Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Q1 2024 Earnings Presentation
24 slides from Triumph Financial's earnings presentation, Apr 18, 2024
Slide 1: Investor Deck
Investor Deck NASDAQ: TFIN © Triumph Financial, Inc
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forec asts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can
Slide 3: Triumph Financial is a financial and technology company serving the transportation industry
Triumph Financial is a financial and technology company serving the transportation industry NASDAQ GS: TFIN (As of 6/24/24) $77.22 As of 6/24/24 Market Cap $1.8B $120 $100 2023A $80 Revenue(1) $418MM $60 $40 $20 Net Income to Common 2023A $0 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 Sharehol
Slide 4: TFIN is building innovative solutions to support the U.S. freight and logistics industry
TFIN is building innovative solutions to support the U.S. freight and logistics industry Security U.S. Freight and Bank Anti-Fraud Logistics Industry Payments $940B gross freight revenue from U.S. Integrations trucking on primary shipments(1) Network Connectivity Automation 3.7% of U.S. GDP Trust Ex
Slide 5: Value of TFIN as a BANK
Value of TFIN as a BANK Bank Network Exchange © Triumph Financial, Inc
Slide 6: TFIN's strong banking capabilities
$3.95B In Core Deposits 1.45% TFIN’s strong banking Cost of Funds (top decile public US Banks) capabilities provide the foundation and balance sheet for many of our $250MM+ transportation products In excess capital above regulatory well- capitalized thresholds and services All values presented for t
Slide 7: Value of TFIN as a NETWORK
Value of TFIN as a NETWORK Bank Network Exchange © Triumph Financial, Inc
Slide 8: Complexity invites fraud and creates waste
Many Many Many Many Complexity invites fraud and creates waste Brokers 10,000+ Active $550B+ $ Total transactions among fragmented stakeholders $ Challenges of Fragmentation Factors $ ~400 ! Fraud $500MM-$700MM in double-brokering fraud $ estimated and growing(1) $ ! Theft 57% increase in cargo thef
Slide 9: TFIN is creating a trusted network to connect parties, facilitate payments and reduce friction
TFIN is creating a trusted network to connect parties, facilitate payments and reduce friction Brokers 10,000+ Active Benefits of the Network $ Operational efficiency enabled through Triumph Financial's $ structured data between parties Factors Visibility afforded in our Network ~400 $ strengthens t
Slide 10: Our density of transactions and clients uniquely positions TFIN to solve industry challenges
Our density of transactions and clients uniquely positions TFIN to solve industry challenges Client Penetration Transaction Penetration 57 of top 100 44% Broker customers of all brokered freight transactions 11 of top 20 $25.5B Factor customers in annual payment volume 184,000+ $52.4B Carriers paid
Slide 11: Offering value-added services during the invoice lifecycle creates multiple revenue opportunities
Offering value-added services during the invoice lifecycle creates multiple revenue opportunities per transaction Brokers + 4PLs $1,700 Factors A/P A/P A/R A/R Shippers Carriers A/P A/R Fee Revenue Financing Revenue Float Revenue Payment Fees Audit Fees Network Fees Extended Pay Factoring Quick Pay
Slide 12: LoadPay: an open wallet application connected to our Network
: an open wallet application connected to our Network for carriers to receive, send and spend funds An open wallet application for carriers Flow of funds and information 24 x 7 x 365 funding to LoadPay A surface transportation Debit and connected fuel cards payments & information Network Other value
Slide 13: LoadPay unlocks financial opportunities for carriers and TFIN
LoadPay unlocks financial opportunities for carriers and TFIN Brokers + 4PLs $1,700 Factors A/P A/P A/R A/R $620 $450 Driver Wa ges Fuel and Be nefits Spe nd $225 $175 $90 Truck Repairs, Other Pur cha se/ Maintenan ce, Spe nd Shippers Lea se Tires Carriers A/P1 A/P A/R Fee Revenue Financing Revenue
Slide 14: Value of TFIN as an EXCHANGE
Value of TFIN as an EXCHANGE Bank Network Exchange © Triumph Financial, Inc
Slide 15: TFIN could leverage our Network density to facilitate a trusted exchange
TFIN could leverage our Network density to facilitate a trusted exchange Who would have access to the Exchange? Vetted members of our Network What could flow through the Exchange? Financial Institutions Equipment Finance Lenders Data Syndication Investment Firms Government Agencies Payments Insuranc
Slide 16: TFIN has sightline to over $1B in revenue
TFIN has sightline to over $1B in revenue Current TriumphPay Revenue Streams Realistic TAM of Network Revenue + LoadPay + Exchange Exchange Revenue Streams $1B Data / value- Product added services extensions Realistic TAM of Network Revenue + LoadPay LoadPay Revenue Streams $500MM LoadPay Card LoadP
Slide 17: Sustainable Business Practices
Sustainable Business Practices © Triumph Financial, Inc
Slide 18: Our Values
Our Values Unique is good Be wary of following the Invest for the future crowd. Being unique can be Mission is more than money Do not allow the immediate to crowd out difficult, but if it were easy, Make everything you're involved in better. This the important. Success that endures is everyone would
Slide 19: Our Environmental Practices
Our Environmental Practices What we Believe What we Practice What we Monitor ✓ Preference for environmentally friendly products ✓ Leverage document and image technology to reduce paper We recognize that our activities may have consumption, our largest Limits set on concentrations of certain types an
Slide 20: Our Diversity
As of December 31, 2023 Our Diversity Women represent: The diversity of Triumph Financial 63% 65% 64% 33% of our overall of our non- of our of management, team members is a tremendous asset. team members management management senior vice president team members team members and above We are committed
Slide 21: Our Philanthropy
Our Philanthropy Major Charitable Initiatives In 2023, Triumph Workshop Triumph Workshop provides the tools, knowledge, and connections to foster a community of creation, innovation and success. Triumph 435 8,692 407 Financial and TBK Bank established Triumph Workshop as a makerspace Team members Vo
Slide 22: Appendix
Appendix © Triumph Financial, Inc
Slide 23: Executive Team
Executive Team Aaron Graft Brad Voss Melissa Forman Tim Valdez Todd Ritterbusch Founder, Vice Chairman, EVP, President, President, President, and Chief Executive Officer Chief Financial Officer TriumphPay Triumph Factoring TBK Bank, SSB 14 Years at TFIN 13 Years at TFIN 5 Years at TFIN 3 Years at TF
Slide 24: Thank You!
Thank You! © Triumph Financial, Inc