Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — H1 2015 Earnings Presentation
12 slides from Pioneer Credit's earnings presentation, Feb 20, 2015
Slide 1: 1H15 Results Presentation
For personal use only 1H15 Results Presentation 20th February 2015 15 1|
Slide 2: Who is Pioneer Credit?
Who is Pioneer Credit? For personal use only Pioneer is an Australian financial services provider, specialising in acquiring and servicing unsecured retail debt portfolios. These portfolios consist of people with financial obligations to Pioneer. These people become the cornerstone of Pioneer’s busi
Slide 3: 1H15 Headlines
1H15 Headlines For personal use only Customer Payments of $22.2m Up 38% on prior corresponding period New Key Forward Flow agreement 3 of 4 major banks under forward flow >100% of FY15F investment under contract Industry leading compliance position Maintained record of no regulatory orders, undertak
Slide 4: Continued Strong and Improving Customer Payments
Continued Strong and Improving Customer Payments For personal use only PDP Liquidation – Customer payments by date of investment Customer payments up 38% on pcp 29% of customer payments receipted in 1H15 from portfolios greater than 2 years old Demonstrates performance across entire portfolio
Slide 5: Customer Service Excellence – Annuity Arrangement Stream
Customer Service Excellence – Annuity Arrangement Stream For personal use only Payment Arrangement Book1 Payment Arrangement Book Current Balance ($m)2 Two types of Payment Arrangements: o Scheduled – structured repayments o Non-Scheduled – regular paying customers unable to commit to a fixed sche
Slide 6: Effective Relationships - Disciplined Capital Allocation
Effective Relationships - Disciplined Capital Allocation For personal use only Pioneer purchases retail consumer Historical Aggregate Portfolio Investment2 accounts at ~180 days overdue Purchase mostly Tier 1 customers (those not regarded as credit impaired when originated) $40m investment under
Slide 7: Strong Earnings Growth
Strong Earnings Growth For personal use only Key financials reflect strong sustainable growth $m Actual1 Prospectus 1H15 Customer Payments ~ 40% of FY15F in line Forecast with prior periods and consistent with guidance 1H14 1H15 FY15 EBIT tracking ahead of expectations - $2.6m versus $2.4m Prosp
Slide 8: Effective Vendor Relationships
Effective Vendor Relationships For personal use only Agreements with three of the four “big banks” Diversification of PDP vendor base while building on solid and important existing relationships >100% of FY15 investment forecast is fully contracted Facilitates strong forecasting accuracy P
Slide 9: Strong Cash Generation
Strong Cash Generation For personal use only Cash Flow for Half-Year Ended $m 1H15A Gross Operating Cash Flow 9.6 Decrease in Trade Payables (9.5) Gross operating cash flow demonstrates strong conversion of EBITDA to operating Other Working Capital Movements (Net) 0.7 cash Operating Cash Flow afte
Slide 10: Simple Business Strategy
Simple Business Strategy For personal use only Leadership Principles People & Culture Effective Relationships Vendor Partnerships Customers Community Engagement Profit & Diversified Financial New Consumer Service Provider Service Excellence Operational Strategy Brand Equity Compliance World Class Ad
Slide 11: FY15 Outlook
FY15 Outlook For personal use only Continue to build a conservative and long term sustainable business Grow and strengthen vendor relationships Explore ways in which we can deliver additional value to our customer base through the provision of new products and services Pioneer to offer first
Slide 12: Investors / Media
Investors / Media For personal use only Keith R. John David Ikin Managing Director Senior Counsel P: 08 9323 5001 Professional Public Relations E: krjohn@pioneercredit.com.au P: 08 9388 0944 / 0408 438 772 E: david.ikin@ppr.com.au Pioneer Credit Limited ABN 44 103 003 505 Registered Office: 188‐190