Accord Financial Corp. · TSX:ACD
Accord Financial — Investor Presentation (2022)
18 slides from Accord Financial's investor presentation, 2022
Slide 1: Accord Financial Corp. Spring 2022
Accord Financial Corp. SPRING 2022
Slide 2: Forward-Looking Information
Forward-Looking Information Certain statements included or incorporated by reference in this document constitute forwarcHooking statements or information. Forward-looking statements are typically identified by words such as “projected”, “anticipate”, “believe”, “expect”, “plan”, “intend” or similar
Slide 3: Leaders in Commercial Finance
ACCORD FINANCIAL Leaders in Commercial Finance Founded 1978 Secured Lending Solutions Founded in Toronto and Montreal 44 years ago, Accord Accord offers a variety of secured lending solutions to is Canada’s longest established speciality lender: small and medium sized business in the US and Canada:
Slide 4: 40+ Years of Evolution
ACCORD FINANCIAL AO+ Years of Evolution Accord Financial ‘Acquired the Went public on Acquired iTrade Expanded into Acquired Chicago- launched after Canadian the TSX; acquired JTA Finance, specialized equipment financing based equipment raising $2 million in recelvables finance Factoring and In fina
Slide 5: Founders, Management, Public Float
Founders Management Public Float
Slide 6: Market Opportunity: Global Private Debt AUM
Global Private Debt AUM (USS billions) $1400 SPECIALTY FINANCE Market Opportunity $1200 10 . . $1,000 976 » Non-bank lending continues unprecedented growth since the financial crisis 800 “ 742 + Big banks exiting SME lending because of 604 °28 regulatory change post-financial crisis (Basel Ill), mee
Slide 7: Prime examples of underbanked borrowers
ACCORD FINANCIAL Prime examples of “underbanked’ borrowers Growth ConstructionSolve (2019) Technology and equipment rentals for construction industry Fast growing, private equity- backed innovator in the space Capital One provides a $1.2 billion bank line Accord tops up financing for the equipment r
Slide 8: Transformative Platform Acquisitions
DRIVING GROWTH Transformative Platform Acquisitions Integrated three platform acquisitions; each sub $10 million investment with value unlocked by combining strong platforms with Accord’s access to capital. Growth and value were created: = One-stop source of financing to our referral network, channe
Slide 9: Growth Engine: Core Divisions
GROWTH ENGINE C O re D ivi S O NS Average Cost of Spread Growth Yield (%) Debt (%) (%) Target (%) 1. Equipment Finance = Loan Size: $1-S10 million 10.5% 3.0% 7.5% 15.0% = Wide range of industries and collateral types 2. Asset-based Lending = Loan Size: $1-S10 million 125% 3.0% 9.5% 15.0% = Core coll
Slide 10: Growth Engine: Across the US and Canada
GROWTH ENGINE Across the US and Canada ivi 2 * COAST TO COAST BALANCED PORTFOLIO " PRESENCE $478 MILLION We Toronto { Montreal ) x Vancouver \ =US 46% \\ New York "Canada AN S \ Chicago, IL . Los Angeles rh ACCORD
Slide 11: Risk Control: Portfolio Diversification
RISK CONTROL Portfolio Diversification Loan Portfolio Breakdown (as of 3/31/2022) Broad market coverage and product line deliver diversification by asset Class and industry sector = Equipment =ABL = Wholesale and distribution = Media = Transportation = Small Business «x ) = Manufacturing * Financial
Slide 12: Outstanding Credit Performance
OUTSTANDING Credit Performance = Disciplined risk management culture since 1978 = Strong credit fundamentals: security/collateral bolstered by credit scoring and financial analysis = Conservative single name / sector limits = Three levels of credit authority: |. Divisional CRO approval IL. > $l mill
Slide 13: Financial Performance: All Key Metrics Accelerating
FINANCIAL PERFORMANCE All Key Metrics Accelerating REVENUE EPS RETURN ON EQUITY ANNUAL DIVIDENDS (in CDN $ Millions) (as a % per annum on average oo 160 Bey PER SHARE (incents) 140 14 40 60 = > 35 50 30 100 10 25 40 080 8 20 30 060 6 Ip 20 0.40 4 0 5 10 020 2 0 gqexvoonmoog ° - ° So5ngnasoaoNS 2017
Slide 14: 5.00 4.50 4.00 • 3.50 • 3.00 2.50 • 2.00 1.50 1.00 0.50 0.00
5.00 4.50 4.00 • 3.50 • 3.00 2.50 • 2.00 1.50 1.00 0.50 0.00
Slide 15: Sweet Spot for Organic Growth
GROWTH TRAJECTORY Sweet Spot for Organic Growth = Streamlined platform after consolidating acquisitions is complete = Operating leverage within the existing platform will drive ler EPS growth *This is an illustration; growth is not guaranteed, but the strategy and momentum are in place rh ACCORD Run
Slide 16: Share Price and BVPS Trend
Share Price and BVPS Trend* Inflection Point is Now “me $1200 Book Value Discount The discount to book value remains significant $10.00 . Unusual hangover from covid year . ACD BV acted as a stock price floor through the $800 last economic cycle $6.00 Unlocking Potential $400 PE and BV multiple expa
Slide 17: Outstanding Leadership Team
ACCORD FINANCIAL Outstanding Leadership Team a4 S = = Simon Hi PRESIDENT & CEO y) Simon Hitzig, ">: * Joined Accord in 2011 = Previously led marketing, product development and US strategy at DundeeWealth / Dynamic Funds = BA from York University and MBA from Georgetown University J ACCORD David Beut
Slide 18: Slide 18