Slide 1: Investor Presentation
Investor Presentation October 2022
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) of OppFi Inc. (“OppFi” or the “Company”) is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be r eliable for the purposes used herein,
Slide 3: Our Mission
OUR MISSION To facilitate safe, simple and more affordable credit access to the 60 million everyday Americans who currently lack traditional options to rebuild their financial health 2
Slide 4: Key Company Highlights
Key Company Highlights Solid Revenue Significant Scale Leading Proprietary Credit Growth Facilitated more than $3.9 billion & Technology Platform 66% 5-year CAGR1 in gross loan issuance covering over Real-time AI drove automation for 2.4 million loans, since inception 82% of decisions in Q2 2022 CEO
Slide 5: Executive Management Team with Substantial Experience
Executive Management Team Todd Schwartz Founder, Chief Executive Officer, Pamela Johnson Chief Financial Officer Christopher McKay Chief Risk and Analytics Officer with Substantial and Executive Chairman Schwartz Capital Group Heights Finance; Pioneer Financial Services HSBC; Capital One Financial S
Slide 6: High Percentage of Americans Lack Savings and/or Credit Access
High Percentage of Americans Lack Savings and/or Credit Access 60 million U.S. 64% of U.S. 44% of U.S. adults consumers adults lack access to live paycheck have savings to traditional credit1 to paycheck2 cover a $1,000 unplanned expense3 5 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CREDIT The Hi
Slide 7: We Help Everyday Consumers Solve Everyday Problems
We Help Everyday Consumers Solve Everyday Problems Our Typical OppFi customers can use proceeds for any unexpected Customer: expense Established Credit History Median Income Employed Car Trouble Housing Medical Bank Account >30 Years Old College-Educated Family Education No Savings 6
Slide 8: OppFi Advantage: The OppFi Approach to Lending
OppFi Advantage: The OppFi Approach to Lending Traditionally financing options for the underbanked have been limited, with exorbitant interest rates and poor customer service OppFi Market Leading Terms Underbanked Option APRs 1200% ~17,000% ~17,000% Simple interest, amortizing installment 1000% A lo
Slide 9: Leverage Billions of Data Points to Make Credit Scores Obsolete
Leverage Billions of Data Points to Make Credit Scores Obsolete OppFi’s proprietary algorithms powered by Artificial Intelligence are designed to better predict ability and willingness to repay 13+ Million Applications 2+ Million Loans ~11 BILLION Data Points AI-Powered Proprietary 22+ Million Scori
Slide 10: Technology-Fueled Proprietary Algorithms Provide Real-Time Insights
Technology-Fueled Proprietary Algorithms Provide Real-Time Insights AI Powered Conversion, Approvals 100% Cloud Platform & Servicing DECISIONS POWERED BY… Next Best Action Leads Decision Engine Consumer Income Workflow Optimization Behavior Data Machine Learning Continuous A/B Testing Bank Employmen
Slide 11: OppFi Growth Strategy
OppFi Growth Strategy Accelerate Profitable Growth Drive profitable core product Serve more non-prime Expand into new customer volume growth consumers with product types via M&A extensions, new structures, and/or strategic partnerships • Continue to test / iterate on • Enter adjacent market • Acquir
Slide 12: Understanding Our Customer Value
Understanding Our Customer Value Over 1,7851 Overall Experience Our Impact Customers2 Surveyed What would happen to our 91% customers without OppFi? 1,426 of 1,785 took the had a very positive or positive FALL BEHIND ON THEIR BILLS time to write a personal note experience3 about their experience 80%
Slide 13: Financial Performance
Financial Performance
Slide 14: Platform with Proven Ability to Scale Profitably
Platform with Proven Ability to Scale Profitably ($ in millions) Revenue Adjusted EBITDA Adjusted Net Income $351 $323 $66 $117 $268 $101 $53 $55 $97 $134 $52 $28 $70 $22 $11 17A 18A 19A 20A 21A 17A 18A 19A 20A 21A 17A 18A 19A 20A 21A Margin Margin 31% 39% 36% 31% 33% 16% 21% 20% 17% 19% 13 Note: Re
Slide 15: Operational Efficiencies: Automation & Expense Savings
Operational Efficiencies: Automation & Expense Savings Continued increases in operational leverage position OppFi On track for annualized well for post-COVID demand $15 million in after-tax reduction in operational cost base, exiting 2022: Increasing Automated Approvals (AAR) More efficient marketin
Slide 16: Reduced Cost of Financing and Strong Balance Sheet to Power Growth
Reduced Cost of Financing and Grown liquidity ~6x of 2017 levels Strong Balance Sheet to Power Growth Decreased cost of borrowing Ample debt capacity provides a means by 500+ bps since 2017 to fund future growth without equity Diversified institutional capital sources Liquidity ($ in millions) Incre
Slide 17: Quarterly Key Performance Indicators
Quarterly Key Performance Indicators UNAUDITED QUARTER ENDED Key Highlights ($ in millions), except Total Marketing Cost 6/30/2021 6/30/2022 Net originations increased 57% year over year Net Originations1 $144 $226 Ending receivables increased 54% year over year as a result of strong origination gro
Slide 18: Full Year 2022 Outlook
Full Year 2022 Outlook1 20% to 25% 43% to 47% Total Revenue Growth Adjusted Operating Expense2 Margin Break-Even or Modest Net Loss Profitability (Adjusted Basis) 1. As disclosed in the second quarter 2022 earnings press release issued on August 9, 2022. 17 2. Adjusted Operating Expense is defined a
Slide 19: Long-Term Targets
Long-Term Targets Net Revenue Margin 70% Adjusted Operating Expense1 Margin 44% Adjusted EBITDA Margin 30% Adjusted Net income Margin 15% 18 1. Adjusted Operating Expense is defined as total expenses excluding interest expense, add backs and one-time items. Adjusted Operating Expense is not a financ
Slide 20: Appendix
Appendix 19
Slide 21: Fair Value Valuation
Fair Value Valuation UNAUDITED PERIOD ENDED Key Highlights ($ in thousands) 6/30/2022 3/31/2022 Outstanding Principal $394,709 $332,517 • Default rate increased by 100bps due to recent Accrued Interest $12,917 $10,674 elevated loss rates Interest Rate 149.9% 147.7% • Prepayment rate decreased by 495
Slide 22: Pro Forma Share Count as of June 30, 2022
Pro Forma Share Count as of June 30, 2022 Share Price Shares Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock held by Public Shares held by public shareholders, including founders, underwriters and 13,632,260 13,632,260 13,632,260 13,632,260 and Founders private placements Class A and Class V
Slide 23: Adjusted EBITDA and Adjusted Net Income Reconciliation Table
Adjusted EBITDA and Adjusted Net Income Reconciliation Table ($ in millions) 2017 2018 2019 2020 2021 Net Income $3 $10 $33 $78 $90 FV adjustments 10 26 35 (8) - Debt Issuance Cost 1 1 2 2 2 Other Addback and One-Time Expenses1 1 1 1 2 (8) Adjusted EBT 15 37 71 74 84 Pro-Forma Taxes2 (4) (9) (18) (1
Slide 24: Contact Information
Contact Information Shaun Smolarz Head of Investor Relations investors@oppfi.com 2323