Slide 1: Q2 2020 Conference Call Presentation
Q2 2020 CONFERENCE CALL PRESENTATION 1
Slide 2: Forward-looking statements
Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve uncertainties and risks, some o
Slide 3: PRA has a significant role to play in this environment
PRA HAS A SIGNIFICANT ROLE TO PLAY IN THIS ENVIRONMENT Our thoughts go out to those affected by COVID-19 PRA has a significant role to play by ushering people through financial challenges 3
Slide 4: Q2 2020 continued strong results
Q2 2020 CONTINUED STRONG RESULTS Record global cash collections of $510 million Portfolio purchases of $164 million with improving pricing Estimated remaining collections of $6.4 billion 4
Slide 5: Americas Q2 2020 results
AMERICAS Q2 2020 RESULTS Record cash collections of $382 million Increased productivity Invested $125 million in Americas Core and Insolvency at improved expected returns Operating at normal capacity 5
Slide 6: Europe Q2 2020 results
EUROPE Q2 2020 RESULTS Cash collections of $128 million in Europe Invested $39 million in Europe Core and Insolvency Operating at near normal capacity 6
Slide 7: Financial results
FINANCIAL RESULTS ($ in millions, except per share results) Q2 2019 vs Q2 2020 Cash Collections Total Revenues* Operating Expenses +8% +8% -14% $510 $272 $187 $470 $251 $161 Q2 2019 Q2 2020 Q2 2019* Q2 2020 Q2 2019 Q2 2020 Net Income Earnings Per Share +211% +207% $58 $1.26 $19 $0.41 Q2 2019 Q2 2020
Slide 8: Cash collections
CASH COLLECTIONS ($ in millions) Second Quarter 2020 Second Quarter 2019 Global Global Insolvency, Insolvency, $51.5 $58.4 Europe Core, $115.1 Europe Core, $117.6 Americas Core, Americas Core, $294.2 $343.3 8
Slide 9: Q2 2020 cash efficiency ratio of 68.7%, YTD of 65.1%
Q2 2020 CASH EFFICIENCY RATIO OF 68.7%, YTD OF 65.1% ($ in millions, Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts) $2,000 70% $1,857 $1,800 $1,640 60% $1,604 $1,569 $1,600 $1,538 $1,444 $1,400 50% $1,214 $1,200 40% $971 $1,009 $1,000 $762 30% $800 $592 $600 20% $383 $43
Slide 10: Estimated remaining collections and available capital
ESTIMATED REMAINING COLLECTIONS AND AVAILABLE CAPITAL ($ in millions) as of June 30, 2020 Estimated Remaining Collections United States - $3,316 United Kingdom - $1,366 Central Europe - $731 Northern Europe - $457 Other Americas - $287 Southern Europe - $196 $933 Million Available for Portfolio Acqu
Slide 11: PRA Group is in a strong competitive position
PRA GROUP IS IN A STRONG COMPETITIVE POSITION Expect increased supply in 2021 at more attractive pricing Past actions position PRA well competitively PRA is in a strong position globally 11
Slide 12: Q&A
Q&A 12
Slide 13: Reconciliation of non-GAAP financial measure to GAAP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP ($ in thousands) Use of Non-GAAP Financial Measures PRA Group, Inc. reports financial results in accordance with U.S. GAAP. However, the Company believes that the use of certain metrics assists with the meaningful comparison between current year r