Enova International, Inc. · NYSE:ENVA
Enova International — Investor Presentation (June 2021)
47 slides from Enova International's investor presentation, Jun 23, 2021
Slide 1: Investor Presentation June 2021
‘EG enova. Investor Presentation June 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement Regarding Risks and Uncertainties That May Affect Future Results This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova.
Slide 3: Execution Reflected in Financial and Market Performance
Execution Reflected in Financial and Market Performance Q1 2021 #WINS! Gt | a> | & | Da Receivables growth . . Solid credit quality Abundant liquidity to wae Effective marketing . . reflects opportunistic reflects the risk support re-acceleration eras continues to attract , diversification and focus
Slide 4: Second Quarter Update — June 22, 2021
Second Qu 4 — June 22, 2021 Originations * Second quarter originations are on pace to total approximately $650 million - up approximately 30% sequentially driven by increases across all brands from improving demand and normal consumer seasonality — up approximately 25% compared to the second quarter
Slide 5: On Track to Deliver Deal Economics from The OnDeck Acquisition
On Track to Deliver Deal Economics from The OnDeck Acquisition ‘i 7 CG enova AS/ ondeck — 4 > Shareholders benefit from the opportunity for long-term growth and upside through ownership in a stronger and more dynamic combined company ¢ Transaction is expected to be accretive in the first year post-c
Slide 6: Acquisition of Pangea: A Smarter Way to Move Money
Acquisition of Pangea: A Smarter Way to Move Money World-Class International Money Transfer Service Pangea makes it easy to send money to bank accounts and debit cards in 40 countries around the globe. Mobile Bank Account 2) Pangea Card brings fair and affordable online banking to underbanked Americ
Slide 7: Helping hardworking people get access to fast, trustworthy credit
Helping hardworking people get access to fast, trustworthy credit From the Federal Reserve Board: of Americans said they didn’t 0) ‘ ‘ (0) of Small Businesses had 37 % free SFT GreNie Serigs 5 3 % unmet funding needs in 20202 cover an emergency of $4001 41 May 2020 Federal Reserve Board Survey 2.202
Slide 8: Proven Track Record in FinTech With Year History of Profitably Lending Through Credit Cycles
Proven Track Record in FinTech With 16 Year History of Profitably Lending Through Credit Cycles Cumulative Originations”* $63B 7+ Million a a customers served Cumulative Net Income”* $858M 13 Products a eS ($83M) in multiple geographies ($724m) aa OPZ:RTUN £CURO E/evate LendingClub CG enova. . ar .
Slide 9: The Right Operating Model for Meeting Customer Needs
The Right Operating Model for Meeting Customer Needs and Delivering Strong and Stable Returns Through Economic Cycles a + fF FocusonNon-—Prime Diversified Product Multiple Growth Highly Flexible Online- Borrowers — a Large, Offerings Serving Businesses that Only Business Model Expanding Market Multi
Slide 10: Enova Operates in Large Markets with Large Non-Prime Lending Opportunities
Enova Operates in Large Markets with Large Non-Prime Lending Opportunities $69B $82B $80B Consumer Loans* Small Business Consumer Loans* Enova ~ 2% of Finance? Enova <1% of Originations Enova <3% of Originations Originations NOTE: Consumer estimates refer to Non-Prime portion of unsecured persona! l
Slide 11: Successful and Ongoing Diversification Efforts
Successful and Ongoing Diversification Efforts Revenue Diversification by Product Type?”? Funding Diversification by Source Small busines s loans 25% y hs Senior Note y q A 2025 40% FY 2009 Q4 2020 FY 2009 Q4 2020 Marketing Diversification by Channel? Gross AR Diversification by Product Type? Instal
Slide 12: Continuing Our Success...
4.14.1 \_. Continuing Our’Success... = / Fr oe a / =~ »- } y, 4 Helping hardworking people get ‘access to fast, trustworthy credit l “ey y) \. Ye » @ Genova
Slide 13: Multiple Growth Businesses
Multiple Growth Businesses fut SIS Small Business ondeck US Subprime oO US Near Prime Brazil E Enova Decisions Large markets with LARGE opportunities 13 — June 22, 2021 Enova International, Inc. Sg enova.
