ThinkSmart AGM Reaffirms Growth

16 May ThinkSmart AGM Reaffirms Growth

Updates On Key Strategies

ThinkSmart Limited (ASX:TSM), a leading international computer and office equipment financing company, said today that current strategies position the company well for continued growth in 2011.

“We adopted a strategic growth plan in 2009 with the goal of cementing ThinkSmart’s position as a leading international provider of point-of-sale finance in our core markets of Australia and the UK,” said ThinkSmart Executive Chairman and CEO, Ned Montarello.

“We’re executing on that plan in a deliberate and strategic manner and we remain well advanced in our mission. The level of our growth will largely be determined by the customer penetration rates our new products can achieve together with the speed of recovery in both Australia and the UK.”

ThinkSmart has posted four consecutive years of record profit since its ASX listing, demonstrating the resilience of the company’s model — as well as its growth strategy — through challenging economic times.

ThinkSmart posted a 31% rise in full-year NPAT in 2010, a record result. The performance was delivered as the company continued to grow using cash flow and not debt and aligning itself with leading global electrical retailers.

The ongoing key strategic areas of growth for ThinkSmart remain:

• Expanding its new services based consumer rental proposition into new and existing markets with leading electrical retailers
• Aligning its multi-channel customer strategy for online and in-store approval processes with leading retailers
• Capturing growth opportunities from utilising its new and increased funding capacities and platforms

Consumer

In November 2010, ThinkSmart launched its Infinity Consumer rental proposition in the UK market through its long-term partner Dixons Retail Plc, the UK’s largest consumer electrical retailer. ThinkSmart has been operating in the UK for more than eight years providing Business-to-Business rental finance.

A similar move into consumer rental finance in Australia five years ago has seen consumer volumes increase at a compound annual growth rate of around 50%, with 75% of new business volumes now coming from this segment of the market.

“Our move into the UK consumer market means we are extremely well positioned to capitalise on growth opportunities,” said Mr Montarello.

Funding

In October 2010, ThinkSmart launched its global funding transformation program to be in a stronger position to capture growth opportunities. In recent months, ThinkSmart has secured $160 million in additional funding capacity across Australia and the UK, which along with existing capacity could settle three times 2010 business volumes.

“These are tangible examples of ThinkSmart delivering on its strategic aim of establishing scalable funding platforms in our major territories supported by multiple funder relationships,” said Mr Montarello. “The funding platforms will support our projected growth well into the future and deliver real cost benefits.”

Online

ThinkSmart already provides customers in Australia and the UK with automated online rental finance applications and processing and approval systems, including anti-fraud safeguards.

In 2010, ThinkSmart’s Australian business volumes increased 45%, with one of the key drivers being its patented QuickSmart online processing system. QuickSmart, which was recently awarded an innovation patent, was deployed in Australia in 2009, followed by activation in the UK in October 2010.

The system has helped deliver a 60% reduction in customer processing times and streamlined identity verification and documentation delivery as well as lowering operating costs.

“In March 2011, we signed an agreement with Silanis Technology Inc. to grow and enhance our online customer base and further improve in-store customer service by moving to paperless signature processing,” said Mr Montarello.

“Our aim is to move to 100% electronic processing. This will allow us to expand our distribution reach with existing retail partners, in addition to creating new relationship opportunities with participants in the online retail space.”

ThinkSmart will provide a full update at the company’s AGM Meeting in Perth today.