Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — FY2021 Earnings Presentation
19 slides from Pioneer Credit's earnings presentation, Aug 31, 2021
Slide 1: FY21 Results
31 August 2021 FY21 Results INVESTOR PRESENTATION
Slide 2: Important notice: Disclaimer
Important notice: Disclaimer 2 This presentation has been prepared by Pioneer Credit Limited (“Pioneer” or the “Company”). 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 to c
Slide 3: Performance Summary FY21
Performance Summary FY21 3 Strong liquidations and good operating cost management driving impressive free cash flow Liquidations PDP Investment $94.7m $31.0m FY20: $100.9m FY20: $57.7m EBITDA Cash & Undrawn Facilities $54.4m FY20: $33.7m $30.4m Net Assets / Equity1 Net Assets per Share1,2 $71.5m 90.
Slide 4: Business Model
Business Model 4 Pioneer is differentiated by its approach of providing high-quality, flexible and customised financial solutions to help customers reach their financial goals • Data-driven portfolio selection and performance Resilient Portfolio • Focused on product segments where customers are work
Slide 5: Differentiated Approach
Differentiated Approach 5 Pioneer's four key pillars drive the best possible customer experience ✓ Pioneer takes a long-term view and focuses on finding the right solution for each customer, whether by settlement or payment arrangement Solution Focused ✓ Give customers the tools, options and informa
Slide 6: FY21 Profit or Loss
FY21 Profit or Loss 6 EBITDA of $54.4m, increasing by $20.7m from FY20 Profit or Loss ($’000) FY20 FY21 • Strong liquidations of $94.7m driven by: Liquidations revenue 100,924 94,717 o Back book PDP inventory of ~$1.9bn (outstanding balance) Other income 2,345 2,920 o Improved liquidations from olde
Slide 7: FY21 Balance Sheet
FY21 Balance Sheet 7 Maintenance of PDP value and Balance Sheet positioned for growth Balance Sheet ($’000) FY20 FY21 • Ample Cash and Undrawn Facilities for additional opportunities Assets o $10.4m Cash at Bank Cash and cash equivalents 11,019 10,373 o $20.0m in facilities available, undrawn throug
Slide 8: Differentiated Approach
8 SECTION 2 Differentiated Approach PERFORMANCE | DIFFERENTIATED APPROACH | OUTLOOK
Slide 9: Resilient Portfolio: Increasing cash beyond investment
Resilient Portfolio: Increasing cash beyond investment 9 Continued increase in delta between cumulative liquidations and investments evidences investment discipline and operational performance; expected to continue to open further Strong returns beyond investment Liquidations now ~57% from accounts
Slide 10: PDP Acquisition: Maintained disciplined approach
PDP Acquisition: Maintained disciplined approach 10 Maintained attractive price points across diverse vendors and products, evidencing investment discipline and the value of Pioneer’s brand and service differentiation to vendors Focus returned to key Tier 1 banking & finance products Disciplined pur
Slide 11: Active Portfolio (Jun-21)
Active Portfolio (Jun-21) 11 Pioneer has an outstanding PDP balance of $1.9bn, with the majority originating from Australian banks; significant opportunity to deepen returns Strong portfolio with ~$1.9bn outstanding Opportunity of ~$1.5bn WIP PORTFOLIO & PERFORMING ARRANGEMENTS PONEER PORTFOLIO Refe
Slide 12: Performing Arrangements Portfolio: 6% growth in FY21
Performing Arrangements Portfolio: 6% growth in FY21 12 Monthly liquidations from the $377m Performing Portfolio is a long term sustainable income stream Maintained growth through contracted purchasing High quality portfolio PERFORMING ARRANGEMENTS PORTFOLIO BALANCE ($m) PERFORMING ARRANGEMENTS PORT
Slide 13: Customer Experience: We do the right thing
Customer Experience: We do the right thing 13 Exceptional NPS1 driven by a focus on creating the best possible customer experience, validating Pioneer’s differentiated approach. NPS OVERVIEW UPWARD TREND THROUGH CUSTOMER JOURNEY CUSTOMER FEEDBACK (40) +26 +21 +40 “The team went above and beyond “Ver
Slide 14: Outlook
14 SECTION 3 Outlook PERFORMANCE | DIFFERENTIATED APPROACH | OUTLOOK
Slide 15: Executing our strategy: Outlook for FY22
Executing our strategy: Outlook for FY22 15 Pioneer is well positioned, and is benefiting from improving market conditions 1 Refinance options well progressed 4 Realise operational leverage • Now in advanced stages to refinance existing facilities • Continued investment in data and analytics to impr
Slide 16: Appendix
16 Appendix
Slide 17: FY21 Statutory Profit or Loss
FY21 Statutory Profit or Loss 17 Continuing operations ($’000) FY20 FY21 Interest income at amortised cost 60,122 57,020 Net impairment (loss) gain on PDPs (6,320) (4,286) Other income 2,133 662 55,935 53,396 Employee expenses (34,816) (30,634) Finance expenses (38,472) (26,699) Direct liquidation e
Slide 18: Experienced team to execute on strategy
Experienced team to execute on strategy 18 Non-executive director Executive leadership Michael Smith - Chairman • Managing Director of strategic marketing consultancy firm Black House Keith John - Managing Director • Chairman of 7-Eleven Stores and Starbucks Australia • Founder of Pioneer Credit • P
Slide 19: Thank you
19 Thank you