Successful Execution of Business Transformation Driving Sustainable Growth CL King 15 th Annual Best Ideas Conference 2017 September 14, 2017
Preliminary Statements Forward Looking Statements This document contains certain forward-looking statements. These statements are based on the company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, that address activities or results that the company plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors and current or future litigation. For a discussion of these and other factors affecting the company’s business and prospects, see the company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Other Information This information should be read in conjunction with, and not in lieu of, the company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. Those reports contain important information about the company’s business and performance, including financial statements prepared in accordance with U.S. generally accepted accounting principles, as well as a description of the important risk factors that may materially and adversely affect our business, financial condition or results of operations. All market comparisons are based on available information from similar publicly traded companies. 2
Company Overview EZCORP is a leading provider of pawn loans in the KEY STATISTICS United States and Mexico. At our pawn stores we IPO Date 8/27/1991 also sell merchandise, primarily collateral forfeited Headquarters Austin, TX from pawn lending operations and used merchandise purchased from customers. Market Capitalization $413m to $638m (52 Week Range as of 9/12/17) Share Price $7.60 to $11.80 EZCORP Revenue Sources (52 Week Range as of 9/12/17) Convertible Debt Due 2019 Bond Price 92 to 100 U.S. Pawn (52 Week Range as of 9/12/17) 85% Convertible Debt Due 2024 Bond Price 101 to 114 (Range from 7/5/17 offering completed) Adjusted Total Revenue in FY16* $747.9m Adjusted Profit Before Tax in FY16* $23.1m Mexico Institutional Holdings 88% Pawn 14% Index inclusion: Russell 2000, S&P SmallCap 600, S&P 1000, NASDAQ Composite Other 1% PAWN STORE LOCATIONS as of 6/30/17 United States 515 Mexico 244 FINANCIAL SERVICES LOCATIONS as of 6/30/17 Cash Max in Canada 27 * Continuing operations excluding closed Mexico buy/sell business 3
Successful Execution of Business Transformation Initiated deployment INITIATIVES TO DRIVE of upgraded POS CONTINUED Opened six stores in Mexico YTD; PROFITABLE GROWTH four more expected in Q4FY17 Initiated store 1. POS will deliver improved refurbishment program customer experience and increase productivity Sold Grupo Finmart 6 U.S. pawn stores 2. Further Investment in product acquired in Q2FY16 and analytics of customer behavior and product data New $100 million secured credit facility to support business growth 3. Significant runway for Procurement continued store openings and Store incentive opportunities identified plans re-aligned acquisitions Investment in to operating field management enabling contribution Mexico Buy/Sell 4. Store refurbishment program more coaching & mentoring business closed commenced in Q3 Closed 25 underperforming 25 Pawn Stores 5. Convertible debt due 2024 pawn stores in U.S. acquired in FY15 and Mexico in FY15 issued in July 2017; liquidity and debt maturity profile improved Renewed Executive U.S. Financial Services Leadership Team including business closed 6. Tracking toward annual CEO and President of Pawn corporate expense of JUNE JULY Transformational customer focused $50m in FY18 2017 2015 3-year strategic plan released 4
Attractive Industry Dynamics – U.S. Pawn Massive and Highly Fragmented Market Continued opportunities for Total U.S. Pawn Stores Estimated ~13,000 accretive acquisitions Pawn Stores EZCORP EZCORP Adding Value 4% Pawn Stores To Acquisitions Held By Pawn Stores Systems • Independent FirstCash Processes • Owner 9% Capital • Operators 87%* People • EZCORP Serves a Large U.S. Market 20% of U.S. Households 7% of U.S. Households are underbanked are unbanked (~25 million households)* (~9 million households)* * 2015 FDIC National Survey of Unbanked and Underbanked Households;” published October 2016 5
