeting their responsibilities as described in the Board and Committee charters. These reviews occurred during FY2021.

EXECUTIVE PERFORMANCE REVIEW

The performance of all key executives is reviewed annually against the Group’s performance targets and individual KPIs.

The performance review of the CEO is undertaken by the Chairman of the Board, reviewed by the Remuneration and HR Committee and approved by the Board. The performance reviews of other executives are undertaken by the CEO and approved by the Remuneration and HR Committee. Performance reviews for each executive were conducted in FY2021.

34 BUILDING MOMENTUM

CREDIT CORP GROUP ANNUAL REPORT 2021

PRINCIPLE TWO: STRUCTURE THE BOARD TO ADD VALUE

NOMINATION COMMITTEE

The Group formed a Nomination Committee in FY2021 to ensure a formal, rigorous and transparent process for the appointment and reappointment of directors to the Board. The responsibilities of the Nomination Committee are set out in the Nomination Committee Charter, which is available on the Company’s website, and includes the following:

Assist the Board to develop and maintain a Board skills matrix;
Make recommendations to the Board on the size and composition of the Board including reviewing Board succession plans;
Review the ongoing independence of non-executive directors;
Make recommendations to the Board on the criteria for nomination as a director and the membership of the Board more generally;
Assist the Board in relation to it’s performance evaluation as well as Committees and individual directors;
Assist the Board with its appointment and succession planning responsibilities; and
Review and provide recommendations to the Board on the content of the Corporate Governance Statement in so far as it pertains to matters of Board succession, performance and appointment.

The Nomination Committee consists of three of the Group’s independent directors: Leslie Martin (Chairman), Trudy Vonhoff and Eric Dodd. The Nomination Committee has met twice during the year.

Key focus areas of the Nomination Committee during the 2021 financial year included:

Identifying and considering potential candidates to fill Board vacancies leading to the appointment of a new non-executive director in July 2021 as part of a process of Board renewal.

Identifying the mix of skills, experience, diversity, independence and other qualities of existing and prospective directors.

Establishing Board, Committee and individual non-executive directors’ accountabilities and key performance indicators to be used in undertaking the performance evaluation processes for the Board, Committees and Individual non-executive directors.

BOARD COMPOSITION

The term held by each director in office at the date of this report is as follows:

Name Mr Eric Dodd (Chairman) Mr Donald McLay Ms Leslie Martin	Term in offce 12 years 13 years 7 years	Independent Independent Independent Independent
Ms Trudy Vonhoff Mr John Nesbitt (resigned 19 March 2021) Mr Richard Thomas Mr Phillip Aris1	2 years 1.5 years 15 years —	Independent Independent Independent Independent

Mr Phillip Aris was appointed an independent director on 15 July 2021.

The roles of the Board members are summarised as follows:

Board	Member of Audit & Risk Committee Remuneration & HR Committee	Nomination Committee

Mr Eric Dodd Mr Donald McLay Ms Leslie Martin Ms Trudy Vonhoff Mr Richard Thomas Mr Phillip Aris

[Chairman of Board or Sub-Committee ] Member of Board or Sub-Committee

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Corporate governance statement continued

The Chairman of the Board is Mr Eric Dodd, an independent director. The CEO of the Group, Mr Thomas Beregi, is not a director of the Group.

The Board regularly reviews the independence of each director and requires directors to promptly advise of any change in circumstances that may affect their independence as a director. Any change in circumstances that materially affects their independence as a director will be disclosed promptly. There are procedures in place to enable directors to seek independent professional advice in the carrying out of their duties, at the Group’s expense.

The Board has specifically reviewed the independence of the directors with tenure of more than ten years and is satisfied that their independence is not compromised by their relatively long tenure.

During the 2021 financial year, all of the Board members are considered to be independent and free from any business or other relationship that could materially interfere with, or could reasonably be perceived to materially interfere with, the unfettered exercise of their independent judgement.

BOARD SKILLS

The Board considers that the directors bring professional skills, knowledge and experience as well as personal attributes which enable the Board to operate effectively and meet its responsibilities to the Group and stakeholders. The skills and experience of each director are detailed in the directors’ report and also in the following skills matrix.

are detailed in the directors’ report and also in the following skills matrix.
	Number of directors with
Board skills matrix	substantial experience
Governance
Listed public company experience. Experience in the establishment and oversight of governance	4
frameworks, policies and processes.
Leadership and commercial acumen
Skills gained whilst performing at a senior executive level for a considerable length of time. Includes	6
delivering superior results, running complex businesses, leading complex projects and leading
workplace culture.
Financial services experience
Experience working in or advising the banking and fnancial services industry.	6
Financial management
Good understanding of fnancial statements and drivers of fnancial performance for a	6
business of signifcant size, including the ability to assess the effectiveness of fnancial controls.
Risk
Experience in anticipating, recognising and managing risks, including regulatory, fnancial and	6
non-fnancial risks. Experience in monitoring risk management frameworks and controls.
Technology and digital transformation
Experience in organisations with a signifcant technology focus, including adaptation to digital	4
change and innovation.
People, culture and remuneration
Experience in people matters including workplace culture, management development, succession	3
and remuneration. A demonstrated commitment to the promotion of diversity and inclusion.
Strategy
Experience in developing and setting strategic direction. Experience in driving growth and	5
transformation and executing against a clear strategy.
Listed company experience
Held two or more executive or non-executive directorships on Australian or internationally	5
listed companies.
International
Senior leadership experience involving responsibility for operations across borders.	3
Exposure to a range of political, cultural, regulatory and business environments.

INDUCTION OF NEW DIRECTORS

New directors undergo an induction program which includes meetings with members of management, the Chairman of the Board and the Chairman of each relevant Committee to gain an insight into the Group’s business, values and culture. The Directors utilise various programs and opportunities including via their professional associations and accreditations to maintain and enhance their skills and knowledge.

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CREDIT CORP GROUP ANNUAL REPORT 2021

PRINCIPLE THREE: ACT ETHICALLY AND RESPONSIBLY

CODE OF CONDUCT

The Employee Code of Conduct adopted by the Group is a key element of the Group’s corporate governance framework. Its purpose is to guide directors, executives and employees on the minimum standards of conduct expected of them in the performance of their duties, including their dealings with customers, clients, shareholders, employees and other stakeholders.

Compliance with the Employee Code of Conduct is a condition of appointment as a director of, an employee of, or a contractor to, the Group.

The Employee Code of Conduct is published on the Group’s website.

OUR VALUES

The Group believes that its values represent its culture and underpin its success. All staff are encouraged to embrace these values. During induction, new staff are introduced to the values and staff are publicly recognised across the business where they demonstrate exceptional alignment to one or more of the Group’s values.

The Group’s values are:

‘Doing the right thing’ or Discipline:
Doing the right thing means adhering to controls to ensure that established standards are always achieved.
‘Making it happen’ or Accountability:
Making it happen is all about delivering the right results by taking responsibility for setting targets and measuring outcomes.
‘Being open and honest’ or Transparency:

Being open and honest means providing accurate and balanced communication to stakeholders together with recognising challenges and issues so they can be addressed.

PRINCIPLE FOUR: SAFEGUARD INTEGRITY OF CORPORATE REPORTS

AUDIT AND RISK COMMITTEE

The Group has formed an Audit and Risk Committee to assist the Board in fulfilling its responsibilities for the Group’s financial reporting and related processes including the external audit process, the effectiveness of the Group’s risk management framework (for both financial and non-financial risks), systems of internal control and the Group’s compliance with applicable laws and regulations.

The responsibilities of the Audit and Risk Committee are set out in the Audit and Risk Committee Charter which is available on the Group’s website and includes accountabilities to review and provide recommendations to the Board on the following:

Approval of the annual and interim financial statements of the Group with the review process to include consideration as to whether the financial statements provide a true and fair view of the financial position and performance of the Group;
Reviewing the Group’s risk management framework to ensure that it continues to be sound and that the Group is operating with due regard to the risk appetite set by the Board;
The appointment, re-appointment, rotation or removal of the external auditor with such appointment subject to shareholder approval in a general meeting; and
Reviewing and assessing the effectiveness of the Group’s compliance program in ensuring compliance with relevant legal and regulatory requirements, having regard to the Group’s obligations in all jurisdictions in which it operates.

All members of the Audit and Risk Committee are non-executive and independent directors. During the year the members were:

Mr Richard Thomas
Mr Donald McLay
Mr John Nesbitt (resigned from Board on 19 March 2021)

WHISTLEBLOWER POLICY

The Group’s Whistleblower Policy is designed to ensure alignment to the values of the Group, with transparency being one of its core values. This policy ensures that the confidentiality of the whistleblower’s identity is safeguarded and the whistleblower is protected from retaliation or victimisation. The policy provides direction for staff, contractors, and service providers to raise concerns to the Group in relation to unlawful, unethical or irresponsible behaviour. Training is provided to staff annually on what whistleblowing is, how to make a whistleblowing complaint, what process the Group will follow if it receives such a complaint and the protections that are available for whistleblowers.

ANTI-BRIBERY AND ANTI-CORRUPTION POLICY

The Group’s anti-bribery and anti-corruption policy is included in the Gifts and Entertainment Policy which is available on the Group’s website. The policy identifies that giving or receiving bribes or other improper payments is prohibited. The policy requires that breaches are reported to the Risk and Compliance team who then report any material breaches to the Board. Training is provided to staff annually.

Ms Leslie Martin
Mr Eric Dodd

The Chairman of the Audit and Risk Committee is Mr Donald McLay. The qualifications of the members and their attendance at meetings of the Audit and Risk Committee are disclosed in the directors’ report.

Key focus areas of the Audit and Risk Committee during the 2021 financial year included:

Reviewing and assessing the Group’s processes which ensure the integrity of financial statements and reporting and associated compliance with accounting, legal and regulatory requirements.

Monitoring the Group’s information security framework, including data security management and third party data risk management.

Reviewing and refreshing the Group’s risk appetite and risk management framework and monitoring that the Group is operating within the risk appetite set by the Board.

Monitoring the Group’s tax compliance program both in Australia and overseas to ensure its obligations are met in the jurisdictions in which the Group operates.

Reviewing the Group’s Anti-Money Laundering (AML) policy and the business continuity plan (BCP) to ensure both remain compliant and conform to best practice.

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Corporate governance statement continued

The Group’s website contains all corporate governance related policies including the Security Holders’ Rights and Communication Policy which sets out the communication strategy of the Group and includes:

FINANCIAL STATEMENTS APPROVAL

Prior to the approval of the Group’s financial statements for each reporting period the CEO and the Chief Financial Officer (CFO) give the Board a declaration that, in their opinion:

Electronic facilities
the financial records have been properly maintained;

The Group maintains a website that provides information on its services and its business in general, as well as an investor relations section that contains information for shareholders of the Group. The Group’s announcements are made on this website as well as the ASX website. There is a facility on the Group’s website for security holders to lodge questions.

the financial statements comply with accounting standards and give a true and fair view of the financial position and performance of the Group; and
that opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
Formal reporting to security holders Formal reporting to shareholders is conducted through the interim report for the six months ended 31 December and the annual report for the financial year ended 30 June. The Group also releases market updates summarising the Group’s performance during each other quarter of the financial year.

The Audit and Risk Committee reviews the Group’s interim and annual financial reports and makes recommendations to the Board on adopting them.

ANNUAL GENERAL MEETING (AGM)

The AGM gives shareholders the opportunity to hear the CEO and Chairman provide updates on the Group’s performance, ask questions and to express views and vote on the various matters of Group business on the agenda.

— AGMs

The Group invites and encourages shareholders to attend and participate in these meetings and also provides live webcasting of its AGM to allow security holders to view and hear the proceedings of the meeting.

Live webcasting of the AGM is also conducted to allow shareholders to view and hear the proceedings of the meeting online.

In addition, shareholders may electronically communicate with the share registry, Boardroom Pty Limited (Boardroom). The relevant contact details are disclosed in the Corporate Directory section of the annual report.

Shareholders also have the opportunity to ask questions of the Group’s external auditors at the meeting in relation to the conduct of the audit, the preparation and content of the auditor’s report, the accounting policies adopted by the Group in relation to the preparation of the financial statements and the independence of the auditor in relation to the conduct of the audit. The Group encourages shareholders to attend its AGM.

A direct voting facility is provided through Boardroom’s website to allow security holders to vote ahead of the AGM. Details of this facility are included in the Notice of AGM. Shareholders can also submit questions in advance of the meeting via the Group’s share registry or the Group’s auditor.

PRINCIPLE FIVE: MAKE TIMELY AND BALANCED DISCLOSURE

Shareholders who do not currently receive electronic communications from Boardroom may update their communication options via a secure online service offered by Boardroom at www.investorserve.com.au.

CONTINUOUS DISCLOSURE

The Group’s Continuous Disclosure Policy, which is published on its website, is designed to ensure compliance with disclosure obligations under the ASX Listing Rules and to ensure accountability at senior executive level for that compliance.

PRINCIPLE SEVEN: RECOGNISE AND MANAGE RISK

RISK MANAGEMENT

The Group has established a Risk Management Policy to identify, assess, monitor and manage material business risks, both financial and non-financial, to minimise their impact on the achievement of organisational goals. Business risks comprise, but are not limited to, economic, technological, operational, legal, political and social risks. These specified risks are managed both through the Group’s risk management system and insurance program, which are approved by the Board.

This policy also allows the Group to ensure shareholders and the market are fully informed of its strategy, performance and details of any information or events that could have a material impact on the value of the Group’s shares.

The CEO and the Company Secretary, in consultation with the Board, are responsible for the review, authorisation and disclosure of information to the ASX and for overseeing and co-ordinating information disclosure to the ASX, shareholders, brokers, analysts, the media and the public.

As discussed above in relation to principle four, the Audit and Risk Committee provides a review function in respect of the risk framework and aggregated risk profiles at the Group level on behalf of the Board. The Committee’s charter is published on the Group’s website. Management has been given responsibility for the establishment, implementation and maintenance of the system of risk management, including measures of its effectiveness. Internal control systems and procedures are monitored and reviewed by the Group’s Compliance Manager who reports his findings to the Audit and Risk Committee. The composition of the Audit and Risk Committee is detailed in the section relating to principle four and the attendance of members at the meetings of the Committee is disclosed in the directors’ report.

PRINCIPLE SIX: RESPECT THE RIGHTS

OF SHAREHOLDERS

COMMUNICATION WITH SHAREHOLDERS

The Group recognises the rights of its shareholders and other interested stakeholders to access balanced, understandable and timely information concerning the operations of the Group. The CEO and the Company Secretary are primarily responsible for ensuring communications with shareholders are delivered in accordance with the rights of shareholders and the Group’s policy of continuous disclosure.

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CREDIT CORP GROUP ANNUAL REPORT 2021

The Group’s Risk Management Policy is published on its website. The Audit and Risk Management Committee reviewed the Group’s risk appetite and framework during the 2021 financial year.

The Group has an internal audit process within the compliance function. This process tests compliance to the various standards for which the Group is accredited or is required to comply with, as well as internal controls associated with the Group’s risk management framework.

The Group considers that, due to the nature of its activities, it has no material exposure to environmental risks. The Group recognises the risks associated with the provision of financial services to credit-impaired customers and maintains a strong framework of internal controls to mitigate these risks. Over many years of operation this framework has proved effective in producing very strong compliance metrics.

PRINCIPLE EIGHT: REMUNERATE FAIRLY AND RESPONSIBLY

REMUNERATION AND HR COMMITTEE

The Board has formed a Remuneration and Human Resources (HR) Committee to assist it in fulfilling its responsibilities in overseeing Board and executive remuneration.

The responsibilities of the Remuneration and HR Committee are set out in the Remuneration and HR Committee Charter which is available on the Group’s website and includes accountabilities to review and provide recommendations to the Board on the following:

The Company’s executive remuneration framework, policy and practice to ensure that it supports the Company’s strategic objectives and core values and delivers outcomes consistent with the Company’s risk management framework and risk appetite;
The structure, design and maximum award values applicable to the Company’s short-and long-term incentive plans;
Non-Executive Director remuneration including any aggregate NED fee cap amendments;
The design of the performance appraisal system and the annual performance appraisals of Executives other than the CEO;
Employee engagement surveys and action plans;
Succession planning for executives other than the CEO; and
Objectives to achieve gender diversity in the composition of Executives and the total workforce and the Group’s progress in achieving its objectives.

The Remuneration and HR Committee Charter, which sets out its role and responsibilities, and the Remuneration Policy are published on the Group’s website and further information on performance-based remuneration is disclosed in the remuneration report of the directors’ report.

All members of the Remuneration and HR Committee are independent directors, and during the year were:

Mr Eric Dodd
Mr Donald McLay
Ms Trudy Vonhoff

Key focus areas of the Remuneration and HR Committee during the 2021 financial year included:

Reviewing and making recommendations to the Board in respect of the fixed and variable remuneration of the Group CEO and other executives.

Reviewing and making recommendations to the Board in respect of the Group’s short-and long-term executive incentive plans, including the structure, design and maximum award values under each plan and incentive award outcomes, including the exercise of potential discretion.

Reviewing and making a recommendation to the Board on non-executive director fees. Reviewing the succession and transition plans for the Group CEO and executives.

Reviewing and monitoring gender pay equality.

SECURITIES TRADING POLICY

The Group’s Securities Trading Policy governs when its directors and employees may deal in Credit Corp shares and the process which must be followed in respect of such dealings. The Securities Trading Policy is published on the Group’s website.

The Group’s directors and employees are not permitted to deal in Credit Corp shares during any Blackout or Closed Periods:

Two months immediately preceding the preliminary announcement of the Group’s annual results until the commencement of the next trading day after the release of the annual results;
Two months immediately preceding the announcement of the Group’s interim results until the commencement of the next trading day after the release of the interim results; and
Any other periods that the Board determines, in its absolute discretion, to be a Blackout or Closed Period, including due to there being undisclosed price sensitive information.

At any time outside the Blackout or Closed Periods, directors or employees may trade in Credit Corp shares where:

Directors, excluding the Chairman, and KMP obtain the prior written clearance of the Chairman;
The Chairman obtains prior written clearance from the Chairman of the Audit and Risk Committee and in the event that person is not available, the Chairman of the Remuneration and HR Committee; and
Other employees obtain prior written clearance from a Company Secretary.

The Group’s employees are only permitted to enter into margin loans secured against Credit Corp shares with the prior written approval of the Chairman. The Group’s employees are prohibited from hedging unvested awards in the Group’s shares, which would otherwise limit the economic risk of an employee’s holdings on unvested securities granted under an employee incentive plan.

WEBSITE DISCLOSURE

Further information relating to the Group’s corporate governance practices and policies has been made publicly available on the Group’s website at www.creditcorp.com.au/corporate/investors/ corporate-governance.

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CGS
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The Chairman of the Remuneration and HR Committee is Ms Trudy Vonhoff. The remuneration for all key management personnel (KMP), the qualifications of the Remuneration and HR Committee members and their attendance at Committee meetings are disclosed in the remuneration report of the directors’ report.

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Directors’ report

The directors present their report together with the financial report of the Group for the financial year ended 30 June 2021.

