Investor Update Business Transformation Delivering Results September 13, 2016
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. 2
Company Overview EZCORP is a leading provider of pawn loans in the KEY STATISTICS United States and Mexico. At our pawn stores we Founded 1989 also sell merchandise, primarily collateral forfeited from pawn lending operations and used IPO Date 8/27/1991 merchandise purchased from customers. Headquarters Austin, TX Market Capitalization (as of 9/2/16) $537m EZCORP Revenue by Type* Institutional Holdings 88% 52 Week Price Range (as of 9/2/16) $2.44 to $10.62 U.S. Pawn 84% Adjusted Total Revenue (LTM)** $728.9m Adjusted EBITDA (LTM)** $65.7m Employees ~5,600 Mexico Pawn Index inclusion: 15% Russell 2000, S&P SmallCap 600, S&P 1000, NASDAQ Composite PAWN STORE LOCATIONS Other 1% United States 522 Mexico 238 After the sale of Grupo Finmart, 99% of EZCORP revenue will be generated from our U.S. and Mexico FINANCIAL SERVICES LOCATIONS* pawn businesses. Cash Max in Canada 27 Unless otherwise noted, all financial information included in this presentation is as of June 30, 2016 and is presented on an “adjusted basis,” which includes presentation of amounts on a constant currency basis; excludes closed Mexico buy/sell business; and certain other discrete items. See the Appendix for a reconciliation to the comparable GAAP information. All comparisons unless stated are Q3FY16 relative to Q3FY15. See appendix for definition of terms. 3 * Assumes completion of Grupo Finmart sale ** Continuing operations excluding closed Mexico buy/sell business
EZCORP Has Exited Most Non-Pawn Businesses And Driving Shareholder Value EZCORP September 2016* EZCORP Share Price Performance Simplifying, Focusing and Optimizing the Business September 2014 to September 2016 CANADA U.S. PAWN MEXICO PAWN CASH MAX 84% 15% 1% * After the sale of Grupo, 99% of EZCORP revenue will be generated from our U.S. and Mexico pawn businesses EZCORP September 2014 Cash Converters Canada U.S. U.S. U.K. U.S. Mexico Grupo Cash Financial Tuyo Online Online Pawn Pawn Finmart Max Services Lending Lending Canada Mexico 4
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Our Focus On Customer Lead the market in serving and satisfying short-term cash needs of consumers unable to access traditional credit products CUSTOMER FEEDBACK Q3FY16* EZCORP U.S. Customer Feedback • Comprehensive Mystery Shop program measures up 6% • Net Promoter Score to 46 points from 39 points Q3FY16* EZCORP Mexico Customer Feedback • Comprehensive Mystery Shop program measures up 12% • Net Promoter Score improved to 50 from 48 * Sequential scores in U.S. and Mexico. U.S. was previously measured in Q2FY16 and Mexico in Q1FY16. 6
U.S. Pawn Industry Remains Highly Fragmented and Attractive Continued opportunities for Total U.S. Pawn Stores Estimated About 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 8% of U.S. Households are underbanked are unbanked (~25 million households)* (~10 million households)* * 2013 FDIC National Survey of Unbanked and Underbanked Households;” published October 2014 7
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 29 120 22 16 WV VA 1 UT 16 5 6 CO 25 44 CA KY 10 MO 27 37 KS 26 NC 12 7 31 41 25 44 TN 13 OK SC AR AZ 21 GA 27 EZCORP U.S. Store Mix AL NM 1 AK 8 18 20 MS 5 6 35 46 1 CO 8 FL 7% IL LA TX 19% 4% 24 FL 218 OK 99 4% TX 438 77 AZ 42% 4% Other NV 17% 522 EZCORP U.S. Pawn store locations 3% EZCORP Stores FirstCash Stores 8
EZCORP Mexico Pawn Store Map 1 15 12 13 2 16 14 3 4 1. Coahuila (5) 13. Ciudad de México (41) 6 2. Nuevo León (7) 14. Morelos (4) 5 3. Tamaulipas (6) 15. Tlaxcala (3) 8 9 10 4. San Luis Potosí (1) 16. Puebla (11) 7 5. Veracruz (31) 17. Guerrero (7) 22 11 6. Aguascalientes (4) 18. Oaxaca (4) 21 16 7. Jalisco (16) 19. Chiapas (7) 20 8. Guanajuato (15) 20. Tabasco (7) Morelos 17 9. Querétaro (6) 21. Campeche (4) 10. Hidalgo (6) 22. Quintana Roo (4) 18 19 11. Michoacán (7) 12. Estado de México (42) 238 EZCORP Mexico Pawn store locations 9
Strong Corporate Performance Driven By Continued Momentum In Pawn Operations EZCORP Continuing Operations Adjusted Results (Excludes Grupo Finmart)** High operating leverage and efficiently managing the business drove $9.8m increase in Net Revenue and $8.3m increase in Profit Before Tax Net Revenue increase with strong same store metrics in Q3 : PLO increased 11% • PSC revenue increased 10% • et Re Merchandise sales gross profit increased • 10% Continued expense management with corporate costs15% lower in Q3; tracking toward annual corporate expense of ~$50m by FY18*** EBITDA percentage increase in Q3 and YTD higher than net revenue growth, evidenced by strong operational leverage * Represents an increase or decrease in excess of 1500% or not meaningful ** Adjusted for restructuring and restatement charges, other discrete items and constant currency. Mexico Pawn excludes closed buy/sell businesses. See GAAP to non-GAAP reconciliation. All amounts in millions. 10 ***Corporate expense ” in this presentation refers to the “Administrative” line in SEC quarterly reports.
Pawn 101: Understanding Pawn Growth Drivers Key Growth Drivers ASSETS INCOME STATEMENT #2 #3 Pawn Loans Outstanding (PLO) is the most influential driver to revenue and profitability. EZCORP had market leading Pawn Service Pawn Loans Same Store PLO growth in Q3FY16 relative to publicly Charges Outstanding traded pawn companies driven by intense focus on market leadership in serving and satisfying customers’ needs for cash #1 Purchases Quality PROFIT BEFORE + = + - = NET REVENUE TOTAL EXPENSES Store TAX Forfeitures Manager #4 #5 Merchandise & Scrap Gross Inventory Profit Pawn Loans Outstanding are secured loans, typically small, and fully collateralized by tangible personal property. No personal recourse to customers or negative credit reporting. We earn Pawn Service Charge revenue on our 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 collateral is forfeited to us and becomes inventory available for sale to drive sales gross profit. Same Store basis is the most effective measure of pawn growth. 11
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