Oppfi Inc. · NYSE:OPFI
Oppfi — Investor Presentation (October 2023)
21 slides from Oppfi's investor presentation, Oct 18, 2023
Slide 1: Investor Presentation October 2023
Investor Presentation October 2023
Slide 2: Disclaimer
1 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 reliable for the purposes used herein,
Slide 3: OppFi is a mission-driven fintech platform for credit access
2 OppFi is a mission-driven fintech platform that helps everyday Americans gain access to credit with digital specialty finance products
Slide 4: High Percentage of Americans Lack Savings and/or Credit Access
3 High Percentage of Americans Lack Savings and/or Credit Access 60 million U.S. adults lack access to traditional credit at choice1 60% of U.S. consumers live paycheck to paycheck2 43% of U.S. adults have savings to cover a $1,000 unplanned expense3 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CRE
Slide 5: OppFi Offers Market Leading Terms & Excellent Customer Experience
4 ▪ Simple interest, amortizing installment loans with no balloon payments ▪ No origination, late, or NSF fees ▪ No prepayment penalties ▪ Report to the 3 major credit bureaus ▪ Work compassionately with customers who require payment plan modification ▪ OppFi TurnUp Program helps eligible applicants
Slide 6: Technology-Fueled Proprietary Credit Models Drive Automated Underwriting Decisions
5 Technology-Fueled Proprietary Credit Models Drive Automated Underwriting Decisions D e c i s i o n s P o w e r e d B y Consumer Behavior Bank Data Alternative Bureau Data Income Data Employment Data Marketing Source 100% Cloud Platform AI Powered Conversion, Approvals & Servicing Leads Decision En
Slide 7: OppFi Growth Strategy
6 OppFi Growth Strategy Accelerate Profitable Growth • Continue to refine and enhance underwriting model, focusing on more favorable credit tiers • Maintain low customer acquisition costs and grow lower cost channels, such as SEO Drive profitable OppLoans volume growth • Acquire platforms or assets
Slide 8: Executive Management Team
7 Executive Management Team Todd Schwartz Founder, Chief Executive Officer, and Executive Chairman Schwartz Capital Group Pamela Johnson Chief Financial Officer Heights Finance; Pioneer Financial Services Christopher McKay Chief Risk and Analytics Officer HSBC; Capital One Yuri Ter-Saakyants Chief T
Slide 9: Key Company Highlights
88 Key Company Highlights 1. 2015-2022 2. 2017-2022 Solid Revenue Growth 45% 5-year CAGR2 Significant Scale Facilitated more than $5.0 billion in gross loan issuance covering over 2.9 million loans, since inception3 Leading Proprietary Credit & Technology Platform Real-time AI drove automation for 8
Slide 10: Financial Performance
Financial Performance
Slide 11: Projected Earnings Rebound, Amidst Revenue Growth & Improved Credit Performance
10 10 Total Revenue $351 $453 $510 2021A 2022A 2023P ($ in millions) Projected Earnings Rebound, Amidst Revenue Growth & Improved Credit Performance Adjusted Net Income2 1. 2023P represents the midpoint of full year 2023 guidance. Refer to slide 14 for more details. 2. Non-GAAP Financial Measures: A
Slide 12: Credit Performance: Substantial Decline in Net Charge-Off Rate
11 11 43.5% 36.2% Q2 2022A Q2 2023A Credit Performance: Substantial Decline in Net Charge-Off Rate Disciplined underwriting led by adjustments and enhancements to credit models Net Charge-Off Rate as a % of Total Revenue1 16.7% improvement 1. Annualized net charge-offs as a percentage of total reven
Slide 13: Operational Efficiencies Support Earnings Growth
12 12 58.9% 49.3% 2021A 2022A 53.5% 45.2% 1H 2022A 1H 2023A More efficient marketing spend and streamlined customer support operations Total Operating Expenses as a % of Total Revenue1 Operational Efficiencies Support Earnings Growth 1. Interest expense is included in total operating expenses 15.6%
Slide 14: Reduced Cost of Financing and Strong Balance Sheet to Power Growth
13 Grown funding capacity more than 5x since 2017 Decreased cost of borrowing spread by 500+ bps since 2017 Diversified institutional capital sources Increased financial flexibility with: • corporate credit agreements, • asset-backed facilities, • bank provided asset-based loans, • forward flow arra
Slide 15: Full Year 2023 Guidance
14 $500M to $520M Full Year 2023 Guidance Growth Profitability Profitability $29M to $35M $0.34 to $0.41 Total Revenue Approximately 10% to 15% growth Adjusted Net Income1 Adjusted EPS1,2 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are financial measures that have not been p
Slide 16: Investment Highlights
15 Investment Highlights Founder-led with significant ownership1 Mission-driven catering to underserved market2 Disciplined credit underwriting and expense management3 Projected earnings rebound driven by improved credit performance 4 Long-term growth strategy to diversify business into new customer
Slide 17: Contact Information
1616 Shaun Smolarz Head of Investor Relations investors@oppfi.com Contact Information
Slide 18: Appendix
17 Appendix
Slide 19: Fair Value Valuation
18 Fair Value Valuation 1. Stated as a percentage of outstanding principal. 2. Represents rate applied to outstanding principal, inclusive of adjustment for accrued interest. Key Highlights • Interest rate increased by 210 bps due to relative increase in base APR loans in the portfolio and a shift a
Slide 20: Pro Forma Share Count as of June 30, 2023
19 Pro Forma Share Count as of June 30, 2023 (Unaudited) Shares Share Price Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock 16,280,397 16,280,397 16,280,397 16,280,397 Class V Common Stock Held for the benefit of Pre-Business Combination OppFi Equity holders 68,537,840 68,537,840 68,537,840 6
Slide 21: Adjusted EBT and Adjusted Net Income Reconciliation Table
20 Adjusted EBT and Adjusted Net Income Reconciliation Table ($ in thousands) FY 2021A FY 2022A Net Income 89,795 3,340 Provision for Income Taxes 311 (277) Debt Amortization 2,310 2,372 Other Addback and One-Time Expenses1 (8,452) 1,127 Adjusted EBT 83,964 6,562 Pro-Forma Taxes2 (18,145) (1,586) Ad