Slide 14: High Quality Small Business Products to Close the Credit Gap
High Quality Small Business Products to Close the Credit Gap HEADWAY CAPITAL. Lines of Credit Size $5k - $100K Term LOC Open-ended with principal paydown, 12 and 18-month Pricing 40% - 80% annualized Average Customer Profile LOCs* Avg. 7 Yrs. old & $473k revenue ro5' THE BUSINESS BACKER 5 4 SNSEALLC
Slide 15: Enova's Small Business Lending Footprint
Enova’s Small Business Lending Footprint Enova’s SMB Lending operates nationwide, helping small and medium enterprises get access to fast and trustworthy credit i Multi Products States Single Product States 4 Includes OnDeck 15 — June 22, 2021 © Enova International, Inc. gS enova.
Slide 16: US Small Business: Faster, Easier, and Stable
US Small Business: Faster, Easier, and Stable HEADWAY CAPITAL, FEESy SS sarsseare . Improve collections capacity, add tools, and shift tactics to Unsecured Line of Credit Unsecured Receivables Purchase accommodate increased defaulted accounts as a result of Agreement, Installment, and access COVID c
Slide 17: High Quality Consumer Products to Close the Credit Gap
High Quality Consumer Products to Close the Credit Gap Consumer CaghNetUSA. Sub-Prime Single Pay Loans or Advances, Installment Loans, and Lines of Credit Size $150 - $4,000 Varies from 2 weeks to 24 months, Term _ installment amortizes and LOC with principal paydown Fee based or interest — Pricing
Slide 18: Enova's US Consumer Lending Footprint
Enova’s US Consumer Lending Footprint Enova offers various loan products to non-prime consumers in 38 states. Enova has been successful in delivering growth through multiple state lending law changes. BB Multi Products States Single Product States Not Currently Served States 18 — June 22, 2021 © Eno
Slide 19: US Consumer Subprime: Manage Portfolio and Position for Growth
US Consumer Subprime: Manage Portfolio and Position for Growth CashNetUSA. Response Strategies and Pri les . Make smart underwriting decisions to serve customers in Consumer Unsecured Short need and be responsible in originations volume Term, Installment, and Line of Credit Loans ° Minimize portfoli
Slide 20: US Near Prime: Manage Performance and Prepare for Growth
US Near Prime: Manage Performance and Prepare for Growth @ NetCredit’ A MORE PERSONAL LOAN . Work with customers facing hardship . Manage effective collections programs to maximize recoveries }_USNEAR PRIME . Prepare for increased lending by developing strategies to address new credit and market dyn
Slide 21: Illustrative NetCredit Unit Economics
Illustrative NetCredit Unit Economics © NetCredit’ A MORE PERSONAL LOAN Targeted Customer’ Cash Flow Waterfall Total Customer Principal and Interest Repayments, Net of Losses and Customer Prepayments Acquisition Costs Variable OpEx Total Net Cash ‘Flow Lifetime ienerate Principal Written ($325) ($23
Slide 22: Brazil: Position for Growth
Brazil: Position for Growth sponse Strategies and Priorities e Simplic . Adapt customer service and collection policies in response to temporary income loss to maximize customer payment success and recoveries Consumer Unsecured Installment Loans . Implement updated regulatory guidance for opt-in and
Slide 23: Enova Decisions: Real-Time Analytics for Data Driven Decisions
Enova Decisions: Real-Time Analytics for Data Driven Decisions | ENOVA DECISIONS’ Real-Time Analytics Analytics-as-a-Service Offering Colossus” Real-Time Analytics Platform with Customizable Scores and Decisions e Financial services ¢ Enova Decisions Smart Credit™ e Packages the power of the © Telec
Slide 24: Products and Services are Delivered Through a Highly Flexible Online-Only Business Model
Products and Services are Delivered Through a Highly Flexible Online-Only Business Model Online i. Customer Safety and Privacy Apply and manage account anytime and anywhere privately from desktop or mobile devices with secure systems to protect sensitive information 1@Q Underwriting Direct link to E
Slide 25: Strong Credit Performance Through This Economic Downturn
Strong Credit Performance Through This Economic Downturn Reflects Risk Management Capabilities of our World Class Analytics and Technology Consumer Loans*?3.4 20.0% 15.0% 10.0% 5.0% ——— OO TSE —% Q12018 Q22018 Q32018 Q42018 Q12019 Q22019 Q32019 Q42019 Q12020 Q22020 —=>30 days delinquent as a % of co
Slide 26: Proven Proprietary Real-Time Analytics and Technology
