CURO Group Holdings Q3 2017 Investor Presentation Disclaimer - - PowerPoint PPT Presentation

CURO Group Holdings

Q3 2017 Investor Presentation

1

Disclaimer

IMPORTANT: You must read the following before continuing. This presentation has been prepared by CURO Group Holdings Corp. and its subsidiaries (collectively, the “Company”) and is being provided to you for informational purposes only. The Company has filed a registration statement on Form S-1, including a preliminary prospectus, with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the offering to which this presentation relates, which has not yet become effective as of the date hereof. An offering may only be made by means of an effective registration statement (including a prospectus) filed with the SEC. Before you invest in the Company’s securities, you should read the preliminary prospectus included in the Company’s registration statement on Form S-1 for more complete information about the Company and the offering. You may obtain those documents for free, including after the registration statement on Form S-1 becomes effective, by visiting EDGAR on the SEC website at www.sec.gov. This presentation contains forward-looking statements. All statements other than statements of historical fact included in the presentation are forward-looking statements. Forward- looking statements give the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and

• business. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,”

“anticipate,” “assume,” “budget,” “continue,” “estimate,” “future,” “objective,” “outlook,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and

• ther words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors

beyond the Company’s control that could cause the Company’s actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the future. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will

• ccur. The forward-looking statements herein speak only as of the date hereof. Factors or events that could cause our actual results to differ from the statements contained herein

may emerge from time to time, and it is not possible for us to predict all of them. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. The Company discloses EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin, which are not measures defined by U.S. generally accepted accounting principles (“GAAP”). Such measures are intended as a supplemental measure of the Company’s performance that are not required by, or presented in accordance with, GAAP. The Company presents EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin because it believes that, when viewed with the Company’s GAAP results and the accompanying reconciliation, such measures provide useful information for comparing the Company’s performance over various reporting periods as they remove from the Company’s operating results the impact of items that the Company believes do not reflect its core operating

• performance. EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin are not substitutes for net earnings, cash flows

provided by operating activities or any other measure prescribed by GAAP. There are limitations to using non-GAAP measures such as EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin. Although the Company believes that EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin can make an evaluation of its operating performance more consistent because they remove items that do not reflect its core

• perations, other companies in the Company’s industry may define EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin

differently than the Company does. As a result, it may be difficult to use EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin to compare the performance of those companies to the Company’s performance. EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin should not be considered as measures of the income generated by the Company’s business or discretionary cash available to it to invest in the growth of its business. The Company’s management compensates for these limitations by reference to its GAAP results and using EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross Combined Loans Receivable and Adjusted EBITDA Margin as supplemental measures. A reconciliation of EBITDA and Adjusted EBITDA to net income can be found on slide 28 of this presentation. A reconciliation of Adjusted Earnings to net income can be found on slide 29 of this presentation. A reconciliation of Gross Combined Loans Receivable to Company-owned Gross Loans Receivable can be found on slide 24 of this presentation. The presentation is confidential and may not be reproduced, redistributed, published or passed on to any other person, directly or indirectly, in whole or in part, for any purpose. This document may not be removed from the premises, and by accepting this document and attending the presentation, you agree to be bound by the foregoing limitations. If this document has been received in error it must be returned immediately to the Company.

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Our mission, vision and values

• rigin: Latin

verb: to provide money

curo

cur·o \ˈkyu ̇ r-ō Leading with humility

Winning with integrity Thriving on change

Building relationships based on

trust, honesty and respect

Keeping our

commitments

Executing with urgency and

passion

Powering innovation for underbanked consumers

II I

3

Key investment highlights

VII VI III V IV

Leading large scale lender to underbanked consumers with track record of profitability across credit cycles Omni-channel platform supports strategy, enhances customer experience and drives superior performance Diversified revenue base derived from comprehensive product offerings and broad geographic footprint Large and growing market that is underserved by traditional finance companies and banks Dynamic marketing strategy generates strong customer growth and optimizes customer acquisition costs Proprietary, bespoke IT platform underpins underwriting and is supported by a robust compliance culture Significant growth opportunities with sustainable competitive advantages

$22 $70 2010 Q3 2017 LTM

4

Leading large scale lender to underbanked consumers with track record of profitability across credit cycles(1)

I

$49 $212 2010 Q3 2017 LTM

$204 $916 2010 Q3 2017 LTM

Single-pay Installment and other

Adjusted earnings Adjusted EBITDA Gross revenues

Selectively expanded into additional states Launched online lending platforms Mobile optimized sites and apps

1997 – 2007 Focused branch development in U.S. 2008 – 2013 Channel, product and geographic diversification 2014 – Present Broad product diversification and brand development

Raised over $1.1 billion of debt financing since 2008 $13.9 billion of total credit extended since 2010 Bespoke IT platform development Company founded with first location in Riverside, California International expansion to Canada and the U.K. Began offering installment loans Installment loan product expansion Refined best-in-class omni- channel platform Launched analytical brand marketing

(1) Leading large-scale lender in terms of revenue.

