Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — H1 2020 Earnings Presentation
17 slides from Pioneer Credit's earnings presentation, Feb 28, 2020
Slide 1: 1H20 Results Presentation
28 February 2020 1H20 Results Presentation
Slide 2: Important notice: Disclaimer
Important notice: Disclaimer 2 This presentation has been prepared by Pioneer Credit Limited (“Pioneer”). 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 comprise all the i
Slide 3: Our culture is our difference
Our culture is our difference 3 Pioneer Principles drive great outcomes for all stakeholders
Slide 4: Our culture is our difference
Our culture is our difference 4 Pioneer’s competitive advantage • Inclusive and empowering Our culture Pioneer Principles • Embedded in values for all stakeholders • Strict investment discipline Analytics drives selection of lower risk portfolios PDP selection • ‘Tier 1’ portfolios Preferred b
Slide 5: Liquidations continue ahead of prior corresponding period
Liquidations continue ahead of prior corresponding period 5 EBITDA remains on track for solid performance PDP liquidations ($m) EBITDA1 ($m) CAGR = 27% CAGR = 26% 63.4 118.5 54.3 101.7 70.7 35.0 61.9 29.7 31.2 55.2 52.5 25.5 37.2 19.5 FY14 FY15 FY16 FY17 FY18 FY19 1H20 FY14 FY15 FY16 FY17 FY18 FY19
Slide 6: Earnings impacted by significant one-off costs
Earnings impacted by significant one-off costs 6 Earnings Analysis1 1H19 1H20 Normalised Profit or Loss ($m) PDP liquidations $50.5m $52.5m 4.0% 17.6 Services income $1.4m $0.7m EBITDA $26.0m $25.5m (1.8%) 10.8 9.5 Profit or Loss from continuing operations $5.1m ($6.0m) 7.8 4.6 4.3 Normalised Profit
Slide 7: Strong cash generation
Strong cash generation 7 PDP liquidations and operational excellence Balance Sheet FY19 1H20 Cash flow 1H19 1H20 Cash and cash equivalents $11.2m $2.2m (80.7%) EBITDA $26.0m $25.5m (1.8%) Financial assets at amortised cost $249.8m $264.8m 6.0% Net cash inflow from operating activities $9.4m $22.4m 1
Slide 8: Weighted average price remains at historical averages
Weighted average price remains at historical averages 8 Pioneer has achieved solid pricing and product diversification as investment stabilised cents per $ Annual PDP investment $m 0.20 90 80 70 60 50 40 30 20 10 - FY14 FY15 FY16 FY17 FY18 FY19 1H20 Inventory and non-bank forward flow (RHS) Bank for
Slide 9: Pioneer has achieved Tier 1 debt product diversification
Pioneer has achieved Tier 1 debt product diversification 9 Changing product mix aligning to strategic opportunities Portfolio mix 100% 80% 60% 40% 20% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H20 Personal Loans Credit Cards Other Mortgage Commercial Loans Utilities
Slide 10: Robust and sustainable cash generation
Robust and sustainable cash generation 10 Portfolio liquidations by investment • As investment growth stabilises, liquidations from older vintages 7% are performing in line with expectations 19% 18% 20% 15% 17% 17% 18% 11% 11% • Evidences ability to liquidate consistently across portfolio and of 17%
Slide 11: Growing liquidations driving cash performance
Growing liquidations driving cash performance 11 Increased returns beyond investment Cumulative cash generation • Cumulative liquidations are accelerating compared to cumulative $600m investment $500m o Demonstrates the quality of the portfolio, across all vintages $400m • Balanced against lower PDP
Slide 12: Continued improvement across arranged payment portfolio
Continued improvement across arranged payment portfolio 12 Sustainable arrangements lead great customer outcomes PA book metrics Growth in PA book Dec-19 CAGR = 25% 23,830 customers $334m $290m 4.57% >30 days in arrears $257m $215m 2.4 years average existing relationship $155m $252 Weighted average
Slide 13: Pioneer has contributed over $1m to our community since IPO
Pioneer has contributed over $1m to our community since IPO 13 Our Partners include Initiative that raises funds to WA Children’s Charity Children focused Charity Children's charity support cancer research Sponsorship to create moments Pioneer’s own community-based 24 hour telephone crisis Research
Slide 14: Scheme agreement
Scheme agreement 14 Highlights and next steps • Pioneer Directors unanimously recommend shareholders to vote in favour of the Scheme • Expect the Independent Expert will conclude the Scheme is fair and reasonable and in the best interests of Shareholders • Total cash consideration of $1.82 per share
Slide 15: Appendix
Appendix
Slide 16: Calculation of non-IFRS information
Calculation of non-IFRS information 16 Adjustments made to Profit or Loss from continuing operations Normalised Profit or Loss is presented net of significant one off expenditure including the costs of the senior financier standstill agreements, the change of control process and re-financing includi
Slide 17: Contacts
Contacts 17 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