Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — 1HY25 Earnings Presentation
23 slides from Pioneer Credit's earnings presentation, Feb 27, 2025
Slide 1: 1HY25 Results Presentation
1HY25 Results Presentation Keith John Barry Hartnett Managing Director Chief Financial Officer 27 FEBRUARY 2025
Slide 2: Important Notice: Disclaimer
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 Important Notice: Disclaimer This presentation has been prepared by Pioneer Credit Limited (“Pioneer” or the “Company”). Disclaimer: This presentation contains information about Pioneer’s activities as at the date of the presentation, is in summary form
Slide 3: Agenda
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 AGENDA 1. HIGHLIGHTS 2. FINANCIAL PERFORMANCE 3. ABOUT US 4. OUTLOOK & FY25 GUIDANCE 5. BRIDGE TO FY26 MANAGEMENT LTI TARGET 6. APPENDIX 3
Slide 4: Performance Highlights
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 PERFORMANCE HIGHLIGHTS CASH COLLECTIONS EBITDA EBIT NPAT1 $71.5m $47.6m $22.0m $3.6m 2HY24: $69.8m 2HY24: $50.3m 2HY24: $(0.4m) 2HY24: $1.1m ▲ 2% ⯆ 5% ▲>100% ▲327% Note: 1. Normalised for non-recurring expenses 4
Slide 5: Portfolio Highlights
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 PORTFOLIO HIGHLIGHTS PDP INVESTMENT ERC PA PORTFOLIO PDP ASSET $29.6m $672.8m $430.8m $328.7m 2HY24: $28.1m 2HY24: $641.7m 2HY24: $440.9m 2HY24: $322.9m ▲5% ▲5% ⯆2% ▲2% 5
Slide 6: 1HY25 in Review
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 1HY25 IN REVIEW Disciplined operating is driving sustainable profitability and earnings growth • Closed $272.5m senior debt facility with $50m growth funding, 4yr tenor & materially reduced cost o Additional saving from each rate cut - every 25bps cut i
Slide 7: Financial Performance
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 FINANCIAL PERFORMANCE 7
Slide 8: Income Statement
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 INCOME STATEMENT 1HY25 STATUTORY TO NORMALISED NPAT PROFIT OR LOSS ($’M) 2HY24 Interest income at amortised cost 42.4 43.9 $3.6m Net impairment gain/(loss) 1 (18.1) 3.8 Other income 0.3 0.2 $1.1m Total Income 24.6 47.9 $1.7m ($0.8m) Employee expenses (1
Slide 9: Balance Sheet
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 BALANCE SHEET BALANCE SHEET ($’M) 2HY24 1HY25 Commentary Cash and cash equivalents 4.1 0.6 1 1 Trade and other receivables 4.3 6.1 Increase is amount owed by vendors, since paid PDP assets at amortised cost 322.9 328.7 2 Right of use asset 6.4 5.8 Mostl
Slide 10: About Us
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 ABOUT US • Pioneer is a debt recovery specialist that acquires and services Purchased Debt Portfolios (“PDPs”) • PDPs are mostly acquired from banks and other lenders, and are held on balance sheet • Pioneer is a leader in the Australian PDP market, wit
Slide 11: Pioneer is one of a few scaled participants with access to funding
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 Pioneer is one of a few scaled participants with access to funding to take advantage of both returning vendors and 'new to market' entrants Pioneer holds a market-leading reputation, and many vendors sell exclusively to Pioneer for our differentiated se
Slide 12: Investment and ERC
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 INVESTMENT AND ERC PDP INVESTMENT BY HALF ERC BY PRODUCT TYPE $75.8m 6% $65.6m 8% $61.0m 8% 37% $42.5m $37.7m 7% $672.8m $28.1m $29.6m ERC $23.7m $18.0m $16.9m $16.8m $14.2m 35% 1HY20 2HY20 1HY21 2HY21 1HY22 2HY22 1HY23 2HY23 1HY24 2HY24 1HY25 2HY25 Exp
Slide 13: Collections and Returns
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 COLLECTIONS AND RETURNS COLLECTIONS BY VINTAGE Accounts greater than two years old 19% 20% 28% 32% 33% 33% 31% 36% 32% 31% 31% • Consistent Cash Collection profile driven by: 15% 16% 15% 18% 17% 10% 9% 7% 12% 17% o Effective servicing strategies 18% 20%
Slide 14: Shareholder Alignment
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 SHAREHOLDER ALIGNMENT Management who are shareholder aligned; incentivised to deliver sustainable growth SHAREHOLDER # SHARES % HOLDING Keith John Entities 17.2m 11% Other Board and Management 3.6m 2% Samuel Terry Asset Management 21.5m 13% James Simpso
Slide 15: Outlook & Guidance
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 OUTLOOK & GUIDANCE 15
Slide 16: Outlook & Guidance
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 OUTLOOK & GUIDANCE 1 2 3 4 5 STRONG TAILWINDS FOR STRONG INDUSTRY UNLOCKING OPERATING TESTED AND GUIDANCE PDP OPPORTUNITIES REGULATORY FOCUS LEVERAGE EXPERIENCED MANAGEMENT • Significant supply of • Our strong compliance • CSR project progressing, set •
Slide 17: Bridge to FY26 Guidance
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 BRIDGE TO FY26 GUIDANCE $7.5m $18.1m $1.9m $9.0m ($3.3m) $1.0m $2.0m FY25 Guidance Operational Expenses Interest Savings Costs Savings Efficiency Gains Net Revenue Growth FY26 Guidance 17
Slide 18: Appendix
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 APPENDIX 18
Slide 19: Pioneer's Strengths
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 PIONEER’S STRENGTHS Top Australian Player • Increased barriers to entry, tightened compliance, and regulatory focus are a strong advantage for Pioneer • Excellent growth opportunities; tight economy drives PDP supply; full employment underwrites cash co
Slide 20: Economic Data and Market Commentary
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 ECONOMIC DATA AND MARKET COMMENTARY CONSUMER CONFIDENCE1 INFLATION RATES2 COST OF LIVING3 DEBT STRESS4 • Consumer confidence improved • Inflation pressures easing more • Cost of living remains high, • Households continue to over the second half of 2024
Slide 21: Customer Outcomes
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 CUSTOMER OUTCOMES Strong NPS1 demonstrates our genuine care for our customers NPS Measuring Customer Experience +24 (40) First +21 New +41 Ongoing +36 Settled NPS Contact Payers Payers Payers Feb-24 – Jan-25 12-month average CUSTOMER FEEDBACK “I have al
Slide 22: Board of Directors and Executive
1HY25 RESULTS PRESENTATION // 27 FEBRUARY 2025 BOARD OF DIRECTORS AND EXECUTIVE NON-EXECUTIVE DIRECTORS EXECUTIVE Steve Targett (Non-Executive Chairman) Keith John (Managing Director) • Formerly CEO RACQ Bank, ANZ Japan and Europe, Chair • Founder of Pioneer Credit P&N Bank and NED at Clydesdale Ban
Slide 23: Oioneer
Oioneer credit