DIRECTORS

The directors of the Group at any time during the whole of the financial year and up to the date of this report are:

MR ERIC DODD	Chairman, Director (Non-Executive) Age 69
Qualifcations	Bachelor of Economics, Fellow of the Institute of Chartered Accountants Australia and New Zealand and
	Fellow of the Australian Institute of Company Directors.
Experience and expertise	Appointed as a Non-Executive Director on 1 July 2009 and has been Chairman since 4 February 2021.
	Mr Dodd has extensive experience in senior executive roles in the insurance, fnance, banking and
	healthcare sectors. Mr Dodd has previously held the positions of CEO of Insurance Australia Group,
	Managing Director and CEO of NRMA Insurance and Managing Director and CEO of MBF/Bupa
	Australia. He has served as Chairman and Non-Executive Director of a number of ASX listed companies.
Special responsibilities	Mr Dodd is the Chairman of the Board (since 4 Feburary 2021) and a member of the Nomination,
	Remuneration and HR and Audit and Risk Committees.
Interest in shares and options	6,927 ordinary shares of Credit Corp Group Limited.
MR DONALD MCLAY	Director (Non-Executive) Age 71
Qualifcations	Bachelor of Commerce, Chartered Accountant, Chartered Secretary, Associate Member of Governance
	Institute of Australia and Senior Fellow of the Financial Services Institute of Australasia.
Experience and expertise	Appointed as a Non-Executive Director on 31 March 2008 and was Chairman from 30 June 2008
	to 4 February 2021.
	Mr McLay has more than 40 years’ experience in fnancial markets, investment banking and broad
	business services. He has held executive positions in local and international investment management
	organisations working in London, Singapore, Auckland and Sydney.
Directorship of listed entities	Clime Investment Management Limited from 1 March 2015 to October 2020. Registry Direct Limited
	from 30 May 2016 to October 2020.
Special responsibilities	Mr McLay was Chairman of the Board (until 4 February 2021) and is Chairman of the Audit and Risk
	Committee and a member of the Remuneration and HR Committee.
Interest in shares and options	663,552 ordinary shares of Credit Corp Group Limited.
MS LESLIE MARTIN	Director (Non-Executive) Age 66
Qualifcations	Bachelor of Arts, Master of Business Administration and Fellow of the Australian Institute of
	Company Directors.
Experience and expertise	Appointed as a Non-Executive Director on 20 March 2014.
	Ms Martin has 30 years’ experience in commercial banking in several countries and is a specialist 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
	Services business at the Commonwealth Bank.
Special responsibilities	Ms Martin is the Chairman of the Nomination Committee and a member of the Audit and Risk Committee.
Interest in shares and options	11,063 ordinary shares of Credit Corp Group Limited.
MR RICHARD THOMAS	Director (Non-Executive) Age 76
Qualifcations	Fellow of the Australian Institute of Company Directors.
Experience and expertise	Appointed as a Non-Executive Director on 22 September 2006. Mr Thomas was Acting Chairman
	between 11 February 2008 and 30 June 2008.
	Mr Thomas has more than 50 years’ experience in the banking and fnance industry in Australia,
	New Zealand and the United States.
Special responsibilities	Mr Thomas is a member of the Audit and Risk Committee.
Interest in shares and options	17,272 ordinary shares of Credit Corp Group Limited.

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CREDIT CORP GROUP ANNUAL REPORT 2021

MS TRUDY VONHOFF	Director (Non-Executive) Age 58
Qualifcations	Bachelor of Business (Hons), Master of Business Administration, Senior Fellow of the Financial Services
Experience and expertise	Institute of Australasia and Graduate Member of the Australian Institute of Company Directors. Appointed as a Non-Executive Director on 19 September 2019.
	Ms Vonhoff has extensive experience in retail and institutional banking, fnance, risk, technology and
Directorship of listed entities	operations, and agribusiness. She has previously held senior executive positions including as divisional CFO and COO with large fnancial services entities including Westpac and AMP. Iress Limited from 1 February 2020. Ruralco Holdings Limited from 1 September 2014 until 1 October 2019, A2B Australia Limited
Special responsibilities Interest in shares and options	(formerly Cabcharge Australia Limited) from 21 August 2015 to 22 November 2018. Ms Vonhoff is the Chairman of the Remuneration & HR Committee and a member of the Nomination Committee. 9,975 ordinary shares of Credit Corp Group Limited.
PHILLIP ARIS Qualifcations Experience and expertise	Director (Non-Executive) Age 60 Bachelor of Economics and Masters of Management. Appointed as a Non-Executive Director on 15 July 2021. Mr Aris brings extensive senior executive and board experience across a range of roles within the
	fnancial services and technology sectors across Australia, the United Kingdom and Asia. Past executive roles include Head of Credit Cards for Commonwealth Bank of Australia (ASX: CBA), as Chief Executive Offcer of CountPlus Limited (ASX: CUP) and as the Regional Head of Strategy & Business Development
Interest in shares and options MR JOHN NESBITT Qualifcations	for Thorn-EMI Asia Pacifc. — Director (Non-Executive) Age 62 (resigned 19 March 2021) Fellow of the Chartered Accountants Australia and New Zealand and Graduate Member of the Australian Institute of Company Directors.
Experience and expertise	Appointed as a Non-Executive Director on 19 September 2019. Mr Nesbitt has over 40 years of experience and extensive knowledge in investment management, banking, insurance, property, construction and infrastructure sectors across roles in Australia, Asia, the United States and the United Kingdom. Senior executive roles held include the CEO of Suncorp Banking
Special responsibilities	and Wealth, CFO of Suncorp Group and CFO of Perpetual Limited. Mr Nesbitt was the Chairman of the Audit and Risk Committee prior to his resignation.
Mr Eric Dodd, Mr Donald McLay, Ms Leslie Martin, Mr Richard Thomas and Ms Trudy Vonhoff held offce during the whole fnancial year.
Mr John Nesbitt held offce from the beginning of the 2021 fnancial year until 19 March 2021. Mr Phillip Aris held offce from 15 July 2021. COMPANY SECRETARIES The following persons held the position of Company Secretary during the whole fnancial year:

MR THOMAS BEREGI	Company Secretary
Qualifcations	Bachelor of Economics, Bachelor of Laws (Hons) and Certifed Practising Accountant.
Experience and expertise MR MICHAEL EADIE	Mr Beregi joined the Group on 3 September 2007 in the role of Chief Financial Offcer. He was subsequently appointed to his current position of Chief Executive Offcer on 1 October 2008. Prior to joining the Group, he was the Chief Operating Offcer of Jones Lang LaSalle Australia. Mr Beregi was appointed as a Company Secretary on 21 September 2007. Company Secretary
Qualifcations Experience and expertise	Bachelor of Accounting, Master of Applied Finance, Certifed Practising Accountant and Fellow of the Financial Services Institute of Australasia. Mr Eadie joined the Group on 4 May 2009 as Finance Manager and was subsequently appointed Chief Financial Offcer on 19 November 2010. He has previously held senior fnance roles within major fnancial services organisations, including Macquarie Bank Limited. Mr Eadie was appointed as a Company Secretary on 17 March 2011.

Directors’ report continued

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DIRECTORS’ MEETINGS

The number of directors’ meetings (including meetings of committees of directors) and number of meetings attended by each of the directors of the Group during the financial year were:

	Directors’ Meetings Number eligible to attend Number attended	Audit and Risk Committee Number eligible to attend Number attended	Remuneration & HR Committee Number eligible to attend Number attended	Nomination Committee
				Number eligible to attend Number attended
Mr Eric Dodd Mr Donald McLay Ms Leslie Martin Mr Richard Thomas Ms Trudy Vonhoff Mr John Nesbitt	16 16 16 16 16 16 16 16 16 16 13 13	3 3 8 8 9 9 9 9 — — 6 6	6 6 6 6 — — — — 6 6 — —	2 2 — — 2 2 — — 2 2 — —

PRINCIPAL ACTIVITIES

The principal activities of the Group during the course of the financial year were debt purchasing and collection as well as consumer lending.

There were no significant changes in the nature of the Group’s activities during the financial year.

REVIEW OF OPERATIONS

OVERVIEW

The directors of the Group report a very strong Net Profit After Tax (NPAT) of $88.1 million for the 2021 financial year. The highlights include the following:

11 per cent increase in NPAT over the prior year to $88.1 million;
Strong US segment result, with NPAT doubling to $17.7 million;
Near record purchased debt ledger (PDL) investment outlay of $293 million;
Record second half gross lending volume of $105 million;
Record committed FY2022 starting PDL investment pipeline of $150 million; and
Substantial investment capacity with cash and undrawn lines totaling $372 million.

Despite challenging market conditions all segments exceeded ingoing expectations and finished the year with significant investment momentum for sustained earnings growth.

Australian / New Zealand debt buying

Australian / New Zealand PDL collections were within 4 per cent of FY2020’s stimulus-induced result. This was achieved with limited organic purchasing as a consequence of reduced PDL supply arising from the temporary impact of COVID-19 stimulus and forbearance on charge-off volumes. Acquisition of the Collection House PDL book contributed to the collections result and helped produce lifts in segment productivity and earnings of 9 per cent and 11 per cent respectively.

The Collection House investment brought together the Company’s operating strengths in analytics, operational capability and financial capacity to execute on the largest individual PDL transaction in Australian history. After seven months the purchase continues to perform to expectations.

US debt buying

The US debt buying business was the biggest single contributor to earnings growth in FY2021. Operational improvement combined with several years of elevated purchasing and a strong consumer position to produce a 26 per cent increase in collections. To offset a temporary contraction in market sale volumes arising from COVID-19 stimulus and forbearance, the Company grew share across its diverse range of purchasing relationships, completing acquisitions from three new credit issuers during the year.

A re-fit of the Washington State office was completed late in the year, boosting US operational capacity to 700 seats as a platform for a further step-up in purchasing and earnings growth. Unsecured credit has returned to growth and charge-off volumes are rising.

The tightly integrated US platform has the operational effectiveness and infrastructure required to achieve, and surpass, the medium-term objective of $200 million in annual US PDL investment. This is demonstrated by the US platform benchmarking strongly with the large, publicly-traded debt buyers on key efficiency and effectiveness metrics.

Consumer lending

As COVID-19 stimulus was withdrawn the lending business experienced a rapid increase in demand, particularly from returning customers. This was supplemented with rising new customer volume when approval criteria returned to pre-COVID-19 settings at the start of the fourth quarter. Gross lending exceeded pre-COVID-19 levels over the second half. Arrears and losses remain at historic lows, but this is not expected to continue and the Company has provisioned accordingly.

The auto loan product was relaunched in the fourth quarter and produced encouraging early volumes. Other new products are either in pilot or in development for pilot commencement during FY2022.

Outlook

Credit Corp enters FY2022 with considerable momentum, having invested heavily during FY2021 and secured a record committed starting PDL investment pipeline for FY2022. Charge-off volumes are growing across all markets and the Company anticipates further opportunities to grow purchasing over the course of the year. This anticipated increase in organic PDL investment, together with the ongoing impact of the Collection House PDL acquisition is expected to produce solid earnings in FY2022.

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CREDIT CORP GROUP ANNUAL REPORT 2021

CHANGES IN STATE OF AFFAIRS

During the financial year, there were no significant changes in the state of affairs of the Group other than those referred to in the review of operations and financial statements or notes thereto.

PROCEEDINGS ON BEHALF OF THE GROUP

No person has applied for leave of the Court to bring proceedings on behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings.

DIVIDENDS PAID OR RECOMMENDED

Dividends paid or declared to shareholders since the end of the previous financial year were:

Declared and paid during the year 2021	Cents per share	Total amount $’000	Date of payment
Interim 2021 ordinary	36.0	24,221	12 Mar 2021
Total		24,221

After balance date, the following dividend was proposed by the directors:

the directors:
Declared after end of year	Cents per share	Total amount $’000	Date of payment
Final 2021 ordinary	36.0	24,221	10 Sep 2021

The financial effect of this dividend has not been brought to account in the consolidated financial statements for the year ended 30 June 2021 and will be recognised in the 2022 financial report.

EVENTS SUBSEQUENT TO REPORTING DATE

In the interval between the end of the financial year and the date of this report, there has not been any item, transaction or event of a material and unusual nature that is likely, in the opinion of the directors of the Group, to significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

ENVIRONMENTAL REGULATIONS

The Group’s operations are minimally affected by environmental regulations.

INDEMNIFYING OFFICERS OR AUDITOR

The Group has provided indemnities to the current directors (as named above), the company secretaries (Mr Thomas Beregi and Mr Michael Eadie) and all executives of the Group against liabilities incurred as a director, secretary or executive officer to the extent permitted by the Corporations Act 2001 . The Group will meet the full amount of any such liabilities, including costs and expenses.

NON-AUDIT SERVICES

The following non-audit services were provided by the Group’s auditor, Hall Chadwick. The directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The nature and scope of each type of non-audit service provided means that auditor independence was not compromised. All non-audit services are reviewed and approved by the Audit and Risk Committee prior to commencement of the audit to ensure they do not impact the impartiality and objectivity of the auditor.

Details of the amounts paid to Hall Chadwick for non-audit services provided during the year are set out below:

	services provided during the year are set out below:
	Services other than statutory audit Other services — Taxation compliance services	$ 109,400
	— Taxation services in relation to PDL acquisition from Collection House Total	22,045 131,445

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration for the period ended 30 June 2021 has been received and can be found on page 58 of the financial statements.

ROUNDING OFF

The Group is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the directors’ report. Amounts in the directors’ report have been rounded off in accordance with the instrument to the nearest thousand dollars, unless otherwise indicated.

The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer or auditor of the Group against a liability incurred by an officer or auditor.

These indemnities were in place both during and after the end of the financial year.

Potential liabilities are insured with the premiums paid by the Group. The insurance contract prohibits disclosure of any details of the policy and the premiums paid.

Introduction from the Chairman of the Remuneration & HR Committee

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Dear Fellow Shareholders

On behalf of the Board, I am pleased to present Credit Corp’s 2021 Remuneration Report.

INTRODUCTION FROM THE CHAIRMAN OF THE REMUNERATION & HR COMMITTEE

As outlined in the directors’ report, financial performance for the Group in 2021 was very strong with Net Profit After Tax (NPAT) growing by 11 per cent to $88.1 million. The result exceeded the mid-point of the Group’s initial guidance for 2021 by 31 per cent, reflecting a substantial recovery in performance over the course of the year.

At the start of 2021, the operating environment was both uncertain and unfavourable. Collection performance was still being supported by government stimulus across all markets and this was in the process of being withdrawn. Debt sale volumes had contracted significantly in the Australian / New Zealand and US markets. The consumer loan book was in run-off as stimulus was directed to loan prepayment and consumer demand for unsecured credit had evaporated. As a consequence, the expectation was for 2021 NPAT to decline by approximately 15 per cent compared to 2020 NPAT, adjusted for COVID-19 impairments and provisioning. For the triennium to 2021, this represented a projected compound annual growth rate (CAGR) in NPAT of just 2 per cent.

During 2021 management executed a significant turnaround in performance. Diversified US purchasing relationships were leveraged to grow share of purchasing and offset the impact of the contraction in sale volumes in that market. Lending volumes improved after a decision to commit to advertising in advance of any recovery in consumer demand. A strong capital position was applied to acquire the Collection House purchased debt ledger book at an attractive price and this offset the impact of the contraction in organic sales volumes in the domestic market. Operating metrics improved as systems and methods were adapted to a combination of at-home and in-office work.

A strategic decision was made by the Board and management to continue to retain substantial capital headroom. The Group ended the 2021 financial year debt-free and had $372 million in cash and undrawn credit lines. Due to the capital management decision to retain substantial investment capacity, return on equity (ROE) was 14 per cent in 2021, just falling short of the ROE hurdle.

The decision to retain capital headroom has put the Group in a strong position. Debt sale volumes are growing and 2022 will commence with a record committed purchasing pipeline of $150 million. Lending volumes have recovered to pre-COVID-19 levels and the re-launched auto loan product is producing encouraging results. At the same time the Group retains the capacity to invest opportunistically and accelerate growth.

2021 REMUNERATION OUTCOMES

The 2020 remuneration report anticipated that the long-term incentive (LTI) program that operated over the 2019 to 2021 triennium performance period would not result in any performance rights converting to ordinary shares and vesting. The strong turnaround in performance described above, transformed both the 2021 NPAT growth and NPAT CAGR over the 2019-2021 triennium to 11 per cent each.

As a result, the LTI hurdle of 8-11 per cent NPAT CAGR has been achieved in respect of the 2019-2021 program. In addition to the NPAT hurdle being achieved, the ROE hurdle of 16 per cent would have also been achieved but for the decision, as noted above, to maintain surplus capital to maximise future investment as opportunity arises.

The Board has determined to allow the performance rights issued under the 2019-2021 LTI to convert and vest based on an assessment against the originally-set performance hurdles. For the total shareholder return (TSR) component of the LTI, this assessment will be completed in November as the final TSR performance is determined based on the 90-day volume weighted average share price (VWAP) after the release of the 2021 year-end results.

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CREDIT CORP GROUP ANNUAL REPORT 2021

The performance rights that convert and vest following the assessment against the hurdles in November 2021 will do so in November 2021, as contemplated in the originally approved structure of the scheme.

Allowing the 2019-2021 LTI to convert and vest based on the achievement of the original performance hurdles, other than the relaxation of the ROE hurdle, ensures there is a strong executive retention incentive in place to maximise the probability of the executive team remaining in place through the present challenging market conditions.

The 2021 short-term incentive (STI), although still to be assessed against the Board-set key performance indicators (KPIs) in the upcoming performance review process, is likely to be awarded to participating executives. The details of the STI program, the CEO KPIs and the performance against them are set out in the remuneration report.

PROSPECTIVE CHANGES TO REMUNERATION

1. Non-Executive Director (NED) fees

As detailed in this report, the Remuneration and HR Committee has recommended and the Board has approved an increased level of fees to take effect from 1 July 2021. The last adjustment to fee levels was five years ago, in 2016, when Credit Corp had a market capitalisation of less than $500 million. The adjusted fee levels benchmark appropriately with comparable listed companies.

2. Review of current LTI scheme pool sizes

As detailed in the 2020 remuneration report, the maximum opportunity size of the two current LTI schemes (the 2020-2022 and 2021-2023 schemes) was increased by 50 per cent at the end of 2020. This decision took into account the assessment, at the time, that the 2019-2021 LTI scheme was unlikely to vest; executive fixed base remuneration reductions of 50 per cent during a four-month period early in the pandemic; and the foregone 2020 STI.

In light of the much stronger than expected 2021 performance resulting in the 2019-2021 LTI NPAT hurdles being achieved, the decision to expand the opportunity size of the 2020-2022 and 2021-2023 schemes will be reviewed in November to ensure that the incentive remains appropriately aligned with the interests of shareholders.

On behalf of the Board, I invite you to read our remuneration report and welcome your feedback.