Proven Proprietary Real-Time Analytics and Technology Support Our COVID-19 Response and Return to Growth The Colossus™ Analytics Engine creates powerful competitive advantage External Data Sources Internal Data Sources > RealView™ risk based Ability-to-Repay credit decisions Marketing optimization P
Slide 27: Machine Learning Models and Automation Are Applied Extensively
Machine Learning Models and Automation Are Applied Extensively Across the Customer Life Cycle Colossus” Platform O% of Models are Machine-Learning Enabled 27 — June 22, 2021 COLLECTIONS ML models improve collections yield by prioritizing dialers and optimizing settlement strategies SMART ACH ML mode
Slide 28: Proactive Global Compliance Capabilities
Proactive Global Compliance Capabilities Compliance Infrastructure ° Licensed where required; reduces regulatory risk and is a barrier to entry ¢ Central team led by professional bank compliance officer reporting to Board of Directors ° Regulatory framework built into technology platform and the bus
Slide 29: Shifting Customer Preferences and Efficiency Favor Online-Only Models
Shifting Customer Preferences and Efficiency Favor Online-Only Models “Forty-three percent of respondents say the way they bank has changed due to COVID- 19....with around two-thirds saying they are visiting physical stores less.” —EY Future Consumer Index, August 31, 2020 Online-only non-bank lendi
Slide 30: Disciplined Approach to Unit Economics Drive Marginal Decisions
Disciplined Approach to Unit Economics Drive Marginal Decisions and Earnings Resiliency Lifetime Customer Value (Conceptual Example) Expected Lifetime Principal and Interest Repayments before Losses Expected Losses Customer Acquisition Costs Direct Variable Costs’ Lifetime Principal Written Lifetime
Slide 31: Enova's Earnings Capacity and Smart Risk-taking Provide Strong Returns
Enova’s Earnings Capacity and Smart Risk-taking Provide Strong Returns Even in a Volatile Environment Adjusted EPS and Returns $10.00 50% $9.00 45% $8.00 40% $7.00 35% é > & $6.00 30% = 3 ia 2 z 3 $5.00 25% § 3 E $4.00 20% & [4 $3.00 15% $2.00 10% $1.00 5% $0.00 0% 2015 2016 2017 2018 2019 2020 L™ Q
Slide 32: Balance sheet flexibility is a source of strength
Balance sheet flexibility is a source of stren Funding Mix and Capacity Enova's Debt Maturities” (Sin Millions) $400 Worchouse = Securttzations $350 F | $390 Ei §s309 19453 seuna 9300 H i |sa12 fave: 1 = $250 Sii6 $200 | $158 $62 saat $5 . $8 ia a8 st $150 $100 $50 $0 2015 2016 2017 2018 2019 2020 ©
Slide 33: Several Years of Developing Formal Recession Monitoring and Response Processes
Several Years of Developing Formal Recession Monitoring and Response Processes Prepared Us for Successfully Operating in Adverse Economic Conditions ¢ Formal continuous monitoring of economic environment ¢ Formal continuous monitoring of internal metrics and portfolio performance © Formal monthly (a
Slide 34: Monitoring Activities Focus on Taking Informed and Timely Action
Monitoring Activities Focus on Taking Informed and Timely Action Internal Portfolio Metrics External Economic Alert Level Factors Examples of Internal Portfolio Metrics ¢ Initial defaults ¢ Portfolio hazard rate ¢ Delinquency roll rates ¢ ACH return rates ¢ Utilization ¢ Prime customer volume * Lead
Slide 35: Alert Response System Focuses on Targeted and Appropriate Risk Mitigation
Alert Response System Focuses on Targeted and Appropriate Risk Mitigation Through Recovery Each business function has clearly defined roles and responsibilities that will be followed from the first warning signs of a downturn through the credit cycle recovery period RECOVERY/ IMPACT HEI RETURN TO AL
Slide 36: History of Revenue and Profit Growth
ory of Revenue and Profit Growth (Sin Millions) Gross Revenue Established’ and Newer’ Brands** FY 2015, FY 2016 FY 2017 Fy 2018 FY 2019 FY 2020 YTD 2020 YTD 2021 mEstablished Brands ™ Newer Brands Adjusted EBITDA and Margin**” (Sin Millions) CAGR: 32.8% $276 Psa 554 | e108 =a FY 2012 FY 2013 FY 2014
Slide 37: Demonstrated Operating Leverage
Demonstrated Operating Leverage (Sin eilions) Enova Key Metrics*”* $1,400 183% $1,200 107% $1,000 $800 $600 $400 $200 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 YTD Q12020 YTD Q12021 $0 @ Loans and Finance Receivables Outstanding m Revenue @ O&T and G&A Expenses 1 Gross foan and finance receiva
Slide 38: Appendix — June 22, 2021
Appendix 38 — June 22, 2021 © Enova International, Inc. gS enova.
