Slide 1: Investor presentation / September 2021
Investor presentation / September 2021 0
Slide 2: Disclaimers
Disclaimers This presentation contains financial forecasts for the Company with respect to certain financial results for Pagaya Technologies Ltd. (the “Company”). Neither EJFA, EJF or their affiliates nor the Company's independent auditors have audited, studied, reviewed, compiled or performed any p
Slide 3: Introduction: EJF Capital, EJF Acquisition Corp.
Introduction EJF Capital, EJF Acquisition Corp. Strong strategic partner and Pagaya are optimal partners EJF Capital is an entrepreneurial, employee-owned firm with a 16-year track record of investing in and building financial services businesses Leading investor in the U.S. bank sector with 1,000 i
Slide 4: Introduction: Speakers
Introduction Speakers Pagaya EJF Acquisition Corp. Michael Kurlander Gal Krubiner Manny Friedman Kevin Stein CEO, EJF Acquisition Corp. CEO & Co-founder, Pagaya Chairman, EJF Acquisition Corp. CFO, Pagaya Senior Managing Director, EJF Capital Co-CEO, EJF Capital Co-founded Pagaya in 2016 Deputy Glob
Slide 5: Who we are: Pagaya highlights
Who we are Pagaya highlights A.I. driven, highly scalable network 1 deeply entrenched in partner systems Rapid expansion and scale in numerous 2 markets with massive addressable markets Proven value proposition drives partner 3 penetration and stickiness World-class data science team 4 Fee-based, ca
Slide 6: Our vision
Our vision Enable better financial outcomes for our partners and their customers 5
Slide 7: Building a leading artificial intelligence network
Credit Card Insurance Personal Loan We are building a leading artificial intelligence network to help our partners grow Centralized A.I. and data network their businesses and better serve their Mortgage Auto Loan customers Single Family Rental 6
Slide 8: How we monetize our technology
How we monetize our technology Our business model STEP 1 STEP 2 STEP 3 STEP 4 Customers approach our network partners Our partners leverage our network to Pagaya provides centralized Financial product is acquired by with a need or a dream unlock better results for their customers artificial intellig
Slide 9: Pagaya at a glance
Pagaya at a glance Vast data, leading technology, rapid growth, highly scalable TECH VOLUME GROWTH SCALE 16mm+ 1 app/sec 198% $4.7bn 1 2 Training data points Volume of application evaluation Network volume growth, Annualized network volume, 3 3 annualized Q2 2021 vs FY 2020 Q2 2021 100% 17mm+ 306% $
Slide 10: Legacy inefficiencies
Legacy inefficiencies The problem: We believe legacy underwriting systems drive inefficiencies for both our partners and their customers What consumers want Challenges our partners face • Convenient access to a broad array of • Siloed data and tech infrastructure financial products • Tech investment
Slide 11: Disruption: Our solution
Disruption Our solution: Customers Centralized enabling technology powers the A.I. network Each of our partners’ customers are evaluated in real time Bank FinTech Dealership Broker The network matches applications to the criteria of institutional investors Democratizes access to financial services—
Slide 12: Opportunity: Better outcomes for partners and customers
Opportunity The Result: Better outcomes for our partners and their customers Partners Customers Delight more customers by increasing conversion Financial product fulfills a need or a dream 11
Slide 13: Company overview
Company overview 12
Slide 14: Seamless uplift
Seamless uplift Our technology provides seamless integration and rapid results Tech integration is Partners’ transactions are API plugin Real-time designed to minimize friction approved with minimal latency Automated process A.I. network powers automated process for 100% of transactions 13
