Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — Investor Presentation (December 2014)
32 slides from Pioneer Credit's investor presentation, Dec 9, 2014
Slide 1: ASX Release: Investor Presentation
9 December 2014 For personal use only ASX Release For Immediate Release Investor Presentation Pioneer Credit Limited (’Pioneer’) is pleased to release this Investor Presentation ahead of an Institutional Investor and Stockbroker Roadshow being conducted this week by Managing Director Keith R. John a
Slide 2: Investor Presentation
For personal use only INVESTOR PRESENTATION 9 December 2014 1
Slide 3: Company Profile
Company Profile For personal use only Pioneer is an Australian financial services provider, specialising in acquiring and servicing unsecured retail debt portfolios. These portfolios consist of people with financial obligations to Pioneer who, as our customers, are the cornerstone of Pioneer’s busin
Slide 4: A Simple Business Strategy
A Simple Business Strategy For personal use only Leadership Effective Service Compliance Principles Relationships Excellence People & Culture Vendor Partnerships Operational Strategy Dispute Resolution Customers Brand Equity World Class Advisors Community Audit & Review Engagement Profit & New Consu
Slide 5: Leadership Principles
For personal use only Leadership Principles 4
Slide 6: Leadership Principles
Leadership Principles For personal use only Underpin the Pioneer approach in every aspect of our business 5
Slide 7: People and Culture: Recruitment and Selection
People and Culture For personal use only Recruitment and Selection Dedicated team of Recruitment and Learning & Development Professionals Recruitment and selection run in house Recruitment based solely on alignment to Pioneer Leadership Principles ‘Select the behaviours, develop the skills’
Slide 8: People and Culture: Employee Development Program
People and Culture For personal use only Employee Development Program Introduction to culture along with foundational knowledge and skills delivered over 2 weeks in a classroom environment Layers of complexity added over the next 10 weeks through structured ‘on the job’ training, self evaluation
Slide 9: Effective Relationships
For personal use only Effective Relationships 8
Slide 10: Effective Relationships – Vendor Partners
Effective Relationships – Vendor Partners For personal use only Pioneer builds relationships with financial institutions that have similar standards for risk assessment, retail credit origination and brand values that are aligned with our own The customer segments acquired by Pioneer are all similar
Slide 11: Effective Relationships – Disciplined Capital Allocation
Effective Relationships – Disciplined Capital Allocation For personal use only Pioneer purchases retail consumer accounts Historical Aggregate Portfolio Investments2 at ~180 days overdue Total face value = $641m1 Total investment at Cost = $95.4m 3 Carrying Value = $65.8m 1 Purchase predominantly
Slide 12: Effective Relationships – Disciplined Capital Allocation
Effective Relationships – Disciplined Capital Allocation For personal use only Portfolio Investment ($m) and Average Agreements with three of the four ‘big banks’ Price Historical average portfolio purchase price of 14.3c1 - long term 45.0 0.20 pricing disciplined supported and maintained 40.0 0
Slide 13: Effective Relationships - Community
Effective Relationships - Community For personal use only The Shepherd Centre Pioneer Credit Financial Hardship Program Toy Box International Western Australian focused Children’s Charity Financial Counsellors Association of Western Australia Major supporters of Financial Counsellors Network Communi
Slide 14: Service Excellence
For personal use only Service Excellence 13
Slide 15: Customer Service Excellence
Customer Service Excellence For personal use only Customer Service - Account Management Model First call resolution (PAs, settlements, hardship) Increased customer satisfaction Improved compliance Customer service team empowerment Lower servicing cost that improves cost efficiency Focus on
Slide 16: Compliance
For personal use only Compliance 15
Slide 17: Leading in commercial compliance behaviour
