5% Growth Achieved in FY21 by ASX-Listed Financial Services Business

“Pioneer specialises in acquiring and servicing non-performing retail and commercial debt, which is a fundamental part of the financial services ecosystem. After safely navigating recent macroeconomic conditions, Pioneer is well-positioned to benefit from improving market conditions and continues to grow using free cash flows for PDP investments, with undrawn facilities available for “out of sight” opportunities.

Our strong risk and compliance framework enabled us to thrive in an environment of increasing regulation and scrutiny. Our growing performing arrangement portfolios and solid operational performance are assisting negotiations in refinancing our current facility at a more favourable price.

Keith John, Co-founder, Pioneer Credit

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Executive Summary

Pioneer (“PNC”) is an ASX-listed financial services business based in Perth, Western Australia, specialising in acquiring and servicing non-performing retail and commercial debt portfolios.

PNC acquires impaired or non-performing debt portfolios (“Purchased Debt Portfolios” or “PDPs”) from various vendors, with the majority sourced from Australian banks, non-banks, and regional lenders. Through this approach, PNC sets itself apart from contingent debt collectors, particularly those who service impaired and typically younger debt on behalf of vendors without taking legal ownership of the impaired debt.

Four industry experts founded PNC in May 2009. It now employs over 350 FTEs, across Australian and Manila call centres, including corporate and legal staff.

Investment Highlights

Strong Financial Performance

  • In 1H21, the company saw a record 1H EBITDA of $27.3M and an NTA per share of 74.24c, materially above the prevailing share price.
  • Heavily invested Board and Management – 23% on a fully diluted basis.
  • Pioneer’s Performing Arrangement book also continues to grow, with an outstanding balance of over $376M.

Resilient Portfolio

  • Data-driven portfolio selection and performance.
  • Pioneer focuses on product segments where customers are working on getting ahead.
  • The company excludes payday lending and short-term cash loans.

Strong Vendor Relationships

  • Pioneer specialises in acquiring low risk portfolios from Australian and international banks.
  • The company maintains strong relationships with Australian financial institutions and its #2 leading position in the sector.

Disciplined PDP Acquisition

  • Disciplined underwriting, pricing, risk assessment, and liquidations support reasonable liquidation performance against initial expectations.
  • Pioneer’s purchasing focuses on higher quality ‘Tier 1’ portfolios.

Do the Right Thing

  • Pioneer respects and cares for its customers. It differentiates itself through its positive Net Promoter Score (NPS) and compliance record.
  • The company has a dedicated team to identify and support customers experiencing hardship.
  • Legal action is used sparingly and only after all other options are exhausted.

Investment Offering

You can invest in Pioneer on the ASX under the ticker “PNC”.

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