U.S. Pawn Store Map EZCORP pawn platform supports geographic diversity of store mix Stable state regulation; rate setting authority is at state level ME WA VT 33 MT ND NH NY MA OR MN 2 CT RI WI 5 7 ID SD MI 3 N WY 2 PA J IA 3 IL IN OH MD D 3 NE 11 E NV 28 119 21 15 WV VA 1 UT 16 4 6 CO 25 41 CA KY 10 MO 27 35 KS 26 NC 7 11 25 41 31 44 TN 13 OK SC AR AZ 21 GA 27 AL NM 1 AK 8 18 20 MS 5 6 35 45 1 8 LA TX 25 FL 218 97 416 77 515 EZCORP U.S. Pawn store locations EZCORP Stores FirstCash Stores Store count as of 06/30/17 6
Attractive Industry Dynamics – Mexico Pawn Massive and Highly Fragmented Market • EZCORP has ~4% market share in Mexico* • ~6,500 pawn shops in Mexico* • Significant runway for store openings and acquisitions New Store Openings: – EZCORP will open 10 new stores in FY17 – Significant opportunity remains for further new store openings Acquisition Opportunities: – Large and small groups of pawn stores that meet our strict criteria may become available for acquisition • EZCORP’s large store expertise drives opportunities *Source: PROFECO, the National Pawn Registry 7
EZCORP Mexico Pawn Store Map 1 15 12 13 2 16 14 3 4 6 5 8 9 7 22 11 21 16 20 17 18 19 244 EZCORP Mexico Pawn store locations 8 Store count as of 6/30/17
Pawn 101: Understand Pawn Growth Drivers Key Growth Drivers ASSETS INCOME STATEMENT #2 #3 Pawn Loans Outstanding (PLO) is the most influential driver of revenue and profitability. EZCORP continued focus and Pawn Service investment in satisfying customers’ need for cash whenever Pawn Loans Charges they need it is driving PLO, Net Revenue and profitable Outstanding growth #1 Purchases Quality & + Tenure of = + - = NET REVENUE TOTAL EXPENSES Profit Before Tax Forfeitures Store Manager #4 #5 Sales Inventory Gross Profit Store Managers are important to customer and Team Member experience and store performance. Pawn Loans Outstanding are secured loans, typically small, and fully collateralized by tangible personal property. No personal recourse to customers or negative credit reporting. Same Store basis is the most relevant measure of pawn growth. We earn Pawn Service Charge revenue on pawn loans which varies primarily based upon statutory rates by state and loan valuations. Inventory for retail sales occur through pawn loan forfeitures and purchases of customers’ merchandise. If customer does not repay, renew or extend a loan, the colla teral is forfeited to us and becomes inventory available for sale to drive sales gross profit . 9
Market Leading Same Store PLO Growth Strong Same Store PLO Growth Compounding on Significant Prior Year Growth EZCORP achieved seven consecutive quarters of EZCORP achieved twelve consecutive quarters of market leading U.S. Pawn Same Store PLO growth YOY Mexico Pawn double-digit Same Store PLO growth YOY* U.S. Pawn Mexico Pawn YOY Growth YOY Growth EZCORP EZCORP FirstCash FirstCash Weighted average based on available information from each company’s public filings. This information may be determined or cal culated differently by companies, limiting the usefulness of these measures for comparative purposes. 10 Calculated in constant currency. Mexico PLO balance both increased and decreased over the same period on a GAAP basis.
Operating Leverage Focus and Investment on Customer Experience and Expense Control Delivering Net Revenue Growth and Operating Leverage Net Revenue and Profit Before Tax U.S. Pawn Mexico Pawn YOY Growth YOY Growth * Excludes $0.5m looting expense; the impact of looting in 12 stores in January 2017 reduced revenue through stolen pawn loan collateral and inventory effecting PSC and sales in addition to $0.5m in expenses Amounts in this slide are adjusted for restructuring and restatement charges, other discrete items and constant currency. Mexico Pawn excludes closed buy/sell businesses. See “EZCORP GAAP Results” and “GAAP to non - GAAP Reconciliation.” 11
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