5

II

Distinctive and recognizable branding Category-killer stores promote brand awareness Synergistic lead funnel for storefront channel Enhances customer experience

89% 67%

$22.5 $273.4

2010 2016

($ in millions) ($ in millions)

$181.7 $555.2

2010 2016

% of total revenue

11%

% of total revenue

33% Store revenue(3) Online revenue

Over 80% of web visitors are on mobile(1)

We source customers from a broad base with high retention rates

Convenient locations typically open 7 days per week Site to store: over 14,000 customers per month(2)

(1) Based on Q3 2017. (2) Includes new and reactivated customers. (3) Calculated as total revenue less online revenues.

Storefront Digital / Mobile

Omni-channel platform supports “Call, Click or Come-in”

Higher approval rates with better credit performance

6

III

$1,299

` `

Single-pay

$335

Segment revenue by product Unsecured installment Secured installment Open-end Online and in-store: 15 U.S. states, Canada and the United Kingdom(1) Channel Approximate average loan size(2) Online and in-store: 7 U.S. states Online: KS, TN, ID, UT, VA, DE and RI In-store: KS and TN Online and in-store: 12 U.S. states, Canada and the United Kingdom(1)

$636 $463

Duration

Up to 48 months Up to 42 months

Revolving / Open-ended

Up to 62 days

Pricing

13.2%

Average monthly interest rate (3)

10.6%

Average monthly interest rate (3)

Daily interest rates ranging from 0.74% to 0.99% Fees ranging from $13 to $25 per $100 borrowed

Installment 58% U.S. Single-pay 12% Non-U.S. Single-pay 18% Open-end 8% Ancillary 4%

$916 million

LTM September 30, 2017 consolidated revenue

Online revenue: 37%(4)

Increasing installment & open-end focus 19% 68% 2010 Q3 2017

(% of revenue) (1) Online only in the U.K. (2) Includes CSO loans. (3) Weighted average of the contractual interest rates for the portfolio as of September 30, 2017. Excludes CSO. (4) As of Q3 2017 YTD.

Comprehensive product offering and diversified revenue

Q3 2017 U.S. Single-pay: 10.9%

7

III

Brands

2 13 36 18 3 3 10 5 92 5 7 2 8 11 26 27 4 121 1 5 6

Stores / states

Both Online Store

215 / 14 190 / 7 NA 26 states 5 provinces U.K. $696 / 76% $183 / 20% $37 / 4%

United States Canada United Kingdom

Online 39% Store 61% Online 3% Store 97% Online 100%

Online presence LTM revenue ($ / %) 2016 channel mix

($ in millions)

Broad geographic footprint

(1) Reflects current channel mix since the remaining 13 stores in the U.K. were closed in Q3 2017. (1)

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Diversified and growing revenue stream…

III

Source: Public SEC filings. Note: Financial data for the LTM period ended 9/30/2017, unless otherwise noted. (1) Q3 YoY growth rate. ($ in millions)

Revenue by product Revenue by geography Total revenue $916 $802 $649 Net revenue margin 66% 54% 46% Revenue growth 20% 11% 12%

Installment 58% U.S. single-pay 12% Non-U.S. single-pay 18% Open-end 8% Ancillary 4% U.S. 76% Non-U.S. 24% U.S. 84% Non-U.S. 16% Installment 73% Line of credit 27% U.S. 85% Non-U.S. 15% Installment loans and RPAs 45% Short-term loans 24% Line of credit accounts 31%

Larger and more diversified revenue base Strong growth

(1)

9

… with attractive profitability and strong credit profile

III

Source: Public SEC filings. Note: Financial data for the LTM period ended 9/30/2017, unless otherwise noted. (1) Net income. Elevate does not report adjusted net income. (2) Includes provisions and net charge-offs for allowance for loan losses and CSO guarantee. (3) Cost per funded loan in U.S. (4) Customer acquisition cost of Enova’s NetCredit product. Company does not report cost per funded loan on an aggregate basis. ($ in millions)

