Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — H1 2017 Earnings Presentation
14 slides from Pioneer Credit's earnings presentation, Feb 24, 2017
Slide 1: 1H17 Results Presentation
For personal use only 1H17 RESULTS PRESENTATION 24 February 2017
Slide 2: Important notice: Disclaimer
For personal use only Important notice: Disclaimer This presentation has been prepared by Pioneer Credit Limited (“Pioneer”). Disclaimer: This presentation contains general and background information about Pioneer’s activities current as at the date of the presentation and should not be considered t
Slide 3: Corporate snapshot
For personal use only Corporate snapshot Strong share price momentum, new debt facility, improving liquidity, and an increasingly institutionally owned register with high founder and management ownership • Specialist acquirer and servicer of ‘Tier 1’1 retail customer accounts Top shareholders • Oper
Slide 4: Australian retail debt sale market conditions
For personal use only Australian retail debt sale market conditions High pricing continues, but increased opportunity for ‘customer focused’ buyers • In FY16 market conditions showed: Growth in spend ($m) o Growth in PDP investment – up 53% on FY13 FY17 o Banking and finance volumes were flat FY16 B
Slide 5: Key profit & loss metrics
For personal use only Key profit & loss metrics Historically strong performance consolidated by driving earnings momentum in 1H17 1H16 1H17 • PDP liquidations up 8% to $30.8m Net revenue $21.1m $24.6m 17% • Strong net revenue result from focus on quality investments at reasonable price points EBIT
Slide 6: Key balance sheet metrics
For personal use only Key balance sheet metrics Growing balance sheet strength and flexibility continues to be a focus for Pioneer 1H16 1H17 Highlights Cash and cash equivalents $1.1m $2.4m 118% • $100m 3 year facility settled with Bankwest and Westpac Financial assets at fair value $96.2m $128.1m
Slide 7: Focus on shareholder returns
For personal use only Focus on shareholder returns Pioneer is focused on delivering strong sustainable earnings growth over the long term Total shareholder returns1 and trading liquidity since IPO Continued dividend growth and option to participate in DRP • At all time highs, with significantly impr
Slide 8: PDP valuation and payment arrangement metrics
For personal use only PDP valuation and payment arrangement metrics Pioneer’s cautious and sophisticated valuation approach is leading to consistently improving liquidations and asset values Pioneer’s valuation approach1 Key payment arrangement metrics in 1H17 • Consistent and cautious approach to v
Slide 9: Cash flow generation
For personal use only Cash flow generation Growing liquidation contribution across portfolio with quick payback of capital invested • Pioneer only invests in portfolios it understands well Yearly portfolio liquidations by investment date 80 • Cautious investment and considered servicing underpin sol
Slide 10: Focus on product development
For personal use only Focus on product development Pioneer is expanding and diversifying its existing suite of products Product offerings • Growth entity that refers and brokers • Offers free credit scores to new and • Personal loans offered to emerging loan offerings via external third parties exis
Slide 11: Strong employee alignment
For personal use only Strong employee alignment Alignment strengthened through high levels of founder and management ownership Management ownership Equity Incentive Plan (EIP) • Senior management own 19.2%1 of Pioneer’s shares • Senior team eligible for rights under Pioneer’s EIP • Senior management
Slide 12: 2H17 outlook
For personal use only 2H17 outlook Preparing for future opportunities • Changing market dynamics are providing increased opportunity for offerors of differentiated services (like Pioneer) • Expect next year to provide additional growth opportunities and Pioneer is being positioned for that now, ahea
Slide 13: FY17 guidance
For personal use only FY17 guidance Another year of high quality, disciplined growth is taking shape • PDP Investment upgraded to at least $53m – already contracted o Additional investment will only occur where Pioneer expects better than historical returns • Confirm net profit after taxation of at
Slide 14: Contacts
For personal use only Contacts Keith R. John Leslie Crockett Sue Symmons Managing Director Chief Financial Officer Company Secretary & General Counsel P: 08 9323 5001 P: 08 9323 5008 P: 08 9323 5020 E: krjohn@pioneercredit.com.au E: lcrockett@pioneercredit.com.au E: ssymmons@pioneercredit.com.au 14