CURO Group Holdings Q3 2017 Investor Presentation
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 other 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 occur. 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 operations, 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 The Company’s management compensates for these limitations by reference to its GAAP results and using EBITDA, Adjusted EBITDA, Adjusted Earnings, Gross business. 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. 1
Our mission, vision and values Powering innovation for underbanked consumers curo Winning with integrity Leading with humility cur·o \ ˈkyu ̇ r- ō origin: Latin Keeping our Thriving on change commitments verb: to provide money Executing with urgency and Building relationships based on passion trust, honesty and respect 2
Key investment highlights I Leading large scale lender to underbanked consumers with track record of profitability across credit cycles II Omni-channel platform supports strategy, enhances customer experience and drives superior performance III Diversified revenue base derived from comprehensive product offerings and broad geographic footprint IV Large and growing market that is underserved by traditional finance companies and banks V Dynamic marketing strategy generates strong customer growth and optimizes customer acquisition costs VI Proprietary, bespoke IT platform underpins underwriting and is supported by a robust compliance culture VII Significant growth opportunities with sustainable competitive advantages 3
Leading large scale lender to underbanked consumers I with track record of profitability across credit cycles (1) 1997 – 2007 2008 – 2013 2014 – Present Focused branch Channel, product Broad product development in U.S. and geographic diversification and diversification brand development Company founded with first Began offering installment loans Installment loan product expansion location in Riverside, California Launched analytical brand Launched online lending Mobile optimized sites and apps marketing platforms Selectively expanded into International expansion to Refined best-in-class omni- additional states Canada and the U.K. channel platform Bespoke IT platform Raised over $1.1 billion of debt $13.9 billion of total credit development financing since 2008 extended since 2010 Gross revenues Adjusted EBITDA Adjusted earnings ($ in millions) ($ in millions) ($ in millions) $916 $212 $204 $70 $49 $22 2010 Q3 2017 LTM 2010 Q3 2017 LTM 2010 Q3 2017 LTM Single-pay Installment and other (1) Leading large-scale lender in terms of revenue. 4
Omni- channel platform supports “Call, Click or Come - in” II We source customers from a broad base with high retention rates Storefront Digital / Mobile Category-killer stores promote brand awareness Synergistic lead funnel for storefront channel Distinctive and recognizable branding Enhances customer experience Convenient locations typically open 7 days per week Over 80% of web visitors are on mobile (1) Higher approval rates with better credit performance Site to store: over 14,000 customers per month (2) $555.2 ($ in millions) ($ in millions) $273.4 $181.7 $22.5 2010 2016 2010 2016 Store revenue (3) Online revenue % of total % of total 89% 67% 11% 33% revenue revenue (1) Based on Q3 2017. (2) Includes new and reactivated customers. (3) Calculated as total revenue less online revenues. 5
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