• Adj. EBITDA

$212 $155 $83

• Adj. EBITDA margin

23% 19% 13%

• Adj. net income

$70 $47 $1

• Adj. net income margin

8% 6% 0%

Net charge-offs (% of gross revenue)

29% 44% 53%

Provisions (% of gross revenue)

34% 46% 54%

Provisions (% of net charge-offs)

114% 103% 102%

New customer counts Q3 2017

185,493 NA 91,000

Cost per funded loan

$74 $400 $222

Advertising spend growth (QoQ)

38% 1% (12%)

Superior profitability Robust credit performance Lower customer acquisition cost and effective marketing

(1) (3) (4) (2) (2) (2)

10

Large and growing addressable market

IV

Large total addressable market

(1) In the U.S., Canada and the U.K.

Broad product offering expands addressable market by increasing appeal to larger proportion of consumers Combined estimated 140 million potential underbanked borrowers(1) 44% of American adults could not cover an emergency expense of $400 Favorable consumer trends 63% of respondents in a recent study do the majority

• f banking online and 43%

conduct transactions using a mobile banking app Growing preference towards installment loan products

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IV

Banks Credit unions Credit cards Marketplace lenders Broker dealers Marketplace lenders Specialized consumer lenders Non-prime Credit cards

Providers of credit to U.S. population by FICO band(1) Over 40% of U.S. consumers are underserved by traditional finance companies

Specialized consumer lenders

20.7% 19.0% 17.1% 13.2% 10.0% 8.5% 6.8% 4.7%

> 800 750–799 700–749 650–699 600–649 550–599 500–549 < 500

(1) April 2017; FICO.

$142 billion reduction in the availability of non-prime consumer credit from the 2008-2009 credit crisis to 2015

Market is underserved by traditional finance companies

12

V

Hot transfers Native advertising Outdoor advertising Radio Prescreen letters Direct mail TV SEO PPC Site-to- store Print advertising Display advertising Affiliate Integrated Global Marketing, Risk and Credit Analytics team consisting of 72 professionals Real time optimization

• f marketing spend

using credit data

Technology and analytics drive risk-adjusted revenue growth and reduce CPF

2017 Q3 CPF $74(1)

Multi-faceted marketing strategy and deep data analysis

(1) For U.S. loans.

$7.6 $15.0 $18.0 $11.6 $4.7 $8.9 $10.5 $13.1 $5.8 $9.2 $14.2 127,635 190,633 217,523 198,780 123,017 158,707 189,575 194,326 121,307 148,817 185,493 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Direct advertising spend New customers acquired

13

($ in millions)

Note: Data for North America only. 1.9 million new customers added since January 1, 2015

V

Opportunistic marketing spend drives strong customer growth while maintaining low customer acquisition cost

$- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 CPF - U.S. CPF - Canada

14

Structured, proprietary model development and deployment process Monitor operational changes to address short-term changes to risk environment

Continuous model updates Optimize loss rates and minimize effective customer acquisition costs

VI

Centralized analytics and IT platform

Installment and open-end products require more stringent credit criteria supported by more sophisticated analytics

Over 71 million applications Advanced data relevancy techniques +11,000 potential risk analytic– variables 183 IT professionals and 72 Marketing, Risk and Analytics professionals 15+ years of customer data Third-party reporting

36.5 million total loans since 2010 $13.9 billion total credit extended since 2010

Note: Data as of 9/30/2017.

15

First-pay defaults(1)

(1) Data for North America only.

Since 2015, we have decreased first-pay defaults periodically while adding 1.9 million new customers

VI

Improving credit trends while adding new customers

7% 9% 11% 13% 15% 17% 19% 21% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 U.S. Online U.S. Store Canada Online Canada Store

First-pay defaults and cost per funded loan are analyzed for optimal vintage performance

16

Over 400 regulatory exams over the past year Track record of adapting to regulatory changes across geographies Operating scale across 3 countries Flexible product platform Strong profitability

