Propel Holdings, Inc. · TSX:PRL
Propel — Investor Presentation (March 2025)
35 slides from Propel's investor presentation, March 2025
Slide 1: Investor Presentation March 2025
TSX:PRL Investor Presentation March 2025 1
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING INFORMATION Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our 2025 Operating and Financial Targets, our profitable growth prospects, our dividend, our ability to pro
Slide 3: Building a new world of financial opportunity
Building a new world of financial opportunity INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 3
Slide 4: We Enable Credit to Underserved Consumers
US$2.0+ Billion in Credit Facilitated¹ We Enable Credit to US$450 Million Underserved Consumers FY2024 Revenue2 Traditional financial institutions rely on credit scores, but that locks out millions of everyday consumers >1,040,000 We are changing that through our proprietary AI-powered Consumers Ser
Slide 5: Investment Highlights
Investment Highlights Innovative, Consumer Fintech transparent products lending platform AI-powered tech and services, serving the US, UK platform unlocking including 3 bank and Canadian credit opportunity programs and 3 markets Lending as a Service partnerships Experienced and Profitable, scalable
Slide 6: Our Mission
Mission Our Mission Inclusion Evolution Experience Every individual Committed to giving Provide a best-in- deserves access to credit consumers the potential to class consumer experience evolve to better credit products over time CONFIDENTIAL 6 INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 6
Slide 7: Financial Inclusion for the Underserved Consumer
Financial Inclusion for the Underserved Consumer ~90 Million 37% 36% 54% Estimated size of US, UK US adults are unable UK working population Canadians say they’re + Canada underserved to afford a $400 living paycheque to living paycheque to market1 emergency expense2 paycheque3 paycheque4 Inaccessib
Slide 8: Propel Today
Propel Today Highly profitable, diversified and scalable business with significant growth opportunity 100% online At Scale Profitable Fiscal 2024 US$2.0B+ ~18.1M US$ Fiscal 2023 in originations1 unique applications Revenue $449.7M $316.5M per year2 Net Income $46.4M $27.8M ~1.3M ~66,000 Adj. Net Inc
Slide 9: Our Products
Our Products INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 9
Slide 10: Operating Brands, Products and Services
Operating Brands, Products and Services Product/Service Geography Served Loan Amount Range USD $200-$3,500 USD $500-$5,000 CAN $1,000-$15,000 USD $1,000-$8,000 GBP £300 - £1,500 Direct Lender Bank Program Direct Lender Operating Structure Credit Services Lending-as-a-Service Direct Lender Lending-as
Slide 11: Putting Customers First
Putting Customers First Consistently Lowered Cost of Credit Over Time Introduce lower cost of credit products for qualifying customers “It was so simple, easy and quick. Within 24 hours, I got accepted and had access to Graduation Programs a line of credit. Greatly Propel platform offers the capabil
Slide 12: Acquisition of QuidMarket
Acquisition of QuidMarket INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 12
Slide 13: The Right Acquisition For Propel's Growth
The Right Acquisition For Propel’s Growth Propel closed the acquisition of QuidMarket for US$71 million on November 15, 2024 Financially Accretive Jurisdiction Culture (LTM @ Dec-24) UK GAAP ~20M Launched in 2011 US$32.3M Purpose-driven to empower LTM Revenue as at December 2024 Underserved Consumer
Slide 14: Proven Operator With High Growth Potential
Proven Operator With High Growth Potential QuidMarket is one of the largest and fastest growing UK consumer lenders with the opportunity to unlock further growth through Propel’s proprietary tech, AI underwriting and capital Business & Products Operations Technology Trusted Direct Lender Tenured Tea
Slide 15: Our Platform
Our Platform INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 15
Slide 16: Industry-Leading Proprietary Technology
Industry-Leading 90% of applications auto-decisioned Proprietary Technology1 96% of ad hoc card payments made online Three Major Subsystems Open Architecture AI-Powered Acquisition + Integrates easily and securely with: 100+ Person In-House 1 Tech team Underwriting Engine • 30 marketing partners & L
Slide 17: Looking Beyond Traditional Credit Scores
Looking Beyond Traditional Credit Scores Traditional financial institutions rely on credit scores, Employment Data but that locks out millions of everyday consumers Consumer Behaviour Income Verification We use AI to build our own risk score --- and can use Consumer Verification Data up to 5,000 dat
Slide 18: Driving Growth While Managing Risk
Driving Growth While Managing Risk Credit Performance Remains Strong and Stable While Loan Balances Grow Substantially $500,000,000 20.0% $450,000,000 18.0% Fund More $400,000,000 16.0% Consumers $350,000,000 14.0% $300,000,000 12.0% $250,000,000 10.0% Manage Risk $200,000,000 8.0% $150,000,000 6.0%
Slide 19: Best-in-Class Operations + Customer Service
Best-in-Class Operations + Customer Service 300+ 7 days strong operations team across 2 a week live agent service centralized locations Serving customers with urgency, 24/7 “ Excellent 4.4+ Ratings respect and online platform exceptional customer service The application process was simple and quick.
