Q4 2019 CONFERENCE CALL PRESENTATION 1 Statements herein, other - - PowerPoint PPT Presentation

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Oct 03, 2022 268 likes •412 views

Q4 2019 CONFERENCE CALL PRESENTATION 1 Statements herein, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations

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Q4 2019 CONFERENCE CALL PRESENTATION

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Statements herein, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future

perations and financial performance. Such statements involve uncertainties and risks, some of

which are not currently known to us, and may be superseded by future events that could cause actual results to differ materially from those expressed or implied herein. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of today, and are qualified in their entirety by these cautionary statements. Information regarding risk factors and

ther information that could change our projections or impact our actual results can be found in
ur most recent Annual Report on Form 10-K and in subsequent public filings, and should be

considered in evaluating the forward looking statements herein. Except as required by law, we assume no obligation to update or revise these statements to reflect changes in events, conditions

r circumstances on which any such forward-looking statements are based, in whole or in part.

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Record portfolio purchases

* of $1.2 billion

Record global cash collections of $1.8 billion Record revenue surpassing $1.0 billion for the first time Record estimated remaining collections of $6.8 billion

LONG-TERM FOCUS AND DISCIPLINE DELIVERS A RECORD YEAR

*Portfolio purchases exclude finance receivables portfolios that were acquired through business acquisitions

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AMERICAS Q4 2019 RESULTS

Cash collections of $317 million Stable trends in supply and returns Invested $141 million in Americas Core and Insolvency

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EUROPE Q4 2019 RESULTS

Record cash collections in Europe Invested $262 million and purchased portfolios in all nine operating markets in 2019 Increasing supply

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FINANCIAL RESULTS

Q4 2019 Q4 2018

Cash Collections $456.6 $402.7 Total Revenues $269.1 $236.7 Net Income Attributable to PRA Group, Inc. $27.3 $14.9 Operating Expenses $185.8 $183.1 Diluted EPS $0.60 $0.33

($ in millions, except per share results)

Net Allowance Charges $12.6 $21.4

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Americas Core, $276.6 Europe Core, $126.6 Global Insolvency, $53.3

CASH COLLECTIONS

($ in millions)

Americas Core, $1,141.5 Europe Core, $480.1 Global Insolvency, $219.7

Fourth Quarter 2019 Full Year 2019

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Q4 2019 CASH EFFICIENCY RATIO OF 59.7%, 59.9% FULL YEAR

($ in millions, Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts)

$298 $383 $433 $592 $762 $971 $1,214 $1,444 $1,604 $1,569 $1,538 $1,640 $1,857 0% 10% 20% 30% 40% 50% 60% 70% $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cash Receipts Cash Efficiency Ratio Insolvency as a % of Cash Collections

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ESTIMATED REMAINING COLLECTIONS AND AVAILABLE CAPITAL Estimated Remaining Collections

($ in millions)

United States - $3,438 United Kingdom - $1,529 Central Europe - $726 Southern Europe - $218 Northern Europe - $458 Other Americas - $386

$554 Million Available for Portfolio Acquisitions

as of December 31, 2019

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THE IMPACT OF CECL ON THE FINANCIAL STATEMENTS

Remaining the Same Changing

Upon completion of initial booking, net finance

receivables will still reflect purchase price

Use purchase price and total estimated collections

to solve for effective interest rate

Revenue will still be calculated by net finance

receivables multiplied by effective interest rate

Revenue will now be titled Portfolio Income
Effective interest rate will not change regardless of

performance

Changes in ERC will be recognized in the current

quarter through an income statement line titled “Changes in Estimated Recoveries”

Cash collections above or below what was

expected in the current quarter will also be recognized in “Changes in Estimated Recoveries”

Present value of the change in ERC will be

recorded as an increase or decrease to net finance receivables

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PRA GROUP IS IN A STRONG COMPETITIVE POSITION

Industry trends are promising Efficient operations Significant capital and cash generation to invest in portfolios Favorable capital positions

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Q4 2019 Q&A

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