Leading in commercial compliance behaviour For personal use only Transparency Vendors provided unfettered access to business Collaborative approach to vendor engagement Genuine focus on “Better Practice” Sector leading financial statement disclosure Customer Dispute Resolution Proactive an
Slide 18: Leading in commercial compliance behaviour
Leading in commercial compliance behaviour Positive Differentiation For personal use only Credit risk moves to Pioneer, brand risk stays with vendor partner Focused effort on a “Commercial Compliance” program – facilitating best possible customer outcomes Customer interaction is quality measur
Slide 19: Leading in commercial compliance behaviour
Leading in commercial compliance behaviour For personal use only Pioneer Industry During FY14 Volume Volume1 customers active during the period 69,531 * total customer contacts 1,130,423 * average contacts per customer ~16 * customer accounts escalated to internal 1.69% * compliance team customer co
Slide 20: Compliance – Corporate Governance
Compliance – Corporate Governance For personal use only Majority Independent Non-Executive Directors and Independent Chairman Five member Board of Directors Keith R. John – Founder and Managing Director Michael Smith (Independent Chair) – Chair iiNet Ltd, Deputy Chair Automotive Holdings Group
Slide 21: Sustainable Earnings Growth
For personal use only Sustainable Earnings Growth 20
Slide 22: Customer Service Excellence – Annuity Arrangement Stream
Customer Service Excellence – Annuity Arrangement Stream For personal use only Payment Arrangement Book 1 Two types of Payment Arrangements: Payment Arrangement Book Current Balance – Scheduled Payment Arrangements - periodic payments are made ($m) at 30 September 2014 with interest at an agreed r
Slide 23: Liquidation of purchased debt portfolios (PDP)
Liquidation of purchased debt portfolios (PDP) For personal use only PDP Liquidation ($m) 1 22 Demonstrated performance across entire portfolio with 20 9% greater contributions from older part of portfolio 18 16 17% 4% 27% of customer payments receipted in 2H14 from 14 16% 12 4% 27% portfolios >
Slide 24: Strong Earnings Growth
Strong Earnings Growth For personal use only Key financials are attractive and reflect strong sustainable growth (A$ m) Historical Forecast P&L FY12A FY13A FY14A FY15F 1H15 Customer Payments represents ~40% of FY15 in Customer Payments 14.3 23.4 37.5 57.4 line with prior periods. Change In Value O
Slide 25: Capital Management
Capital Management For personal use only Strong cash generation has positioned Pioneer with solid cash reserves to fund future growth Abridged Balance Sheet at 31 October 2014 (A$ m) Assets Disciplined purchasing strategy protects that cash Cash And Cash Equivalents 5.1 Purchased customer port
Slide 26: Future Growth
For personal use only Future Growth 25
Slide 27: Significant Growth Opportunity
Significant Growth Opportunity For personal use only Pioneer has multiple growth opportunities outside the retail consumer debt market Growth within existing market segment ~12% market share based on FY15F portfolio investments Directors believe this market share can be significantly increased S
Slide 28: Board & Senior Management
For personal use only Board & Senior Management 27
Slide 29: Experienced Board and Management Team
Experienced Board and Management Team For personal use only Pioneer’s Founder and Managing Director Keith John and his Directors are committed to driving the future success of Pioneer Appointed Non-Executive Chairman of Pioneer in February 2014 Michael Smith Managing Director of strategic market
Slide 30: Experienced Board and Management Team
Experienced Board and Management Team For personal use only Pioneer’s Founder and Managing Director Keith John and his Directors are committed to driving the future success of Pioneer Commenced with Pioneer in 2009 and is responsible for Pioneer’s compliance framework Richard Brown Highly regard
Slide 31: Disclaimer
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 considered to be comp
Slide 32: Contacts
Contacts Investors / Media For personal use only Keith R. John Managing Director P: 08 9323 5001 E: krjohn@pioneercredit.com.au David Ikin Senior Counsel Professional Public Relations P: 08 9388 0944 / 0408 438 772 E: david.ikin@ppr.com.au Pioneer Credit Limited ABN 44 103 003 505 Registered Office:
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