Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — Investor Presentation (April 2017)
18 slides from Pioneer Credit's investor presentation, Apr 6, 2017
Slide 1: Equity Raising Presentation
For personal use only EQUITY RAISING PRESENTATION 6 April 2017
Slide 2: Important notices
For personal use only Important notices This presentation has been prepared by Pioneer Credit Limited ACN 103 003 505 (“Pioneer”). Information: This presentation contains general information about Pioneer’s activities current as at the date of the presentation and should not be considered to be comp
Slide 3: Investment case
For personal use only Investment case Equity raising to fund highly attractive PDP acquisition and growth opportunities in FY18 The Company The update • Proven track record of consistently strong financial • ~$20 million equity raising through $15m placement and performance across all key metrics $5
Slide 4: Equity raising structure
For personal use only Equity raising structure $20m to be raised to fund an attractive PDP acquisition and position balance sheet for additional growth opportunities Overview Use of proceeds 1 New PDP acquisition $14.0m • New Shares under the Placement and Rights Issue will be issued at $2.00 2 Fund
Slide 5: Considered portfolio investment
For personal use only Considered portfolio investment Expected to provide Pioneer with strong returns and drive the next step change in scale Portfolio acquisition Financial outcomes • $94m face value for $14m investment, consistent • Pioneer can appropriately service these with Pioneer’s weighted a
Slide 6: The Pioneer difference
For personal use only The Pioneer difference A customer-centric strategy that improves the credit standing of customers while maximising likelihood of full repayment Typical debt purchasers Pioneer’s competitive advantages PDP Most classes of unsecured debt, including ‘Tier 1’1 customer portfolios w
Slide 7: Focus on product and customer development
For personal use only Focus on product and customer development Strategic tie-up with Rewardle complements and fast-tracks expansion of financial product offering Customer development Growth of customer experience • Pioneer has accumulated >160,000 customers through its • Growth entity offering a ra
Slide 8: Strong employee alignment
For personal use only Strong employee alignment Alignment strengthened through high levels of founder and management ownership Management ownership Equity Incentive Plan (EIP) • Senior management own 19.2%1,2 of Pioneer’s Shares • Senior management are strongly aligned to the Company’s prior to the
Slide 9: Historical financials
For personal use only Historical financials Pioneer has a proven track record of strong performance across key financial metrics Net revenue ($m) EBIT ($m) EBITDA (pre CIV) ($m) CAGR = 49% CAGR = 49% CAGR = 39% 47.8 29.2 29.7 38.7 15.4 19.6 25.8 24.6 11.5 14.6 16.6 7.4 13.0 5.9 7.0 8.0 9.6 3.1 FY12
Slide 10: 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 liquidity2 since IPO EPS and DPS (cents) • At all time highs (60%), with significantly improved liquidity • Growing EPS wit
Slide 11: FY17 guidance
For personal use only FY17 guidance Another year of high quality, cautious and disciplined growth FY17 PDP investment update FY17 PDP Date investment forecast August 2016 $50m February 2017 $53m Additional PDP investment + $3-5m expected This PDP acquisition + $14m April 2017 $70-72m FY17 Net Profit
Slide 12: Strategic outlook – FY18 & beyond
For personal use only Strategic outlook – FY18 & beyond Capitalising on opportunities • Changing market dynamics are providing increased opportunities for Pioneer as a premium provider of differentiated services in the PDP market o Announcement of a material PDP acquisition of $14m o Additional PDP
Slide 13: Appendix
For personal use only Appendix 13 13
Slide 14: 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 shareholders2 • Ope
Slide 15: Key risks
For personal use only Key risks • Achievement of FY17 guidance – The Company expects to meet its market guidance and the Company is ahead of its Net Profit after Taxation (unaudited) expectation to 31 March 2017. This is despite 3Q17 net revenue being behind expectations by ~2%. As always, the Compa
Slide 16: Key risks cont.
For personal use only Key risks cont. • Analysis of acquisition opportunity – Pioneer has undertaken analysis of the transactions referred to in this presentation in order to determine its appropriateness for the Company. It is possible that such analysis and best estimate assumptions made by Pionee
Slide 17: Indicative equity raising timetable
For personal use only Indicative equity raising timetable Pioneer is working to the indicative timetable provided below Indicative timetable Company in trading halt Tuesday-Wednesday, 4-5 April 2017 Closing date for receipt of firm and irrevocable bids in Placement Wednesday, 5 April 2017 Offer anno
Slide 18: 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 18