Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — FY2014 Earnings Presentation
13 slides from Pioneer Credit's earnings presentation, Aug 28, 2014
Slide 1: FY14 Results Presentation
For personal use only FY14 Results Presentation 28 August 2014 1
Slide 2: 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 3: 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 4: Positive Differentiation
Positive Differentiation Leading in Commercial Compliance behavior For personal use only Credit risk moves to Pioneer, brand risk stays with our vendor partner Commercial programme Focused effort on a “Commercial Compliance” programme – & training facilitating good customer outcomes Customer i
Slide 5: 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 6: 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 7: FY Financial Results
FY 14 Financial Results For personal use only Pioneer’s key financial highlights are attractive and reflect strong growth 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 8: Strong cash generation
Strong cash generation For personal use only Cash flow FY13 FY14 Operating cash flow before purchases of $21.2m, an increase of 81% YOY EBITDA Adjusted 1 13.4 20.1 Operating Cash Flow 2 13.8 26.4 Cash is invested in new portfolios which drive growth in future years Tax Paid (0.8) (3.2) PP&E (0.9
Slide 9: Liquidation of Purchased Debt Portfolios (PDP)
Liquidation of Purchased Debt Portfolios (PDP) For personal use only Price drives Multiple PDP Liquidation ($m) 1 25.0 Pioneer’s half yearly Customer Payments have grown from $6.2m in 1H12 to $21.3m in 2H14. 8% 20.0 A compound annual growth rate of 50% CAGR 50% 25% of customer payments receipt
Slide 10: Leading Australian purchaser of financial services debt
Leading Australian purchaser of financial services debt For personal use only Pioneer has built strong relationships with its Vendor Partners Purchases predominantly tier 1 debt (financial institution customers not regarded as credit impaired 50 Portfolio Investment ($m) when originated) 45 Agre
Slide 11: 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 12: 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 13: 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