Slide 1: Investor Presentation August 2022
Investor Presentation August 2022
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: Our Mission
2 To facilitate safe, simple and more affordable credit access to the 60 million everyday Americans who currently lack traditional options to rebuild their financial health OUR MISSION
Slide 4: Key Company Highlights
33 Key Company Highlights 1. 2016– 2021 2. For second quarter 2022 at the time of loan approval. Solid Revenue Growth 66% 5-year CAGR1 Significant Scale Facilitated more than $3.9 billion in gross loan issuance covering over 2.4 million loans, since inception Leading Proprietary Credit & Technology
Slide 5: Executive Management Team with Substantial Financial Services Experience
4 Executive Management Team with Substantial Financial Services Experience Todd Schwartz Founder, Chief Executive Officer, and Executive Chairman Schwartz Capital Group Pamela Johnson Chief Financial Officer Heights Finance; Pioneer Financial Services Manuel Chagas Chief Operating Officer Discover F
Slide 6: High Percentage of Americans Lack Savings and/or Credit Access
5 High Percentage of Americans Lack Savings and/or Credit Access 60 million U.S. adults lack access to traditional credit1 64% of U.S. consumers live paycheck to paycheck2 44% of U.S. adults have savings to cover a $1,000 unplanned expense3 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CREDIT The Hi
Slide 7: We Help Everyday Consumers Solve Everyday Problems
6 We Help Everyday Consumers Solve Everyday Problems Our Typical Customer: Established Credit History Median Income Employed Bank Account >30 Years Old College-Educated No Savings OppFi customers can use proceeds for any unexpected expense Medical Family Car Trouble Education Housing
Slide 8: A Cheaper, Better Product for Non-Prime
7 7 A Cheaper, Better Product for Non- Prime Traditionally financing options for the underbanked have been limited, with exorbitant interest rates and poor customer service OppFi Advantage: The OppFi Approach to Lending OppFi Market Leading Terms Underbanked Option APRs Simple interest, amortizing i
Slide 9: Leverage Billions of Data Points to Make Credit Scores Obsolete
OppFi’s proprietary algorithms powered by Artificial Intelligence are designed to better predict ability and willingness to repay Leverage Billions of Data Points to Make Credit Scores Obsolete ~11 BILLION Data Points AI-Powered Proprietary Scoring Algorithm 13+ Million Applications 22+ Million Repa
Slide 10: Technology-Fueled Proprietary Algorithms Provide Real-Time Insights
9 Technology-Fueled Proprietary Algorithms Provide Real-Time Insights 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 Engine Next Bes
Slide 11: OppFi Growth Strategy
10 OppFi Growth Strategy Accelerate Profitable Growth Drive profitable core product volume growth Serve more non-prime consumers with product extensions, new structures, and/or strategic partnerships Expand into new customer types via M&A • Continue to test / iterate on market-based offers • Refine
Slide 12: Understanding Our Customer Value
11 Understanding Our Customer Value Over 1,7851 Customers2 Surveyed 1,426 of 1,785 took the time to write a personal note about their experience 87% of the remarks were positive Overall Experience 91% had a very positive or positive experience3 We Are There When Others Are Not … 50% were turned down
Slide 13: Financial Performance
Financial Performance
Slide 14: Platform with Proven Ability to Scale Profitably
13 Platform with Proven Ability to Scale Profitably Adjusted EBITDA Adjusted Net IncomeRevenue ($ in millions) $70 $134 $268 $323 $351 17A 18A 19A 20A 21A $22 $52 $97 $101 $117 17A 18A 19A 20A 21A $11 $28 $53 $55 $66 17A 18A 19A 20A 21A Note: Reconciliation of non-GAAP to GAAP financials for 2017 th
Slide 15: Operational Efficiencies: Automation & Expense Savings
On track for annualized $15 million in after-tax reduction in operational cost base, exiting 2022: More efficient marketing spending leading to lower cost per funded loan Reduced vendor expenses Headcount rationalization Lower interest expenses from new financing agreements Normalization of costs af
Slide 16: Reduced Cost of Financing and Strong Balance Sheet to Power Growth
15 Grown liquidity ~6x of 2017 levels Decreased cost of borrowing 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 arrangements, and • tot
Slide 17: Quarterly Key Performance Indicators
16 Net originations increased 57% year over year Ending receivables increased 54% year over year as a result of strong origination growth YoY Net charge-offs as % of average receivables increased to 51% versus 28% year over year, which is an improvement over Q1-2022 but continues to reflect elevated
Slide 18: Full Year 2022 Outlook
17 Full Year 2022 Outlook1 Total Revenue Growth 20% to 25% Adjusted Operating Expense2 Margin Profitability (Adjusted Basis) Break-Even or Modest Net Loss 1. As disclosed in the second quarter 2022 earnings press release issued on August 9, 2022. 2. Adjusted Operating Expense is defined as total exp
Slide 19: Long-Term Targets
18 Long-Term Targets Net Revenue Margin 70% Adjusted Operating Expense1 Margin 44% Adjusted EBITDA Margin 30% Adjusted Net income Margin 15% 1. Adjusted Operating Expense is defined as total expenses excluding interest expense, add backs and one-time items. Adjusted Operating Expense is not a financ
Slide 20: Appendix
19 Appendix
Slide 21: Fair Value Valuation
20 Fair Value Valuation 1. Stated as a percentage of loan receivable. 2. Represents rate applied to on-balance unpaid principal receivables, inclusive of adjustment for accrued interest. Key Highlights • Default rate increased by 100bps due to recent elevated loss rates • Prepayment rate decreased b
Slide 22: Pro Forma Share Count as of June 30, 2022
21 Pro Forma Share Count as of June 30, 2022 Shares Share Price Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock held by Public and Founders 13,632,260 13,632,260 13,632,260 13,632,260 Shares held by public shareholders, including founders, underwriters and private placements Class A and Class
Slide 23: Adjusted EBITDA and Adjusted Net Income Reconciliation Table
22 Adjusted EBITDA and Adjusted Net Income Reconciliation Table ($ in millions) 2017 2018 2019 2020 2021 Net Income $3 $10 $33 $78 $90 FV adjustments 10 26 35 (8) - Debt Issuance Cost 1 1 2 2 2 Other Addback and One-Time Expenses1 1 1 1 2 (8) Adjusted EBT 15 37 71 74 84 Pro-Forma Taxes2 (4) (9) (18)
Slide 24: Contact Information
2323 Contact Information Shaun Smolarz Head of Investor Relations investors@oppfi.com