Slide 39: Accounting for Receivables Using Fair Value Began January 1, 2020
Accounting for Receivables Using Fair Value Began January 1, 202 COMPLIANCE DECISION KEY CHANGES * FASB required adoption of life of loan loss accounting on January 1, 2020 for public companies with a public float of greater than $250M * In May 2019, FASB included fair value accounting as an option
Slide 40: Key Changes to Financial Reporting Under Fair Value
Key Changes to Financial Reporting Under Fair Value Balance Sheet Income Statement Day 1 Gain on Originations Revenue Net -_Change in Fair Value Realized Charge Offs es Net Revenue Net Revenue Margin % Change in FV ‘Assumptions Higher originated Higher new customer principal (at consistent mix mix)
Slide 41: Nonprime Consumer Credit Losses Have Shown Less Volatility in an Economic Downturn
Nonprime Consumer Credit Losses Have Shown Less Volatility in an Economic Downturn 2008 — 2009 recessionary Risk Score FICO score 2004 — 2006 normalized loss rate’ compared to 2009 peak loss rate Multiple Super-Prime 0.2% 0.6% >770 eo 15% 3.9% 710-770 o_ 650-710 oe 20.4% 28.4% <650 ——___—__ Near-Pri
Slide 42: Financial Resiliency of Nonprime Lenders in a Downturn
Financial Resiliency of Nonprime Lenders in a Downturn Should Benefit from Higher Margins and Lower Credit Volatility Net Revenue Margin?, Net Charge-off Rate 80% 72.4% = 70% 60% 50% eer 7 i 49.1% ! 1 40% i i H i iH 1 30% 31.1% 20% 15.4% = yecee eee 10% 5.6% H 11.5% i = 1 0% 9%, pay | Consumer Lendi
Slide 43: Consolidated Income Statements
Consolidated Income Statements Consolidated Statements of Income | 12Mo.Ended | 12Mo.Ended | 12 Mo. Ended | 12 Mo. Ended § 12 Mo. Ended YTD (in millions) December 31, December 31, December 31, December 31, December 31, March 31, (unaudited) 2016" 2017" 2018" 2019 * 20201 20211 Revenue $642 $729 $973
Slide 44: Consolidated Balance Sheets
Consolidated Balance Sheets Consolidated Balance Sheets (in millions) December 31, | December 31, | December 31, | December 31, | December 31, March 31, 2018-2019 - unaudited) 2016 2017 20187 2019” 2020 * 2021 * Assets Cash $40 $69 $28 $36 $297 $324 Loans and finance receivables, net 562 705, 780 1,
Slide 45: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net Income to Adjusted EBITDA 12 Mo. Ended 12 Mo. Ended 12 Mo. Ended 12 Mo. Ended 12 Mo. Ended (in millions) December 31, December 31, December 31, December 31, December 31, (unaudited) 2016 * 2017 * 2018 ° 2019 § 2020 * Net income $20.0 YTD March 31, 20
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Slide 47: ACCOUNTABL
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