Pioneer Credit Ltd · ASX:PNC

Pioneer Credit — FY2014 Earnings Presentation

13 slides from Pioneer Credit's earnings presentation, Feb 11, 2016

  1. Slide 1: FY14 Results Presentation

    FY14 Results Presentation 28 August 2014 1

  2. Slide 2: Who is Pioneer?

    Who is ? Pioneer is an Australian financial services provider, specialising in acquiring and servicing unsecured retail debt portfolios. These portfolios consist of people with financial obligations to Pioneer. These people become the cornerstone of Pioneer’s customer relationships. Pioneer works wi

  3. Slide 3: Leadership Principles

    Leadership Principles Pioneer’s customer service team is trained to work to Pioneer’s six “Leadership Principles”. − Be consistent and relentless in exhibiting best practice and sharpening your skills − Always act with integrity − Learn to connect with people in a way they can relate to − The fire i

  4. Slide 4: Positive Differentiation: Leading in Commercial Compliance behavior

    Positive Differentiation Leading in Commercial Compliance behavior  Credit risk moves to Pioneer, brand risk stays with our vendor partner Commercial programme  Focused effort on a “Commercial Compliance” programme – & training facilitating good customer outcomes  Customer interaction is quality

  5. Slide 5: Disciplined Capital Allocation

    Disciplined Capital Allocation Pioneer purchases retail consumer accounts are ~180 days overdue Historical Aggregate Portfolio Investments Total face value = $596m1 Total investment = $85m1  Focus on purchasing quality personal loan and 100% credit card portfolios 90%  Competitive advantage lies i

  6. Slide 6: FY14 Headlines

    FY14 Headlines  IPO capital raising of $40.0m closed over-subscribed  Customer Payments of $35.7m in FY14, a 60.3% increase YOY  Net Revenue of $25.7m in FY14, a 54.5% increase YOY  Additional agreements with new and existing vendor partners including a 5 year forward flow contract extension  M

  7. Slide 7: FY14 Financial Results

    FY 14 Financial Results Pioneer’s key financial highlights are attractive and reflect strong growth  Customer Payments in the 2H14 Year on Year Performance exceeded forecast by 2.5% FY13 FY14 % Growth  Change in Value ‘charge’ of 32% of Customer Payments 23.4 37.6 60.3% Customer Payments, consiste

  8. Slide 8: Strong cash generation

    Strong cash generation Cash flow FY13 FY14  Operating cash flow before purchases of $21.2m, an increase of 81% YOY EBITDA Adjusted 1 13.4 20.1 Operating Cash Flow 2 13.8 26.4  Cash is invested in new portfolios which drive growth in future years Tax Paid (0.8) (3.2) PP&E (0.9) (0.9)  EBITDA Adjus

  9. Slide 9: Liquidation of Purchased Debt Portfolios (PDP)

    Liquidation of Purchased Debt Portfolios (PDP) Price drives Multiple PDP Liquidation ($m) 1 25.0  Pioneer’s half yearly Customer Payments have grown from $6.2m in 1H12 to $21.3m in 2H14. 8% 20.0  A compound annual growth rate of 50% CAGR 50%  25% of customer payments receipted in 2H14 15.0 4% 17%

  10. Slide 10: Leading Australian purchaser of financial services debt

    Leading Australian purchaser of financial services debt Pioneer has built strong relationships with its Vendor Partners  Purchases predominantly tier 1 debt (financial institution customers not regarded as credit impaired 50 Portfolio Investment ($m) when originated) 45  Agreements with 3 of the 4

  11. Slide 11: Customer payment security through a growing Payment Arrangement book

    Customer payment security through a growing Payment Arrangement book Pioneer’s primary strategy is to develop relationships with customers Payment Arrangement book Payment Arrangement Book Current Balance ($m)  Two types of Payment Arrangements: – Fixed Schedule Payment Arrangements whereby 100.0 a

  12. Slide 12: FY15 Growth & Outlook

    FY15 Growth & Outlook Pioneer has a simple business strategy.  Continue to work hard at building a conservative and long term sustainable business  Growth and strengthen vendor relationships  Explore ways in which we can deliver additional value to our rehabilitated customer base through the prov

  13. Slide 13: Investors / Media

    Investors / Media Keith John Managing Director P: 08 9323 5001 E: krjohn@pioneercredit.com.au David Ikin Senior Counsel Professional Public Relations P: 08 9388 0944 / 0408 438 772 E: david.ikin@ppr.com.au Pioneer Credit Limited ABN 44 103 003 505 Registered Office: 188‐190 Bennett Street, East Pert

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