Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — FY2022 Earnings Presentation
18 slides from Pioneer Credit's earnings presentation, Aug 31, 2022
Slide 1: FY22 Financial Results
31 August 2022 FY22 Financial Results
Slide 2: Important Notice: Disclaimer
Important Notice: Disclaimer 2 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 c
Slide 3: Performance
3 SECTION 1 Performance PERFORMANCE | PIONEER PORTFOLIO | OUTLOOK
Slide 4: FY22 Financial Performance Highlights
FY22 Financial Performance Highlights 4 13% increase in liquidations; largest annual PDP investment LIQUIDATIONS EBITDA NET REVENUE $106.8m $60.6m $54.3m FY21: $94.7m FY21: $54.4m FY21: $53.4m ▲ 13% ▲ 11% ▲ 2% NET ASSETS PER PDP INVESTMENT NPAT SHARE1 $99.5m 60.6c ($33.1m) Largest annual Materially
Slide 5: FY22 Strategy Highlights
FY22 Strategy Highlights 5 FY22 goals achieved; strategy execution gathering pace Refinanced senior facility to Two successful capital Capitalised on opportunities Invested in multiple Grew Performing reduce funding costs raises at a premium to grow PDPs performing portfolios Arrangement portfolio •
Slide 6: FY22 Profit or Loss
FY22 Profit or Loss 6 Liquidations drive EBITDA 11% higher to $60.6m Profit or Loss ($’000) FY21 FY22 • Strong liquidations of $106.8m (+13% on prior year) driven by: Liquidations revenue 94,717 106,752 o Continuing improvements in operational performance Other income 2,920 605 o A small contributio
Slide 7: FY22 Balance Sheet
FY22 Balance Sheet 7 PDP investment, and performing arrangements growth, pushes PDP value 19% higher Balance Sheet ($’000) FY21 FY22 • PDP assets of $295.5m (+19% or $46.4m on prior year) Assets o Includes $464m Performing Arrangements portfolio Cash and cash equivalents 10,373 23,071 o Includes ~$1
Slide 8: Funding Structure
Funding Structure 8 $289.6m of facilities, with $26.3m headroom; below average leverage and decreasing PIONEER FUNDING (30 Jun-22) PEER LVR COMPARISON Senior & Subordinated Debt ($m) Drawn Undrawn Total Available Pioneer’s LVR compared to largest (by liquidations) listed international participants F
Slide 9: Pioneer Portfolio
9 SECTION 2 Pioneer Portfolio PERFORMANCE | PIONEER PORTFOLIO | OUTLOOK
Slide 10: PDP Investment
PDP Investment 10 Growing cumulative liquidations over investment shows long term investment discipline Strong returns beyond investment Disciplined purchasing at attractive pricing points throughout FY22 CUMULATIVE LIQUIDATIONS VS. CUMULATIVE INVESTMENTS ($m) PDP INVESTMENT AND AVERAGE INVESTMENT P
Slide 11: PDP Portfolio
PDP Portfolio 11 ~41,700 performing arrangements; $1.5bn receivables opportunity, mainly from Australian banks PORTFOLIO OVERVIEW PERFORMING PORTFOLIO GROWTH ($m) CAGR = 16% PERFORMING PORTFOLIO $464m $464m in receivables $377m $356m PIONEER PORTFOLIO INSOLVENCY ARRANGEMENTS $2.0bn in receivables $5
Slide 12: Customer Experience
Customer Experience 12 Proven customer-first service, validated by NPS1; and an enviable compliance record NPS OVERVIEW MEASURING CUSTOMER EXPERIENCE ETHICAL DEBT RECOVERY CONTINUED INVESTMENT ✓ Our purpose is to ‘put an end to debt • Review of customer experience stress’ (28) +17 +38 +37 o Flexibil
Slide 13: Outlook
13 SECTION 3 Outlook PERFORMANCE | PIONEER PORTFOLIO | OUTLOOK
Slide 14: FY23 Outlook
FY23 Outlook 14 With market tailwinds, our strategy execution continues for a return to profitability Further capitalise on PDP Focus on appropriate vendor Grow Performing Thrive under increased Realise investment opportunities and product depth Arrangement portfolio regulatory scrutiny operating le
Slide 15: Appendix
15 Appendix
Slide 16: Board & Executive Management
Board & Executive Management 16 Board of Directors Executive Leadership Michael Smith - Chairman • Managing Director of strategic marketing consultancy firm Black House Keith John - Managing Director • Chairman of 7-Eleven Stores and Starbucks Australia • Founder of Pioneer Credit • Previously Deput
Slide 17: FY22 Statutory Profit or Loss
FY22 Statutory Profit or Loss 17 Continuing Operations ($’000) FY21 FY22 Interest income at amortised cost 57,020 62,594 Net impairment (loss) gain on PDPs (4,286) (8,913) Other income 662 653 Total Income 53,396 54,334 Employee expenses (30,634) (33,176) Finance expenses (26,699) (39,131) Direct li
Slide 18: Thank you
18 Thank you