TRUDY VONHOFF, Chairman, Remuneration and HR Committee

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Directors’ report — audited remuneration report

This remuneration report sets out remuneration information for key management personnel (KMP), which includes directors and specified senior executives, for the year ended 30 June 2021 and is prepared and audited in accordance with section 300A of the Corporations Act 2001 .

THE ROLE OF THE BOARD AND THE REMUNERATION & HR COMMITTEE IN REMUNERATION

The following diagram demonstrates how the Board, Committee and the CEO interact to set the remuneration structure and determine the remuneration outcomes for the Group:

BOARD

The Board is responsible for the structure of remuneration for directors and senior executives. The goal is to maximise the effectiveness of remuneration in the creation of long‑term shareholder value.

REMUNERATION AND HR COMMITTEE

The Remuneration and HR Committee is responsible for reviewing and developing remuneration policies and practices on behalf of the Board. Executive remuneration levels are reviewed annually by the Remuneration and HR Committee in line with the Remuneration Policy and with reference to market movements. The Remuneration and HR Committee makes recommendations to the Board in respect of:

Recruitment, retention and termination policies and procedures for senior executives;
Senior executive remuneration packages, including annual incentive and long‑term incentive plans; and
Director remuneration levels and framework.

The performance review of the CEO is undertaken by the Chairman of the Board, reviewed by the Remuneration and HR Committee and approved by the Board.

CEO

The performance reviews of other executives are undertaken by the CEO and approved by the Remuneration and HR Committee.

KEY MANAGEMENT PERSONNEL

The remuneration report sets out the remuneration details for the Group’s KMP. The table below outlines the KMP and their movements during the 2021 financial year:

during the 2021 fnancial year:
Name	Position	Term as KMP
Non-Executive Directors
Mr Eric Dodd	Chairman	Full fnancial year
Mr Donald McLay	Non-Executive Director	Full fnancial year
Ms Leslie Martin	Non-Executive Director	Full fnancial year
Mr Richard Thomas	Non-Executive Director	Full fnancial year
Ms Trudy Vonhoff	Non-Executive Director	Full fnancial year
Mr John Nesbitt	Non-Executive Director	Until 19 Mar 2021
Executive KMP
Mr Thomas Beregi	Chief Executive Offcer	Full fnancial year
Mr Matthew Angell	Chief Operating Offcer	Full fnancial year
Mr Michael Eadie	Chief Financial Offcer	Full fnancial year

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EXECUTIVE KMP REMUNERATION

REMUNERATION POLICY AND LINK TO STRATEGY

The Group’s Remuneration Policy is designed to ensure that remuneration outcomes are aligned with the long-term success of the Group. Incentives are based on the achievement of sustained growth in earnings at an appropriate level of ROE as well as relative shareholder return.

The overall remuneration structure remains similar to the prior year:

Executive KMP fixed remuneration packages in line with those paid for roles with equivalent responsibilities by companies of a similar market capitalisation;

The remuneration structure ensures that if the Group underperforms its earnings and / or return targets, no STI will be payable to executive KMP. Underperformance over the longer-term will also result in no performance rights under the LTI converting to shares.

The Board believes that the Group’s remuneration framework is designed to support and align with the business strategy and encourages executives to maximise performance in the best interests of shareholders. The at-risk components of remuneration are tied to measures that reflect successful execution of the Group’s business strategy in both the short-and long-term.

A Short-Term Incentive (STI) payable only on achievement of annual financial and strategic targets;
A Long-Term Incentive (LTI) paid in the form of performance rights potentially converting to shares after a three-year performance period, based on the following:
50 per cent dependent on exceeding financial targets over a three-year performance period; and
50 per cent dependent on total shareholder return (TSR) relative to the ASX 200 (excluding materials and energy shares) over the same three-year performance period; and
There continues to be no termination benefits payable under any contract.

Use of NPAT as a performance measure

Whilst exceeding earnings targets is a key metric under both the STI and LTI schemes, the derivation of the targets in their application under each scheme are quite distinct:

The STI NPAT target is similar to the annual budget approved by the Board shortly before the start of the financial year and is generally at or above the initial NPAT guidance range issued at the start of the financial year to the market. This target represents a minority of the STI performance measures or KPIs (30 per cent in 2020) with the majority related to the achievement of operational metrics and strategic milestones designed to support the achievement of NPAT growth in the medium-to long-term. This is designed to ensure there is not an excessive focus on current year profitability at the expense of sustained earnings growth; and
In the case of the LTI, NPAT hurdles are expressed as a percentage of average annual growth in NPAT sustained over a three-year period that should exceed the expectations of shareholders. Exceeding shareholder earnings growth expectations represents 50 per cent of the LTI performance hurdles with the other 50 per cent attributable to shareholder returns against a broad benchmark.

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Directors’ report – audited remuneration report continued

The Group’s strategic drivers are reflected in STI and LTI performance measures so the Group’s performance directly affects the remuneration that executives are paid. Both the potential STI and half of the potential LTI are linked directly to achieving earnings targets. This ensures that remuneration outcomes are substantially linked to earnings growth as the most influential driver of share price performance and shareholder returns. The other half of the LTI is directly linked to shareholder returns, based on market performance relative to the ASX 200. This directly aligns a substantial proportion of remuneration to the actual returns achieved by shareholders. The emphasis in the STI and LTI on medium-term earnings growth mitigates the risk that the shareholder return component of the LTI leads to an excessive focus on the share price by executives.

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----- Start of picture text -----

STI Performance LTI Performance Performance
Strategic Drivers Measures Measures Outcomes Remuneration
FINANCIAL RELATIVE TSR TSR The LTI vesting
PERFORMANCE Measures the The cumulative TSR outcome will be
Create sustainable performance of the from FY2019‑21 finally determined
value for shareholders Group’s securities will be measured in in November 2022
over a 3‑year period, November 2021 after the cumulative
relative to the TSR measurement
ASX 200 NPAT CAGR over the three‑year
The Group’s NPAT performance period.
NPAT CAGR CAGR over the three‑ The NPAT CAGR
Measures year period from for the FY2019‑21
compound annual FY2019‑21 was 11 per performance period
growth of NPAT cent, within the LTI was within the LTI
performance hurdle performance hurdle
of 8‑11 per cent
BUDGETED NPAT IN 2021 Executive KMP have
Reflects the annual earnings growth NPAT is $88.1 million, an met NPAT target in
required to be on track with the LTI 11 per cent increase on FY2020, respect of the 2021
three‑year NPAT CAGR hurdle pre‑COVID‑19 provisions and financial year
impairment charges
BUSINESS ASSET MANAGEMENT MEASURES IN 2021 Executive KMP have
DEVELOPMENT AND Measures include purchasing volumes, The Group achieved its met the majority
ASSET MANAGEMENT investment pipeline, collections, net operational and strategic of operational and
Maintain and enhance return, consumer lending customer objectives strategic targets in
value of assets acquisition growth and lending product respect of the 2021
implementation and deliverables financial year
OPERATIONAL OPERATIONAL PERFORMANCE
PERFORMANCE MEASURES
Improve efficiency and Measures include labour productivity,
productivity new technology deployment under the
IT strategic plan and achievement of
improvement in other operational metrics
FINANCING STRATEGY FINANCING STRATEGY MEASURES
Provide sustainable Involves review and enhancements to
and diversified capital structure and expansion and
funding sources by diversification of financing facilities
implementing effective
funding structures
CUSTOMER & CLIENT CUSTOMER AND CLIENT MEASURES
SATISFACTION Measures include business and
Provide customers marketing plan implementation, client
and clients with reporting, customer retention, service
an experience that delivery and compliance metrics
delivers excellent
results and a superior
compliance outcome
EMPLOYEE PEOPLE MEASURES
ENGAGEMENT Measures include employee
Have an engaged and engagement, key talent retention,
motivated workforce succession planning and
with superior skills staff turnover
and capabilities
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CREDIT CORP GROUP ANNUAL REPORT 2021

CONTRACT DETAILS

All contracts with executive KMP may be terminated by either party with agreed notice periods. Remuneration and other terms of employment are formalised in employment contracts. Details of these contracts are:

Name Mr Thomas Beregi	Title Chief Executive	Term of agreement Ongoing, 3 month	Details Fixed salary package of $700,000, consisting of base salary and
	Offcer (CEO)	notice period	superannuation, reviewed annually by the Remuneration and
Mr Matthew Angell	Chief Operating Offcer (COO)	Ongoing, 1 month notice period	HR Committee. Fixed salary package of $400,000, consisting of base salary and superannuation, reviewed annually by the Remuneration and HR Committee.
Mr Michael Eadie	Chief Financial Offcer (CFO)	Ongoing, 1 month notice period	Fixed salary package of $300,000, consisting of base salary and superannuation, reviewed annually by the Remuneration and HR Committee.

REMUNERATION STRUCTURE

FIXED REMUNERATION

Base salary + superannuation

Set with reference to listed company benchmarks for equivalent roles determined by market capitalisation as well as breadth of operations

VARIABLE REMUNERATION

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STI PLAN LTI PLAN
Annual cash payment Annual grant of performance rights in respect
of a three‑year performance period
Eligibility for payment depends on:
Each performance right converts to an ordinary
The Group achieving its budgeted NPAT; and
share upon the performance hurdles being met
Achievement against individual objectives or KPIs for the three‑year performance period
(includes strategic KPIs aligned to m.ilestones
in the three‑year Strategic Plan) The LTI performance hurdles consist
of the below measures:
50%
50%
NPAT CAGR
TSR relative to
the ASX 200
----- End of picture text -----

i) Fixed remuneration

Fixed remuneration comprises base salary and superannuation. Fixed remuneration for the executive KMP is determined by benchmarking to equivalent roles in companies with similar market capitalisation as well as breadth of operations.

Directors’ report — audited remuneration report continued

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FIXED REMUNERATION OUTCOMES

There were no increases to the fixed remuneration during the 2021 financial year.

ii) STI structure

STI award eligibility is determined by KPIs set before the start of each year. These KPIs are annual operational and financial targets that are established at levels to achieve shorter-term financial and operational objectives aligned with the Group’s longer-term strategic goals. The following table outlines the major features of the 2021 STI plan:

Features	Description
Purpose	To motivate and reward participants for achieving specifc measurable fnancial and non-fnancial
	outcomes over the previous fnancial year which position the Group to achieve its medium- to long-term
	strategic goals. Achievement of the STI outcomes provides the foundation for achievement of the
	three-year Strategic Plan objectives of the LTI program.
Funding of	The STI pool is funded if:
STI pool	— The Group achieves its budgeted net proft before tax (NPBT) before funding the STI; and
	— The Group complies with its banking covenants.
Minimum criteria required	If the STI pool is funded, the proportion of each individual’s targeted STI which is paid depends on:
to be achieved before any	— Satisfactory performance against individual KPIs; and
payments are made	— Satisfactory performance against individual job accountabilities.
Maximum STI that	The maximum amount varies and the range is between 50 per cent and 100 per cent of the fxed salary
can be earned	package of each KMP. The amount is set at the start of the year by the Remuneration and HR Committee
	and is approved by the Board.
KPIs	— Individual KPIs are set annually; and
	— Subject to funding of the STI pool, the maximum STI is eligible to be paid when satisfactory
	performance against KPIs is achieved.
Role accountabilities	— Individual performance against role accountabilities is also assessed; and
	— Subject to funding of the STI pool and achievement of KPIs, the maximum STI is eligible to be paid
	when satisfactory performance against role accountabilities is achieved.
Performance period	1 July 2020 to 30 June 2021
Approval	Post completion of the annual fnancial statement audit and performance review process in
	September 2021, the proportion of the targeted STI payable to each executive KMP will be determined
	by the Remuneration and HR Committee and approved by the Board.
Payment timing	October 2021
Form of payment	Cash
Terminating	There is no mandatory STI entitlement where an executive KMP’s employment terminates prior to the
executive KMP	payment date for the STI.

2021 PERFORMANCE OUTCOMES

The Group NPAT in 2021 of $88.1 million exceeded the STI NPAT hurdle of $71.0 million by 24 per cent and exceeded the 2020 NPAT, adjusted for COVID-19-related impairment and provisions, by 11 per cent.

As financial performance exceeded the budget and banking covenants were complied with during 2021, the STI in respect of the 2021 year is eligible to be funded.

The remuneration report discloses the expected maximum STIs payable in respect of 2021. The actual STI payable to each executive will be a maximum of this amount and may reduce subject to the performance review process to occur in the first quarter of 2022. Each executive will be assessed on their individual performance against their KPIs and role accountabilities.

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CEO’s KPIs

A summary of the CEO’s KPIs for 2021 is as follows:

Category	KPIs Method of assessment Level of achievement Weighting
Group performance	NPAT > $71.0 million Based upon NPAT as per the Group’s audited fnancial statements for FY2021 versus target. 30% Achieved: $88.1 million
Growth	PDL acquisition targets Purchasing volumes for FY2021 and committed purchases for FY2022, in accordance with Board-approved return criteria. 15% Achieved: investment in PDLs was $293 million in FY2021 and the FY2022 pipeline was $150 million as at July 2021.
	Australian and Philippines business and operational performance Australian and Philippines business performance and achievement of budgeted operational metrics, including forecast collections and effciency. 10% Achieved: PDL collections of $348 million for FY2021 represented a 4 per cent reduction on FY2020, while collection effciency improved by 9 per cent on FY2020.
	Consumer lending: business size and proftability metrics Achievement of consumer loan book targets in the 2021 budget, maintenance of loan book loss rate and milestones in the rollout of pilot lending products. 20% Achieved: Loss rates within pro-forma levels. Settlements and book growth ahead of expectations after initial high levels of prepayment.
	United States business and operational performance United States business performance and achievement of budgeted operational metrics, including cost to collect, resource build-out and collection effciency. 15% Achieved:PDL collections of $157 million were 26 per cent ahead of FY2020; whilst collection effciency improved by 31 per cent on FY2020.
Financing / Strategy	Extend tenor of debt facilities by an average 18 months by June 2021 Review and renew the existing debt facilities. 10% Achieved: Corporate banking facility extended for a further two years, expiring in 2024 and 2025.

2021 STI OUTCOMES

There were no STI payments made in respect of the 2020 financial year and the STI payments were forfeited. The following table outlines the STI awarded to each executive KMP during the 2021 financial year in respect of the 2020 financial year:

Name Executive KMP Mr Thomas Beregi	Target STI opportunity for 20201 $700,000	STI opportunity as % of fxed remuneration 100%	STI earned as % of target 0%	STI forfeited as % of target 100%
Mr Matthew Angell Mr Michael Eadie	$400,000 $150,000	100% 50%	0% 0%	100% 100%

Excluding COVID-19-related temporary fixed remuneration reductions in late 2020 and early 2021.

With regards to the 2021 STI, refer to 2021 performance outcomes above as well as to the remuneration tables and data section.

iii) LTI structure

The LTI is designed to align the interests of shareholders and executive KMP by motivating and rewarding executive KMP to achieve and exceed 8 per cent compound annual earnings growth and produce strong shareholder returns over the medium- to long-term. The LTI aligns with the most recent three-year strategic planning cycle in respect of the 2020 to 2022 and 2021 to 2023 financial years.

The LTI is based on the following performance hurdles:

Earnings-based hurdle (CAGR of NPAT); and
Relative TSR against the performance of the ASX 200, excluding materials and energy shares.

Each hurdle operates independently and applies to 50 per cent of the potential LTI allocation. For the earnings-based hurdle, a minimum 8 per cent NPAT CAGR for the three-year performance period is required for any conversion of the performance rights to occur.

Relative TSR is the other LTI performance hurdle and represents 50 per cent of the potential LTI allocation. The Board believes this structure provides a balance between alignment of shareholder returns whilst mitigating the risk of excessive focus on share price performance.

In 2020, the decision was taken to amend the structure of the LTI program. For the three-year performance cycle for 2020 to 2022 and beyond, the Remuneration and HR Committee has adopted an annual grant of performance rights, the conversion and vesting of which is assessed against performance over a three-year performance period. This change was for the following reasons:

Targets can be more rapidly adjusted in response to market expectations or individual years of out-performance; and
Annual grants mean there is the potential for performance rights to convert and vest annually driving retention and alignment with shareholder interests more effectively relative to bullet grant schemes which create cliff-vesting retention risks.

The final LTI scheme relating to the three-year performance period was the scheme that operated 2019 to 2021. This featured a bullet grant of performance rights with vesting potentially occurring after 2021. As noted above, this scheme is now likely to result in a component of the performance rights converting and vesting due to the unexpected transformation of 2021 financial performance.

There are two LTI schemes that are on foot post the 2021 year both featuring annual grants of performance rights:

A scheme with a performance period from 2020-2022; and
A scheme with a performance period from 2021-2023.

Directors’ report — audited remuneration report continued

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The detailed features of these schemes are as described below:

The detailed features of	these schemes are as described below:
Features	Description
Purpose	The Group established the LTI plan to assist in motivating, retaining and rewarding key employees. The LTI
	plan is designed to align participants’ efforts with the interests of shareholders by providing participants with
	exposure to the Group’s shares.
Issue of	Performance rights were issued to each participant in September 2020, in proportion to their level of
performance rights	participation in each LTI scheme, as determined by the Remuneration and HR Committee and the Board.
	The number of performance rights issued to the KMP is disclosed below under KMP equity holdings.
	Performance rights are eligible for conversion and vesting based on achievement of performance hurdles.
	Performance hurdles are assessed cumulatively as described below. Performance rights will be allocated
	and converted into shares after the three-year performance period in November 2022 and November 2023
	respectively for each LTI scheme.
Allocation	The allocation of performance rights to executive KMP, as set by the Remuneration and HR Committee and the
	Board, for the 2020 to 2022 and 2021 to 2023 Strategic Plan period was as follows:
	— CEO 37%
	— COO 22%
	— CFO 11%
	The remaining 30 per cent of performance rights issued were allocated to nine other executives not
	considered KMP.
Performance eligibility	— A minimum return on equity (ROE) of 16 per cent must be achieved; and
	— Satisfactory performance by an executive KMP against their job accountabilities as assessed in the annual
	performance review process described in the STI section above.
Vesting	Relative TSR (50%)
	The proportion of performance rights converting to shares is as follows:
	50th percentile Nil
	50th‑75th percentile Pro‑rata nil‑100%
	75th percentile 100% vesting
	The TSR performance is measured on a cumulative basis over the three-year LTI plan. The TSR for the testing
	period is calculated using the volume weighted average price (VWAP) during the testing period, in order to mitigate
	the impact of short-term price gyrations on the TSR calculation. The performance period is the three-year strategic
	planning cycle from 2020 to 2022 and from 2021 to 2023. The testing period is the 90 days to 31 October 2022
	and 30 October 2023, respectively.
	The TSR is compared to the TSR of the peer group for the purposes of determining the Group’s ranking. The peer
	group is comprised of the ASX 200 (excluding materials and energy shares). The use of a broad peer group:
	— Reflects the absence of a relevant peer group amongst fnancial services stocks with Credit Corp’s operating
	model being relatively unique; and
	— Effectively compares the returns achieved from investing in Credit Corp shares with returns available from
	alternative investments in Australian equities by Credit Corp’s investors.
	NPAT CAGR (50%)
	The proportion of awards vesting is as follows:
	FY2020-FY2022:
	8% CAGR 40%
	>8% and ≤ 11% CAGR Pro‑rata 40%‑100%
	>11% CAGR 100% vesting
	FY2021-FY2023:
	Utilising the $79.6 million pre-COVID-19 FY2020 result as the base NPAT fgure (rather than the statutory
	FY2020 NPAT of $15.5 million), the 8 – 11 per cent hurdle growth rate implies the following FY2023 earnings
	target range:
	8 per cent $100.3 million
	11 per cent $108.9 million
	The NPAT CAGR performance condition will be tested in November 2022 and November 2023, following the
	conclusion of the three-year Strategic Plan period.
	The beneft of assessing earnings growth over the three-year periods on a CAGR basis is that it represents sustained
	earnings growth over a three-year period from 2020 to 2022 and from 2021 to 2023.

