Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — Bell Potter Emerging Leaders Conference 2017
16 slides from Pioneer Credit's conference presentation, Oct 25, 2017
Slide 1: Presentation to Bell Potter Emerging Leaders Conference
ASX release 25 October 2017 Presentation to Bell Potter Emerging Leaders Conference Following is Pioneer Credit Limited’s (ASX: PNC) presentation to Bell Potter’s Emerging Leaders Conference being held today. The Company reminds shareholders and looks forward to welcoming them to the 2017 Annual Gen
Slide 2: Bell Potter: Emerging Leaders Conference
25 October 2017 Bell Potter: Emerging Leaders Conference
Slide 3: Important notice: Disclaimer
2 Important notice: Disclaimer 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 4: Corporate snapshot
3 Corporate snapshot Financial services provider with meaningful levels of founder, board and management ownership Overview Largest shareholders • Specialist acquirer and servicer of ‘Tier 1’1 retail customer accounts Keith John2,3 (Managing Director) 13.43% • Operates a unique, customer-centric ser
Slide 5: Custodians of shareholder wealth
4 Custodians of shareholder wealth Significant level of management ownership with incentives based on sustainable performance Management ownership Key aspects of EIP • Every Executive KMP3 member holds equity in Pioneer • 14 participants – diverse and committed executives across entire business • Ev
Slide 6: Leadership Principles
5 Leadership Principles A values based framework that underpin and drive great outcomes for all stakeholders
Slide 7: How is Pioneer different?
6 How is Pioneer different? Customer centric service that improves creditworthiness and likelihood of full repayment Typical debt purchasers Pioneer’s competitive advantage PDP Most classes of unsecured debt, incl. Part IX, ‘ Tier 1’1 customer portfolios with a preference for Premium data analytic
Slide 8: How is Pioneer different? (cont.)
7 How is Pioneer different? (cont.) A differentiated offering and higher standards drive great outcomes for our customers and vendors Key vendor selection Pioneer’s competitive advantage considerations • Employs strict investment discipline Purchase certainty for Preferred by vendors - Pioneer has
Slide 9: FY17 Profit and loss
8 FY17 Profit and loss Another year of outperforming expectations, FY18 forecast to be very strong FY16 FY17 • Funding capacity increased to $120m PDP Liquidations $61.9m $70.7m +14% o Current borrowings at $86.4m, unused capacity of $33.6m o Debt/Portfolio Value (LVR) target of 50% maintained (48.8
Slide 10: PDP valuation and payment arrangement metrics
9 PDP valuation and payment arrangement metrics Cautious and sophisticated valuation approach leads consistently improving liquidations Pioneer’s valuation approach1 Key scheduled payment arrangement metrics as at 30 June 2017 • Continued development and improvement of measurement and valuation mode
Slide 11: Vendor investment mix
10 Vendor investment mix Vendor diversification illustrates Pioneer’s leading market position in Australia and New Zealand FY14 FY15 FY16 FY17 Portfolio Portfolio Portfolio Portfolio Investments Investments Investments Investments $31.6m $39.9m $43.8m $69.6m 11% 15% 12% 23% 14% 11% 20% 77% 59% 53% 1
Slide 12: Geographic distribution
11 Geographic distribution Reflects distribution of the Australian population and Pioneer’s emergence into New Zealand Northern Territory 1.0% Queensland Western 21.5% Australia 12.9% South Australia 4.9% New South Wales 30.3% New Zealand 2.7% Victoria 23.8% ACT 1.2% Tasmania 1.7%
Slide 13: Portfolio profile
12 Portfolio profile Return multiples on track to exceed 4x investment • Pioneer liquidation performance is on track with $140m 1.8x o Target ~0.8x investment multiple within first year $120m o Target ~1.4x investment multiple within two years o Target ~4.0x investment multiple within ten years $100
Slide 14: New products
13 New products Focus on leveraging expertise into new markets with accelerating rollout of financial products Organic growth strategy for adjacencies Customer and product development Expanding into new market sectors Range of value based financial products • Pioneer’s core skills, expertise and inf
Slide 15: FY18 outlook
14 FY18 outlook Capitalising on opportunities Operational opportunities Profit after taxation $20m • Rollout of personal loans (full update at AGM on 27 Oct 2017) o Credit Place engagement offering to 2.3m Rewardle members underway $16.0m o Advisers appointed for warehouse funding, update at 1H18 re
Slide 16: Contacts
15 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
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