Slide 15: Innovation at breakneck speed
Innovation at breakneck speed We have added one new market per year since 2018 2018 2019 2020 2021 Personal Auto Credit card / POS Real Estate New market addition represents Pagaya onboarding partners in a new market 14
Slide 16: Multi-market solution: Our opportunity speaks for itself
Multi-market solution Our opportunity speaks for itself Estimated annual origination volume in our addressable markets PERSONAL 1 $81 Billion AUTOMOTIVE POINT OF SALE 2 1 $53 Billion $693 Billion INSURANCE CREDIT CARD HOUSING 3 1 4 $332 Billion $183 Billion $2.6 Trillion Note: Represents estimated a
Slide 17: Trajectory: Our network volume growth
Trajectory Our network volume growth Network Volume ($mm) $1.8bn 154% CAGR $1.0bn $587mm $435mm $285mm H1 H2 H1 H2 H1 2019 2020 2021 Metrics as of 6/30/2021 16
Slide 18: Penetrating new markets increasingly quickly
Penetrating new markets increasingly quickly A.I. enables smarter, more accelerated growth across markets 1 Annualized network volume ($mm) in Auto and Real Estate significantly exceeds Personal loans at similar stages Personal Auto $50 0 (entered 2018) (entered 2019) $40 0 $30 0 Real estate (entere
Slide 19: A.I. drives significant growth for partners and Pagaya
A.I. drives significant growth for both our partners and Pagaya Once we onboard a new partner, our A.I. enables us to rapidly scale their volume in our network RAPID ONBOARDING GROWTH RETENTION Rolling three month average volume per partner as a multiple of each partner’s second month volume 3x Medi
Slide 20: Deep competitive moat
Deep competitive moat Data science and technology are the foundation of our company 170+ Research & World-class data science platform Development specialists 16mm+ Tremendous data asset training data points 100% retention Entrenched partner relationships since inception 19
Slide 21: Fee-based, capital-light business model
Our business model Fee-based, capital-light business model Fee revenue (99% of our revenue) • Pagaya earns fees when institutional investors acquire products enabled by our A.I. network • Assets are originated and serviced by Pagaya’s partners Other income (1% of our revenue) • Pagaya earns investme
Slide 22: Light balance sheet and low-risk funding model
Balance sheet light Light balance sheet and low-risk funding model A.I. network is an engine for enhancing partners' origination, continuously attracting new institutional investors Assets acquired by Pagaya’s network Assets matched to identified of third-party investors funding at origination, alig
Slide 23: Founder-led team with deep tech & finance expertise
Founder-led team with deep tech & finance expertise Gal Krubiner Avital Pardo Yahav Yulzari CEO & Co-founder CTO & Co-founder CRO & Co-founder Michael Kurlander Richmond Glasgow Amol Naik Ed Mallon Tami Rosen Benjamin Blatt CFO GC COO CIO CPO CBO 22
Slide 24: Transaction overview
Transaction overview 23
Slide 25: Transaction summary
Overview Transaction summary Capitalization ($mm) Structure Committed PIPE Pro forma Implied market $9,088 • Pagaya Technologies (“Pagaya”) to merge with EJF • $200mm PIPE committed by entities associated 4 capitalization enterprise value Acquisition Corp (“EJFA”) with EJFA¹ 3 Net cash (588) $8,500
Slide 26: Business model and plan
Business model and plan 25
Slide 27: Network volume and revenue growth
Business model Extraordinary network volume growth has resulted in strong revenue growth Network volume Revenue ($bn) ($mm) $15.0 $1,250 $1,086 $12.8 $12.0 $1,000 $9.0 $750 $679 $7.7 +60% +66% $6.0 $500 $407 $4.4 +67% +73% $3.0 $250 $1.6 +178% +333% $94 $0.7 +121% 1H21A 1H21A $35 +171% $175 $1.8 $0.
