Slide 1: Q3 2021 Conference Call Presentation
Q3 2021 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: Another Quarter of Strong Performance
ANOTHER QUARTER OF STRONG PERFORMANCE Global cash collections of $488 million Net income attributable to PRA Group of $34 million Portfolio purchases of $392 million Repurchased $74 million of common stock 3
Slide 4: Global Operations Continue to Produce Good Results
GLOBAL OPERATIONS CONTINUE TO PRODUCE GOOD RESULTS U.S. digital collections performing strongly U.S. productivity continues at historically high levels Cash efficiency ratio benefits from modernizing collections Meaningful engagement during Global Inclusion Week 4
Slide 5: Quarterly Global Portfolio Purchases Increased $172 Million From Q2 2021
QUARTERLY GLOBAL PORTFOLIO PURCHASES INCREASED $172 MILLION FROM Q2 2021 Total purchases of $392 million Diversity of Americas provided additional volume Secured strong volumes in Europe and a multi-year forward flow 5
Slide 6: Strong Results Deliver Solid EPS
STRONG RESULTS DELIVER SOLID EPS ($ in millions, except per share results) Q3 2020 vs Q3 2021 YTD 2020 vs YTD 2021 Total Revenues Operating Expenses Total Revenues Operating Expenses -2% +4% +6% +3% $268 $264 $179 $186 $792 $839 $531 $546 Q3 2020 Q3 2021 Q3 2020 Q3 2021 YTD 2020 YTD 2021 YTD 2020 YT
Slide 7: Continued Strong Collections Driven by Europe
CONTINUED STRONG COLLECTIONS DRIVEN BY EUROPE ($ in millions) Q3 Cash Collections YTD Cash Collections Q3 2020 Q3 2021 YTD 2020 YTD 2021 $336 $985 $949 $277 $152 $459 $132 $378 $37 $37 $119 $110 $14 $23 $41 $70 Americas Americas Europe Core Europe Americas Americas Europe Core Europe and Australia I
Slide 8: Q3 2021 Cash Efficiency Ratio Was 62.4%, YTD Was 65.8%
Q3 2021 CASH EFFICIENCY RATIO WAS 62.4%, YTD WAS 65.8% (Cash efficiency ratio = (cash receipts – operating expenses)/cash receipts) Cash Efficiency Ratio Full Year Expectation of 64% 65.8% 64.5% 59.9% 58.0% 2018 2019 2020 YTD Q3 2021 8
Slide 9: ERC Is Diversified With 52% In Europe And 41% In U.S.
ERC IS DIVERSIFIED WITH 52% IN EUROPE AND 41% IN U.S. ($ in millions) as of September 30, 2020 as of September 30, 2021 Southern Southern Europe, $189 Other Europe, $149 Other Americas and Americas, Australia, $395 Northern $270 Europe, $461 Northern Europe, $750 Central United States, Europe, $737
Slide 10: Strong and Conservative Capital Structure
STRONG AND CONSERVATIVE CAPITAL STRUCTURE ($ in millions) Total Borrowings Debt to Adjusted EBITDA * $2,700 $2,661 2.9 $2,600 $2,521 2.7 $2,500 2.5 $2,400 2.3 $2,300 2.1 1.99x $2,200 1.9 1.81x $2,100 1.7 $2,000 1.5 December 31, 2020 September 30, 2021 $1.4 Billion Available for Portfolio Acquisition
Slide 11: From Strength To Strength
FROM STRENGTH TO STRENGTH Strong balance sheet Substantial portfolio investments Diversification from a global enterprise Delivering additional shareholder value Exceptional workforce 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 Use of Non-GAAP Financial Measures PRA Group, Inc. reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internal