Pra Group, Inc. · NASDAQ:PRAA
Pra — Q4 2015 Earnings Presentation
19 slides from Pra's earnings presentation, Feb 25, 2016
Slide 1: Fourth Quarter 2015 Earnings
Fourth Quarter 2015 Earnings PRA@ ( TO up February 25, 2016
Slide 2: About Forward-Looking Statements
About Forward-Looking Statements projection: implied herein. nd are qualified nditions or
Slide 3: PRA Group Turns 20 in 2016
nL! PRA Group Turns 20 in 2016 Continue to manage PRA for the long term Built out capabilities in Europe and Brazil in 2015 cE, a ra exceptional underwriting and efficient collection operations
Slide 4: Call Center Operations Show Increased Productivity
Call Center Operations Show Increased Productivity rope en Call Centers increased 15% quarter over quai Press competitive advantage with sccaleht results 3% ear over year ding e xce expectations for 2015
Slide 5: We Believe We Have Built Best in Class Compliance System
nL! Believe We Have Built Best in Class Compliance System Regulatory environment has consolidated industry to few, better capitalized, more rational competitors. PRA Group remains one of the leaders.
Slide 6: Continue to Buy Portfolios Globally at Attractive Returns
($ in millions) u! Continue to Buy Portfolios Globally at Attractive Returns Q4 2015 Portfolio Purchases i t $225.9 millio $963.8 million Europe, $84.7 Americas Core, $448.3 ericas Insolvency, $20.6
Slide 7: Supply in the U.S.
Supply in the U.S. WD Large sellers continue to be on the sidelin Insolvency Recovery in February
Slide 8: Continue to Provide Long-term Shareholder Value
nL! Continue to Provide Long-term reholder Value Excellent Lender Relationships Repurchased stock in 2015 Stock price provides interesting capital allocation strategies
Slide 9: Solid Operating Results
nL! Solid Operating Results Q4 2015 Full Year 2015 Cash Collections Total Revenues Annualized ROE
Slide 10: Summary of Non-GAAP Items
Summary of Non-GAAP Items Q4 2015 Constant currency adjustments Full Year 2015 d ott One-time tax items Constant currency adjustments $1.6 million $12.0 million $28.8 million $13.8 million
Slide 11: Record Cash Collections for 2015
($ in millions) Q4 2015 $99.7 $73.8 GAAP - $369.4 million $109.4 $73.8 Non-GAAP - $380.3 million nL! Record Cash Collections for 2015 ic @ Americas Core Europe Americas Insolvency Full Year 2015 $350.5 $344.2 MES GAAP - $1.54 billion $370.8 Cy7)} $846.7 Non-GAAP - $1.56 billion
Slide 12: Total Revenues
nL! Total Revenues Q4 2015 Full Year 2015 GAAP Total Revenues $230.2 milli $942.0 milli Non-GAAP Total Revenues 6.7 million $954.4 milli GAAP NFR Revenue $208.5 million $865.1 mi Non-GAAP NFR Revenue $213.8 mi $876.4 million
Slide 13: Impact GFC had on 2006 to 2008 U.S Core Vintages
Impact GFC had on 2006 to 2008 U.S Core Vintages 2006 Vintage 2007 Vintage 2008 Vintage 247% 251% 225% per 234% 39 19% 221% 19% 222% 219% 222% 224% 218% 216% sop9% 207% 2o5% 219% 24 219% 228% | | | TT | 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 2008 20
Slide 14: 2012 Vintage in Americas Core Purchase Price Multiple Still Significantly Exceeds Original
2012 Vintage in Americas Core Purchase Price Multiple Still Significantly Exceeds Origina Purchase Price Multiple $15.0 million allowance charge Original than anticipated
Slide 15: Operating Results
nL! Operating Results Q4 2015 Full Year 2015 GAAP Fee and Other Revenue $21.7 million $76.9 million Non-GAAP Fee and Other Revenue $23.0 million $78.1 million GAAP Operating Expenses $159.0 milli $631.7 milli Non-GAAP Operating Expense $149.4 $591.5 million GAAP Net Income $41.0 million . 7 , Non-GA
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights {Sin millions) 2.1 million shares, of Q4 2015 Q4 2014 Cash and cash equivalents . . @ Net finance receivables Net deferred tax liability Total borrowings Shareholder’s equity
Slide 17: Operational Results
Operational Results 4% increase in U.S. cash collected er score poini 2.5 million domestic payments Internal legal collections 48% tal K and Spain had significant | increase in cash collec' per score ; pain
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation in addition to, for the current year with the balance from the prior year.
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation ate = Anortaton jain ease Fo Vi sie pea sess a 99) cosh Tonge raat eteeont __Amartzaon tein Income _ come Revenues Experts PSK S oO FMT Foe Sas sco Soins Skee F mee Sew Ss staasit cow my Tos) Tse Amortzaion treatin Income __Income rut ‘om enues_Expenser Operation Soe Fans oes