Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — Coffee Microcaps Conference 2024
18 slides from Pioneer Credit's conference presentation, May 10, 2024
Slide 1: Coffee Microcaps Presentation
ASX release 10 May 2024 Coffee Microcaps Presentation Pioneer Credit Limited (‘Pioneer’ or the ‘Company’) (ASX: PNC) provides the following presentation being made by Managing Director, Keith John, to the Coffee Microcaps Conference being held today as follows:- Date: 10 May 2024 Time: 9 a.m. AEST /
Slide 2: Coffee Microcaps Presentation 10 May 2024
For personal use only Coffee Microcaps Presentation 10 May 2024
Slide 3: Important Notice: Disclaimer
Important Notice: Disclaimer For personal use only This presentation has been prepared by Pioneer Credit Limited (“Pioneer” or the “Company”). Disclaimer: This presentation contains information about Pioneer’s activities current as at the date of the presentation and should not be considered to be c
Slide 4: About Pioneer
For personal use only About Pioneer
Slide 5: About Pioneer
About Pioneer For personal use only • Pioneer is a debt recovery specialist that acquires and services We buy impaired credit retail finance Purchased Debt Portfolios (“PDPs”) We partner with a range of leading • PDPs are acquired from major banks, financial institutions and financial institutions t
Slide 6: Pioneer's Market
Pioneer’s Market High barriers to entry, increased regulatory oversight and greater compliance obligations underpin For personal use only market share growth opportunities PIONEER MARKET POSITION MARKET ACTIVITY Pioneer has a unique servicing approach Macroeconomic • We work closely with customers t
Slide 7: PDP Investment
PDP Investment For personal use only Increased PDP market activity, driving solid growth for FY24 PDP INVESTMENT OVERVIEW PDP INVESTMENT & PRICE1,2 • Focus on Australian banking and finance PDPs 140 ,000,0 00 20% o Controls ensure appropriate investment 120 ,000,0 00 10% o No payday loans or lower-q
Slide 8: Customer Outcomes
Customer Outcomes For personal use only Strong NPS1 demonstrates our genuine care for our customers NPS MEASURING CUSTOMER EXPERIENCE DIFFERENTIATED APPROACH ✓ Performance: Servicing model that drives customer +23 (40) First +35 New +78 Ongoing +55 Settled engagement, payments and shareholder return
Slide 9: Portfolio Opportunity
Portfolio Opportunity For personal use only TOTAL PORTFOLIO OPPORTUNITY PERFORMING PORTFOLIO GROWTH (YTD) PIONEER PORTFOLIO CAGR 10% $2.1b in receivables ~210k active customers $464m $457m $447m $377m $356m PERFORMING WIP PORTFOLIO PORTFOLIO $290m $1.7b $447m in receivables in receivables Jun-19 Jun
Slide 10: Alignment to Shareholders
Alignment to Shareholders For personal use only Management is aligned to shareholders and long-term sustainable growth; no short-term incentives Company Ownership Shareholdings # Shares % Holding Keith John 17.3m 13% Board and Management (exc. Keith John) 2.3m 2% Samuel Terry Asset Management Pty Lt
Slide 11: Financial Performance
For personal use only Financial Performance
Slide 12: 1H24 Financial Highlights
1H24 Financial Highlights For personal use only • Profitability: Expected to materially increase going forward • Cash Collections: Strong performance across all vintages • EBITDA: Improvement driven by operational efficiency and cost management $75.6m $49.2m $17.9m $0.05m Cash Collections1 EBITDA EB
Slide 13: 1H24 Profit or Loss
1H24 Profit or Loss For personal use only Profit or Loss ($’m) 1H23 1H24 % KEY CALL OUTS Cash Collections 68.0 70.7 4% • Consecutive profitable halves (2H23, 1H24) with profit Other income 0.3 4.9 >100% expected to materially increase going forward Total Revenue 68.3 75.6 11% • Expenses within budge
Slide 14: 1H24 Balance Sheet
1H24 Balance Sheet For personal use only Balance Sheet ($’m) Jun-23 Dec-23 KEY CALL OUTS Assets • PDP assets reflect quality investment Cash and cash equivalents 8.4 9.2 o Borrowings increased to part fund Trade and other receivables 1.5 1.2 • Other payables include PDPs not settled at reporting dat
Slide 15: Outlook
For personal use only Outlook
Slide 16: Outlook
Outlook For personal use only $10m capital raise in March 2024 supports Pioneer’s continued growth; driven by greater market share as a preferred purchaser of high-quality Australian bank originated customers Continued industry Strong tailwinds for PDP Reduce cost of Realise operating Material uplif
Slide 17: Investor queries
Investor queries For personal use only Head of Corporate Development Rob Santoriello 0412 053 280 rsantoriello@pioneercredit.com.au Managing Director Keith John 0438 877 767 krjohn@pioneercredit.com.au 16
Slide 18: Thank you.
For personal use only Thank you.