Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — Investor Presentation (April 2021)
24 slides from Pioneer Credit's investor presentation, Apr 20, 2021
Slide 1: Investor Presentation ASX release
ASX release 20 April 2021 Investor Presentation For personal use only Pioneer Credit Limited (ASX: PNC) (‘Pioneer’ or ‘the Company’) provides the following presentation which is to be made to various investors, potential investors and other third parties. Within the presentation, Pioneer reiterates
Slide 2: Management Presentation April 2021
April 2021 For personal use only Management Presentation
Slide 3: Important notice: Disclaimer
Important notice: Disclaimer 2 For personal use only This presentation has been prepared by Pioneer Credit Limited (“Pioneer”). Disclaimer: This presentation contains information about Pioneer’s activities current as at the date of the presentation and should not be considered to be comprehensive or
Slide 4: Introduction
Introduction 3 For personal use only • Pioneer is an ASX-listed financial services business based in Perth, Western Australia, specialising in Pioneer’s Corporate Journey acquiring and servicing non-performing retail and commercial debt portfolios Aug 2012 Grows customer service team and Nov 2016 •
Slide 5: Market snapshot
Market snapshot 4 For personal use only Historically the Australian market has been dominated by Pioneer and three other players, together accounting for over 80% of total debt portfolio purchases in FY20 • Pioneer is now Australia’s second largest purchaser of PDPs HISTORICAL PDP PURCHASING ($m) •
Slide 6: Business model
Business model 5 Pioneer acquires PDPs from multiple vendors, with the majority sourced from the “Big 4” Australian For personal use only banks and regional lenders OVERVIEW TYPICAL CUSTOMER LIFECYCLE • PDPs are acquired under forward flow (continuing) Prime customer agreements or as discrete invent
Slide 7: Differentiated Approach
6 For personal use only SECTION 2 Differentiated Approach BUSINESS OVERVIEW | DIFFERENTIATED APPROACH | RECENT PERFORMANCE | CAPITAL STRUCTURE | OUTLOOK & HIGHLIGHTS
Slide 8: Our culture
Our culture 7 The Pioneer Principles are the foundation to our company, underpinning our differentiated approach For personal use only to treating customers Selfless Unlimited Technical Unwavering Fearless Clear Loyalty Accessibility Competence Passion Vision Communication Put your team and Be avail
Slide 9: Differentiated approach
Differentiated approach 8 Pioneer is differentiated by its approach of providing high-quality, flexible and customised financial For personal use only services to help customers reach their financial goals • Data-driven portfolio selection and performance Resilient Portfolio • Focused on product seg
Slide 10: Customer experience: We do the right thing
Customer experience: We do the right thing 9 Exceptional NPS driven by a focus on creating the best customer experience possible For personal use only NPS OVERVIEW UPWARD TREND THROUGHOUT CUSTOMER JOURNEY +23 (40) First Contact +26 New Payers +17 Ongoing Payers +36 Settled NPS First contact post tra
Slide 11: Compliance: Strong culture and record
Compliance: Strong culture and record 10 Critical to maintaining relationships and purchasing from vendors, who take the view that while the For personal use only credit risk moves to Pioneer, brand risk stays with the vendor COMPLIANCE GOVERNANCE COMPLIANCE FRAMEWORK • Pioneer has a strong organisa
Slide 12: Experienced team to execute on strategy
Experienced team to execute on strategy 11 Board of Directors Executive Leadership For personal use only Michael Smith - Chairman Sue Symmons - General Counsel & Company Secretary • Managing Director of strategic marketing consultancy firm Black House • Appointed General Counsel and Company Secretar
Slide 13: Recent Performance
12 For personal use only SECTION 3 Recent Performance BUSINESS OVERVIEW | DIFFERENTIATED APPROACH | RECENT PERFORMANCE | CAPITAL STRUCTURE | OUTLOOK & HIGHLIGHTS
Slide 14: Historical performance
Historical performance 13 For personal use only Pioneer had grown strongly in the years to FY19. FY20 saw significant disruption from the Carlyle process, bushfires and COVID-19; Pioneer has since returned to a more business as usual state LIQUIDATIONS ($m) PDP VALUE ($m) 118 260 253 102 101 250 225
Slide 15: Resilient Portfolio: Increasing cash beyond investment
Resilient Portfolio: Increasing cash beyond investment 14 For personal use only Continued increase in delta between cumulative liquidations and investments evidences investment discipline and operational performance; expected to continue to open further in near term Returns beyond investment Liquida
Slide 16: Pioneer Portfolio: Quality debt with significant opportunity
Pioneer Portfolio: Quality debt with significant opportunity 15 For personal use only $1.9bn PDPs of which $376m are Performing Arrangements; significant opportunity to deepen returns Strong portfolio with ~$1.9bn outstanding Opportunity of ~$1.5bn WIP PORTFOLIO & PERFORMING ARRANGEMENTS WIP PORTFOL
Slide 17: Performing Arrangements Portfolio: 5% growth in FY21
Performing Arrangements Portfolio: 5% growth in FY21 16 For personal use only Monthly liquidations from the $376m Performing Portfolio is a long term sustainable income stream PERFORMING ARRANGEMENTS PORTFOLIO BALANCE ($m) PERFORMING ARRANGEMENTS PORTFOLIO OVERVIEW Customer Metric 30 Jun-20 Mid Apr-
Slide 18: PDP Acquisition: Maintained disciplined approach
PDP Acquisition: Maintained disciplined approach 17 Pioneer has diversified its purchasing and servicing into a number of growth areas For personal use only • Pioneer is one of few preferred partners to which the “Big 4” commercial banks in Australia typically sell consumer loan portfolios • Vendors
Slide 19: Capital structure
18 For personal use only SECTION 4 Capital structure BUSINESS OVERVIEW | DIFFERENTIATED APPROACH | RECENT PERFORMANCE | CAPITAL STRUCTURE | OUTLOOK & HIGHLIGHTS
Slide 20: Capital structure & employee incentivisation
Capital structure & employee incentivisation 19 A significant portion of Pioneer is owned by employees with incentivisation strongly aligned to long For personal use only term shareholder value creation REMUNERATION & EQUITY INCENTIVE PLAN – KEY ASPECTS CAPITAL STRUCTURE No. Notes • Executive remune
Slide 21: Outlook & Highlights
20 For personal use only SECTION 5 Outlook & Highlights BUSINESS OVERVIEW | DIFFERENTIATED APPROACH | RECENT PERFORMANCE CAPITAL STRUCTURE | OUTLOOK & HIGHLIGHTS
Slide 22: Strategic outlook
Strategic outlook 21 Pioneer is well positioned to benefit from improving market conditions, with a multi-pronged strategy For personal use only to build resilience and generate value Capitalise on opportunities Focus on appropriate vendor Growing Performing Thrive under increased to grow PDPs while
Slide 23: Outlook FY21 – Upgrade to Guidance
Outlook FY21 – Upgrade to Guidance 22 For personal use only FY21 Guidance FY21 Guidance (Issued Sep 2020) (Revised Feb 2021) PDP > $33.5m > $37m Investment EBITDA > $51m > $55m
Slide 24: End
For personal use only End 23