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Features	Description
Dividends Performance period	An LTI participant has no entitlement to dividends until the performance rights have been converted into shares and vested.. The performance period for the NPAT hurdle is a three-year period (from 2020 to 2022 and from 2021 to 2023)
Forfeiture	with earnings growth being assessed on a cumulative basis with the minimum CAGR hurdle 8 per cent. Similarly, performance under the TSR is also assessed on a cumulative basis over the same three-year periods. Forfeiture of an LTI participant’s account will occur should the executive KMP be terminated by the Group for any reason, remain employed but no longer form part of the leadership group or be terminated from the plan for any reason.
Alignment	There is no mandatory LTI entitlement where an executive KMP’s employment terminates prior to the vesting date of an LTI beneft. The Group’s LTI plan aligns the interests of shareholders and executive KMP by: — 50 per cent of the potential award being based on achieving and exceeding target cumulative earnings growth, with earnings growth being a critical driver of shareholder returns; and
Change of control	— 50 per cent of the potential award using TSR as a performance hurdle, which directly aligns the fnancial interests of executive KMP and shareholders by linking their reward to the Group’s relative share price performance. There is no mandatory entitlement to any beneft under the LTI in the event of a change in control and the Board
	has absolute discretion in varying any terms of the LTI program in these circumstances.

LTI OUTCOMES

No performance rights converted or vested to LTI scheme participants during the 2020 year. As noted above, there is the prospect of some of the performance rights issued in respect of the 2019-2021 LTI scheme converting and vesting in November 2021 after the TSR component of the performance hurdles is assessed. Performance under the NPAT earnings growth hurdle has been achieved.

The Board believes the Group’s remuneration structure, in particular the STI and LTI, has continued to ensure a significant proportion of remuneration is only payable as a result of the achievement of sustained earnings growth at an appropriate rate of return that aligns with shareholder expectations. Failure to achieve these expectations will result in no performance pay being awarded.

	2021	2020	2019	2018	2017
Earnings Total revenue ($’000) NPAT ($’000) Change in NPAT	374,786 88,130 11%	313,403 79,557 13%	324,254 70,285 9%	298,978 64,290 17%	265,947 55,158 20%
5-year NPAT CAGR Shareholder value	14%
Share price at the end of the year ($) Change in share price ($) Total dividends paid / declared per share (cents) ROE	29.73 12.56 72 14%	17.17 (9.35) 36 14%	26.52 8.45 72 21%	18.07 0.36 67 24%	17.71 5.70 58 24%

Directors’ report — audited remuneration report continued

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DIRECTOR REMUNERATION

REMUNERATION POLICY

Under the Group’s Remuneration Policy, non-executive directors are to be awarded fair remuneration that is appropriate to their responsibilities, performance, knowledge and skills. Fees for non-executive directors are fixed and are not linked to the performance of the Group. This is to ensure the independence of the directors.

Remuneration levels of comparable companies are reviewed annually for benchmarking purposes and allowance is made for various factors, including demands on time, the level of commitment required and any special responsibilities. An annual aggregate cap of $1.1 million was approved by the shareholders at the 2018 AGM.

The remuneration structure is set out below:

The remuneration structure is set out below:
	2021 1	20201
	$	$
Chairman	220,000	220,000
Director and Committee Chairman	120,000	120,000
Director and Committee member	110,000	110,000
Director	95,000	95,000

Fee levels are before the 50 per cent voluntary reductions from April-July 2020.

The above remuneration does not include the 9.5 per cent (2020: 9.5 per cent) statutory superannuation entitlement.

All directors voluntarily implemented a temporary reduction in director fees by 50 per cent in April 2020 for a four-month period in response to the COVID-19 pandemic. The temporary four-month reduction includes July 2020 which is part of FY2021.

Director’s fees were reviewed with effect from 1 July 2021.

Director’s fees were reviewed with effect from 1 July 2021.
	$
Chairman	250,000
Director and Committee Chairman	135,000
Director and Committee member	125,000
Director	110,000

These increases have been benchmarked to comparable listed entities to the Group in terms of market capitalisation, total assets, revenue and operational scope. It is further noted that director remuneration was last reviewed in 2016, five years ago, and in the intervening period, market capitalisation has increased four-fold and NPAT has nearly doubled.

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REMUNERATION TABLES AND DATA

The remuneration for each KMP of the Group during the year was:

	Short-term benefts Total $ Salary and fees $ Short-term incentive1 $ Non- monetary benefts $	Post- employ- ment benefts Long-term beneft Total $ Proportion of remuneration performance -related % Super- annuation $ Long-term incentive2 $ Long service leave $
Directors Mr Eric Dodd Non-Executive Director Chairman of Board Member of Remuneration and HR and Audit and Risk Committees 2021 150,385 — 8,766 159,151 2020 108,461 — — 108,461		14,287 — — 173,438 — 10,304 — — 118,765 —
Mr Donald McLay Non-Executive Director Chairman of Audit and Risk Committee 2021 169,231 — 13,149 182,380 2020 198,846 — 20,310 219,156		16,077 — — 198,457 — 18,138 — — 237,294 —
Mr Richard Thomas Non-Executive Director Member of Audit and Risk Committee 2021 103,654 — — 103,654 2020 99,423 — — 99,423		9,847 — — 113,501 — 9,445 — — 108,868 —
Ms Leslie Martin Non-Executive Director Chairman of Nomination Committee 2021 107,385 — — 107,385 2020 99,423 — — 99,423		10,201 — — 117,586 — 9,445 — — 108,868 —
Ms Trudy Vonhoff Non-Executive Director Chairman of Remuneration and HR Committee 2021 114,955 — — 114,955 2020 74,112 — — 74,112		2,631 — — 117,586 — 2,446 — — 76,558 —
Mr John Nesbitt3 Non-Executive Director Chairman of Audit and Risk Committee before resignation 2021 83,077 — — 83,077 2020 75,058 — — 75,058		7,892 — — 90,969 — 7,130 — — 82,188 —
Mr Robert Shaw4 Non-Executive Director 2021 — — — — 2020 73,846 — — 73,846		— — — — — 7,015 — — 80,861 —
Executive KMP Mr Thomas Beregi Chief Executive Offcer Company Secretary 2021 639,173 700,000 21,915 1,361,088 2020 613,709 — 20,310 634,019		21,694 1,110,000 12,900 2,505,682 72 21,003 — 10,446 665,468 —
Mr Matthew Angell Chief Operating Offcer 2021 363,465 400,000 21,915 785,380 2020 354,094 — 20,310 374,404		21,694 660,000 7,230 1,474,304 72 21,003 — 5,831 401,238 —
Mr Michael Eadie Chief Financial Offcer Company Secretary 2021 269,314 150,000 21,915 441,229 2020 263,709 — 20,310 284,019		21,694 330,000 5,213 798,136 60 20,416 — 4,292 308,727 —
Total remuneration 2021 2,000,639 1,250,000 87,660 3,338,299 2020 1,960,681 — 81,240 2,041,921		126,017 2,100,000 25,343 5,589,659 60 126,345 — 20,569 2,188,835 —

The STI has been included in the above table on an accrual basis and has been recorded at 100 per cent of the maximum potential payment. Individual performance reviews to be conducted after the finalisation of the 2021 audited consolidated financial statements will determine the final entitlement.
The LTI has been included in the above table on an accrual basis. It is payable in the form of performance rights, convertible into shares upon achievement of the earningsbased and/or relative TSR performance hurdles over a three-year performance period. The LTI is accrued as one-third of total performance rights to vest 100 per cent.
Resigned from Board on 19 March 2021.
Resigned from Board on 4 November 2019.

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Directors’ report — audited remuneration report continued

The relative proportions of the elements of remuneration of each KMP that are linked to performance:

The relative proportions of the elements of remuneration of each KMP that	are linked to performance:
	Fixed remuneration 2021 2020	Remuneration linked to performance
		2021 20201
Directors Mr Donald McLay Mr Eric Dodd Ms Leslie Martin Mr Richard Thomas Ms Trudy Vonhoff Mr John Nesbitt	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	— — — — — — — — — — — —
Executive KMP Mr Thomas Beregi Mr Matthew Angell Mr Michael Eadie	28% 100% 28% 100% 40% 100%	72% — 72% — 60% —

No STI or LTI was accrued in respect of the 2020 year.

KMP EQUITY HOLDINGS

The movements during 2021 in the number of ordinary shares in Credit Corp Group Limited held directly, indirectly or beneficially by each KMP, including their related parties are:

	Opening balance at 1 July 2020 Shares vested during the year Shares acquired during the year Other changes during the year Closing balance at 30 June 2021
	Number Number Number Number Number
Directors Mr Eric Dodd Mr Donald McLay Ms Leslie Martin Mr Richard Thomas Ms Trudy Vonhoff Mr John Nesbitt1	6,927 — — — 6,927 773,552 — — (110,000) 663,552 11,063 — — — 11,063 15,272 — 2,000 — 17,272 7,675 — 2,300 — 9,975 6,019 — — (6,019) —
	820,508 — 4,300 (116,019) 708,789
Executive KMP Mr Thomas Beregi Mr Matthew Angell Mr Michael Eadie	41,086 — — — 41,086 399 — — — 399 — — — — —
	41,485 — — — 41,485
Total	861,993 — 4,300 (116,019) 750,274

Movement in shares for Mr John Nesbitt was due to his resignation on 19 March 2021.

RIGHTS HOLDINGS OF KMP

The directors do not hold any rights in Credit Corp Group Limited.

The following table shows details of rights holdings for the remaining KMP:

	Opening balance at 1 July 2020 Granted as remuneration Converted to deferred ordinary shares Closing balance at 30 June 2021
	Rights number Rights number Rights number Rights number
Executive KMP Mr Thomas Beregi Mr Matthew Angell Mr Michael Eadie	222,127 — — 222,127 123,403 — — 123,403 58,874 — — 58,874

Signed in accordance with a resolution of the Board of Directors.

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TRUDY VONHOFF Chairman of Remuneration and HR Committee Date: 3 August 2021

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ERIC DODD Chairman of Board

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Financial statements

58 Auditor’s independence declaration

FINANCIAL STATEMENTS

59 Consolidated income statement

60 Consolidated statement of comprehensive income 61 Consolidated statement of financial position 62 Consolidated statement of changes in equity 63 Consolidated statement of cash flows

Notes to the consolidated financial statements

64 1 Corporate information 64 2 Basis of preparation 66 3 Operating segments 67 4 Revenue 67 5 Income tax 70 6 Earnings per share 70 7 Dividends paid and proposed 70 8 Cash and cash equivalents 71 9 Trade and other receivables 72 10 Consumer loans receivables 73 11 Purchased debt ledgers (PDLs) 73 12 Other assets 74 13 Plant and equipment 75 14 Right-of-use assets and lease liabilities 76 15 Finance lease receivables 76 16 Intangible assets 77 17 Trade and other payables 77 18 Provisions 78 19 Borrowings 79 20 Cash flow information 80 21 Issued capital 80 22 Reserves 81 23 Business combination 81 24 Financial risk management 84 25 Capital management 84 26 Subsidiaries 85 27 Contingent liabilities 86 28 Capital commitments 86 29 Subsequent events 86 30 Key management personnel compensation 86 31 Related party transactions 86 32 Share based payments 87 33 Auditor’s remuneration 87 34 Cross guarantee 90 35 Parent entity information 91 Directors’ declaration 92 Independent auditor’s report 97 Five-year financial summary 98 Shareholder Information

Auditor’s independence declaration

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CREDIT CORP GROUP LIMITED ABN 33 092 697 151 AND CONTROLLED ENTITIES

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF CREDIT CORP GROUP LIMITED

In accordance with Section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Credit Corp Group Limited. As the lead audit partner for the audit of the financial report of Credit Corp Group Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.

Hall Chadwick (NSW) Level 40, 2 Park Street Sydney NSW 2000

SANDEEP KUMAR Partner Dated: 3 August 2021

SYDNEY · PENRITH · MELBOURNE · BRISBANE · PERTH · DARWIN Liability limited by a scheme approved under Professional Standards Legislation www.hallchadwick.com.au

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CREDIT CORP GROUP ANNUAL REPORT 2021

Consolidated income statement

For the year ended 30 June 2021

	Note	2021 $’000	2020 $’000
Purchased debt ledger (PDL) interest revenue	4	266,843	255,320
PDL change in lifetime expected credit losses Consumer lending revenue	4 4	— 78,886	(68,576) 99,445
Other revenue	4	29,057	27,214
Finance costs Employee benefts expense Onerous forward purchasing contract provision Depreciation and amortisation expense		(5,932) (137,408) — (10,838)	(10,944) (143,530) (11,816) (10,905)
Offce facility expenses Collection expenses Consumer loans loss provision expense Marketing expenses Other expenses Proft before income tax		(17,786) (29,700) (32,891) (8,390) (5,899) 125,942	(17,497) (33,551) (46,209) (10,561) (6,230) 22,160
Income tax expense Proft for the year Earnings per share for proft attributable to owners of the Company	5	(37,812) 88,130	(6,706) 15,454
Basic earnings per share (cents per share) Diluted earnings per share (cents per share)	6 6	130.9 129.9	25.5 25.5

The above financial statements should be read in conjunction with the accompanying notes.

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Consolidated statement of comprehensive income

For the year ended 30 June 2021

	2021	2020
	$’000	$’000
Proft for the year	88,130	15,454
Other comprehensive income
Items that may be reclassifed subsequently to proft / (loss):
Foreign currency translation reserve, net of income tax	—	—
Other comprehensive income for the year, net of income tax	—	—
Total comprehensive income for the year	88,130	15,454

The above financial statements should be read in conjunction with the accompanying notes.

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Consolidated statement of financial position

As at 30 June 2021

	Note	2021 $’000	2020 $’000
Current assets
Cash and cash equivalents Trade and other receivables	8 9	61,677 15,531	48,660 6,433
Consumer loans receivables	10	95,814	99,748
Purchased debt ledgers Finance lease receivables Current tax receivables Other assets	11 15 5 12	234,856 756 — 3,623	168,356 170 4,254 3,508
Total current assets Non-current assets Consumer loans receivables Purchased debt ledgers Plant and equipment	10 11 13	412,257 39,358 232,465 6,502	331,129 37,559 254,264 6,605
Right-of-use assets Finance lease receivables Deferred tax assets Intangible assets	14 15 5 16	21,783 303 67,782 800	27,782 234 64,277 800
Total non-current assets		368,993	391,521
Total assets		781,250	722,650
Current liabilities Trade and other payables Current tax liabilities Lease liabilities Provisions Total current liabilities	17 5 14 18	39,027 7,934 7,067 19,512 73,540	27,972 — 7,640 30,916 66,528
Non-current liabilities Borrowings Deferred tax liabilities	19 5	3,608 8,006	22,420 8,723
Lease liabilities	14	17,607	21,996
Provisions Total non-current liabilities	18	11,426 40,647	8,773 61,912
Total liabilities Net assets Equity Issued capital	21	114,187 667,063 346,738	128,440 594,210 346,738
Reserves Retained earnings	22	24,963 295,362	16,019 231,453
Total equity		667,063	594,210

The above financial statements should be read in conjunction with the accompanying notes.

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Consolidated statement of changes in equity

For the year ended 30 June 2021

		Issued		Retained	Total
		capital	Reserves	earnings	equity
	Note	$’000	$’000	$’000	$’000
Balance at 1 July 2020		346,738	16,019	231,453	594,210
Total comprehensive income for the year
Proft for the year		—	—	88,130	88,130
Foreign currency translation reserve	22	—	6,444	—	6,444
Total comprehensive income for the year		—	6,444	88,130	94,574
Transactions with owners in their capacity as owners
Shares issued net of transaction costs and tax	21	—	—	—	—
Performance rights issued net of transaction costs		—	2,500	—	2,500
Dividends paid or provided for	7	—	—	(24,221)	(24,221)
Transactions with owners in their capacity as owners		—	2,500	(24,221)	(21,721)
Balance at 30 June 2021		346,738	24,963	295,362	667,063
Balance at 1 July 2019		193,700	13,340	256,562	463,602
Adjustment for adoption of AASB 16 net of tax		—	—	(1,048)	(1,048)
Total comprehensive income for the year
Proft for the year		—	—	15,454	15,454
Foreign currency translation reserve	22	—	179	—	179
Total comprehensive income for the year		—	179	15,454	15,633
Transactions with owners in their capacity as owners
Shares issued net of transaction costs and tax	21	153,038	—	—	153,038
Performance rights issued net of transaction costs		—	2,500	—	2,500
Dividends paid or provided for	7	—	—	(39,515)	(39,515)
Transactions with owners in their capacity as owners		153,038	2,500	(39,515)	116,023
Balance at 30 June 2020		346,738	16,019	231,453	594,210

The above financial statements should be read in conjunction with the accompanying notes.

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Consolidated statement of cash flows

For the year ended 30 June 2021

	Note	2021 $’000	2020 $’000
Cash fows from operating activities
Receipts from customers and debtors Payments to suppliers and employees		600,870 (183,135)	617,875 (206,671)
Interest received on bank deposits		134	215
Interest paid – leases Interest paid – other Income tax paid Cash flows from operating activities before changes in operating assets		(907) (3,474) (27,480) 386,008	(712) (8,902) (35,165) 366,640
Changes in operating assets arising from cash fow movements Net funding of consumer loans Acquisition of purchased debt ledgers Changes in operating assets arising from cash flow movements		(25,167) (293,115) (318,282)	(5,344) (245,650) (250,994)
Net cash inflow from operating activities	20	67,726	115,646
Cash fows from investing activities Acquisition of plant and equipment Payment for acquisition of subsidiary, net of cash acquired	13 23	(2,783) —	(3,145) (67,715)
Net cash outflow from investing activities Cash fows from fnancing activities		(2,783)	(70,860)
Proceeds from issue of share capital Proceeds from borrowings Repayment of borrowings Repayment of lease principal Dividends paid Net cash outflow from fnancing activities	7	— 30,000 (49,944) (7,907) (24,221) (52,072)	152,209 232,548 (356,937) (7,140) (39,515) (18,835)
Net increase in cash and cash equivalents Cash and cash equivalents at 1 July Effect of exchange rate fluctuations on cash held		12,871 48,660 146	25,951 22,709 —
Cash and cash equivalents at 30 June	8	61,677	48,660

The above financial statements should be read in conjunction with the accompanying notes.

