Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — FY2015 Earnings Presentation
27 slides from Pioneer Credit's earnings presentation, Aug 21, 2015
Slide 1: FY15 Results Presentation
For personal use only FY15 Results Presentation 15 21 August 2015
Slide 2: Important Notice: Disclaimer
Important Notice: Disclaimer For personal use only This presentation has been prepared by Pioneer Credit Limited (Pioneer) Summary of information: This presentation contains general and background information about Pioneer’s activities current as at the date of the presentation and should not be con
Slide 3: Contents
Contents For personal use only 1 Overview 2 Financial Highlights 3 Operational Highlights 4 Market Conditions and Outlook 5 More Information 3|
Slide 4: Overview
For personal use only 1 Overview 4|
Slide 5: Who is Pioneer Credit?
Who is Pioneer Credit? For personal use only These portfolios consist of people Corporate Summary with financial obligations to Pioneer As at 20 August 2015 who are our customers. ASX Code: PNC Shares on Issue: 45,373,990 A key goal at Pioneer is to help our Market Cap: $80.1m customers progress tow
Slide 6: FY15 Headlines
FY15 Headlines For personal use only • Net Revenue of $38.7m up 51% • Profit after Tax 18.3% above • Free Cash Flow of $26.2m • Stat. Profit after Tax of $7.4m up 611% prospectus • Funds PDP investment and • Op. Profit after Tax of $7.8m up 70% • EPS (operating) 18.3% above evidences strong PDP liqu
Slide 7: Financial Highlights
For personal use only 2 Financial Highlights 7|
Slide 8: Financial Highlights: Strong Earnings Growth
Financial Highlights: Strong Earnings Growth For personal use only (A$ millions) Actual Prospectus ! Net Revenue Growth of 51% P&L FY14 FY15 FY15 ! EBIT Margin of 31% well ahead of expectations Net Revenue 25.7 38.7 39.1 ! EBIT growth of 66% highlighting expense discipline Operating Expenses (18.0)
Slide 9: Financial Highlights: Strong Cash Generation
Financial Highlights: Strong Cash Generation For personal use only (A$ millions) Actual Prospectus ! Strong cash generation and free cash flow Cash Flow for Year End FY15 FY15 to enable continued disciplined investment Gross Operating Cash Flow 30.7 28.9 ! Cash for PDP acquisitions Taxation and PP&E
Slide 10: Financial Highlights: Solid Portfolio Liquidation
Financial Highlights: Solid Portfolio Liquidation For personal use only ! When PNC price PDPs for acquisition we make a series of value based assumptions and model the expected cumulative value to be liquidated over time ! Consistent performance over PNC cautious Day 1 forecast has driven an upgrade
Slide 11: Portfolio Performance: Improved Expensing Rate
Portfolio Performance: Improved Expensing Rate For personal use only Continued improvements in operational execution Purchasing discipline 1 ! More data sources 3 ! Acquire best value customers available ! Better analytics ! Highest propensity to heal ! Increased labour pool over past 2 years ! Leas
Slide 12: Portfolio Performance: Improved Expensing Rate
Portfolio Performance: Improved Expensing Rate For personal use only Surety of purchase commitment Compliance record 1 ! PNC has never walked away from a forward 23 ! PNC has never had a negative outcome at flow agreement with any originator an ombudsman level and has never had an Why? Pricing disci
Slide 13: Operational Highlights
For personal use only 3 Operational Highlights 13 |
Slide 14: High Quality Portfolio Focus
High Quality Portfolio Focus For personal use only Portfolio Highlights ! No exposure to payday lending, utility, telco or other lower quality customer segments ! 94% of all investment to date with 3 of Big 4 or Regional Banks – creates strong alignment of servicing strategy (brand protection, consu
Slide 15: Portfolio Geographic Spread
Portfolio Geographic For personal use only Spread Portfolio distribution by location 15 |
Slide 16: Simple Business Strategy
Simple Business Strategy For personal use only Core Strengths Differentiators Performance Future Growth Leadership Principles People & Culture Disciplined Capital Build Customer Base of Grow Core Business Deployment Market Growth value Market Share Effective Relationships Vendor Banks Customers Comm
Slide 17: Effective Relationships: Disciplined Capital Allocation
Effective Relationships: Disciplined Capital Allocation For personal use only Historical Aggregate Portfolio Investment1,2 ! Purchases Tier 1 customers (not regarded as credit impaired when originated) ! Maintenance of strong pricing discipline across well understood products ! Demonstrated capital
Slide 18: Continued Strong and Improving Liquidations
Continued Strong and Improving Liquidations For personal use only ! Cash receipts up 55.5% Customer payments by date of investment1 ! Demonstrates performance across entire portfolio with increasing contributions from older part of portfolio ! Half-on-half growth in line with expectation ! Strong li
Slide 19: Customer Service Excellence: Annuity Arrangement Stream
Customer Service Excellence: Annuity Arrangement Stream For personal use only Payment Arrangement Book Current Balance ($m)2 Payment Arrangement Book1 ! Two types of Payment Arrangements: " Scheduled – structured repayments " Non-Scheduled – regular paying customers unable to commit to a fixed sched
Slide 20: Goldfields Money Limited Investment
Goldfields Money Limited Investment For personal use only Investment Highlights Investment Rationale ! PNC acquired a ~14% equity stake in ASX listed Goldfields 1. Risk Managed Entry Strategy – PNC to now provide new Money Limited (GMY). product (credit cards) to its customers with no balance sheet
Slide 21: Market Conditions and Outlook
For personal use only 4 Market Conditions and Outlook 21 |
Slide 22: Market Conditions and Update
Market Conditions and Update For personal use only ! Size of overall target receivables segment – estimated at ~$300m (PNC inferred market share ~13%) ! Growth of overall target receivables segment - estimated at ~4% per annum ! Key economic indicators driving the overall market " Wage Price growth
Slide 23: FY16 Outlook
FY16 Outlook For personal use only ! Continued focus on the demonstration and value of differentiated business strategy for vendor partners ! Investment to remain focused on similar PDPs as historically acquired ! Significant investment in corporate and administrative overhead ~$2m annualised to dri
Slide 24: Pioneer Credit – Investment Summary
Pioneer Credit – Investment Summary For personal use only ! Leading Australian purchaser of overdue unsecured retail customer accounts " Tier 1 debt with >94% investment from banks " Ownership of customer accounts portfolio with over $780m (face value) due at 30 June 2015 " Direct and growing relati
Slide 25: More Information
For personal use only 5 More Information 25 |
Slide 26: Investors / Media
Investors / Media For personal use only Keith R. John Managing Director P: 08 9323 5001 E: krjohn@pioneercredit.com.au Leslie Crockett Chief Financial Officer P: 08 9323 5008 E: lcrockett@pioneercredit.com.au Pioneer Credit Limited ABN 44 103 003 505 Registered Office: Level 6, 108 St Georges Terrac
Slide 27: Thank you
For personal use only Thank you