Pioneer Credit Ltd · ASX:PNC
Pioneer Credit — Shareholder Meeting (November 2021)
25 slides from Pioneer Credit's shareholder meeting presentation, Nov 1, 2021
Slide 1: 2021 AGM Presentation
1 November 2021 2021 AGM Presentation Senior Facility Refinance & Balance Sheet Strengthening
Slide 2: Important notice: Disclaimer
Important notice: Disclaimer 2 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 i
Slide 3: Overview
Overview 3 A greatly enhanced capital structure returns Pioneer to profit, and positions the Company for growth $200m, 4 Year Revolving Senior Facility Pioneer will $60m, 5 Year Medium Term Notes • Continue its customer support programmes, which underpin growing and sustainable revenue $5.4m1 equity
Slide 4: Debt Funding
Debt Funding 4 Enhanced capital structure returns Pioneer to profitability and positions the Company for growth SENIOR REVOLVING DEBT FACILITY PDP Asset - Face Value • $200m senior revolving debt facility $395m $1.5b o Tranche 1: $125m (drawn) Senior facility o Tranches 2 & 3: $75m (part drawn and r
Slide 5: Equity Issue
Equity Issue 5 Strongly supported, fully subscribed, equity issue at a material premium to market EQUITY ISSUE SHARE HOLDING 1 • Pioneer has raised $5.4m in new equity • Issued 9m shares @ $0.60 per share 18% • Undertaken at a 28% premium to last traded price • Total securities on issue now 88,149,0
Slide 6: Year to Date
Year to Date
Slide 7: Performance to October 2021
Performance to 31 October 2021 7 Resilient liquidations, on declining PDP investment, which has now turned, and sets Pioneer for measurable uplift in FY22 liquidations, and thereafter expected to grow materially in FY23 & FY24 Key Metrics Oct-19 Oct-20 Oct-21 Strong start to FY22 • Liquidations of ~
Slide 8: Business Strategy
Business Strategy
Slide 9: Our Culture
Our Culture 9 The Pioneer Principles are the foundation of our Company Selfless Unlimited Technical Unwavering Fearless Clear Loyalty Accessibility Competence Passion Vision Communication Put your team and Be available when Be relentless in The fire inside you Don’t be afraid to Learn to connect com
Slide 10: Business Model
Business Model 10 Pioneer is differentiated by its approach of providing high-quality, flexible and customised financial solutions to help customers reach their financial goals • Data-driven portfolio selection and performance Resilient Portfolio • Focused on product segments where customers are wor
Slide 11: Differentiated approach
Differentiated approach 11 Pioneer's four key pillars drive the best possible customer experience • Pioneer takes a long-term view and focuses on finding the right solution for each customer Solution Focused • Give customers the information and options they need to reduce their debt for good • Pione
Slide 12: Executing our strategy: Outlook for FY22
Executing our strategy: Outlook for FY22 12 Pioneer is well positioned, and is benefiting from improving market conditions Refinance completion Grow Performing Arrangements • Significantly more favourable terms and lower cost of funds • Resilience of PA portfolio expected to continue to weather macr
Slide 13: B Corp Certification
B Corp Certification 13 Pioneer is on track for B Corp Certification – for Environmental, Social and Governance practices APPLICATION STATUS NEXT STEPS • B Corp Certification recognises a commitment to a high standard of • B Corp certification requires purpose and stakeholder provisions in a Constit
Slide 14: Revenue
Revenue
Slide 15: Liquidations & Purchasing
Liquidations & Purchasing 15 Despite a significant drop in PDP purchases as a result of COVID-19, Pioneer has maintained consistent liquidations HISTORICAL LIQUIDATIONS ($m) PDP INVESTMENT AND AVERAGE INVESTMENT PRICE cents per $ $m 0.20 90 $118m 80 $105m $102m $101m $95m 70 0.15 60 $71m 50 0.10 $62
Slide 16: Forecast financial performance
Forecast financial performance 16 Strong liquidations, with scale efficiency is driving increasing free cash flow and profitability Forecast Profit or Loss ($’000) Dec-21 Jun-22 All figures presented are Statutory (without any normalisations) Liquidations revenue 50,012 105,667 • 1H22 financial resu
Slide 17: Balance Sheet
Balance Sheet
Slide 18: Active Portfolio - Oct-21
Active Portfolio - 31 Oct-21 18 Pioneer has a PDP portfolio of $1.9bn - the majority originating from Australian banks; with a significant opportunity to deepen returns Strong portfolio with ~$1.9bn outstanding Opportunity of ~$1.5bn WIP PORTFOLIO & PERFORMING ARRANGEMENTS PIONEER PORTFOLIO ~229k ac
Slide 19: Performing Arrangements Portfolio
Performing Arrangements Portfolio 19 $395m of receivables, growing at 19% CAGR, delivering long term sustainable revenue Maintained growth through contracted purchasing High quality portfolio PERFORMING ARRANGEMENTS PORTFOLIO BALANCE ($m) PERFORMING ARRANGEMENTS PORTFOLIO OVERVIEW CAGR = 19% 34,822
Slide 20: Forecast financial performance
Forecast financial performance 20 Cautious approach to PDP valuation remains, with Balance Sheet positioned for growth Forecast Balance Sheet ($’000) Dec-21 Jun-22 Current at 31 Oct-21 Assets • Cautious approach to PDP valuation remains, with Balance Sheet positioned for growth Cash and cash equival
Slide 21: FY22 Guidance
FY22 Guidance
Slide 22: FY22 Guidance
FY22 Guidance 22 A significant turnaround forecast for FY22, and expected earnings growth in FY23 and beyond FY21 FY22 Guidance Liquidations $95m > $105m PDP Investment $31m > $41m EBITDA $54m > $59m NPAT ($19m) > $1.5m
Slide 23: Appendices
Appendices
Slide 24: Board & key management
Board & key management 24 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 Deputy Chai
Slide 25: Key Terms – Senior and Subordinated Facilities
Key Terms – Senior and Subordinated Facilities 25 SENIOR FACILITY SUBORDINATED MEDIUM TERM NOTE Facility Senior secured term and revolving corporate debt facility Facility Subordinated term note Size $200 million Size $60 million Maturity Nov-25 Maturity Nov-26 Establishment fee 2.50% MTN Margin BBS