Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — H1 2024 Earnings Presentation
19 slides from Pioneer Credit's earnings presentation, Feb 29, 2024
Slide 1: 1H24 Results Presentation
1H24 Results Presentation February 2024
Slide 2: Important Notice: Disclaimer
Important Notice: Disclaimer 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 com
Slide 3: 1H24 Highlights
1H24 Highlights
Slide 4: 1H24 Financial Highlights
1H24 Financial Highlights • Profitability: Expected to materially increase going forward • Cash Collections: Strong performance across all vintages • EBITDA: Improvement driven by operational efficiency and cost management $75.6m $49.2m $17.9m $0.05m Cash Collections1 EBITDA EBIT NPAT 1H23: $68.3m 1
Slide 5: 1H24 Financial Highlights
1H24 Financial Highlights • Quality PDP Investment: significant PDP investment opportunities exist at better than historical IRRs • Estimated Remaining Collections (“ERC”): forecast of strong cash collections • PA Portfolio: reflects the solid paydown of PAs; will contribute ~50% of FY Cash Collecti
Slide 6: Financial Performance
Financial Performance
Slide 7: 1H24 Profit or Loss
1H24 Profit or Loss Profit or Loss ($’m) 1H23 1H24 % KEY CALL OUTS 68.0 Cash Collections 70.7 4% • Consecutive profitable halves (2H23, 1H24) with Other income 0.3 4.9 >100% profit expected to materially increase going forward Total Revenue 68.3 75.6 11% • Expenses within budget inc. ~$1m non-recurr
Slide 8: 1H24 Balance Sheet
1H24 Balance Sheet Balance Sheet ($’m) Jun-23 Dec-23 KEY CALL OUTS Assets • PDP assets reflect quality investment Cash and cash equivalents 8.4 9.2 Trade and other receivables 1.5 1.2 o Borrowings increased to part fund PDP assets at amortised cost 304.3 340.7 • Other payables include PDPs not settl
Slide 9: About Pioneer
About Pioneer
Slide 10: Purpose and Principles
Purpose and Principles Act with purpose We see people, and seek to understand Be human We do what’s right, not what’s easy To put an end to Choose integrity We commit to making a positive debt stress difference 10
Slide 11: About Pioneer
About Pioneer • Pioneer is a debt recovery specialist that acquires and services We buy impaired credit retail finance Purchased Debt Portfolios (“PDPs”) We partner with a range of leading • PDPs are acquired from major banks, financial institutions and financial institutions to purchase non-bank le
Slide 12: Pioneer's Market
Pioneer’s Market High barriers to entry, increased regulatory oversight and greater compliance obligations underpin market share growth opportunities PIONEER MARKET POSITION MARKET ACTIVITY Pioneer has a unique servicing approach Macroeconomic • We work closely with customers to understand their sit
Slide 13: PDP Investment
PDP Investment Increasing opportunities and PDP investment are driving solid growth for FY24 PDP INVESTMENT OVERVIEW PDP INVESTMENT & PRICE1,2 • Focus on Australian banking and finance PDPs $12 0m 20% o Controls ensure appropriate investment $99.5m o No payday loans or lower-quality receivables $10
Slide 14: Portfolio Opportunity
Portfolio Opportunity TOTAL PORTFOLIO OPPORTUNITY PERFORMING PORTFOLIO GROWTH (YTD) PIONEER PORTFOLIO CAGR 10% $2.2b in receivables ~246k active customers $464m $457m $459m $377m $356m PERFORMING WIP PORTFOLIO PORTFOLIO $290m $1.7b $459m in receivables in receivables Jun-19 Jun-20 Jun-21 Jun-22 Jun-
Slide 15: Customer Outcomes
Customer Outcomes Strong NPS1 demonstrates our genuine care for our customers NPS MEASURING CUSTOMER EXPERIENCE DIFFERENTIATED APPROACH ✓ Performance: Servicing model that drives customer +19 (43) First (1) New +21 Ongoing +40 Settled engagement, payments and shareholder returns ✓ Compliance: Robust
Slide 16: Alignment to Shareholders
Alignment to Shareholders Management is aligned to shareholders and long-term sustainable growth; no short term incentives COMPANY OWNERSHIP Shareholdings # Shares % Holding Keith John 17.2m 15% Board and Management (exc. Keith John) 2.9m 3% Mr James Simpson 11.3m 10% Nomura 9.1m 8% Other 71.9m 64%
Slide 17: Outlook
Outlook
Slide 18: FY24 Outlook
FY24 Outlook Pioneer expects continued growth; greater market share as a preferred purchaser of high-quality Australian bank originated customers Continued industry Strong tailwinds for PDP Reduce cost of Realise operating Material uplift in NPAT regulatory focus opportunities funds leverage • Conti
Slide 19: Thank you.
Thank you.