Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — Investor Presentation (May 2023)
20 slides from Pioneer Credit's investor presentation, May 8, 2023
Slide 1: YTD Performance Update & Investor Presentation
YTD Performance Update & Investor Presentation May-23
Slide 2: Important Notice: Disclaimer
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 inf
Slide 3: YTD Performance Update
YTD Performance Update 3
Slide 4: 3Q23 Highlights
3Q23 Highlights • Record Cash Collections 1,2 - Up 49% on pcp, as performance continues from PDP investments; volume driven through CASH COLLECTIONS1,2 PDP INVESTMENT2 continually increasing vendor preference for Pioneer $32.4m $7.5m 3Q22: $21.7m 3Q22: $20.4m • Record EBITDA2 & EBIT 2 – Up 90% and 7
Slide 5: 9 mths to 31 Mar 23 Highlights and Outlook
9 mths to 31 Mar 23 Highlights and Outlook • Cash Collections1,2 – on track for a record full year, driven by CASH COLLECTIONS1,2 PDP INVESTMENT2 disciplined PDP investments (eg no payday loans); ensures a $100.4m $50.3m resilient customer portfolio in a quickly moving economy YTD 3Q22: $70.3m YTD 3
Slide 6: Business Overview
Business Overview 6
Slide 7: We're here to put an end to debt stress.
Be human We’re here to put an end Choose integrity to debt stress. Act with purpose 7
Slide 8: About Pioneer
About Pioneer Ethical debt recovery, underpinned by industry leading compliance record We buy impaired credit We provide flexible solutions We focus on customer care • We partner with a range of leading • We tailor solutions to help our • Our high Net Promoter Score (‘NPS’) financial institutions to
Slide 9: Our Focus
Our Focus Driven by a strong purpose: to put an end debt stress Customer Care Flexible Options We Give Back • We treat our customers with • We don’t offer a one-size-fits-all • We proudly champion a large range empathy and respect approach of community projects • We equip our customers with the • We
Slide 10: Investment Highlights
Investment Highlights Top 2 Australian Strong Vendor Sustainable & We Do The Right Best In Class Player Relationships Growing Income Thing Management Team • Market consolidation • Preferred purchaser of • Risk diverse performing • Strong risk and • Extensive experience supporting our Top 2 high-qual
Slide 11: PDP Investment
PDP Investment Disciplined PDP investment; investment into portfolios that will generate strong returns 0.25 PDP Investment & Investment Price1 140 cents per $ $m 0.20 120 18 Different Vendor Partners 100 0.15 80 Ample opportunities expected in 4Q23 0.10 Guidance 60 $61.0m 40 $61m PDP Investment Gui
Slide 12: Cash Collections
Cash Collections Significant investment in last 12 months, has shifted cash collections profile to newer vintages Cash Collections by Vintage 15% 20% 22% 30% 11% 33% 32% Strong collections from new and old 11% 15% vintages showing depth of the portfolio 18% 16% 10% 22% 20% 18% 11% 27% 15% 56% 45% 45
Slide 13: Performing Arrangement Portfolio
Performing Arrangement Portfolio $456m performing arrangement portfolio; resilient customer base with low direct exposure to rising interest rates, providing sustainable cashflow Performing Portfolio Growth 40k Customers $464m $456m $377m $356m 86% Australian Bank Originated $257m $290m 13% CAGR Jun
Slide 14: Customer Treatment
Customer Treatment Proven customer first service, validated by NPS1; and an enviable compliance record NPS MEASURING CUSTOMER EXPERIENCE ETHICAL DEBT RECOVERY ✓ Policy of no payday loans as part of portfolio +26 (33) First Contact +34 New Payers +43 Ongoing Payers +24 Settled Payers ✓ Staff are enab
Slide 15: Positive FY23 Outlook
Positive FY23 Outlook Thrive under Capitalise on PDP Grow performing Improving Realise operating increased investment arrangement macroeconomic leverage regulatory scrutiny opportunities portfolio conditions • Continued investment • $50m investment YTD • Risk diverse performing • Continue investment
Slide 16: Appendices
Appendices 16
Slide 17: Capital Structure
Capital Structure Significant level of Board and Management ownership Shareholder Profile 16% • Founder & MD Keith John owns 16% (including in-the- Keith John money options) 5% Board and Management (ex Keith John) 111.9m • Board and Management own 5% (including FPO 7% Mr James Simpson performance ri
Slide 18: Board of Directors
Board of Directors Steve Targett Keith John Peter Hall Michelled’Almeida Chairman Managing Director Non-Executive Director Non-Executive Director • Significant board and • Founder of Pioneer Credit • Significant experience • Significant digital executive experience across financial services, transfo
Slide 19: Executive Leadership
Executive Leadership Sue Symmons Barry Hartnett Andrea Hoskins Joe Terribile General Counsel & Co. Secretary Chief Financial Officer Chief Operating Officer Chief Information Officer • Over 25 years’ experience • 9 years’ at Pioneer across • Strategic and commercial • Chief Information Officer inclu
Slide 20: Oionee
Oionee cer