Third Quarter Fiscal 2017 Conference Call August 1, 2017 - PowerPoint PPT Presentation

Third Quarter Fiscal 2017 Conference Call August 1, 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

Third Quarter FY17 Key Messages – Momentum Builds! 1 • Continued focus on net revenue growth and expense control driving operating leverage Strong profit growth – Earnings Per Share from continuing operations up 100% to $0.10; YOY growth in six consecutive quarters – Profit before tax up 133% to $8.9m • Cash balance up 287% to $114m 2 • Receiving regular payments on promissory notes associated with Strengthened balance Grupo Finmart sale sheet and liquidity • Convertible Senior Notes due 2024 offering completed shortly after the quarter, net proceeds of $140m 3 • Track record of positive Same Store PLO YOY growth: Track record of – Seven consecutive quarters in U.S. – Twelve consecutive double-digit quarters in Mexico* consistent PLO growth • Market leading U.S. PLO of $289k per store 4 • Product and customer data analytics and recent change in store team incentive (focused on operating contribution at the store level) Investing in customer assisted in delivering improved PLO, net revenue and renewed focus experience driving on expense management future profitable growth • Commenced rollout of upgraded POS in Q2 and store refurbishment program in Q3 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.” Comparisons in this presentation are Q3FY17 relative to same period in prior year. 3 *Calculated in constant currency. Mexico PLO balance both increased and decreased over the same period on a GAAP basis.

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 customer data analytics New $100 million secured credit facility to support business growth 3. Significant runway for continued store openings and Procurement acquisitions Store incentive opportunities identified plans evolving aligned to Investment in 4. Store refurbishment program operating field management enabling Mexico Buy/Sell commenced in Q3 contribution more coaching & mentoring business closed 5. Tracking toward annual Closed 25 underperforming 25 Pawn Stores corporate expense of pawn stores in U.S. acquired in FY15 and Mexico in FY15 $50m in FY18 Renewed Executive U.S. Financial Services Leadership Team including business closed CEO, CFO, President of Pawn JUNE JULY Transformational customer focused 2017 2015 3-year strategic plan released 4

EPS and Profit Before Tax Doubled! EZCORP GAAP Results Continued focus on investment in customer experience and expense control driving net revenue growth and operational leverage Q3 Net Revenue up 5% as PSC increased 5% and merchandise sales increased 4% Continued focus and investment in customer-facing team. Expect operations expense in 2HFY17 to be inside of 2HFY16 Corporate expense on track to $50m in FY18 Continued focus on operating leverage led to EBITDA growth Reduction in net interest expense due to interest income on promissory notes associated with Grupo Finmart sale Six consecutive quarters of YOY profit growth Continued focus and investment in customer experience and cost management driving EPS up 100% 5

Continued Strong Profit Growth EZCORP Continuing Operations Adjusted Results* Consolidated merchandise margin of 36%, in our target range of 35-38% Corporate expense reduction of 9%; on track to $50m corporate expense in FY18 Continued focus on operating leverage led to EBITDA growth Reduction in net interest expense due to interest income on promissory notes associated with Grupo Finmart sale Continued focus and investment in customer experience and cost management driving profit up 120% *Adjusted for restructuring and restatement charges, other discrete items and constant currency. Mexico Pawn excludes closed buy/sell businesses. GAAP financials are included in the “GAAP to Non - GAAP Reconciliation.” 6

Market Leading U.S. Same Store PLO Compound Growth EZCORP - U.S. Pawn EZCORP vs. FirstCash - U.S. Pawn Seven consecutive quarters of market leading positive EZCORP market leading Same Store PLO growth Same Store PLO growth YOY Pawn Loans Outstanding (PLO) is the most influential driver of revenue and profitability Weighted average based on available information from each company’s public filings. This information may be determined or calculated differently by companies, limiting the usefulness of these measures for comparative purposes. 7

Strong Management Actions Deliver PLO and Profit Growth U.S. Pawn Q3FY17* ASSETS INCOME STATEMENT SAME SAME STORE UP STORE 4% UP 5% Pawn Loans Outstanding Pawn Service Total Charges Total Product and customer data analytics and recent change in store team Up 4% to $57m Up 3% incentive (focused on operating contribution at the store level) assisted in to $149m delivering improved PLO, PSC and sales gross profit growth Purchases Quality NET REVENUE TOTAL EXPENSES PROFIT BEFORE TAX + Store = + - = Up 5% to $90m flat at $66m Up 18% at $24m Manager Forfeitures SAME GROSS PROFIT Serving and satisfying customers’ need for cash fuels continued Sales Up 4% STORE SAME STORE Same Store PLO growth UP 2% UP 5% Inventory Sales Gross Profit Total Initiatives underway to continue improving Net Revenue and Total up 5% profitability in the long term, including upgrading POS and product & to $33m Up 2% customer data analytics to $115m Merchandise Margin 37% Expect operating expense in 2HFY17 to be inside of 2HFY16 Continued focus on customer experience led to Same Store PLO up PLO monthly yield consistent at 14% • • 4% as Pawn Service Charges increased 4% and Merchandise Gross • Inventory turns of 2.3 compared to 2.2 Profit increased 3% Return on Earning Assets consistent at 141% • • Market leading average PLO per store improved 5% to $289k * Adjusted for restructuring charges and other discrete items. See “EZCORP GAAP Results” and “ GAAP to Non- GAAP Reconciliation.” 8 Sales Gross Profit includes Merchandise and Scrap Gross Profit.

Strong Management Actions Drive PLO and Profit Growth U.S. Pawn Q3FY17* • Net revenue growth and expense control driving profit growth of 18% • Seven consecutive quarters of market leading Same Store PLO growth YOY • U.S. merchandise margin of 37%, in our target range of 35-38% • Inventory aged over one year improved to 11% from 12% in Q2FY17 *Adjusted for restructuring charges and other discrete items. See “EZCORP GAAP Results” and “GAAP to Non - GAAP Reconciliation.” 9

Market Leading Mexico Same Store PLO Compound Growth EZCORP – Mexico Pawn EZCORP vs. FirstCash – Mexico Pawn Twelve consecutive double-digit quarters of PLO growth in Mexico YOY EZCORP market leading Same Store PLO growth Pawn Loans Outstanding (PLO) is the most influential driver of revenue and profitability 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. Calculated in constant currency. Mexico PLO balance both increased and decreased over the same period on a GAAP basis. 10