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Notes to the consolidated financial statements

d) Use of accounting judgements, estimates and assumptions

NOTE 1: CORPORATE INFORMATION

The consolidated financial statements of Credit Corp Group Limited (the Company) and its subsidiaries (collectively, the Group) for the year ended 30 June 2021 were authorised for issue in accordance with a resolution of the directors on 3 August 2021.

The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and from within the Group.

Credit Corp Group Limited is a for-profit company limited by shares incorporated in Australia whose shares are publicly traded on the ASX. The address of its registered office and principal place of business is Level 15, 201 Kent Street, Sydney NSW 2000, Australia.

In the application of the Group’s accounting policies, the directors of the Group are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors considered to be relevant. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Actual results may differ from these estimates.

The Group is primarily involved in operations within debt ledger purchasing, as well as mercantile collections and consumer lending. Further information on the nature of the operations and principal activities of the Group is provided in the directors’ report. Information on the Group’s structure is provided in Note 26: Subsidiaries. Information on other related party relationships of the Group is provided in Note 31: Related party transactions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The parent entity, Credit Corp Group Limited, has not prepared separate financial statements as permitted by the Corporations Act 2001 . The financial information for the parent entity is disclosed in Note 35: Parent entity information.

periods affected.
Key estimates	Note	Page
Purchased debt ledgers (PDLs)	11	73
Impairment of fnancial assets	9, 10 & 11	71, 72 & 73
Provisions	9, 10 & 18	71, 72, 77 & 78
Share based payments	32	86
Goodwill and impairment	16	76

NOTE 2: BASIS OF PREPARATION

The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board.

e) Significant accounting policies

The significant accounting policies adopted in the presentation of these consolidated financial statements are set out below. Other significant accounting policies are contained in the notes to the financial report to which they relate. The policies have been consistently applied to all the years presented, unless otherwise stated.

a) Compliance with international financial reporting standards

The consolidated financial statements also comply with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

b) Accruals basis

Except for cash flow information, the Consolidated Financial Statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

c) Rounding of amounts

The Company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with the instrument to the nearest thousand dollars, unless otherwise indicated.

Principles of consolidation

These consolidated financial statements incorporate the assets, liabilities and results of all subsidiaries at 30 June 2021. Subsidiaries are all entities over which the Company has control. The Company controls an entity if it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

Profit or loss and other comprehensive income of controlled entities acquired or disposed of during the year are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable. In preparing the financial report, all intercompany balances, transactions and unrealised profits arising within the Group are eliminated in full.

Functional currency

Amounts in the directors’ report and financial report are presented in Australian dollars, which is the Group’s functional currency.

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CREDIT CORP GROUP ANNUAL REPORT 2021

NOTE 2: BASIS OF PREPARATION continued

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency, being Australian dollars, using the exchange rates prevailing at the date of transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the statement of profit or loss, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity; otherwise the exchange difference is recognised in the statement of profit or loss.

Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. All borrowing costs are recognised in the statement of profit or loss and other comprehensive income in the period in which they are incurred.

Government grants

Grants that compensate the Group for expenses incurred are recognised in profit or loss on a systematic basis in the periods in which the expenses are recognised.

f) Current economic impact of COVID-19

The Australian and New Zealand collections outcomes (liquidations) realised from the starting book closely tracked the ingoing expectations which were reflected by the impairment allowance which was booked in the year ended 30 June 2020. The majority of this impairment was attributable to assets purchased just before and during the start of the COVID-19 pandemic due to the reduced ability to agree new repayment plans at that stage.

Arrears and losses on the consumer loan book were at record low levels during the year. Despite this, new loans were still provided for at pre-COVID-19 levels resulting in the provision for losses increasing to 26.5 per cent of the pre-provision carrying value of the loan book. The assumption is that this phenomenon is temporary and that the additional loan provision will be absorbed as more normal economic conditions resume.

Staff have worked flexibly between remote and office-based work across all jurisdictions based on local health regulations and best practice. There has been no discernible loss of efficiency or effectiveness as a result of the adoption of remote work.

g) New and amended standards adopted by the Group The Group has considered the implications of new or amended Accounting Standards which have become applicable for the current financial reporting period as set out below:

AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework

AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business

AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material

AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia

AASB 2020-4 Amendments to Australian Accounting Standards – COVID‑19‑related Rent Concessions

The adoption of these Accounting Standards and Interpretations did not have any significant impact on the profit or loss or financial position of the Group.

Collections on ledger investments made during the year ended 30 June 2021, have produced liquidations that closely resemble pre-COVID-19 expectations. As a result of these outcomes, no additional impairment allowance was taken up against the carrying value of the PDL assets as at 30 June 2021.

After high levels of prepayment in the first quarter of the year ended 30 June 2021, the consumer loan book grew back as demand increased and credit settings were adjusted back to pre-COVID-19 levels. This mirrored the reduction in some government and private stimulus measures following the peak September quarter.

Notes to the consolidated financial statements continued

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NOTE 3: OPERATING SEGMENTS

a) Financial reporting by segments

An operating segment is a component of an entity that engages in business activities from which it may earn revenue and / or incur expenses. The Group has identified its operating segments based on the internal reports that are reviewed and used by the chief operating decision maker, the Chief Executive Officer (CEO), to make strategic decisions. The Group has three main operating segments: debt ledger purchasing (Australia and New Zealand), debt ledger purchasing (United States) and consumer lending (Australia and New Zealand). All operating segments and results are reviewed regularly by the CEO of the Group, who reviews the operating segments’ results on an ongoing basis to assess performance and allocate resources.

The reportable segments are as follows:

Debt ledger purchasing – Australia and New Zealand

This business purchases consumer debts at a discount to their face value from credit providers in Australia and New Zealand, with the objective of recovering amounts in excess of the purchase price over the collection life cycle of the receivables to produce a return. This segment also includes the contingent collection services business in Australia and New Zealand.

Debt ledger purchasing – United States

This business purchases consumer debts at a discount to their face value from credit providers in the United States, with the objective of recovering amounts in excess of the purchase price over the collection life cycle of the receivables to produce a return.

Consumer lending – Australia and New Zealand

This business offers various market-leading sustainable financial products to credit-impaired consumers.

Following is the information provided to the CEO:

Following is the information provided to the CEO:
	Debt ledger		Consumer
	purchasing	Debt ledger	lending	Total for
	– Australia &	purchasing –	– Australia &	continuing
	New Zealand	United States	New Zealand	operations
	$’000	$’000	$’000	$’000
Year ended 30 June 2021
Segment revenue
External revenue	219,446	76,454	78,886	374,786
Segment result
Segment proft	93,101	26,266	23,345	142,712
Finance costs				(5,932)
Depreciation and amortisation expense				(10,838)
Proft before income tax expense				125,942
Income tax expense				(37,812)
Proft after income tax expense				88,130
Year ended 30 June 2020
Segment revenue
External revenue	183,328	30,630	99,445	313,403
Segment result
Segment proft	43,570	(24,312)	24,751	44,009
Finance costs				(10,944)
Depreciation and amortisation expense				(10,905)
Proft before income tax expense				22,160
Income tax expense				(6,706)
Proft after income tax expense				15,454

b) Geographical information

The Group predominantly operates in two geographic segments, Australia and the United States.

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NOTE 4: REVENUE

The Group recognises revenue from the following major sources:

Interest revenue from PDLs

Revenue from PDLs represents the component designated as interest income through the application of the credit-adjusted effective interest rate to the amortised cost of the PDLs. Interest revenue also includes realisations derived from fully amortised PDLs.

Revenue from PDLs includes the impact of changes in expected realisations which represent an impairment loss or gain. When material, these gains or losses are disclosed as a separate line item within revenue.

Interest and fee income from consumer lending

Interest and fee income is recognised when payments are received.

The following is the Group’s revenue for the year from continuing operations:

continuing operations:
	2021	2020
PDL interest revenue PDL change in lifetime expected credit losses	$’000 266,843 —	$’000 255,320 (68,576)
Interest and fee income from consumer lending	78,886	99,445
Other interest received	134	215
Other income Total	28,923 374,786	26,999 313,403

Revenue from contracts

Other income mainly consists of revenue from contracts from the contingency business in Australia and New Zealand. The contingency business provides contingent collection services to clients. Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a client and excludes amounts collected on behalf of third parties.

Revenue is recognised at a point in time when the service has been performed and the Group has a right to invoice.

Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, unless the GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case, it is recognised as part of the cost of acquisition of the asset or as part of the expense.

NOTE 5: INCOME TAX

The Group operates in various tax jurisdictions, including Australia, New Zealand and the United States.

Current tax

Current tax expense charged to the statement of profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities are therefore measured at the amounts expected to be paid to the relevant taxation authority.

Deferred tax

Deferred tax is accounted for based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences, unused tax losses and tax offsets, to the extent that it is probable that sufficient future taxable profits will be available against which those deductible temporary differences can be utilised. No deferred income tax is recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the assets are realised or the liabilities are settled, based on tax rates enacted or substantively enacted at balance date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related assets or liabilities.

Income taxes relating to items recognised directly in equity are recognised directly in equity and not in the statement of profit or loss and other comprehensive income.

Tax consolidation

Credit Corp Group Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation legislation. The head entity, Credit Corp Group Limited, and its subsidiaries in the income tax consolidated group have entered a tax funding arrangement whereby each company in the income tax consolidated group contributes to the income tax payable in proportion to their contribution to the Group’s taxable income. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement is recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities that are recoverable from, or payable to, the ATO are presented as operating cash flows.

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Notes to the consolidated financial statements continued

NOTE 5: INCOME TAX continued

Components of the tax balances are detailed below:

NOTE 5: INCOME TAXcontinued Components of the tax balances are detailed below:
	2021	2020
	$’000	$’000
a) income tax expense
Current tax	(42,014)	(32,948)
Deferred tax	4,222	26,193
(Under provision) / over provision in respect of prior years	(20)	49
Total	(37,812)	(6,706)
b) Reconciliation between tax expense and pre-tax accounting proft
Proft for the year	125,942	22,160
Prima facie tax payable on proft from ordinary activities before income tax at 30%	(37,783)	(6,648)
(2020: 30%)
Difference in overseas tax rate	151	41
Tax effect of amounts that are not (deductible) taxable in calculating taxable income:
Other non-deductible items	(160)	(148)
	(37,792)	(6,755)
(Under provision) / overprovision in respect of prior years	(20)	49
Income tax expense	(37,812)	(6,706)
Applicable weighted average effective tax rates (%)	30%	30%
c) Tax assets and liabilities
Current tax assets
Tax receivable	—	4,254
Non-current tax assets
Deferred tax assets	67,782	64,277
Total	67,782	68,531
Current tax liabilities
Tax liabilities	7,934	—
Non-current liabilities
Deferred tax liabilities	8,006	8,723
Total	15,940	8,723

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CREDIT CORP GROUP ANNUAL REPORT 2021

NOTE 5: INCOME TAX continued

	Assets 2021 $’000 2020 $’000	Liabilities 2021 $’000 2020 $’000	Net
			2021 $’000 2020 $’000
Deferred tax assets and liabilities are attributable to: Provision for employee benefts ROU assets Lease liabilities Provision for impairment of trade receivables Provision for expected credit losses Accruals on wages and bonuses Accruals on employee share plan Difference between accounting and tax depreciation Onerous forward purchasing contract provision Acquired on business combination US PDL change in lifetime ECL Other accruals not tax deductible until expense incurred	3,211 4,815 — — 7,336 8,891 29 29 14,607 13,081 118 44 2,040 750 904 (209) 45 3,545 — 15,135 14,278 8,014 25,214 10,182	— — (6,476) (8,261) — — — — — — — — — — — — — — — — — — (1,530) (462)	3,211 4,815 (6,476) (8,261) 7,336 8,891 29 29 14,607 13,081 118 44 2,040 750 904 (209) 45 3,545 — 15,135 14,278 8,014 23,684 9,720
Net tax assets	67,782 64,277	(8,006) (8,723)	59,776 55,554

Movement in temporary differences during the year Year ended 30 June 2021 Provision for employee benefts	Opening balance $’000 4,815	Recognised in proft or loss $’000 (1,604)	Recognised in other comprehensive income $’000 —	Closing balance $’000 3,211
ROU assets	(8,261)	1,785	—	(6,476)
Lease liabilities Provision for impairment of trade receivables Provision for expected credit losses	8,891 29 13,081	(1,555) — 1,526	— — —	7,336 29 14,607
Accruals on wages and bonuses	44	74	—	118
Accruals on employee share plan Difference between accounting and tax depreciation Onerous forward purchasing contract provision	750 (209) 3,545	1,290 1,113 (3,500)	— — —	2,040 904 45
Acquired on business combination US PDL change in lifetime ECL Other accruals not tax deductible until expense incurred Total	15,135 8,014 9,720 55,554	(15,135) 6,264 13,964 4,222	— — — —	— 14,278 23,684 59,776
Movement in temporary differences during the year Year ended 30 June 2020
Provision for employee benefts Provision for leases ROU assets Lease liabilities Provision for impairment of trade receivables Provision for expected credit losses	3,559 824 — — 17 11,892	1,256 (824) (8,261) 8,891 12 1,189	— — — — — —	4,815 — (8,261) 8,891 29 13,081
Accruals on wages and bonuses	48	(4)	—	44
Accruals on employee share plan Difference between accounting and tax depreciation Onerous forward purchasing contract provision Acquired on business combination US PDL change in lifetime ECL Other accruals not tax deductible until expense incurred	540 452 — — — 12,029	210 (661) 3,545 15,135 8,014 (2,309)	— — — — — —	750 (209) 3,545 15,135 8,014 9,720
Total	29,361	26,193	—	55,554

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Notes to the consolidated financial statements continued

NOTE 6: EARNINGS PER SHARE

NOTE 6: EARNINGS PER SHARE
	2021	2020
Basic earnings per share (cents)	130.9	25.5
Diluted earnings per share (cents)	129.9	25.5
Weighted average number of ordinary shares – basic (‘000)	67,316	60,668
Add: Adjustment for calculation of diluted earnings per share (performance rights) (‘000)	517	—
Weighted average number of ordinary shares at 30 June – diluted (‘000)	67,833	60,668

Basic and diluted earnings per share are calculated by dividing profit for the year by the weighted average number of shares on issue over the year.

Performance rights

Performance rights granted under the Group’s Long-Term Incentive (LTI) plan are considered to be potential ordinary shares and have been included in the determination of diluted earnings per share. The rights have not been included in the determination of basic earnings per share. Details relating to the rights are set out in the remuneration report and Note 32.

NOTE 7: DIVIDENDS PAID AND PROPOSED

NOTE 7: DIVIDENDS PAID AND PROPOSED
	Cents	Total	Franked /	Date of
	per share	$’000	unfranked	payment
The following dividends were declared and paid by the Group:
Year ended 30 June 2021
Interim 2021 ordinary	36.0	24,221	Franked	12 Mar 2021
Total		24,221
Year ended 30 June 2020
Interim 2020 ordinary	36.0	19,758	Franked	13 Mar 2020
Final 2019 ordinary	36.0	19,757	Franked	30 Aug 2019
Total		39,515

After 30 June 2021 the following dividends were proposed by the directors. The dividends have not been provided for and there are no income tax consequences.

Final 2021 ordinary	Franked	10 Sep 2021
	2021	2020
	$’000	$’000
Franking account
Balance of franking account at year-end adjusted for franking credits arising from payment of provision
for income tax and franking debits arising from payment of dividends	164,367	139,682
Subsequent to year-end, the franking account would be reduced by the proposed dividend	(10,380)	—
Total	153,987	139,682

NOTE 8: CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise bank deposits with maturities of less than three months and cash on hand that are subject to an insignificant risk of change in their fair value, and are used by the Group in the management of its short-term commitments.

	2021	2020
	$’000	$’000
Cash and cash equivalents	61,677	48,660

The cash and cash equivalents as at end of 30 June 2021 includes $6 million (2020: $6.5 million) of cash held on behalf of clients.

The Group’s exposure to interest rate risk and a sensitivity analysis of financial assets and liabilities is disclosed in Note 24.

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CREDIT CORP GROUP ANNUAL REPORT 2021

NOTE 9: TRADE AND OTHER RECEIVABLES

Trade and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such financial assets are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less any provision for doubtful debts and impairment.

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

Current	2021 $’000	2020 $’000
Trade receivables Less: Provision for impairment Other receivables Less: Provision for impairment	4,326 (71) 4,255 11,307 (31)	4,628 (95) 4,533 1,908 (8)
Total	11,276 15,531	1,900 6,433

The Group applies the AASB 9 simplified approach to measuring expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables.

The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience, adjusted for macroeconomic factors affecting the ability of the customers to settle the receivables and an assessment of both the current as well as the forecast direction of conditions at the reporting date. The Group has recognised a loss allowance of 100 per cent against receivables over 120 days past due, excluding lease bonds and deposits, because historical experience has indicated that these receivables are generally not recoverable.

There has been no change in the estimation techniques or significant assumptions made during the current reporting period.

The following table details the loss allowance as at 30 June 2021 and 30 June 2020. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Group’s different customer bases.

Note 24 provides detail about the Group’s exposure to credit risk.

	Current $’000	> 30 days past due $’000	> 60 days past due $’000	> 120 days past due $’000	Total $’000
Year ended 30 June 2021 Expected loss rate	0%	0%	0%	100%
Gross carrying amount	13,788	1,405	338	102	15,633
Provision for impairment Net carrying amount Year ended 30 June 2020	— 13,788	— 1,405	— 338	(102) —	(102) 15,531
Expected loss rate	0%	0%	0%	100%
Gross carrying amount	4,946	1,105	382	103	6,536
Provision for impairment	—	—	—	(103)	(103)
Net carrying amount	4,946	1,105	382	—	6,433

The fair value of the trade and other receivables is $15.5 million.

The following table shows the movement in lifetime expected credit loss that has been recognised for trade and other receivables in accordance with the simplified approach set out in AASB 9:

accordance with the simplifed approach set out in AASB 9:
	2021	2020
Lifetime expected credit loss Opening balance Decrease in loss allowance recognised in proft or loss during the year Closing balance	$’000 (103) 1 (102)	$’000 (109) 6 (103)

No trade receivables are recognised at balance date that are past due and deemed impaired. The Group has provided a loss allowance of $0.071 million at reporting date (2020: $0.095 million).

Notes to the consolidated financial statements continued

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NOTE 10: CONSUMER LOANS RECEIVABLES

Consumer loans are initially recognised at fair value of the loan written and subsequently measured at amortised cost using the effective interest rate method, less provision for expected credit losses. Given the nature of loans written, a lifetime expected credit loss provision is taken up upon initial recognition of a consumer loan receivable. The loan balance is categorised into current and non-current consumer loans according to the due date within the contracted loan terms. Amounts due within 12 months are classified as current assets, with the remainder classified as non-current assets.

Provision for expected credit losses is recognised based on expected life of loan loss rates derived from static pool analysis of the performance of loan products. These estimates are updated on an ongoing basis.