%

Introducing lower cost products across markets Vendor Risk Management Software Ongoing Vendor Monitoring and Due Diligence Strong Contract Management Enterprise-wide Customer Feedback Software Ongoing Trend Analysis Quarterly Compliance Committee Annual Independent Compliance Audit Annual Independent AML Audit Annual Independent Third Party Collector Audit Computer Based Training Solution Dedicated Training Team Proactive, Tailored and easily accessible Easily Adapts to Product & Regulatory Change Automated Disclosures, Notices & Scripts AML & Compliance Monitoring Software Proprietary Automated Internal Monitoring System Dedicated Compliance Monitoring Team

CURO believes compliance capabilities are a competitive advantage in a highly regulated market

Quarterly Board Meetings Quarterly Board Compliance Committee Meetings Strong Commitment to Compliance

VI

Robust compliance protocols

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 Continue to drive more customer growth in existing products / geographies  Data driven, cost-efficient acquisition strategy  Increase prescreen direct-mail program and add to affiliate network

Efficient customer acquisition

 New online installment loan brand, Avio Credit  New online guarantor loan product in the U.K. under new Juo loans brand  Bank partner line of credit offerings in U.S.

New product

• fferings

 Expansion of LendDirect in Canada; pilot stores open Q4 2017  Continue to explore opportunities in new high-growth markets

Geographic expansion

 Further reduce customer acquisition cost  Continued improvement in credit performance  Further expand installment loan offerings in U.S. and Canada

Operational enhancement

 Ongoing alignment of financing mix to

support future growth

Capital structure

• ptimization

CURO has developed a growth-oriented financial technology platform positioned to capitalize on numerous growth opportunities

VII

Multiple opportunities for continued growth

Financial summary

Quarter ended LTM period ended September 30, September 30,

($ in millions)

2016 2017 Growth % 2016 2017 Growth % Revenue $212.9 $255.1 19.8% $826.5 $915.5 10.8% Gross margin $67.0 $80.2 19.6% $289.5 $320.7 10.8% Adjusted EBITDA $40.7 $51.4 26.2% $179.4 $212.4 18.4% Adjusted earnings(1) $13.1 $14.2 8.7% $66.8 $70.1 4.9% 19

Continued growth and profitability

Q3 2017 performance commentary

 Average earning assets:

− Grew $54.7 million (+15.2%) sequentially

• vs. Q2 2017

− Up $83 million (+29%) vs. Q3 2016

 Revenue:

− Led by Unsecured and Secured Installment revenue growth vs. Q3 2016 of 50.8% and 32.6%, respectively − Single-Pay revenue was down $11.1 million (13.6%) vs. Q3 2016 on Canada rate changes and product changes in Alberta, Ohio and the U.K.

 Gross margin:

− Advertising spend up 37.5% vs. Q3 2016 in part because of an opportunistic initiative to gain market share − Gross margin improvement on operating leverage – non-advertising cost of providing services grew just 4% vs. Q3 2016

Note: Subtotals may not sum due to rounding. (1) Adjusted earnings defined as net income plus or minus gain (loss) on certain non-cash or other adjusting items.

Q3 2017 marked another successful chapter in CURO’s growth story with LTM adjusted EBITDA at an all-time high of $212.4 million

20 $25 $66 $70 $131 $189 $212 16% 23% 23%

2015 2016 LTM Q3'17

Adjusted earnings Adjusted EBITDA Adjusted EBITDA margin

$574 $607 $696 $185 $188 $183 $55 $34 $37 $813 $829 $916

2015 2016 LTM Q3'17 U.S. Canada U.K.

($ in millions) ($ in millions)

Total revenue Adjusted EBITDA and adjusted earnings Provision for losses (as a % of gross revenue)

$281 $258 $307 35% 31% 34%

2015 2016 LTM Q3'17

Historical financial summary

Summary income statement metrics

($ in millions) Note: Subtotals may not sum due to rounding. LTM data calculated as 2016 plus nine months ended 9/30/17 minus nine months ended 9/30/16. (1) Adjusted earnings defined as net income plus or minus gain (loss) on certain non-cash or other adjusting items. (2) Adjusted EBITDA defined as earnings before interest, income taxes, depreciation and amortization, plus or minus certain non-cash or

• ther adjusting items.

(3) Calculated as a percentage of gross revenue.

