Small Cap Virtual Investor Showcase Presentation

Good morning. Welcome to Pioneer Credit's presentation for wholesale investor. My name is Keith John, and I'm the Managing Director of Pioneer. Pioneer is an ASX-listed, Australian-based financial services provider that specializes in acquiring and servicing retail debt portfolios, predominantly out of the major banks. We operate in a sector where traditionally about 80% of all volume has gone to four players. In recent times, that's changed, and Pioneer is now the second largest acquirer of portfolios out of those banks in Australia.

Our business model is based around being differentiated in the way that we both acquire portfolios, but more importantly, in the way that we service them, such that banks prefer us over others and sell to us because we are seen as a very safe pair of hands that protects both the customer and our vendors' brand.

Pioneer's differentiated approach starts with the way that we acquire portfolios focused again mainly on the big banks. We do not acquire lower customer segments like payday loans, for example. Our business is really focused on the higher performing segments, customers with the propensity to heal, and those that we can genuinely help. We have a strong range of relationships across all of the vendors in the market and something that's very highly respected by Pioneer and by those vendors, such that we are always included in their conversations about what portfolios might be available for us to invest in.

Our disciplined acquisition of these portfolios is really underpinned by our analytics and understanding what is a fair price that we can pay for them, such that we can make a commercial return whilst also, of course, providing a very, very secure and safe service to the customers that we service. Ultimately, our business strives to do one thing very, very well, and that is to do the right thing all the time. That is in the way that we treat our people, the way that we look after our shareholders, our vendors, and of course, our customers.

One of the ways that we demonstrate our differentiation is through Net Promoter Score. Pioneer has a Net Promoter Score of plus 23 at our most recent lookback, and it's an amazing testament to the service that we provide to customers that are having a tough time.

Our compliance regime is very, very solid and one of the things that differentiates this business from others. We're regarded and we are renowned for having a great offering that looks after our customers and also underpins the way that we represent the banks that we deal with.

We have a board and a management team with extensive experience, who are here to guide the business and also to protect shareholders' interests at all times.

From a performance perspective, you'll see that over time we've had great performance that continues to increase. One of the very key parts of our business is our portfolio. We've invested almost $500 million over the course of the last few years, and we recovered some $700 million to date with much more to go. Our portfolio has a value of about $1.9 billion in Australian dollars in recoveries that are due to us. And whilst we won't recover all of that, we do have a performing arrangements book, almost like a performing loan book, of about $370 million today and about $1.5 billion that we are working through with those customers so that they can perform and, of course, that we can get a commercial return as well.

In terms of the outlook for this business, there's a range of programs of work that are going on. Of those programs, it is about underscoring the validity of this business and why we are successful. And from there, it's about increasing the operating leverage and releasing that such that more of the profits flow to the bottom line. One of the key aspects of that is we are currently undergoing a refinancing to reduce the cost of funding, and it's a program of work that we hope to have cleared and finalized in the coming months.

Finally, in terms of outlook, Pioneer has guided the market to investment of $37 million. This is an amount that's less than we've invested in previous years, reflective of the changed environments caused by the pandemic, however, one that we expect to grow dramatically in the next couple of years. In terms of our earnings, we've got the market to an amount that is EBITDA of greater than $55 million. A lot of that money is reinvested back into our business, into growth.

We thank you for your time today. Hope you've enjoyed the presentation, and look forward to welcoming you as a shareholder soon.