Slide 28: Pagaya compares favorably to other disruptive fintechs
Business model Pagaya compares favorably to other disruptive fintechs Transaction fees Transaction fees Transaction fees Revenue sources Loan servicing fees Interest income Insurance premium profit sharing Interest income Personal ✓ ✓ ✕ Auto ✓ ✓ ✓ ✓ ✕ ✕ Real Estate POS ✓ ✕ ✕ ✓ ✕ ✕ Credit Card Networ
Slide 29: Momentum: Strong, consistent growth
Momentum Strong, consistent growth—thriving across market environments Quarterly Network Volume Growth (YoY) 286% Pagaya Upstart Open Lending 191% 186% 132% 112% 99% 54% 23% 24% 20% 10% 9% NM -8% -66% Q2'2 0 Q3'2 0 Q4'2 0 Q1'2 1 Q2'2 1 Source: Public Filings for Upstart and Open Lending; Pagaya and
Slide 30: Bright future: Well defined growth plan
Bright future Well defined growth plan Insurance New Products Penetrate Large Banks Partner Partner with home and auto Volume insurers, leveraging our Growth unique data advantage Deepen Launch new products to cater Technology to the captive customer segment via partners Partner with traditional len
Slide 31: Near-term opportunity to partner with large banks
Value add Near-term opportunity to partner with large banks Key Value Proposition Potential Opportunity Increased Sales Additional Financial Products • Improved access to credit for • Ability to offer additional customers to drive incremental financial products to 64 U.S. banks with sales customers
Slide 32: Forecast and valuation
Forecast and valuation 31
Slide 33: Forecast detail
Forecast detail Longer-term run rate 2021E YoY % 2022E YoY % 2023E 2024–2025E Network volume $4,425 73% $7,665 66% $12,750 35%+ 30%+ YoY % CAGR Total revenue $407 67% $679 60% $1,086 Total costs $344 65% $568 58% $896 Adj. operating income¹ $63 77% $112 71% $190 Adj. operating margin¹ 20%+ 30–40% 15
Slide 34: Pagaya in context: Selected peers
Pagaya in context High-growth consumer fintech networks High-growth fintech infrastructure Selected Peers ü AI-centric enablement technology ü Enablement technology ü Fee based revenue ü Transaction-based revenue ü Transaction-based revenue ü Expanding margin profile ü Multi-market presence û Exclus
Slide 35: Compelling valuation
Compelling valuation High-growth consumer fintech networks High-growth fintech infrastructure Selected Peers 2021-2023E Revenue CAGR 63% 36% 26% 33% 24.6x 24.8x 18.5x 12.5x EV / 2022E Revenue Pagaya Upstart Open Lending High growth financial infrastructure 18.8x 18.7x 15.2x 7.8x EV / 2023E Revenue P
Slide 36: Appendix
Appendix 35
Slide 37: Risk factors (1/5)
Risk factors (1/5) Risk Factors Summary Certain factors may have a material adverse effect on our business, financial condition and results of operations. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we
Slide 38: Risk factors (2/5)
Risk factors (2/5) • Our reputation and brand are important to our success. If we are unable to continue developing our reputation and brand, or if our brand and reputation are damaged, our ability to retain existing and attract new partners and investors in our funds and securitizations and our abi
Slide 39: Risk factors (3/5)
Risk factors (3/5) • Our funding business depends in large part on our ability to raise capital from third party investors. A failure to raise capital from third party investors on attractive fee terms or at all, would impact our ability to collect management fees or deploy such capital into investm
Slide 40: Risk factors (4/5)
Risk factors (4/5) Risks Related to Our Regulatory Environment • Litigation, regulatory actions, and compliance issues could subject us to significant fines, penalties, judgments, remediation costs and/or requirements resulting in increased expenses. • If we fail to comply with or facilitate complia
Slide 41: Risk factors (5/5)
Risk factors (5/5) Risks Related to Dual Class Structure • The dual class structure of our ordinary shares may adversely affect the trading market for our Class A ordinary shares. • The dual class structure of our ordinary shares has the effect of concentrating voting power with certain shareholders
Slide 42: Legend
425 legend In connection with the proposed Business Combination, a registration statement on Form F-4 (the “Form F-4”) is expected to be filed by Pagaya Technologies Ltd.” (“Pagaya”) with the U.S. Securities and Exchange Commission (“SEC”) that will include a preliminary proxy statement/prospectus i
Slide 43: Forecast methodology
Forecast methodology Network volume Revenues Expenses Detailed, bottom-up, partner-by-partner forecast to Revenue growth driven by volume growth No operating leverage is assumed arrive at projected network volume Minimal assumed growth in fee rates, which vary by Given its significant growth opportu
Slide 44: =) Oo > x Cc e) x E
=) Oo > x Cc e) x E