21

Historical financial summary (cont’d)

Summary balance sheet metrics

Total combined gross loans receivable

($ in millions)

$119 $134 $113 $177 $205 $45 $41 $39 $37 $39 $26 $31 $28 $27 $32 $44 $44 $50 $48 $50 $2 $23 $2 $43 $49 $15 $13 $13 $18 $18 $60 $68 $59 $62 $71 $312 $354 $303 $412 $464 2015 2016 Q3'16 Q2'17 Q3'17 U.S. Installment U.S. Single-pay U.S. Open-End Canada Single-pay Canada Installment U.K. CSO loans $31 19%

Note: Subtotals may not sum due to rounding. (1) Calculated as provisions less NCOs. YTD metrics shown for Q3 2016 and Q3 2017. (2) Total allowance for loan losses and CSO guarantee liability divided by total combined gross loans receivable. (3) Past-due balances for unsecured installment and secured installment total receivables were $41.7 million and $12.6 million, respectively. (4) Past-due balances for unsecured installment and secured installment total receivables were $51.8 million and $15.3 million, respectively. (5) CSO loans are not included in gross loans receivable reflected on the balance sheet. (3)

(4)

($1) $6 $5 16% 16% 16%

Loan loss allowance / gross receivables (%)(2) Excess provisions(1)

(5)

22

Historical financial summary (cont’d)

Consolidated summary balance sheet

December 31, September 30, November 2017 adjustments Pro-forma

($ in millions)

2015 2016 2016 2017 HY issuance IPO

• Sept. 30, 2017

Cash $100.6 $193.5 $175.4 $95.5 ($5.0) $90.5 Restricted cash $11.8 $7.8 $5.2 $11.5 $11.5 Gross loans receivable 252.2 286.2 244.6 393.4 393.4 Less: allowance for loan losses (32.9) (39.2) (33.3) (71.3) (71.3) Loans receivable, net 219.3 247.0 211.3 322.2 322.2 PP&E net 99.7 95.9 98.0 88.8 88.8 Goodwill and intangibles 177.7 172.5 175.7 178.7 178.7 Other assets 57.0 64.1 55.5 65.5 65.5 Total assets $666.0 $780.8 $721.1 $762.1 $757.1 Senior notes 561.7 538.4 538.1 449.7 $135.0 ($79.0) 505.7 U.S. SPV and ABL facilities – 86.5 – 112.1 112.1 Other liabilities 123.7 115.0 144.6 134.4 134.4 Total liabilities $685.4 $739.9 $682.7 $696.2 $135.0 ($79.0) $752.2 Total stockholders' equity / (deficit) ($19.4) $40.9 $38.4 $65.9 ($140.0) $79.0 $4.9 Memo items: LTM adjusted ROAA 3.7% 9.2% 9.7% 9.5% 9.5% Debt / LTM adjusted EBITDA 4.3x 3.3x 3.0x 2.6x 2.9x

Note: Debt balances are reflected net of deferred interest costs. Subtotals may not sum due to rounding. (1) Does not reflect transaction fees and expenses. (2) Reflects principal amount of debt redeemed after accounting for IPO fees and expenses and 12% clawback penalty on debt repayment. (3) Does not reflect exercise of overallotment option. (4) Debt includes senior notes, SPV and ABL facilities. (1) (3) (2) (4)

II I

23

Key investment highlights

VII VI III V IV

Leading large scale lender to underbanked consumers with track record of profitability across credit cycles Omni-channel platform supports strategy, enhances customer experience and drives superior performance Diversified revenue base derived from comprehensive product offerings and broad geographic footprint Large and growing market that is underserved by traditional finance companies and banks Dynamic marketing strategy generates strong customer growth and optimizes customer acquisition costs Proprietary, bespoke IT platform underpins underwriting and is supported by a robust compliance culture Significant growth opportunities with sustainable competitive advantages

Appendix

25

Historical consolidated adjusted EBITDA reconciliation

Note: Subtotals may not sum due to rounding. (1) For the year ended December 31, 2016, the $7.0 million gain on extinguishment of debt resulted from the Company’s purchase of CURO Intermediate’s 10.75% Senior Secured Notes in September 2016. (2) Restructuring costs of $4.3 million for the year ended December 31, 2015 represented the expected costs to be incurred related to the closure of ten underperforming stores in the U.K. Restructuring costs of $3.6 million for the year ended December 31, 2016 represented the elimination of certain corporate positions in our Canadian headquarters and the costs incurred related to the closure of seven underperforming stores in Texas. Restructuring costs of $1.5 million for the three months ended September 30, 2016 primarily represented costs incurred related to the elimination of certain corporate positions in our Canadian headquarters. Restructuring costs of $7.4 million for the three months ended September 30, 2017 were due to the closure of our remaining 13 U.K. stores. (3) Goodwill and intangible asset impairment charges in 2015 include a non-cash goodwill impairment charge of $0.9 million, and non-cash impairment charges related to the Wage Day trade name intangible asset and customer relationship intangible asset of $1.8 million and $0.2 million, respectively. (4) Other adjustments include deferred rent and the intercompany foreign exchange impact. Deferred rent represents the non-cash component of rent expense. Rent expense is recognized ratably on a straight-line basis over the lease term. (5) The Company approved the adoption of a share-based compensation plan during 2010 for key members of its senior management team. The estimated fair value of share-based awards is recognized as non-cash compensation expense on a straight-line basis over the vesting period. (6) Transaction-related costs include professional fees paid in connection with potential transactions. (7) The legal settlement accrual for the three months ended September 30, 2017 relates to the resolution of a 2010 lawsuit in Nevada.

