Oppfi Inc. · NYSE:OPFI
Oppfi — Investor Presentation (April 2024)
21 slides from Oppfi's investor presentation, Apr 11, 2024
Slide 1: Investor Presentation April 2024
Investor Presentation April 2024
Slide 2: Disclaimer
1 Disclaimer This presentation (the “Presentation”) of OppFi Inc. (“OppFi” or the “Company”) is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein,
Slide 3: Tech-enabled, mission-driven specialty finance platform
2 A tech-enabled, mission-driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans
Slide 4: High Percentage of Americans Lack Savings and/or Credit Access
3 High Percentage of Americans Lack Savings and/or Credit Access 63 million U.S. consumers are credit marginalized1 62% of U.S. consumers live paycheck to paycheck2 56% of U.S. adults do not have savings to cover a $1,000 unplanned expense3 1. PYMNTS. "How Credit Insecurity is Changing U.S. Consumer
Slide 5: OppFi Offers Market Leading Terms & Excellent Customer Experience
4 ▪ Simple interest, amortizing installment loans with no balloon payments ▪ No origination, late, or NSF fees ▪ No prepayment penalties ▪ Report to the 3 major credit bureaus ▪ Work compassionately with customers who require payment plan modification ▪ OppFi TurnUp Program helps eligible applicants
Slide 6: Technology-Fueled Proprietary Credit Models Drive Automated Underwriting Decisions
5 Technology-Fueled Proprietary Credit Models Drive Automated Underwriting Decisions D e c i s i o n s P o w e r e d B y Consumer Behavior Bank Data Alternative Bureau Data Income Data Employment Data Marketing Source 100% Cloud Platform AI Powered Conversion, Approvals & Servicing Leads Decision En
Slide 7: OppFi Growth Strategy
6 OppFi Growth Strategy Accelerate Profitable Growth • Continue to refine and enhance underwriting model, focusing on more favorable credit tiers • Maintain low customer acquisition costs and grow lower cost channels, such as SEO Drive profitable OppLoans volume growth • Acquire platforms or assets
Slide 8: Executive Management Team
7 Executive Management Team Todd Schwartz Founder, Chief Executive Officer, and Executive Chairman Schwartz Capital Group Pamela Johnson Chief Financial Officer Heights Finance; Pioneer Financial Services Christopher McKay Chief Risk and Analytics Officer HSBC; Capital One Yuri Ter-Saakyants Chief T
Slide 9: Key Company Highlights
88 Key Company Highlights 1. 2015-2023 2. 2018-2023 Solid Revenue Growth 31% 5-year CAGR2 Significant Scale Facilitated more than $5.8 billion in gross loan issuance covering over 3.4 million loans, since inception3 Leading Proprietary Credit & Technology Platform Real-time AI drove automation for 8
Slide 10: Financial Performance
Financial Performance
Slide 11: Earnings Rebounded in 2023, Amidst Revenue Growth & Improved Credit Performance
10 10 Total Revenue $351 $453 $509 $520 2021 2022 2023 2024P ($ in millions) Earnings Rebounded in 2023, Amidst Revenue Growth & Improved Credit Performance; Anticipate Continued Earnings Growth in 2024 Adjusted EPS2 1. 2024P represents the midpoint of full year 2024 guidance. Refer to slide 14 for
Slide 12: Credit Performance: Substantial Decline in Annualized Net Charge-Off Rate
11 11 ➢ Disciplined underwriting led by adjustments and enhancements to credit models ➢ Credit performance varies with seasonality 54.8% 42.4% Q3 2022 Q3 2023 59.3% 46.4% Q4 2022 Q4 2023 Credit Performance: 2H:2023 Substantial Decline in Annualized Net Charge-Off Rate Year Over Year Annualized Net C
Slide 13: Operational Efficiencies Support Earnings Growth
12 12 58.9% 49.3% 44.6% 2021 2022 2023 More efficient marketing spend and streamlined customer support operations Total Operating Expenses as a % of Total Revenue1 Operational Efficiencies Support Earnings Growth 1. Interest expense is included in total operating expenses 4.7 percentage point improv
Slide 14: Reduced Cost of Financing and Strong Balance Sheet to Power Growth
13 Expanded funding capacity more than 5x since 2017 Decreased cost of borrowing spread by 500+ bps since 2017 Diversified institutional capital sources Increased financial flexibility with: • corporate credit agreements • asset-backed facilities • bank provided asset-based loans • forward flow arra
Slide 15: Full Year 2024 Earnings Guidance
14 $510M to $530M Full Year 2024 Earnings Guidance Growth Profitability Profitability $46M to $49M $0.53 to $0.57 Total Revenue Flat to Up 4% Adjusted Net Income1 Up 6% to 13% Adjusted EPS1,2 Up 4% to 12% 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are financial measures tha
Slide 16: Investment Highlights
15 Investment Highlights Founder-led with significant ownership1 Mission-driven catering to underserved market2 Disciplined credit underwriting and expense management3 Future earnings growth potentially driven by improved credit performance and operating expense efficiencies 4 Long-term growth strat
Slide 17: Contact Information
1616 Shaun Smolarz Head of Investor Relations investors@oppfi.com Contact Information
Slide 18: Appendix
17 Appendix
Slide 19: Fair Market Valuation
18 Fair Market Valuation 1. Stated as a percentage of outstanding principal. Key Highlights • Interest rate increased by 370 bps due to relative increase in base APR loans in the portfolio and a shift away from states with lower statutory rates • Servicing cost decreased by 200 bps to reflect more r
Slide 20: Pro Forma Share Count as of December 31, 2023
19 Pro Forma Share Count as of December 31, 2023 Shares Share Price Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock 18,850,860 18,850,860 18,850,860 18,850,860 Class V Common Stock Held for the benefit of Pre-Business Combination OppFi Equity holders 66,398,193 66,398,193 66,398,193 66,398,19
Slide 21: Adjusted Net Income & Adjusted EPS Reconciliation Table
20 Adjusted Net Income & Adjusted EPS Reconciliation Table 1. Diluted earnings (loss) per share available to common stockholders is computed by dividing the net income (loss) attributable to OppFi Inc. by the weighted average number of shares of common stock outstanding during the period. Weighted a