Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — H1 2023 Earnings Presentation
22 slides from Pioneer Credit's earnings presentation, Feb 16, 2023
Slide 1: 1H23 Results Presentation
1H23 Results Presentation February 2023
Slide 2: Performance
Performance
Slide 3: 1H23 Highlights
1H23 Highlights • Record Cash Collections1 - Up 40% on pcp, as CASH COLLECTIONS1 EBITDA performance grows from recent PDP investments $68.0m $45.2m • Record EBITDA – Up 80% on pcp, as cost to service 1H22: $48.6m 1H22: $25.1m continues to fall with business now at scale; clear ▲ 40% ▲ 80% demonstrat
Slide 4: 1H23 Highlights
1H23 Highlights • PDP Investment PDP INVESTMENT ESTIMATED • Quality opportunities emerged very late in the REMAINING half, will contribute cash collections from 2H23 $42.4m COLLECTIONS • Sustainable & growing Cash Collections 1H22: $23.7m $586m ▲ 79% • PA portfolio of $460m across 41.1k customers, p
Slide 5: 1H23 Profit or Loss
1H23 Profit or Loss Profit or Loss ($’m) 1H22 1H23 % • Cash Collections up 40% on pcp Cash Collections 48.6 68.0 40% • Expenses continue to decrease - down 3% on Other income 0.3 0.3 - pcp reflecting scale and increasing efficiency Total Revenue 48.8 68.3 40% • Interest expense reduction from Nov 22
Slide 6: 1H23 Balance Sheet
1H23 Balance Sheet Balance Sheet ($’m) Jun-22 Dec-22 • Strong cash position Assets • PDP assets of $308.1m Cash and cash equivalents 23.1 6.3 • $22.3m deferred tax asset yet to be recognised Trade and other receivables 6.2 2.6 • $6.5m franking credits PDP assets at amortised cost 295.5 308.1 • Focus
Slide 7: Funding
Funding Ample funding, with further increases in facility available, to supplement significant free cash flow Senior & Subordinated Debt ($m) Drawn Undrawn Available Funding Tranche 1 125.0 - 125.0 Tranche 2 50.0 - 50.0 Tranche 3 16.0 9.0 25.0 Tranche 4 (Amortising Tranche) 25.4 - 25.4 Total Senior
Slide 8: Pioneer Portfolio
Pioneer Portfolio
Slide 9: PDP Investment
PDP Investment Quality opportunities emerged late; with December contributing 66% of 1H investment as Pioneer waited for the best opportunities PDP Investment & Investment Price1 c/$ $m 0.25 120 Best 1H Since Pre-Pandemic 100 0.20 80 0.15 17 Different Vendors Guidance 60 $61.0m 0.10 40 $61m PDP Inve
Slide 10: Cash Collections
Cash Collections Significant investment in last 12 months has shifted cash collections profile to earlier vintages Cash Collections by Vintage 20% 28% 32% 33% 33% 31% Cash collections from >2 year vintage 16% increased to $27.9m, up 6% on pcp 15% 11% 18% 17% 20% 22% 11% 29% 13% 25% 18% Significant i
Slide 11: Performing Arrangement Portfolio
Performing Arrangement Portfolio $460m performing arrangement portfolio; resilient customer base with low direct exposure to rising interest rates, providing sustainable cashflow Performing Portfolio Growth > 41k Customers $464m $460m 3.3% Default Rate $356m $377m $290m $257m 13% CAGR Jun-18 Jun-19
Slide 12: Customer Treatment
Customer Treatment Proven customer first service, validated by NPS1; and an enviable compliance record NPS MEASURING CUSTOMER EXPERIENCE ETHICAL DEBT RECOVERY ✓ Policy of no payday loans as part of portfolio +24 (25) First Contact +16 New Payers +41 Ongoing Payers +30 Settled Payers ✓ Staff are enab
Slide 13: Outlook
Outlook
Slide 14: Positive FY23 Outlook
Positive FY23 Outlook Thrive under Capitalise on PDP Grow performing Improving Realise operating increased investment arrangement macroeconomic leverage regulatory scrutiny opportunities portfolio conditions • Continued investment • $42m investment in • Risk diverse performing • Continue investment
Slide 15: Thank you
Thank you
Slide 16: Appendix
Appendix
Slide 17: Be human
Be human We’re here to put an end Choose integrity to debt stress. Act with purpose 17
Slide 18: 1H23 Cash Flow
1H23 Cash Flow Cash Flows ($’m) 1H22 1H23 • 40% increase in cash collections substantially funding Cash flows from operating activities investment in PDP assets Cash collections and receivables 48.9 71.9 • $42.4m PDP Investment, $60.0m cash settled in half Trade and other payables (23.9) (22.2) Net
Slide 19: Capital Structure
Capital Structure Significant level of Board and Management ownership Shareholder Profile 14% • Founder & MD Keith John owns 14% (including in-the- Keith John 5% money MD Options) Board and Management (ex Keith John) 111.9m 8% Mr James Simpson • Board and Management own 5% (including FPO performance
Slide 20: Board of Directors
Board of Directors SteveTargett Keith John Peter Hall Michelled’Almeida Chairman Managing Director Non-Executive Director Non-Executive Director • Significant board and • Founder of Pioneer Credit • Significant experience • Significant digital executive experience across financial services, transfor
Slide 21: Executive Leadership
Executive Leadership Sue Symmons Barry Hartnett Andrea Hoskins Joe Terribile General Counsel & Co. Secretary Chief Financial Officer Chief Operating Officer Chief Information Officer • Over 25 years’ experience • 9 years’ at Pioneer across • Strategic and commercial • Chief Information Officer inclu
Slide 22: Oionee
Oionee cer