Delivering Significant Growth Investor Update March 23, 2018 - PowerPoint PPT Presentation

Delivering Significant Growth Investor Update March 23, 2018

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

Table of Contents Section Slide Numbers Company Overview 4 to 6 Initiatives To Drive Long-Term Growth 7 to 12 Why EZCORP Is Attractive Investment 13 EZCORP Financial Performance 14 to 19 Relative to Public Pawn Competitors EZCORP Recent Quarterly Financial Results 20 to 30 Additional Information 31 to 38 GAAP to Non-GAAP Reconciliation 39 to 44 3

Company Overview EZCORP is a leading provider of pawn loans in the KEY STATISTICS United States and Latin America. At our pawn stores IPO Date 8/27/1991 we also sell merchandise, primarily collateral forfeited Headquarters Austin, TX from pawn lending operations and used merchandise purchased from customers Market Capitalization $413m to $754m (52 Week Range as of 3/21/18) 43% of EZCORP total pawn stores are now in Latin Share Price $7.60 to $13.85 America, specifically Mexico, Guatemala, El Salvador, (52 Week Range as of 3/21/18) Honduras, and Peru. Added 137 Latin America pawn Convertible Debt Due 2019 Bond Price 92 to 107 stores in Q1FY18, 133 via acquisitions and 4 store (52 Week Range as of 3/21/18) openings Convertible Debt Due 2024 Bond Price 101 to 153 (Range from July 2017 offering completed) Total Revenue in FY17 $748.0m EZCORP Pawn Store Count 12/31/17 Profit Before Tax in FY17 $43.2m Diluted Earnings Per Share in FY17 $0.62 Latin America Institutional Holdings 88% Pawn Index inclusion: 43% Russell 2000, S&P SmallCap 600, S&P 1000, NASDAQ Composite U.S. Pawn 57% PAWN STORE LOCATIONS as of 12/31/17 United States 513 Latin America 383 FINANCIAL SERVICES LOCATIONS as of 12/31/17 Cash Max in Canada 27 4

Pawn 101: Our Pawn Growth Drivers Key Growth Drivers ASSETS INCOME STATEMENT #2 #3 Pawn Loans Outstanding (PLO) is the most influential driver of EZCORP revenue and profitability. EZCORP continued Pawn Service focus and investment in satisfying customers’ need for cash Pawn Loans Charges whenever they need it is driving PLO, Net Revenue and Outstanding profitable 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 collateral is forfeited to us and becomes inventory available for sale to drive sales gross profit . 5

Pawn Customer We serve a large market… U.S. 20% of U.S. Households are underbanked (~25 million households)* 7% of U.S. Households are unbanked (~9 million households)* Latin America Growing consumer base Large underbanked and unbanked population The opportunity is larger… In addition to underbanked and unbanked households: There are many others who are “cash and credit constrained” The “cash and credit constrained consumer” does not have access to cash or credit to satisfy basic needs (and / or wants) at a particular point in time * 2015 FDIC National Survey of Unbanked and Underbanked Households;” published October 2016 6

Initiatives To Drive Long-Term Growth 7

Initiatives to Drive Long-Term Growth Investing in Pawn Fundamentals Transforming Customer and Team Strengthen Competitive Advantage Potential To Accelerate Growth Via Member Experience Creates in Customer Experience Leadership Disciplined Store Acquisitions Significant Opportunities and PLO Growth And New Stores Upgrading POS Best-in-class systems • • 56% increase in pawn store count in • New “intelligent” predictive analytics Cloud-based infrastructure • • Latin America from 246 stores on of customer behavior and product 9/30/17 to 383 on 12/31/17 Upgraded IT will provide: • data to deliver improved experience Larger scale with 43% of total pawn – Efficient integration of acquisitions • to customers stores in Latin America, a potential – Streamlined team Member on- Continuous measurement of • high growth market boarding and training customer experience and feedback Geographic diversification. Large – Speed to market of new capabilities • Training, coaching & mentoring of • and fragmented markets. – Ability to plug and play field team Quality management team in place Performance based store incentive • • with in-country expertise program Process innovation • Continued market share gains and Continued economic efficiency, Significant potential of store growth leadership scalability, strong margins and openings and acquisitions operating leverage 8

Systems Transforming Customer Experience • Timely access to data • Streamlined workflow • Speed and scale deployments • Customer behavior analytics • Predictive product pricing • Big data • Cloud based infrastructure • Access to new data sets • Low capital intensity 9

Value Today and Beyond VELOCITY Data driven decision proliferation • Speedy deployment of new products and services • Speed to innovate new products and services based on customer data • Ability to push accretive functionality to acquired targets • ECONOMIC EFFICIENCY Usage payment model • Low capital intensity allowing efficient new market entry • Low barrier to access big data analytics and insights • SCALABILITY Grow or shrink based on business cycles • Accessibility of large data sets to drive customer insights • Frictionless acquisition capability • Ability to plug and play new customer centric capabilities • Mobility  On floor engagement (Tablets)  Visibility and seamless movement of inventory  10

Customer Centric Information Technology Drives VELOCITY, ECONOMIC EFFICIENCY & GLOBAL SCALABILITY Cloud Based Infrastructure Upgraded POS • Innovative technology roadmap • Intuitive interaction • Sophisticated disaster recovery capabilities • Streamlined workflow • Speed and scale deployments • Data accuracy • Frictionless global scale • Multi-form factor capability New Big Data/Predictive Analytics Capability New “Intelligent” Customer Grading Cloud • Competitive insights and • Multi-dimensional criteria modeling Based Upgraded Infrastructur POS customer correlations inclusive of customer historical e • Customer behavior modeling performance New Big New • Inventory and discount “what if’s” • Intuitive value assessment Data/Predic “Intellige tive nt” • Deep machine learning New “Intelligent” Dynamic Pricing Analytics Custome Capability r Grading Cloud Based Electronic Office • Internal and external data sources • Global footprint to enable seamless • Real world market price verification Cloud New communications • Machine learning predictive Based “Intelligen Electronic t” • State of the art security and forecasting Office Dynamic Pricing management New Time Tracking & Workforce New Time New New Enterprise Reporting & Business Management System Tracking & Enterprise Workforce Reporting & Intelligent System • Automated scheduling and Mgmt. Business System Intelligent • Effective sales and inventory tracking forecasting System • Daily sales and target attainment reporting • Overtime optimization • Dynamic financial pro-forma forecasting • Efficient counter coverage 11