Year ended December 31, Quarter ended September 30,

($ in millions)

2010 2015 2016 2016 2017 Net income $19.9 $17.8 $65.4 $15.8 $9.8 Provision for income taxes 12.2 18.1 42.6 10.1 9.9 Interest expense 8.7 65.0 64.3 16.0 18.8 Depreciation and amortization 4.4 19.1 18.9 3.9 4.8 EBITDA $45.2 $120.0 $191.3 $45.8 $43.3 Gain on extinguishment of debt – – (7.0) (7.0) – Restructuring and other costs – 4.3 3.6 1.5 7.4 Goodwill and intangible asset impairment – 2.9 – – – Other adjustments 1.0 1.6 – – (0.2) Share‐based compensation 1.0 1.3 1.1 0.3 0.5 Transaction-related costs 1.4 0.8 0.3 0.1 0.1 Legal settlement accrual – – – – 0.4 Adjusted EBITDA $48.6 $130.9 $189.4 $40.7 $51.4 Adjusted EBITDA margin 23.9% 16.1% 22.9% 19.1% 20.2%

26

Historical consolidated adjusted earnings reconciliation

Year ended December 31, Quarter ended September 30,

($ in millions)

2010 2015 2016 2016 2017 Net income $19.9 $17.8 $65.4 $15.8 $9.8 Gain on extinguishment of debt – – (7.0) (7.0) – Transaction-related costs 1.4 0.8 0.3 0.1 0.1 Goodwill and intangible asset impairment charge – 2.9 – – – Restructuring costs – 4.3 3.6 1.5 7.4 Share-based cash and non-cash compensation 1.0 1.3 1.1 0.3 0.5 Intangible asset amortization 1.5 4.6 3.5 0.5 0.6 Legal settlement accrual – – – – 0.4 Cumulative tax effect of adjustments (1.4) (7.0) (0.6) 1.8 (4.5) Net addbacks (after tax) $2.5 $6.9 $1.0 ($2.8) $4.4 Adjusted earnings $22.4 $24.7 $66.4 $13.0 $14.2

Note: Subtotals may not sum due to rounding. (1) For the year ended December 31, 2016, the $7.0 million gain on extinguishment of debt resulted from the Company’s purchase of CURO Intermediate’s 10.75% Senior Secured Notes in September 2016. (2) Transaction-related costs include professional fees paid in connection with potential transactions. (3) Goodwill and intangible asset impairment charges in 2015 include a non-cash goodwill impairment charge of $0.9 million, and non-cash impairment charges related to the Wage Day trade name intangible asset and customer relationship intangible asset of $1.8 million and $0.2 million, respectively. (4) Restructuring costs of $4.3 million for the year ended December 31, 2015 represented the expected costs to be incurred related to the closure of ten underperforming stores in the U.K. Restructuring costs of $3.6 million for the year ended December 31, 2016 represented the elimination of certain corporate positions in our Canadian headquarters and the costs incurred related to the closure of seven underperforming stores in Texas. Restructuring costs of $1.5 million for the three months ended September 30, 2016 primarily represented costs incurred related to the elimination of certain corporate positions in our Canadian headquarters. Restructuring costs of $7.4 million for the three months ended September 30, 2017 were due to the closure of our remaining 13 U.K. stores. (5) The Company approved the adoption of a share-based compensation plan during 2010 for key members of its senior management team. The estimated fair value of share-based awards is recognized as non-cash compensation expense on a straight-line basis over the vesting period. (6) The legal settlement accrual for the three months ended September 30, 2017 relates to the resolution of a 2010 lawsuit in Nevada.