Slide 20: Financial Performance
Financial Performance INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 20
Slide 21: Robust Loan and Revenue Growth
Robust Loan and Revenue Growth Loans and Advances Receivable Ending Combined Loan and Advance Revenue Balances* US$M US$M US$M $449.7 $480.6 $400.00 $375.2 $316.5 $337.3 $300.00 $259.3 $247.5 $226.9 $195.6 $200.00 $134.8 $129.6 $129.3 $103.8 $96.0 $100.00 $73.5 $49.8 $62.6 $0.00 2020 2021 2022 2023
Slide 22: Stability and Scalability of Business Model
Stability and Scalability of Business Model Q4 2024 Provision % Revenue and Net Charge-offs as Provision for loan losses and other liabilities (“Provision”) and Net Charge-offs % of Avg. CLAB* reflect strong credit performance as % of Average CLAB* • Q4 2024 Provision % Revenue lowest in a Q4 period
Slide 23: Generating Strong Profitability
Generating Strong Profitability Net Income Adjusted Net Income* Adjusted EBITDA* US$M US$M US$M $46.4 $62.3 $121.3 $27.8 $35.6 $75.7 $15.1 $20.5 $16.9 $40.9 $11.6 $31.9 $8.5 $12.7 $25.1 $7.3 $6.6 $9.4 $10.2 $20.2 $21.6 2020 2021 2022 2023 2024 Q4 2023 Q4 2024 2020 2021 2022 2023 2024 Q4 2023 Q4 2024
Slide 24: Focus on Maximizing Shareholder Returns
Focus on Maximizing Shareholder Returns Return on Equity Adjusted Return on Equity* Continued earnings growth leading to strong ROE and Adj. ROE* and ability 36% 35% to raise dividend 30% 47% 48% 27% 39% 41% 40% • Company’s operating cash flow and debt 24% capacity sufficient to drive significant gr
Slide 25: Solid Financial Position
Solid Financial Position • Company well-funded for • Debt: equity 1.3x as Credit Capacity (in US$M) continued growth, new of December 31, 2024 strategic initiatives and to support increased dividend • Balance sheet supported by C$115 million bought deal $95.2M • Three credit facilities equity raise
Slide 26: Growth Outlook: FY2025 Operating and Financial Targets
Growth Outlook: FY2025 Operating and Financial Targets Ending Revenue (US$) Adjusted Net Income Adjusted Net Return on Adjusted Combined EBITDA Margin Income Equity*** ROE** Loan and Margin** Margin** Advance Balances*, ** 25% - $590M - 26% - 10.5% - 13.25% - 27%+ 34%+ 35% $650M 30% 14.5% 16.25% 202
Slide 27: Growth Strategy
Growth Strategy Serving lower risk Graduating Geographic Adjacent products markets consumers up the expansion credit spectrum Extension of existing Continue to graduate Expansion into Design, deliver and product suite into near- existing clients to new new states/provinces, cross-sell prime market a
Slide 28: Customer testimonial
The immediate response and service were great. During an emergency time of need it was a great relief for fast response. The online application was appreciated and easy. Thank you. INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 28
Slide 29: Welcome to a new world of financial opportunity
Over a million loans facilitated. Over two billion dollars in lending. Welcome to a new world of financial opportunity. INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 29
Slide 30: Appendix
Appendix INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 30
Slide 31: Non-IFRS Measure Reconciliation
Non-IFRS Measure Reconciliation Three months ended December 31, Year Ended December 31, US$ 2024 2023 2024 2023 2022 2021 2020 Net income 11,609,178 8,483,896 46,375,867 27,776,133 15,127,447 6,562,442 7,332,388 Interest on Debt 8,514,528 6,462,539 31,585,290 22,473,216 9,784,859 5,317,923 4,052,783
Slide 32: Non-IFRS Measure Reconciliation
Non-IFRS Measure Reconciliation Three months ended December 31, Year Ended December 31, US$ 2024 2023 2024 2023 2022 2021 2020 Net income 11,609,178 8,483,896 46,375,867 27,776,133 15,127,447 6,562,442 7,332,388 Transaction and Financing Costs net of taxes1 515,829 - 2,367,912 - - 1,212,643 19,181 U
Slide 33: Non-IFRS Measure Reconciliation
Non-IFRS Measure Reconciliation As at December 31, US$ 2024 2023 2022 2021 2020 Ending Combined Loan and Advance balances1 480,602,408 337,282,804 247,488,344 134,843,170 62,643,735 Less: Loan and Advance balances owned by third party lenders pursuant to CSO program (5,892,783) (3,779,004) (2,988,63
Slide 34: Non-IFRS Measure Reconciliation
Non-IFRS Measure Reconciliation Three months ended December 31, Year Ended December 31, US$ 2024 2023 2024 2023 2022 2021 2020 Charge-offs 65,701,681 37,748,525 208,306,980 148,955,126 109,981,529 46,898,488 26,059,774 Recoveries (7,499,719) (5,930,553) (25,705,212) (19,231,240) (16,675,403) (6,909,
Slide 35: Building a new world of financial opportunity.
Building a new world of financial opportunity. INVESTOR PRESENTATION Q4 2024 CONFIDENTIAL 35