Provisions for expected credit losses have increased from 24 per cent of the gross loan book to 27 per cent. This increase accounts for the elevated risk of default for existing customers who do not meet present lending criteria together with the arrears on pilot products.

Note 24 provides more details in relation to carrying amounts and the Group’s exposure to credit risk.

	2021	2020
	$’000	$’000
Current
Consumer loans receivables	129,146	129,958
Less: Provision for expected credit losses	(33,332)	(30,210)
	95,814	99,748
Non-current
Consumer loans receivables	54,774	50,951
Less: Provision for expected credit losses	(15,416)	(13,392)
	39,358	37,559
Total	135,172	137,307
Provision for expected credit losses
Movement in the provision for expected credit losses
Opening balance	(43,602)	(39,641)
Net movement for the year	(5,146)	(3,961)
Closing balance	(48,748)	(43,602)

Loan book arrears performance management

The arrears composition of the loan products is monitored closely to ensure that there is no significant increased delinquency which may indicate that future losses could be greater than the pro-forma benchmarks. With payments being made on the loan book weekly, fortnightly and monthly by customers, monitoring the collections and changes in arrears compositions provides a timely lead indicator of changes in the credit risk of the loan book based on the real-time data provided. At present the 30 plus day arrears have maintained below pro-forma as a result of customers prioritising debt repayments.

Sensitivity analysis

The Group performed sensitivity analysis to assess the impact of changing loss allowance for expected credit loss balances compared to the carrying value of the loss allowance. The variance across the various scenarios is immaterial.

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CREDIT CORP GROUP ANNUAL REPORT 2021

NOTE 11: PURCHASED DEBT LEDGERS (PDLs)

PDLs are considered purchased or originated credit-impaired assets (POCIs) under AASB 9 Financial Instruments. For POCIs, the fair value at initial recognition already takes into account lifetime expected credit losses and represents the consideration paid. PDLs are subsequently measured at amortised cost by applying the credit-adjusted effective interest rate, in accordance with AASB 9 Financial Instruments. This occurs at the level of individual tranches of PDLs by using a six-year forecast of realisations or expected cash flows which implies a level of expected credit losses. This credit-adjusted effective interest rate is derived in the period of acquisition of the tranche of PDLs and equates to the Internal Rate of Return (IRR) of the forecast cash flows without any consideration of collection costs.

This credit-adjusted effective interest rate is used over the collection life cycle to apportion cash collections between the principal and interest components. Changes in expected realisations are determined at the level of each tranche of PDLs which are then aggregated to generate either an impairment loss or gain.

The fair value of the PDLs is materially the same as the carrying value measured under amortised cost using the credit-adjusted effective interest rate as the risk-adjusted discount rate used in applying fair value would be similar to the credit-adjusted effective interest rate used in amortised cost measurement.

Note 24 provides detail about the Group’s exposure to credit risk.

Note 24 provides detail about the Group’s exposure to credit risk.
	2021 $’000	2020 $’000
Current	234,856	168,356
Non-current Total	232,465 467,321	254,264 422,620
	2021	2020
Debt ledger balance movement	$’000	$’000
Opening balance	422,620	414,122
PDLs acquired as part of Baycorp acquisition Other PDL investments Amortisation Realisation of onerous forward contract provision Foreign currency revaluation Impairment due to COVID-19	— 293,115 (225,295) (11,656) (11,463) —	70,118 244,438 (233,020) — (4,282) (68,756)
Total	467,321	422,620

Note 24 provides detail about the Group’s exposure to credit risk.

Sensitivity analysis

The Group performed sensitivity analysis on PDL carrying value by analysing the trend of asset carrying value changes impacted by the increase or decrease in future collections over the six-year period. The result shows that the change in asset carrying value is relatively the same ratio as the change in future collections.

NOTE 12: OTHER ASSETS

NOTE 12: OTHER ASSETS
Prepayments Inventory	2021 $’000 3,227 396	2020 $’000 3,060 448
Total	3,623	3,508

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Notes to the consolidated financial statements continued

NOTE 13: PLANT AND EQUIPMENT

Plant and equipment are measured at historical cost less accumulated depreciation and accumulated impairment losses. In the event the carrying amount is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised. A formal assessment of the recoverable amount is made when impairment indicators are present. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the financial period in which they are incurred.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the statement of profit or loss and other comprehensive income.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:

Class of fxed asset	Years
Leasehold improvements	Period of the lease
Plant and equipment	2 to 5 years
Computer software	2.5 to 4 years

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year-end and adjusted prospectively, if appropriate.

adjusted prospectively, if appropriate.
	Plant and	Computer	Leasehold
	equipment	software	improvements	Total
	$’000	$’000	$’000	$’000
a) Cost or valuation
Year ended 30 June 2021
Opening balance	12,222	4,979	9,359	26,560
Additions	846	145	1,792	2,783
Revaluation	370	(4)	(8)	358
Reclassifcation	(56)	—	56	—
Closing balance	13,382	5,120	11,199	29,701
Year ended 30 June 2020
Opening balance	6,875	1,189	7,016	15,080
Additions	664	1,358	1,123	3,145
Additions through business combinations	7,402	6,035	3,424	16,861
Disposals	(2,719)	(3,603)	(2,204)	(8,526)
Closing balance	12,222	4,979	9,359	26,560
b) Accumulated depreciation or amortisation
Year ended 30 June 2021
Opening balance	(9,722)	(2,972)	(7,261)	(19,955)
Revaluation	(389)	(2)	(5)	(396)
Depreciation / amortisation for the year	(1,295)	(814)	(739)	(2,848)
Closing balance	(11,406)	(3,788)	(8,005)	(23,199)
Year ended 30 June 2020
Opening balance	(5,442)	(967)	(4,570)	(10,979)
Additions through business combinations	(5,451)	(3,443)	(2,734)	(11,628)
Depreciation / amortisation for the year	(1,396)	(716)	(1,535)	(3,647)
Disposals	2,567	2,154	1,578	6,299
Closing balance	(9,722)	(2,972)	(7,261)	(19,955)
c) Carrying amounts
At 1 July 2020	2,500	2,007	2,098	6,605
At 30 June 2021	1,976	1,332	3,194	6,502
At 1 July 2019	1,433	222	2,446	4,101
At 30 June 2020	2,500	2,007	2,098	6,605

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CREDIT CORP GROUP ANNUAL REPORT 2021

NOTE 14: RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

The Group leases various offices, showrooms, car parks and equipment. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.

The Group recognises leases as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use. Each lease payment is allocated between the liabilities and finance cost. The finance cost is charged to the statement of profit or loss and other comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.

a) Right-of-use assets

Right-of-use assets are measured at cost comprising the following:

The amount of the initial measurement of lease liabilities;
Initial direct costs incurred;
Any lease payments made at or before the commencement date less any lease incentives received; and
Restoration costs.

— Restoration costs.
	2021	2020
	$’000	$’000
Opening balance / initial recognition on adoption of AASB16 Additions through business combination Additions – other	27,782 — 3,742	10,884 2,511 22,030
Depreciation charge Transfer to fnance lease receivables	(7,990) (1,155)	(7,211) (426)
Effects on exchange rate changes	(596)	47
Disposals Closing balance Cost Accumulated depreciation Closing balance	— 21,783 30,803 (9,020) 21,783	(53) 27,782 35,224 (7,442) 27,782

b) Lease liabilities

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
Variable lease payments that are based on an index or a rate;
Amounts expected to be payable by the lessee under residual value guarantees;
The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The variable lease payments that do not depend on an index or a rate are recognised as expense in the period in which the event or condition that triggers the payment occurs.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to exercise, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Group has the option, under some of its leases, to lease the assets for additional terms. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not exercise) the option to renew.

Current lease liabilities Non-current lease liabilities	2021 $’000 7,067 17,607	2020 $’000 7,640 21,996
Closing balance	24,674	29,636

Total cash outflow for leases and related interest paid are disclosed separately in Consolidated Statement of Cash Flows.

Notes to the consolidated financial statements continued

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NOTE 14: RIGHT-OF-USE ASSETS AND LEASE LIABILITIES continued

Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in statement of profit or loss and other comprehensive income. Short-term leases are leases with a lease term of 12 months or less. Low-value assets mainly comprise IT and office equipment.

NOTE 15: FINANCE LEASE RECEIVABLES

The Group has entered into two more lease arrangements (previously one in FY2020) as a sub-lessor for its Parramatta office. The Group leases a portion of the office building and, as the sub-lease transfers substantially all of the risks and rewards of ownership of the asset, it is classified as a finance lease.

Finance lease receivables are presented in the statement of financial position as follows:

	2021	2020
	$’000	$’000
Current	756	170
Non-Current	303	234
Closing balance	1,059	404

The following table sets out a maturity analysis of finance lease receivables, showing the undiscounted lease payments comprising receivables as at the reporting date:

receivables as at the reporting date:
	2021	2020
	$’000	$’000
Less than 1 year	785	176
1 to 2 years	331	176
2 to 3 years	—	103
Total undiscounted lease payment receivable	1,116	455
Unearned fnance income	(57)	(51)
Net investment in the lease	1,059	404

NOTE 16: INTANGIBLE ASSETS

Intangible assets recognised by the Group consist of goodwill arising from the historical acquisition of a contingent collections business. Goodwill represents the excess of the cost of the acquisition over the fair value of the Group’s share of net identifiable assets of the acquired subsidiary at the date of acquisition.

Goodwill with an indefinite useful life is not subject to amortisation and is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it may be impaired. An impairment loss is recognised in the statement of profit or loss and other comprehensive income for the amount by which the asset’s carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and value in use.

higher of an asset’s fair value less cost to sell and value in use.
	2021	2020
	$’000	$’000
a) Carrying amounts
Opening balance	800	800
Closing balance	800	800

b) Impairment testing for cash-generating unit containing goodwill

For the purpose of impairment testing, goodwill is allocated to the Group’s contingent collections operating unit, which represents the lowest level within the Group at which the goodwill is monitored for internal management purposes. The Group assesses for impairment at least annually.

For the 2021 and 2020 reporting periods, the recoverable amount of the contingent collections operating unit was determined based on value-in-use calculations, which require the use of assumptions. The calculations use cash flow projections based on financial budgets approved by management covering a three-year period. Revenue projections beyond the three-year period have been kept stagnant, while expense projections have been extrapolated using an estimated growth rate of 2 per cent per annum. The cash flows are discounted using a pre-tax discount rate of 10 per cent per annum, reflecting a market estimate of the weighted average cost of capital adjusted to incorporate risks associated with the contingent collections operating unit. No impairment was recognised for the contingent collections operating unit during the year ended 30 June 2021 (2020: nil).

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NOTE 17: TRADE AND OTHER PAYABLES

NOTE 17: TRADE AND OTHER PAYABLES
	2021 $’000	2020 $’000
Current Unsecured liabilities Trade payables	8,123	1,428
Employee-related accruals Other payables and accruals Total	3,997 26,907 39,027	11,761 14,783 27,972

The Group’s exposure to liquidity risk related to trade and other payables is disclosed in Note 24.

NOTE 18: PROVISIONS

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. The nature of the provision balances are outlined below.

Employee benefits

Short-term obligations

Liabilities for wages and salaries as well as incentive payments expected to be settled within 12 months represent present obligations resulting from employees’ services provided to the end of the reporting period. These are presented as payables and measured at the amounts expected to be paid when the liabilities are settled, plus on-costs.

Long-term obligations

The liability for long service leave and annual leave is presented in employee benefits provisions and measured at the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporting period. Expected future payments are discounted using market yields on high quality corporate bonds at the end of the reporting period with terms to maturity and currency that match, as closely as possible, the estimated future payments.

Onerous forward purchasing contract provision

Some forward PDL purchasing commitments entered into prior to March 2020 were re-negotiated to reflect the reduced collections outlook as a consequence of COVID-19. The provision balance represents the portion that extends beyond 30 June 2021.

Restructuring provision

This provision represents the onerous portion of lease commitments taken on as part of the acquisition of Baycorp Holdings Pty Limited and its associated entities (collectively Baycorp) on 16 August 2019 as well as restructuring costs associated with the planned integration of Baycorp. As of 30 June 2021, $6.9 million of the $15.8 million provision taken up on 16 August 2019 had not been utilised.

	2021 $’000	2020 $’000
Current Employee benefts	15,760	14,528
Onerous forward purchasing contract provision	160	11,816
Restructuring provision Other provisions	3,482 110 19,512	4,572 — 30,916
Non-current
Employee benefts	6,200	1,523
Restructuring provision Other provisions Total	3,434 1,792 11,426 30,938	5,810 1,440 8,773 39,689

Notes to the consolidated financial statements continued

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NOTE 18: PROVISIONS continued

NOTE 18: PROVISIONScontinued
		Onerous
		forward
		purchasing
	Employee benefts	contract provision	Restructuring provision	Other provisions	Total
	$’000	$’000	$’000	$’000	$’000
Year ended 30 June 2021
Opening balance	16,051	11,816	10,382	1,440	39,689
Reclassifcation	(377)	—	—	377	—
Additional provisions	37,490	—	—	85	37,575
Amounts used	(31,204)	(11,656)	(3,466)	—	(46,326)
Closing balance	21,960	160	6,916	1,902	30,938
Year ended 30 June 2020
Opening balance	11,862	—	—	2,746	14,608
Provision acquired from business combination	2,505	—	15,812	1,132	19,449
Reclassifed to lease liabilities	—	—	—	(2,746)	(2,746)
Additional provisions	20,841	11,816	—	308	32,965
Amounts used	(19,157)	—	(5,430)	—	(24,587)
Closing balance	16,051	11,816	10,382	1,440	39,689

NOTE 19: BORROWINGS

Financial liabilities mainly comprise loans and borrowings. Such liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are recognised at amortised cost, comprising the original debt less principal repayments.

debt less principal repayments.
	2021	2021	2020	2020
	Facility	Carrying	Facility	Carrying
	limit	amount	limit	amount
	$’000	$’000	$’000	$’000
Bank loan facilities	312,000	3,608	375,000	22,420
Total	312,000	3,608	375,000	22,420

The Group has a corporate loan facility, which is secured by a fixed and floating charge over the assets of a number of entities in the Group. The Group also has a securitised consumer loan warehouse facility which has recourse to the securitised consumer loans.

The secured facility has a limit of $212 million and expires in March 2024 and March 2025. The securitised consumer loan warehouse facility has a limit of $100 million and expires in October 2022 following a two-year availability period and a two-year repayment period.

The secured loan facility requires compliance with various undertakings. These include compliance with minimum Tangible Net Worth (TNW) and maximum Loan to Valuation Ratio (LVR) requirements. The minimum TNW undertaking is set as the greater of $440 million and 85 per cent of the TNW at the end of the preceding financial year. The maximum LVR is 60 per cent of the carrying value of PDLs in the consolidated accounts.

All undertakings under the bank loan facilities, including the TNW and LVR requirements, were complied with during the year ended 30 June 2021.

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NOTE 20: CASH FLOW INFORMATION

NOTE 20: CASH FLOW INFORMATION
	2021 $’000	2020 $’000
a) Reconciliation of cash fow from operations with proft after income tax Cash flows from operating activities Proft for the year	88,130	15,454
Non‑cash items in proft and loss — Foreign currency revaluation — Depreciation and amortisation — Share based payments	(349) 10,838 7,000	14 10,905 2,500
— Amortisation of borrowing cost — Transition lease adjustment — Loss on disposal of asset — Revaluation — Impairment loss – change in lifetime expected credit losses — Onerous forward purchasing contract provision	1,551 — — — — —	1,136 450 116 180 68,576 11,816
— Consumer loan – expected credit losses (Increase) / decrease in assets — Trade and other receivables — Consumer loans receivables	32,891 (15,873) (24,062)	46,209 (223) (11,883)
— Purchased debt ledgers	(52,465)	(13,465)
— Finance lease receivables — Other assets	307 (107)	— 956
— Deferred tax assets Increase / (decrease) in liabilities — Trade and other payables — Tax provision — Provisions — Deferred tax liability	(1,121) 11,054 12,315 (1,602) (799)	(16,447) 6,240 (18,737) 5,631 6,218
Net cash inflow from operating activities	67,726	115,646

b) Non-cash investing and financing activities

The Group did not make a dividend reinvestment plan (DRP) offer in the current year (2020: nil) and therefore no dividends have been reinvested by shareholders and not paid out in cash.

Non-cash financing activity on the acquisition of right-of-use assets is disclosed in Note 14(a).

	Borrowings	Leases	Total
Debt as at 1 July 2020 Cash flows Acquisition of leases Reclassifcation	$’000 22,420 (19,944) — —	$’000 29,636 (7,907) 3,742 (197)	$’000 52,056 (27,851) 3,742 (197)
Foreign exchange movements Amortisation of borrowing cost	(419) 1,551	(600) —	(1,019) 1,551
Closing balance as at 30 June 2021 Debt as at 1 July 2019 Recognised on adoption of AASB 16 Cash flows	3,608 142,702 — (124,389)	24,674 — 12,382 (7,140)	28,282 142,702 12,382 (131,529)
Acquisition of leases Acquisition through business combination Foreign exchange movements Amortisation of borrowing cost Closing balance as at 30 June 2020	— — 2,971 1,136 22,420	21,570 2,824 — — 29,636	21,570 2,824 2,971 1,136 52,056

Notes to the consolidated financial statements continued

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NOTE 21: ISSUED CAPITAL

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.

recognised as a deduction from equity, net of any tax effects.
	2021	2020
	$’000	$’000
Issued capital
Opening balance	346,738	193,700
Shares issued during the year	—	153,038
Total	346,738	346,738

The Group does not have a fixed authorised capital or par value for its issued shares. All issued shares are fully paid. Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares on issue.

	2021	2020
	’000	’000
Number of fully paid ordinary shares
On issue at 1 July	67,316	54,918
Shares issued during the year:
— Institutional placement	—	9,600
— Share purchase plan	—	2,798
On issue at 30 June	67,316	67,316

Refer to Note 32 for further details on the LTI and the employee share scheme.

NOTE 22: RESERVES

NOTE 22: RESERVES
	2021	2020
	$’000	$’000
Share based payment reserve	18,340	15,840
Foreign currency translation reserve	6,623	179
Total	24,963	16,019

Share-based payment reserve

The share-based payment reserve is used to recognise:

The fair value of performance rights granted to executives and senior management; and
Other share-based payment transactions.

Refer to the remuneration report on pages 55 and 56, and Note 32 for further details on the LTI and the employee share scheme.

Foreign currency translation reserve

The foreign currency translation reserve records exchange differences arising on translation of the controlled foreign subsidiaries.

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NOTE 23: BUSINESS COMBINATION

There was no business acquisition during the financial year ended 30 June 2021.

On 16 August 2019 the Group acquired a 100 per cent interest in Baycorp for a consideration, net of cash balances acquired, of $71.5 million. Baycorp is primarily involved in debt ledger purchasing and contingent collections. The acquisition complemented the Group’s existing operations.

