Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — FY2014 Earnings Presentation
19 slides from Pioneer Credit's earnings presentation, Aug 29, 2014
Slide 1: Correction to FY14 Results Media Release and Presentation
ASX Release 29 August 2014 For Immediate Release For personal use only Correction to FY14 Results Media Release and FY14 Results Presentation The Directors of Pioneer Credit Limited (ASX: PNC) advise that they have become aware of an error in the FY14 Results Media Release and the FY14 Result Presen
Slide 2: Strong cash generation (corrected)
Strong cash generation** Cash flow FY13 FY14 For personal use only EBITDA Adjusted 1 13.0 19.6 Operating Cash Flow 2 13.8 26.4 Tax Paid (0.8) (3.2) PP&E (0.9) (0.9) Operating Cash Flow Before Debt Purchase 12.1 22.2 Debt Purchases (26.5) (31.6) Net Cash Flow Before Interest & Financing (14.4) (9.4)
Slide 3: About Pioneer Credit
About Pioneer Credit Pioneer is an Australian financial services provider, specialising in acquiring and servicing For personal use only unsecured retail debt portfolios. These portfolios consist of people with financial obligations to Pioneer. These people become the cornerstone of Pioneer’s busine
Slide 4: Strong FY14 performance provides platform for growth
ASX Release 28 August 2014 For Immediate Release For personal use only Strong FY14 performance provides platform for Pioneer Credit’s growth The Directors of Pioneer Credit Limited (ASX: PNC) are pleased to report that the Company has delivered an operating profit after tax of $4.6 million in its fi
Slide 5: Managing Director commentary on the results
Commenting on the results, Pioneer’s Managing Director Keith John said: “With the successful conclusion of the largest capital raising completed out of Western Australia in almost two years, Pioneer listed on 1 May 2014 with a solid performance backed by an institutional For personal use only shareh
Slide 6: About Pioneer Credit
About Pioneer Credit Pioneer is an Australian financial services provider, specialising in acquiring and servicing For personal use only unsecured retail debt portfolios. These portfolios consist of people with financial obligations to Pioneer. These people become the cornerstone of Pioneer’s busine
Slide 7: FY14 Results Presentation
For personal use only FY14 Results Presentation 28 August 2014 7 1
Slide 8: Who is Pioneer
? For personal use only Who is 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 customer relations
Slide 9: Leadership Principles
Leadership Principles For personal use only Pioneer’s customer service team is trained to work to Pioneer’s six “Leadership Principles”. − Be consistent and relentless in exhibiting best practice and sharpening your skills − Always act with integrity − Learn to connect with people in a way they can
Slide 10: Positive Differentiation
Positive Differentiation For personal use only Leading in Commercial Compliance behavior Credit risk moves to Pioneer, brand risk stays with our vendor partner Commercial Focused effort on a “Commercial Compliance” programme – programme & training facilitating good customer outcomes Customer i
Slide 11: Disciplined Capital Allocation
Disciplined Capital Allocation For personal use only Pioneer purchases retail consumer accounts are ~180 days overdue Historical Aggregate Portfolio Investments Total face value = $596m1 Total investment = $85m1 Focus on purchasing quality personal loan and 100% credit card portfolios 90% Compet
Slide 12: FY14 Headlines
FY14 Headlines For personal use only IPO capital raising of $40.0m closed over-subscribed Customer Payments of $35.7m in FY14, a 60.3% increase YOY Net Revenue of $25.7m in FY14, a 54.5% increase YOY Additional agreements with new and existing vendor partners including a 5 year forward flow
Slide 13: FY Financial Results
FY 14 Financial Results Pioneer’s key financial highlights are attractive and reflect strong growth For personal use only Customer Payments in the 2H14 Year on Year Performance exceeded forecast by 2.5% FY13 FY14 % Growth Change in Value ‘charge’ of 32% of Customer Payments 23.4 37.6 60.3% Custo
Slide 14: Strong cash generation
Strong cash generation For personal use only Cash flow FY13 FY14 Operating cash flow before purchases of $21.2m, an increase of 81% YOY EBITDA Adjusted 1 13.0 19.6 Cash is invested in new portfolios which drive Operating Cash Flow 2 13.8 26.4 growth in future years Tax Paid (0.8) (3.2) PP&E (0.9
Slide 15: Liquidation of Purchased Debt Portfolios (PDP)
Liquidation of Purchased Debt Portfolios (PDP) For personal use only Price drives Multiple PDP Liquidation ($m) 1 25.0 Pioneer’s half yearly Customer Payments have grown from $6.2m in 1H12 to $21.3m in 2H14. 8% A compound annual growth rate of 50% 20.0 CAGR 50% 25% of customer payments receipt
Slide 16: Leading Australian purchaser of financial services debt
Leading Australian purchaser of financial services debt For personal use only Pioneer has built strong relationships with its Vendor Partners Purchases predominantly tier 1 debt (financial institution customers not regarded as credit impaired 50 Portfolio Investment ($m) when originated) 45 Agre
Slide 17: Customer payment security through a growing Payment Arrangement book
Customer payment security through a growing Payment Arrangement book For personal use only Pioneer’s primary strategy is to develop relationships with customers Payment Arrangement book Payment Arrangement Book Current Balance ($m) Two types of Payment Arrangements: – Fixed Schedule Payment Arrang
Slide 18: FY15 Growth & Outlook
FY15 Growth & Outlook For personal use only Pioneer has a simple business strategy. Continue to work hard at building a conservative and long term sustainable business Growth and strengthen vendor relationships Explore ways in which we can deliver additional value to our rehabilitated customer
Slide 19: Investors / Media
Investors / Media For personal use only Keith John Managing Director P: 08 9323 5001 E: krjohn@pioneercredit.com.au David Ikin Senior Counsel Professional Public Relations 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 Ben