Growth Through Superior Customer Experience Investor Day December - PowerPoint PPT Presentation

Growth Through Superior Customer Experience Investor Day December 13, 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

Opening Remarks Stuart Grimshaw Chief Executive Officer 3

Today’s Agenda Opening Remarks Initiatives to drive long-term profitable growth Stuart Grimshaw, Chief Executive Officer Pawn Operations Differentiating factors that drive market share growth Joe Rotunda, Chief Operating Officer U.S. Pawn Significant scale and cash flow generation Eric Fosse, President, U.S. Pawn 8:00 to 9:30 Latin America Pawn Scale and significant returns on store openings and acquisitions Francisco Kuthy, President, EZCORP Mexico Rodrigo Rodas, President, GPMX Systems / Technology Enhance customer engagement and returns with data and digitally driven future Mark DeBenedictus, Chief Customer Experience Officer Investor Day Recap Growth, returns, and strong cash flow Stuart Grimshaw, Chief Executive Officer Q&A 9:30 to 10:00 Small Roundtable and One-On-One Q&A EZCORP management and investors 4

Company Overview EZCORP is a leading provider of pawn loans in the KEY STATISTICS United States and Latin America. At our pawn stores we also sell merchandise, primarily collateral forfeited IPO Date 8/27/1991 from pawn lending operations and used merchandise Headquarters Austin, TX purchased from customers. 99% of total revenue is Market Capitalization $490m to $814m from pawn operations (52 Week Range as of 12/4/18) Share Price $8.97 to $14.95 47% of EZCORP total pawn stores are now in Latin (52 Week Range as of 12/4/18) America, specifically Mexico, Guatemala, El Salvador, Convertible Debt Due 2025 Bond Price 82 to 104 Honduras, and Peru. Increased our Latin America store (Range from May 2018 offering completed) count by 84% (+207 stores) in FY18 Convertible Debt Due 2024 Bond Price 110 to 138 (52 Week Range as of 12/4/18) Convertible Debt Due 2019 Bond Price 98 to 108 (52 Week Range as of 12/4/18) Total Revenue in FY18 $813.5m EZCORP Pawn Store Count Profit Before Tax in FY18 $57.1m 9/30/18 Basic Earnings Per Share in FY18 $0.73 Latin America Diluted Earnings Per Share in FY18 $0.69 Pawn Institutional Holdings 89% 47% Index inclusion: Russell 2000, S&P SmallCap 600, S&P 1000, NASDAQ Composite PAWN STORE LOCATIONS as of 9/30/18 U.S. Pawn 53% United States 508 Latin America 453 FINANCIAL SERVICES LOCATIONS as of 9/30/18 Cash Max in Canada 27 Total Store Locations 988 5

Successful Execution of Business Strategy Drives Strong Long Term EBITDA Growth Compound PLO Growth, Acquisitions, and Expense Control Driving EBITDA Growth EBITDA Consolidated Long- Term Growth Build Growth Platform Fix & Simplify Amounts in this slide are in millions and are adjusted for discrete items and constant currency. See “EZCORP GAAP Results” and “GAAP to Non - GAAP Reconciliation.” 6

FY18 Recap Proven management track record of execution and market share gains Strong Same Store PLO: • +7% in LatAm Pawn o +5% in U.S. Pawn o Consolidated EBITDA increased 17% to $100.6m • Adjusted profit before tax increased 33% to $64.4m • Market leading merchandise margin up 120bps to 37% • Strengthened balance sheet: Cash balance up 74% to $286m and extended debt maturity • profile Consistent execution in organic growth, new stores and acquisitions • 84% increase (+207 stores) in LatAm store count in FY18 to 453 stores o Upgraded point of sale to drive higher returns on earning assets (higher PLO yield and • merchandise margin), includes Customer Grading and Dynamic Pricing 7

Significant Increase in Latin America Store Count 84% Increase in FY18 84% increase ( +207 stores ) in • FY2018 LatAm store count in FY18 to 453 stores 246 Beginning 47% of EZCORP pawn stores are in Latin • Acquired 196 America as of September 30, 2018, New 12 specifically Mexico, Guatemala, 1 Closed El Salvador, Honduras, and Peru Total 453 Strong presence diversified across five • LatAm countries provides springboard to growth within the high growth region, specifically Mexico, Guatemala, El EZCORP Pawn Store Count Salvador, Honduras, and Peru 9/30/18 Latin America stores on 9/30/17 U.S. Pawn 246 53% 508 Latin America 207 net stores acquired or opened in FY18 8

Driving Higher Returns on Increasing LatAm Investment and Operating Leverage Investments that expand free cash flow growth and highest long-term return on capital LATIN AMERICA INVESTMENTS New Stores Acquisitions Relocations Target ROIC 5-Year ~35% ~25% ~30% LATIN AMERICA PAWN U.S. PAWN GPMX ROIC Acquired U.S. Pawn ROIC Mexico Pawn ROIC in FY18 21.0% ~25% 1 18.8% 14.4% 12.4% 13.4% 11.8% 11.4% FY16 FY17 FY18 FY18 FY22 FY16 FY17 FY18 1 FY18 Mexico Pawn ROIC somewhat muted by impact of 10 stores opened and 84 stores acquired in Mexico in FY18. Return on Invested Capital (ROIC) is defined as Net Operating Profit After Tax (NOPAT) as a percent of total investment (including acquisition price, 9 CapEx, and growth in working capital).

Investment In Business Cash Flow Up 53% YOY in FY18 Cash Flow and Investment In Business $88.7 FY16 FY17 FY18 1 Net Cash From Operating Activities $68.1 $58.0 $88.7 $68.1 Fund PLO Growth (13.0) (15.6) (18.9) $58.0 Operating Cash Flow 55.1 42.4 69.8 AlphaCredit Principal Repayments - - 29.5 32.4 Cash Flow Including AlphaCredit 55.1 71.9 102.2 Capital Expenditures (13.3) (25.0) (40.5) Cash Flow After Capital Expenditures $41.8 $46.9 $61.7 $11 FY16 FY17 FY18 FY18 Receipts From AlphaCredit Invested In Business $40.5 2 Discretionary Reinvestment In Stores $32.4 $16.2 3 Other Investments For Growth $13.2 $11.1 Maintenance CapEx 207 AlphaCredit Principal CapEx Repayments 1 Operating activities presented on Statements of Cash Flows. 2 $32.4m principal repayments excludes $5.6 cash interest received from AlphaCredit in FY18. 3 Investments in new stores, POS, leveraging predictive analytics, and migration to cloud computing. 10 Amounts in this slide are in millions.

Cash Available For Investments $ Millions A Amount Cash balance as of 9/30/18 $286 Cash convertibles due in June 2019 -195 B Remaining 91 Cash to run daily operations with a safety margin, fund loan -50 to 70 growth, etc. B Resulting capital available for acquisitions, new stores, etc. ~$20 to $40 EZCORP will also receive cash flow from operations and Alpha Note Payments available for these same purposes. We allocate capital to opportunities assuring any resulting ROIC significantly exceeds our WACC, to drive EPS accretion. Examples in this presentation of investments in acquisitions, new stores, relocations, etc. demonstrate this discipline and the outsized returns being delivered. A Assumes cash convertible notes due in June 2019 are paid in cash. 11 B Would be more if some or all of cash convertible notes due June 2019 are refinanced rather than paid in cash.