Comparatives include assets and liabilities recognised as a result of the acquisition are as follows:

Cash and cash equivalents Trade and other receivables	2021 $’000 — —	2020 $’000 3,757 3,902
Other current assets Right-of-Use assets Property, plant and equipment Purchased debt ledgers Deferred tax assets Trade and other payables	— — — — — —	1,194 2,511 5,234 70,118 17,641 (8,106)
Provisions – current Lease liabilities Deferred tax liabilities Provisions – non-current	— — — —	(2,317) (2,824) (2,506) (17,132)
Fair value of identifable net assets Net consideration used to acquire Baycorp	— —	71,472 67,715

NOTE 24: FINANCIAL RISK MANAGEMENT

The Group’s financial assets and liabilities consist mainly of PDLs, consumer loans receivables, deposits with banks, trade and other receivables, payables and borrowings.

The Group does not engage in the trading of derivative instruments.

The main risks the Group is exposed to through its financial instruments are market risk (including foreign currency risk and interest rate risk), liquidity risk and credit risk.

The Board has established written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments. They are managed and measured consistently year-on-year.

The Group holds the following financial assets and liabilities:

The Group holds the following fnancial assets and liabilities:
	Note	2021 $’000	2020 $’000
Financial assets Cash and cash equivalents Trade and other receivables Current tax receivable	8 9 5	61,677 15,531 —	48,660 6,433 4,254
Consumer loans receivables	10	135,172	137,307
Purchased debt ledgers	11	467,321	422,620
Total		679,701	619,274
Financial liabilities Trade and other payables Current tax liabilities Borrowings	17 5 19	39,027 7,934 3,608	27,972 — 22,420
Total		50,569	50,392

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Notes to the consolidated financial statements continued

NOTE 24: FINANCIAL RISK MANAGEMENT continued

a) Market risk management

Currency risk

Overseas operations expose the Group to foreign exchange risk. This may result in the fair value of financial assets or liabilities fluctuating due to movements in Australian dollar foreign exchange rates of currencies in which the Group holds overseas financial assets and liabilities.

Fluctuations in the United States dollar, New Zealand dollar and the Philippines peso relative to the Australian dollar have the potential to impact the Group’s financial results. The Group adopts a hedging strategy to hedge the revaluation of foreign currency denominated assets and liabilities to minimise the impact of these revaluations on earnings.

As a result, at balance date, had the Australian dollar weakened or strengthened by 5 per cent against any or all of the above currencies, the impact on both profit for the year and equity would have been immaterial. This assumes all other variables remain constant.

Interest rate risk

The Group is exposed to interest rate risk as it borrows funds at floating interest rates.

Profile

At balance date, the interest rate profiles of the Group’s interest-bearing and non-interest-bearing financial instruments were:

Note	Fixed interest rate 2021 $’000 2020 $’000	Floating interest rate 2021 $’000 2020 $’000	Non-interest bearing 2021 $’000 2020 $’000	Total
				2021 $’000 2020 $’000
Financial assets Cash and cash equivalents 8 Trade and other receivables 9 Current tax receivable 5 Consumer loans receivables 10 Purchased debt ledgers 11	— — — — — — 135,172 137,307 467,321 422,620	61,677 48,660 — — — — — — — —	— — 15,531 6,433 — 4,254 — — — —	61,677 48,660 15,531 6,433 — 4,254 135,172 137,307 467,321 422,620
Total	602,493 559,927	61,677 48,660	15,531 10,687	679,701 619,274
Financial liabilities Trade and other payables 17 Current tax liabilities 5 Borrowings 19	— — — — — —	— — — — 3,608 22,420	39,027 27,972 7,934 — — —	39,027 27,972 7,934 — 3,608 22,420
Total	— —	3,608 22,420	46,961 27,972	50,569 50,392

Sensitivity analysis for variable rate instruments

A change of two percentage points in interest rates at balance date would have increased or decreased the Group’s equity and profit or loss over the ensuing 12 months as shown below. These sensitivities assume all other variables remain constant.

	2021	2020
	$’000	$’000
Change in net proft after tax
Increase in interest rates by two percentage points	(51)	(314)
Decrease in interest rates by two percentage points	51	314
Change in equity
Increase in interest rates by two percentage points	(51)	(314)
Decrease in interest rates by two percentage points	51	314

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NOTE 24: FINANCIAL RISK MANAGEMENT continued

b) Liquidity risk management

Liquidity risk arises from the possibility that the Group might encounter difficulties in settling its debts or otherwise meeting its obligations relating to financial liabilities. Ultimate responsibility for liquidity risk management resides with the Board, which has established an appropriate liquidity risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management requirements. The Group manages this risk through the following mechanisms:

Preparing forward-looking cash flow analyses in relation to its operating, investing and financing activities;
Monitoring undrawn credit facilities;
Maintaining a reputable credit profile;
Managing credit risk related to its financial assets;
Investing surplus cash only with major financial institutions; and
Comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

The following table reflects an undiscounted contractual maturity analysis for financial liabilities. The timing of cash flows represented in the table to settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management’s expectation that banking facilities will be rolled forward.

Note	< 1 year 2021 $’000 2020 $’000	1 – 2 years 2021 $’000 2020 $’000	> 2 years 2021 $’000 2020 $’000	Total
				2021 $’000 2020 $’000
Non-derivative fnancial liabilities Trade and other payables 17 Current tax liabilities 5 Borrowings 19	39,027 27,972 7,934 — — —	— — — — — 16,096	— — — — 3,608 6,324	39,027 27,972 7,934 — 3,608 22,420
Total	46,961 27,972	— 16,096	3,608 6,324	50,569 50,392

c) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in financial loss to the Group. The maximum exposure to credit risk, excluding the value of any collateral or other security at balance date, for recognised financial assets is the carrying amount net of any provisions for impairment or losses, as disclosed in the statement of financial position and notes to the financial statements.

The Group does not have any material credit risk exposure to any single debtor or group of debtors. Management has a Credit Policy in place and the exposure to credit risk is monitored on an ongoing basis.

Exposure to credit risk

The carrying amount of the Group’s financial assets represents the maximum credit exposure.

	Note	2021 $’000	2020 $’000
Cash and cash equivalents	8	61,677	48,660
Trade and other receivables Current tax receivable Consumer loans receivables Purchased debt ledgers	9 5 10 11	15,531 — 135,172 467,321	6,433 4,254 137,307 422,620
Total		679,701	619,274
AA-rated counterparties		62,522	53,398
Counterparties not rated Total		617,179 679,701	565,876 619,274

The Group’s maximum exposure to credit risk on the above financial assets at balance date by type of counterparty was:

	2021	2020
Government Banks Other Total	$’000 80 62,442 617,179 679,701	$’000 4,266 49,132 565,876 619,274

d) Fair value versus carrying amounts

For all assets and liabilities, the fair value approximates the carrying value.

Notes to the consolidated financial statements continued

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NOTE 25: CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balances. The Group’s overall strategy for capital management, which is based on the following principles, remains unchanged from 2020:

Ensuring all capital is invested or reinvested to achieve the hurdle ROE;
Ensuring sufficient capital is available to sustain the operations of the Group;
Maintaining gearing at relatively modest levels in line with the risk of the business and to provide headroom to grow the business; and
Generally returning to shareholders any excess cash that accumulates and is unable to be reinvested at the hurdle return.

The Group’s bank facilities require compliance with various undertakings. These are described in Note 19. By maintaining gearing at a relatively modest level, the Group generally maintains significant covenant headroom.

		2021	2020
	Note	$’000	$’000
Borrowings	19	3,608	22,420
Less: Cash and cash equivalents	8	(61,677)	(48,660)
Net debt / (cash)		(58,069)	(26,240)
Total consumer loans receivables and PDLs		602,493	559,927
Gearing ratio		—	—

NOTE 26: SUBSIDIARIES

Interests in subsidiaries are:

NOTE 26: SUBSIDIARIES Interests in subsidiaries are:
Country of incorporation	Percentage owned
	2021 2020
Alpha Credit Pty Limited Australia Alupka Holdings Pty Limited Australia Alliance Factoring Pty Limited Australia BC Holdings I Pty Limited Australia BC Holdings II Pty Limited Australia Baycorp (Aust) Pty Limited Australia Baycorp (NZ) Limited New Zealand Baycorp (WA) Pty Limited Australia Baycorp Collection Services Pty Limited Australia Baycorp Collection Services (Aust) Pty Limited Australia Baycorp Group Finance Pty Limited Australia Baycorp Holdings Pty Limited Australia Baycorp Holdings (NZ) Limited New Zealand Baycorp Legal Pty Limited Australia Baycorp International Branch Philippines Baycorp International Pty Limited Australia Car Start Pty Limited Australia Certus Partners Pty Limited Australia Creditcorp BPC Pty Limited Australia Credit Corp Acceptance Pty Limited Australia Credit Corp Australia Pty Limited Australia Credit Corp BC AU Pty Ltd Australia Credit Corp Baycorp Holdings I Pty Limited Australia Credit Corp Baycorp Holdings II Pty Limited Australia Credit Corp Brokering Services Pty Limited Australia Credit Corp Collections Pty Limited Australia Credit Corp Collections Agency Inc. United States Credit Corp Collections Agency US Holdings Inc. United States Credit Corp Collections Agency US Inc. United States Credit Corp Collections US Holdings Inc. United States Credit Corp Employee Share Administration Pty Limited Australia	100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

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NOTE 26: SUBSIDIARIES continued

NOTE 26: SUBSIDIARIEScontinued
Country of incorporation	Percentage owned
	2021 2020
Credit Corp Facilities Pty Limited Australia Credit Corp Financial Services Pty Limited Australia Credit Corp Financial Services Holdings Inc. United States Credit Corp Financial Services Inc. United States Credit Corp Financial Solutions Pty Limited New Zealand Credit Corp Group US Collections GP United States Credit Corp Leasing Pty Limited Australia Credit Corp Lending Pty Limited Australia Credit Corp Management Pty Limited Australia Credit Corp Management (NZ) Limited New Zealand Credit Corp New Zealand Pty Limited Australia Credit Corp Queensland Pty Limited Australia Credit Corp Receivables Pty Limited Australia Credit Corp Recoveries Pty Limited Australia Credit Corp Services (NH) Pty Limited Australia Credit Corp Services Pty Limited Australia Credit Corp Services Malaysia Pty Limited Australia Credit Corp Services US Collections Inc. United States Credit Corp Services US Holdings Inc. United States Credit Corp Solutions Inc. United States Credit Corp US Collections Pty Limited Australia Credit Corp US Holdings Inc. United States Credit Corp Western Australia Pty Limited Australia Credit Plan B Pty Limited Australia Customer Assist Pty Limited Australia Dayroma Pty Limited Australia Hudson Legal Pty Ltd Australia Malthiest Pty Limited Australia National Credit Management Limited Australia Personal Insolvency Management Pty Limited Australia PMG Collect Pty Limited Australia Ruily Pty Limited Australia TFS Newco Pty Ltd Australia Torbige Pty Limited Australia Tulovo Pty Limited Australia Valute Pty Limited Australia Vindelo Pty Limited Australia Votraint No. 1537 Pty Ltd Australia	100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
NOTE 27: CONTINGENT LIABILITIES The Group had contingent liabilities in respect of:	2021 $’000 2020 $’000
US collections agency licensure bonds1 Collection House out-performance participation (maximum amount payable)2	2,036 2,111 15,000 —
Total	17,036 2,111

Licensure bonds are issued in the normal course of business to the State Board of Collection Agencies in the United States to guarantee that collected funds are remitted to clients under contracts.
On 24 December 2020, Credit Corp entered into a binding agreement with Collection House to acquire their Australian PDL book. Under the terms of the transaction, Collection House is eligible to receive a proportion of cumulative collections, up to a maximum of $15 million, over an eight-year period, if the acquired assets produce returns well in excess of, the Group’s hurdle investment return.

Notes to the consolidated financial statements continued

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NOTE 28: CAPITAL COMMITMENTS

NOTE 28: CAPITAL COMMITMENTS
	2021	2020
	$’000	$’000
Within one year	150,000	85,750

The Group is committed, through existing arrangements, to acquire PDLs that will become available in the coming months. The details of these arrangements are commercially confidential, however, the estimated investment is expected to be $150 million (2020: $85.8 million). These purchases will be funded by existing cash flows and bank facilities currently in place.

NOTE 29: SUBSEQUENT EVENTS

NOTE 30: KEY MANAGEMENT PERSONNEL (KMP) COMPENSATION

The aggregate compensation made to directors and other members of the KMP of the Group is set out below:

	2021	2020
	$	$
Short-term employee benefts	3,338,299	2,041,921
Post-employment benefts	126,017	126,345
Other long-term benefts	25,343	20,569
Equity-settled share based payments	2,100,000	—
Total	5,589,659	2,188,835

NOTE 31: RELATED PARTY TRANSACTIONS

The immediate parent and ultimate controlling entity of the Group is Credit Corp Group Limited.

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.

There were no transactions between the KMP and the Group other than as disclosed in Note 30 and in the Directors’ report.

NOTE 32: SHARE BASED PAYMENTS

The Group provides benefits to employees in the form of share based payment transactions whereby employees render services in exchange for rights over shares.

The cost of employee remuneration in the form of equity-settled transactions in relation to the Group’s LTI plan is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognised in employee benefits expense, together with a corresponding increase in equity (reserve) over the period in which the service and, where applicable, the performance conditions are fulfilled. This estimate requires determination of the most appropriate inputs to the valuation model, including the expected life of the share option or appreciation right, volatility and dividend yield and making assumptions about those inputs.

Performance rights are eligible for conversion and vesting based on achievement of performance hurdles. Please refer to the remuneration report for further details on the Group’s LTI plan.

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NOTE 33: AUDITOR’S REMUNERATION

NOTE 33: AUDITOR’S REMUNERATION
	2021 $	2020 $
Audit services Audit and review of fnancial reports	335,000	247,000
Services other than statutory audit
Taxation compliance services Taxation services in relation to PDL acquisition from Collection House Taxation services in relation to business acquisition	109,400 22,045 —	44,810 — 37,092
Total	466,445	328,902

NOTE 34: CROSS GUARANTEE

Pursuant to ASIC Class Instrument 2016/785 dated 10 October 2016, the wholly-owned subsidiaries listed below are relieved from the Corporations Act 2001 requirements for the preparation, audit and lodgement of financial statements and a directors’ report.

It is a condition of the Class Order that the Group and each of the participating subsidiaries enter into a Deed of Cross Guarantee. The effect of the Deed is that the Group guarantees to each creditor payment in full of any debt in the event of winding up of any of the subsidiaries under certain provisions of the Corporations Act 2001 .

The subsidiaries subject to the Deed are:

Alpha Credit Pty Limited
Alupka Holdings Pty Limited
Car Start Pty Limited
Certus Partners Pty Limited
Credit Corp Acceptance Pty Limited
Credit Corp Australia Pty Limited
Credit Corp Brokering Services Pty Limited
Credit Corp Collections Pty Limited
Credit Corp Employee Share Administration Pty Limited
Credit Corp Facilities Pty Limited
Credit Corp Financial Services Pty Limited
Credit Corp Leasing Pty Limited
Credit Corp Lending Pty Limited
Credit Corp New Zealand Pty Limited
Credit Corp Queensland Pty Limited
Credit Corp Receivables Pty Limited
Credit Corp Recoveries Pty Limited
Credit Corp Services Pty Limited
Credit Corp Services (NH) Pty Limited
Credit Corp Services Malaysia Pty Limited
Credit Corp US Collections Pty Limited
Credit Corp Western Australia Pty Limited
Credit Plan B Pty Limited
Creditcorp BPC Pty Limited
Customer Assist Pty Limited
Dayroma Pty Limited
Malthiest Pty Limited
National Credit Management Limited
Personal Insolvency Management Pty Limited
Ruily Pty Limited
TFS Newco Pty Ltd
Torbige Pty Limited
Tulovo Pty Limited
Valute Pty Limited
Vindelo Pty Limited
Votraint No. 1537 Pty Limited
Credit Corp Baycorp Holdings I Pty Limited (previously known as Encore Australia Holdings I Pty Limited)
Credit Corp Baycorp Holdings II Pty Limited (previously known as Encore Australia Holdings II Pty Limited)
BC Holdings I Pty Limited
BC Holdings II Pty Limited
Baycorp Holdings Pty Limited
Baycorp Group Finance Pty Limited
Baycorp Collection.s PDL (Australia) Pty Ltd
Baycorp (Aust) Pty Limited
Alliance Factoring Pty Limited
PMG Collect Pty Limited
Baycorp Collection Services (Aust) Pty Limited
Baycorp Legal Pty Limited
Baycorp (WA) Pty Limited
Baycorp Collection Services Pty Limited
Baycorp International Pty Ltd
Hudson Legal Pty Limited

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Notes to the consolidated financial statements continued

NOTE 34: CROSS GUARANTEE continued

Set out below is the statement of profit or loss and the statement of financial position comprising the Group and its subsidiaries that are parties to the Deed, after eliminating all transactions between these parties, at balance date.

	2021	2020
	$’000	$’000
a) Statement of proft or loss
Revenue	290,920	252,242
Finance costs	(5,650)	(10,655)
Employee benefts expense	(100,283)	(98,872)
Depreciation and amortisation expenses	(7,912)	(7,092)
Offce facility expenses	(12,611)	(12,729)
Collection expenses	(8,781)	(16,311)
Consumer loans loss provision expense	(32,331)	(35,454)
Marketing expenses	(8,144)	(10,191)
Other expenses	(4,653)	(5,238)
Proft before income tax expense	110,555	55,700
Income tax expense	(38,542)	(16,710)
Proft for the year	72,013	38,990
b) Other comprehensive income
Proft for the year	72,013	38,990
Other comprehensive income net of income tax	—	—
Total comprehensive income for the year	72,013	38,990
c) Movements in retained earnings
Opening balance	270,205	270,729
Dividends recognised during the year	(24,221)	(39,514)
Net proft attributable to parties in the Deed of Cross Guarantee	72,013	38,990
Closing balance	317,997	270,205

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NOTE 34: CROSS GUARANTEE continued

NOTE 34: CROSS GUARANTEEcontinued
	2021 $’000	2020 $’000
d) Statement of fnancial position Current assets Cash and cash equivalents	33,186	37,280
Trade and other receivables Consumer loans receivables Purchased debt ledgers Finance lease receivables	12,461 94,315 141,695 756	299,511 98,231 161,432 —
Other assets Total current assets Non-current assets Consumer loans receivables Purchased debt ledgers	2,967 285,380 39,358 143,437	3,157 599,611 37,560 69,851
Plant and equipment	2,912	4,028
Deferred tax assets Intangible assets Investment in subsidiaries	41,812 800 252,686	52,192 800 —
Finance lease receivables	303	—
ROU assets Total non-current assets	15,086 496,394	19,548 183,979
Total assets Current liabilities Trade and other payables Current tax liabilities Provisions	781,774 28,698 4,830 17,919	793,590 32,927 — 15,582
Lease liabilities	5,033	4,976
Total current liabilities Non-current liabilities Borrowings	56,480 3,608	53,485 22,420
Provisions Deferred tax liabilities Lease liabilities	11,038 11,602 5,514	26,123 8,317 15,825
Total non-current liabilities Total liabilities Net assets	31,762 88,242 693,532	72,685 126,170 657,420
Equity Issued capital	346,738	346,738
Reserves Retained earnings Total equity	28,797 317,997 693,532	40,477 270,205 657,420

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Notes to the consolidated financial statements continued

NOTE 35: PARENT ENTITY INFORMATION

NOTE 35: PARENT ENTITY INFORMATION
	2021	2020
	$’000	$’000
a) Statement of comprehensive income
Proft for the year	27,564	36,989
Other comprehensive income net of income tax	—	—
Total comprehensive income for the year	27,564	36,989
b) Statement of fnancial position
Assets
Current assets	358,460	519,696
Non-current assets	246,452	156,650
Total assets	604,912	676,346
Liabilities
Current liabilities	40,261	87,521
Non-current liabilities	29,828	61,912
Total liabilities	70,089	149,433
Net assets	534,823	526,913
Equity
Issued capital	346,738	346,738
Reserves	20,586	16,019
Retained earnings	167,499	164,156
Total equity	534,823	526,913

c) Contractual commitments

At balance date, the parent entity has not entered into any material contractual agreements for the acquisition of plant or equipment other than as separately noted in the financial statements (2020: nil).

