Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — H1 2021 Earnings Presentation
19 slides from Pioneer Credit's earnings presentation, Feb 26, 2021
Slide 1: 1H21 Results Investor Presentation
26 Feb 2021 1H21 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: Pioneer Overview
Pioneer Overview 3 Acquirer and servicer of unsecured retail purchased debt portfolios (PDPs) Resilient Strong Vendor Disciplined PDP We do the right Portfolio Relationships Acquisition thing
Slide 4: Performance Summary 1H21
Performance Summary 1H21 4 Strong liquidations, good operating cost management driving impressive free cash flow • Strong liquidations driven by service excellence and Liquidations PDP Investment valuable PDP inventory of ~$1.9bn (face value) $50.0m $16.9m • Limited PDP investment through pandemic a
Slide 5: Net Asset Position 1H21
Net Asset Position 1H21 5 Net Assets & Equity continue to grow, reflecting a solid operating performance • Solid Net Asset position Net Assets/Equity Cash & Undrawn facilities • Free cash flow funds contracted PDP investment for FY21 $65.2m $28.2m • Ample Cash and Undrawn Facilities for additional o
Slide 6: Profit or Loss
Profit or Loss 6 Strong liquidations and cost management drive record EBITDA Profit or Loss ($’000) 1H20 1H21 • Strong liquidations performance (flat on pcp, despite lower PDP Liquidations revenue 52,489 50,033 investment) proving the quality of vintages underpinning valuation Other income 756 171 T
Slide 7: Cash Flows
Cash Flows 7 Free cash flow has funded PDP Investment, fully cash flow funded for FY21 Cash Flows ($’000) 1H20 1H21 • Strong liquidations driving ongoing cash flow funding of the business Cash flows from operating activities Liquidations and receivables 54,324 51,374 • FY21 contracted PDP investment
Slide 8: Balance Sheet
Balance Sheet 8 Net Assets and Equity continue to grow reflecting a solid operating performance Balance Sheet ($’000) 30-Jun-20 30-Dec-20 • PDP carrying value of $253.1m, as reviewed by auditor Deloitte Touche Assets Cash and cash equivalents 11,019 8,176 Tomatsu Trade and other receivables 1,844 2,
Slide 9: Differentiated Approach
9 SECTION 2 Differentiated Approach PERFORMANCE | DIFFERENTIATED APPROACH | OUTLOOK
Slide 10: Customer Experience: We do the right thing
Customer Experience: We do the right thing 10 Exceptional NPS driven by a focus on creating the best possible customer experience NPS OVERVIEW UPWARD TREND THROUGHOUT CUSTOMER JOURNEY +14 (33) First Contact +18 New Payers +32 Ongoing Payers +41 Settled NPS First contact post transfer First time a cu
Slide 11: Resilient Portfolio: Increasing cash beyond investment
Resilient Portfolio: Increasing cash beyond investment 11 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 Liquidations now ~47% from ac
Slide 12: Pioneer Portfolio: Quality debt with significant opportunity
Pioneer Portfolio: Quality debt with significant opportunity 12 $1.9bn PDP of which $371m are Performing Arrangements; significant opportunity to deepen returns Strong portfolio with ~$1.9bn outstanding Opportunity of ~$1.5bn WIP PORTFOLIO & PERFORMING ARRANGEMENTS WIP PORTFOLIO Refer to next slide
Slide 13: Performing Arrangements Portfolio: 8% annualised growth in 1H
Performing Arrangements Portfolio: 8% annualised growth in 1H 13 Monthly liquidations from the $371m Performing Portfolio is a long term sustainable income stream PERFORMING ARRANGEMENTS PORTFOLIO BALANCE ($m) PERFORMING ARRANGEMENTS PORTFOLIO OVERVIEW Customer Metric 30 Jun 20 31 Dec 20 CAGR = 21%
Slide 14: PDP Acquisition: Maintained disciplined approach
PDP Acquisition: Maintained disciplined approach 14 Maintained attractive price points across diverse vendors and products PDP INVESTMENT MIX PDP INVESTMENT AND AVERAGE INVESTMENT PRICE 6% 4% 6% 5% cents per $ $m 11% 9% 16% 9% 20% 10% 21% 0.20 90 8% 38% 11% 14% 80 10% 16% 47% 50% 70 47% 10% 0.15 8%
Slide 15: Outlook
15 SECTION 3 Outlook PERFORMANCE | DIFFERENTIATED APPROACH | OUTLOOK
Slide 16: Pioneer Strategy
Pioneer Strategy 16 Capitalise on Focus on appropriate Growing Performing Thrive under increased Realise operating opportunities to grow vendor and product Arrangements portfolio regulatory scrutiny leverage PDPs while being depth disciplined
Slide 17: Executing our strategy: Focus for 2H21
Executing our strategy: Focus for 2H21 17 Pioneer is well positioned to benefit from improving market conditions 1 Capitalise on opportunities to grow PDPs while being disciplined 4 Thrive under increased regulation and scrutiny • Continue to grow using free cash flows for PDP investments, with • Pi
Slide 18: Outlook FY21 – Upgrade to Guidance
Outlook FY21 – Upgrade to Guidance 18 FY21 Guidance FY21 Guidance (Issued Sep 2020) (Revised Feb 2021) PDP > $33.5m > $37m Investment EBITDA > $51m > $55m
Slide 19: Thank you
19 Thank you