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Directors’ declaration

In accordance with a resolution of the directors of Credit Corp Group Limited, the directors of the Company declare that:

1) The financial statements and notes, as set out on pages 58 to 90 are in accordance with the Corporations Act 2001 , and:
a) Give a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the year ended on that date; and
b) Comply with Australian Accounting Standards, which, as stated in the notes to the financial statements, constitute compliance with International Financial Reporting Standards.
2) In the directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
3) The directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer.

At the date of this declaration, the Company is within the class of companies affected by ASIC Class Instrument 2016/785. The nature of the Deed of Cross Guarantee is such that each company party to the Deed guarantees to each creditor payment in full of any debt in accordance with the Deed of Cross Guarantee.

In the directors’ opinion, there are reasonable grounds to believe that the Company and the companies to which the ASIC Class Order applies, as detailed in Note 34 to the financial statements, will, as a group, be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the Deed of Cross Guarantee.

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ERIC DODD Chairman 3 August 2021

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DONALD MCLAY Non‑Executive Director

Auditor’s Report

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CREDIT CORP GROUP LIMITED ABN 33 092 697 151 AND CONTROLLED ENTITIES

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CREDIT CORP GROUP LIMITED AND CONTROLLED ENTITIES

Opinion

We have audited the financial report of Credit Corp Group Limited and Controlled Entities (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement income statement, consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and the directors’ declaration.

In our opinion the accompanying financial report of Credit Corp Group Limited and Controlled Entities is in accordance with the Corporations Act 2001 , including:

i. giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year then ended; and

ii. complying with Australian Accounting Standards and the Corporations Regulations 2001

Basis of Opinion

We conducted our audit in accordance with Australian Auditing Standards. Those Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 has been given to the directors of the company.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the year ended 30 June 2021. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

SYDNEY · PENRITH · MELBOURNE · BRISBANE · PERTH · DARWIN Liability limited by a scheme approved under Professional Standards Legislation www.hallchadwick.com.au

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CREDIT CORP GROUP ANNUAL REPORT 2021

CREDIT CORP GROUP LIMITED ABN 33 092 697 151 AND CONTROLLED ENTITIES

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CREDIT CORP GROUP LIMITED AND CONTROLLED ENTITIES

1. Carrying value of purchased debt ledgers ($467 Million)

Our procedures included, amongst others:

Refer to Note 11 Purchased Debt Ledgers

The carrying value of purchased debt ledgers is mainly dependent on the forecast collections and the internal rate of return and any impairment charge that determines the net realisable value of the debt ledgers.

We focused on this area as a key audit matter due to amounts involved being material and the inherent estimates and judgements involved in assessing the key assumptions and the difficulty to reliably measure these assumptions including the estimated internal rate of return and forecast cash collections including the consideration of the impact of COVID19.

We assessed and performed appropriate procedures on the valuation models used to determine the PDL carrying value including reviewing the relevant data and calculations that produce the associated journals and also tested the mathematical accuracy of the models.

Furthermore, we checked and validated that the determined internal rate of return remains unchanged over the life of the debt.

We assessed, challenged and compared with historical actuals, key forward looking assumptions including forecast cash collections.

We assessed sensitivity analysis in relation to the key forward looking assumptions.

2. Provision for expected losses on the Our procedures included, amongst others: consumer loans ($48.7 Million) Refer to Note 10 Consumer Loans Receivables

The net carrying value of consumer loans receivable is subsequently measured at amortised cost after providing for expected losses.

Past arrears and write-offs are analysed to determine an expected loss curve by product which is used to determine the estimated life of loan expected loss levels to be provided against each product. Levels of provisions are reviewed and updated for the most recent expected life of loan loss estimates at each reporting date.

We focussed on this area as a key audit matter due to amounts involved being material and the inherent subjectivity and difficulty to reliably measure the key forward looking assumptions being a deterioration in credit risk and future loan defaults including the consideration of the impact of COVID-19.

We have tested the mathematical accuracy of the arrears model.

We have assessed the application of the Group’s model for impairment that considers the past arrears and write-offs and the expected life of loan loss estimates.

We have assessed, compared to historical actuals and challenged management’s view of credit risk that impacts the recognition of expected losses upon initial recognition over the life of the loans.

We have assessed sensitivity analysis in relation to the key forward looking assumptions.

Auditor’s Report continued

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CREDIT CORP GROUP LIMITED ABN 33 092 697 151 AND CONTROLLED ENTITIES

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CREDIT CORP GROUP LIMITED AND CONTROLLED ENTITIES

Information Other Than the Financial Report and Auditor’s Report Thereon

The directors are responsible for the other information. The other information comprises the information in the Consolidated Entity’s annual report for the year ended 30 June 2021, but does not include the financial report and the auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australia Accounting Standards and the Corporations Act 2001 and for such internal control as directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for aIn preparing the financial report, the directors are responsible for a ssessing the Consolidated Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease operations, or have no realistic alternative but to do so.

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CREDIT CORP GROUP ANNUAL REPORT 2021

CREDIT CORP GROUP LIMITED ABN 33 092 697 151 AND CONTROLLED ENTITIES

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CREDIT CORP GROUP LIMITED AND CONTROLLED ENTITIES

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Auditor’s Report continued

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CREDIT CORP GROUP LIMITED ABN 33 092 697 151 AND CONTROLLED ENTITIES

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CREDIT CORP GROUP LIMITED AND CONTROLLED ENTITIES

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

We have audited the remuneration report included in pages 46 to 56 of the directors’ report for the year ended 30 June 2021.

In our opinion the remuneration report of Credit Corp Group Limited for the year ended 30 June 2021 complies with s 300A of the Corporations Act 2001 .

Responsibilities

The directors of the company are responsible for the preparation and presentation of the remuneration report in accordance with s 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Hall Chadwick (NSW) Level 40, 2 Park Street Sydney NSW 2000

SANDEEP KUMAR Partner Dated: 3 August 2021

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CREDIT CORP GROUP ANNUAL REPORT 2021

Five-year financial summary

	2021 $’000	2020 $’000	2019 $’000	2018 $’000	2017 $’000
Income and proft
Purchased debt ledger collections Less: Purchased debt ledger amortisation	492,138 (225,295)	488,340 (233,020)	403,794 (183,789)	380,901 (173,329)	355,674 (166,100)
PDL change in lifetime expected credit losses	—	(68,576)	—	—	—
Interest revenue from purchased debt ledgers Interest and fee income from consumer lending Other revenue	266,843 78,886 29,057	186,744 99,445 27,214	220,005 93,839 10,410	207,572 79,259 12,147	189,574 66,374 9,999
Total revenue	374,786	313,403	324,254	298,978	265,947
NPAT Financial position Current assets Non-current assets	88,130 412,257 368,193	15,454 331,129 390,721	70,285 304,375 344,296	64,290 281,196 284,725	55,158 216,855 293,812
Intangible assets Total assets Current liabilities	800 781,250 73,540	800 722,650 66,528	800 649,471 40,573	800 566,721 48,859	800 511,467 49,851
Non-current liabilities	40,647	61,912	145,296	231,359	213,867
Total liabilities	114,187	128,440	185,869	280,218	263,718
Net assets	667,063	594,210	463,602	286,503	247,749
Borrowings Shares on issue (‘000) Cash fows From operating activities From investing activities	3,608 67,316 67,726 (2,783)	22,420 67,316 115,646 (70,860)	142,702 54,918 (3,083) (1,894)	227,888 47,709 23,934 (1,481)	209,613 47,353 (37,204) (1,261)
From fnancing activities Net increase / (decrease) in cash Key statistics	(52,072) 12,871	(18,835) 25,951	11,670 6,693	(12,543) 9,910	42,029 3,564
Earnings per share
— Basic (cents) — Diluted (cents)	130.9 129.9	25.5 25.5	141.9 141.2	135.1 133.7	116.8 114.7
Dividends per share (cents)	72.0	36.0	72.0	67.0	58.0
NPAT / revenue ROE NTA backing per share (cents)	24% 14% 957.4	5% 3% 840.3	22% 21% 842.7	22% 24% 598.8	21% 24% 521.5

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Shareholder information

Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below:

Twenty largest shareholders as at 30 June 2021	Ordinary shares
	Number %
Citicorp Nominess Pty Limited J P Morgan Nominees Australia Pty Limited HSBC Custody Nominees (Australia) Limited National Nominees Limited BNP Paribas Noms Pty Limited BNP Paribas Nominees Pty Limited Dixson Trust Pty Limited Netwealth Investments Limited 152 Pty Limited Torres Industries Pty Limited Uptons Salvage Trading Pty Limited DB18 Pty Limited Nagarit Pty Limited HSBC Custody Nominees Mr Frederick Benjamin Warmbrand Mr Donald Evan McLay Broadgate Investments Pty Limited Torres Holdings Pty Limited Investment Custodial Services Limited Marich Nominees Pty Limited	16,759,360 24.9 10,904,020 16.2 9,570,315 14.2 4,008,920 6.0 2,546,522 3.8 2,513,309 3.7 854,688 1.3 552,248 0.8 492,572 0.7 331,908 0.5 305,977 0.5 200,000 0.3 183,666 0.3 143,838 0.2 142,930 0.2 140,289 0.2 135,000 0.2 133,540 0.2 127,064 0.2 108,716 0.2
Total	50,154,882 74.6

Substantial shareholders

At 30 June 2021 the following shareholders were registered by the Company as a substantial holder, having declared a relevant interest in accordance with the Corporations Act 2001, in the voting shares below:

			Date of
Holder	Ordinary shares	%	notice
Bennelong Australian Equity Partners Limited	9,550,942	17.4	3 April 2020
AustralianSuper Pty Limited	4,117,075	6.1	24 June 2021
Details of ordinary shareholdings

Details of the spread of ordinary shareholdings at 30 June 2021 are:

	Number of	Number of
Category	shareholders	shares	%
1 – 1,000	8,903	2,636,484	3.92
1,001 – 5,000	2,423	5,333,315	7.92
5,001 – 10,000	369	2,611,181	3.88
10,001 – 100,000	311	6,960,148	10.34
100,001 and over	26	49,774,639	73.94
Total	12,032	67,315,767	100.00

300 shareholders (representing 1,383 fully paid ordinary shares) held less than a marketable parcel.

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CREDIT CORP GROUP ANNUAL REPORT 2021

Other information

The Group does not have a current on-market buy-back program.

Dividend reinvestment plan

The dividend reinvestment plan is currently suspended.

Voting rights

Each person who is a voting shareholder and who is present at a general meeting or by proxy, attorney or official representative is entitled:

On a show of hands – to one vote; and
On a poll – to one vote for each share held or represented.

If a shareholder is entitled to cast two or more votes at the general meeting, the shareholder may appoint not more than two proxies to attend and vote on the shareholder’s behalf.

If a shareholder appoints two proxies, each proxy should be appointed to represent a specified proportion or number of the shareholder’s votes.

Enquiries

Boardroom Pty Limited Level 12, 225 George Street Sydney NSW 2000 Australia

Telephone +61 2 9290 9600 Fax +61 2 9279 0664 Email [email protected] Website www.boardroomlimited.com.au

Glossary and abbreviations

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AASB	The Australian Accounting Standards Board is an Australian Government agency that develops and maintains
	fnancial reporting standards applicable to entities in the private and public sectors of the Australian economy.
AGM	Annual General Meeting of shareholders, typically held in early November of each year.
Amortised cost	Amortised cost accounting method applied under accounting standard AASB 9 Financial Instruments
	used to measure the carrying values of PDLs post their acquisition by applying the credit-adjusted effective
	interest rate.
ASIC	Australian Securities and Investments Commission. The principle regulator for all Australian lending and
	debt collection activities on fnancial services debts.
ATO	Australian Taxation Offce.
CAGR	Compound annual growth rate.
CCP	Credit Corp Group Limited’s stock ticker or abbreviation on the Australian Securities Exchange (ASX).
COVID-19	A viral disease, declared as a pandemic by the World Health Organisation on 12 March 2020.
DPS	Dividends per share.
ECL	Expected credit losses. Provision for expected credit losses is recognised based on expected life of loan loss
	rates derived from static pool analysis of the performance of loan products.
EDR	External Dispute Resolution. The EDR body in Australia is the Australian Financial Complaints
	Authority (AFCA).
EIR	The credit-adjusted effective interest rate derived in applying the amortised cost account method in
	measuring PDLs. The EIR is the rate which discounts the forecast cash flows for a PDL over the assumed
	collection life cycle to the cost of that PDL.
EPS	Earnings per share.
ESG	Environmental, social and governance.
FTE	Full-time equivalent. A calculation based on number of hours worked by full- and part-time employees as
	part of their normal duties.
FWC	Fair Work Commission.
IFRS	International Financial Reporting Standards. Australian Generally Accepted Accounting Principles (AGAAP)
	closely follow IFRS but are not identical.
KMP	Key management personnel as set out in the Company’s Remuneration Report. KMP consist of the Board of
	Directors as well as the Chief Executive Offcer, Chief Operating Offcer and Chief Financial Offcer.
KPIS	Key performance indicators. These are set for the executive KMP at the start of each fnancial year and the
	achievement of these determines eligibility for STI awards.
LTI	Long-Term Incentive awards. These are performance rights which convert and vest based on performance
	over a three-year time horizon for executive KPI against NPAT growth hurdles (with an ROE qualifer) as well
	as relative TSR over the same period against the ASX 200 (excluding materials and energy shares).
NPAT	Net Proft after Tax.
NPS	Net Promoter Score.
NTA	Net tangible assets. (Total equity less goodwill and other intangible assets less minority interests) divided by
	the number of ordinary shares on issue (reported).
PCP	Prior corresponding period.
PDLs	Purchased debt ledgers or books of charged-off receivables acquired by debt buyers such as Credit Corp,
	usually direct from credit issuers including banks, fnance companies as well as telco and utility providers.
PUE	Power usage effectiveness
ROE	Return on equity. Net proft attributable to the owners of CCP divided by average ordinary equity
ROU assets	Right-of-use assets as defned in AASB16. Net tangible assets (total equity less goodwill and other intangible
	assets less minority interests) divided by the number of ordinary shares on issue (reported).
STI	Short-Term Incentive awards.
TSR	Total Shareholder Return.

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Corporate directory

Credit Corp Group Limited ABN 33 092 697 151

The shares of Credit Corp Group Limited are listed on the Australian Securities Exchange under the trade symbol CCP, with Sydney being the home exchange.

Directors

Mr Donald McLay Mr Eric Dodd Ms Leslie Martin Mr Richard Thomas Ms Trudy Vonhoff Mr Phillip Aris

Company Secretaries Mr Thomas Beregi Mr Michael Eadie

Head office and registered office Level 15, 201 Kent Street Sydney NSW 2000 Australia

GPO Box 4475 Sydney NSW 2001 Australia Telephone +61 2 8651 5000 Fax 1300 483 012 Email [email protected] Website www.creditcorp.com.au

Share Registry

Boardroom Pty Limited Level 12, 225 George Street Sydney NSW 2000 Australia Telephone +61 2 9290 9600 Fax +61 2 9279 0664 Email [email protected] Website www.boardroomlimited.com.au

Auditor

Hall Chadwick

Level 40, 2 Park Street Sydney NSW 2000 Australia Telephone +61 2 9263 2600 Fax +61 2 9263 2800 Website www.hallchadwick.com.au

101

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AI assistant

CREDIT CORP GROUP LIMITED — Annual Report 2021

64622_rns_2021-08-02_e5dc54be-399f-46f5-b15e-bd0b0b20ec98.pdf

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CATCH THE OPPORTUNITY

THIS IS CREDIT CORP

ABOUT THIS REPORT

2021 HIGHLIGHTS

FINANCIAL HIGHLIGHTS

OUR PEOPLE

CUSTOMERS

COMMUNITY

58[%]

MAINTAINED

1,733 EMPLOYEES ACROSS THE GLOBE

29,800 HOURS TRAINING DELIVERED

113

AUSTRALIAN EMPLOYEES

$ 1.78

BILLION

$ 11.26 BILLION

6[TH]

YEAR GRANTING

500 KILOGRAMS

PRE-TAX OPERATING CASH FLOW ($M)

INCOME GENERATING ASSETS ($M)

ABOUT US

OUR PURPOSE THIS IS WHY WE’RE HERE

DOING THE RIGHT THING

DISCIPLINE

MAKING IT HAPPEN

ACCOUNTABILITY

TRANSPARENCY

OUR STRATEGY THIS IS HOW WE GET THERE

SUPERIOR ANALYTICS

OPERATIONAL EXCELLENCE

SUSTAINABILITY AND COMPLIANCE

ENTREPRENEURSHIP & ORGANIC EXPANSION

OUR PERFORMANCE THIS IS WHAT WE HAVE ACHIEVED

CREDIT CORP COMPRISES OF THREE CORE BUSINESSES — DEBT BUYING & COLLECTION, AGENCY COLLECTIONS & LENDING.

DEBT BUYING & COLLECTION

AGENCY COLLECTIONS

LENDING

GROW INTO THE FUTURE

CHAIRMAN’S REPORT

THE FOUNDATIONS OF SUCCESS

AUSTRALIAN AND NEW ZEALAND DEBT PURCHASING

ERIC DODD

CONSUMER LENDING

US DEBT PURCHASING

LOOKING AHEAD

CEO'S REPORT

SHAREHOLDER OUTCOMES

THOMAS BEREGI

CUSTOMER OUTCOMES

CLIENT OUTCOMES

PEOPLE OUTCOMES

BOARD OF DIRECTORS

ERIC DODD

Appointed:

Board Committees:

Skills and experience:

Directorships and other current appointments:

Qualifications:

DON MCLAY

Appointed:

Board Committees:

Skills and experience:

Directorships and other current appointments:

Qualifications:

LESLIE MARTIN

CREDIT CORP GROUP LIMITED Annual Report 2021

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