Repay Holdings Corporation · NASDAQ:RPAY
Repay — Investor Presentation (July 2019)
25 slides from Repay's investor presentation, Jul 18, 2019
Slide 1: REPAY Investor Presentation July 2019
REPAY Investor Presentation July 2019
Slide 2: Disclaimer
Disclaimer ‘rine "Company (on sy 1,204 perations and nana conaiion Forward inser contains “forward ooking meaning, Retorm Act of. operaing result, our estore and en opera er fe oxpected ta" "il continues Shicipt itengy plan sprojet Shar nese, statements iter operant fr 3 Company andthe Companys erst
Slide 3: Who We Are
Who We Are REPAY Realtime Electronic Payments A leading, omni-channel payment technology provider modernizing three diverse and underserved verticals — personal loans, automotive loans and receivables management — representing a market projected to grow to ~$535 billion of annual total payment volum
Slide 4: REPAY's Business Strengths and Strategies
REPAY’s Business Strengths and Strategies REPAY A Leading, Omni-Channel Payment Technology Provider REPAY © 8 ° ©--0---O--0---O---8 Capitalizing on the Large, Underserved Market Opportunities in Existing and New Verticals Card and Debit Payments Underpenetrated in Existing Verticals REPAY Has Built
Slide 5: Capitalizing on the Large, Underserved Market Opportunities in Existing and New Verticals
Capitalizing on the Large, Underserved Market Opportunities in @ Existing and New Verticals REPAY’s existing key end markets have been underserved by payment technology and service providers due to unique market dynamics REPAY’s three existing verticals represent ~$535bn!) of projected annual total
Slide 6: Card and Debit Payments Underpenetrated in Existing Verticals
° Card and Debit Payments Underpenetrated in Existing Verticals “A eo REPAY’s verticals, Personal Loans, Automotive Loans and Receivables Management, are underpenetrated and lag other retail markets in migrating to card payments Card Payment Penetration Debit Market Volume Growth Significant Opportu
Slide 7: REPAY Has Built a Leading Platform Based on Vertical Expertise
REPAY Has Built a Leading Platform Based on Vertical Expertise Attractive value proposition to both merchants and end consumers drives strong client growth and penetration Consumers Merchants in Existing and New Verticals ES ~ Ae Foss Existing Verticals New Verticals = Accelerated payment cycle (abi
Slide 8: REPAY Has Built a Leading Platform Based on Vertical Expertise (cont.)
REPAY Has Built a Leading Platform Based on Vertical Expertise (cont.) REPAY’s model empowers both merchants and consumers, enabling it to become a leading and trusted payment brand REPAY Instant Funding Illustrative Personal Loan Platform Process Consumer! Consumer payment Payment Channels ® ee + P
Slide 9: REPAY Has Built a Leading Platform Based on Vertical Expertise (cont.)
REPAY Has Built a Leading Platform Based on Vertical Expertise (cont.) e REPAY’s omni-channel payment and electronic billing management platform significantly reduces complexity for merchants and enhances the consumer experience Web REPAY has 3 different web-based solutions, LJ depending on whether
Slide 10: Next-Generation Technology Supported by Robust Infrastructure
Next-Generation Technology Supported by. Robust Infrastructure d Infrastructure Strong Relationships Proprietary Technology with Card Associations ee and Agile Development ra i \ Robust Processing | Back-End Integrations with Customers’ Relationships ronsips Infrastructure Software Systems Proprieta
Slide 11: Key Software Integrations Supplement REPAY's Differentiated Sales Strategy
Key Software Integrations Supplement REPAY’s Differentiated Sales ° Strategy REPAY leverages a vertically tiered sales strategy supplemented by software integrations to drive new merchant acquisitions = Direct sales model that is structured by vertical and by . many of the top software providers pro
Slide 12: Attractive and Diverse Client Base
Attractive and Diverse Client Base REPAY’s platform provides significant value to merchants offering lending solutions across industry verticals REPAY has successfully executed on its M&A strategy of identifying attractive opportunities in new verticals and entering them through acquisitions (e.g. A
Slide 13: Demonstrated Ability to Acquire and Integrate Businesses
Demonstrated Ability to Acquire and Integrate Businesses REPAY’s proven acquisition strategy illustrates the value of the platform across verticals PaidSuite (Receivables) Paymaxx (Automotive) epresents a significant wth in existing entry into ne Several Small Portfolio sitions Already serving indus
Slide 14: Multiple Growth Opportunities
Multiple Growth Opportunities e REPAY’s leading platform and attractive market opportunity position it to build on its record of robust growth and profitability @---nn Broaden Addressable Market ~-----© One Execute on Existing Business Strategic M&A Future Market Expansion Opportunities Strategic ac
Slide 15: Successful Leadership Team With Deep Industry Expertise
Successful Leadership Team With Deep Industry Expertise REPAY’s leadership team has significant payment expertise and a track-record of success with high-growth technology platforms John Morris Shaler Alias Tim Murphy Jason Kirk CEO & Co-Founder President & Co-Founder cFO cro Susan Perlmutter Mike J
Slide 16: Highly Knowledgeable and Experienced Board of Directors
Highly Knowledgeable and Experienced Board of Directors e 9-member Board of Directors comprised of industry veterans and some of the most influential leaders in the financial services and payment industries John Morris Shaler Alias Jeremy Schein Richard Thornburgh CEO & Co-Founder President & Co-Fou
Slide 17: REPAY Financial Overview
REPAY Financial Overview REPAY
Slide 18: Financial Highlights
Financial Highlights REPAY’s model has enabled it to establish a highly attractive financial profile $8.0bn 97% 0.19% Annual Card Impressive Volume High Quality Volume with Payment Retention?) Low Chargeback Rates) Volume") 27% 31% 86% Historical Processing and Historical Cash Flow Service Fees CAGR
Slide 19: History of Strong and Continued Card Payment Volume Growth
History of Strong and Continued Card Payment Volume Growth « Total Card Payment Volume ($ in bn) Volume Retention REPAY has generated strong, consistent volume growth, resulting in 27s Ga anual payment processing volumes 21, REPAY’s integrated payments platform leads to strong same-store performance
Slide 20: Historical and Forecasted Financials
Historical and Forecasted Financials * Gross Profit! ($in mm) Processing and Service Fees!) / Total Revenue ($ in mm) REPAY’s revenue growth has been strong, resulting in a 27% CAGR from 2016 - 20188 Gross margins are improving due to a decrease in processing costs tf: cAGR $71.6 31300 $55.0 $94.0 s
Slide 21: Key Highlights
Key Highlights Key Highlights ¥ Low volume attrition and low risk portfolio Y¥ 27%historical revenue CAGR based on Processing and Service Fees from 2016 — v Differentiated platform 2018A v Deeply integrated with customer base v 31% Adj. EBITDA CAGR®) from 2016A -2018A v Recurring transaction / volum
Slide 22: Q1 2019 Financial Update
Q1 2019 Financial Update* (sin Card Payment Volume $2,439.3 $1,842.1 $5973 32% Processing and Service Fees 243 209 35 1% Interchange and Network Fees a9 us 30 25% Total Revenue $39.2 $328 $65 20% Interchange and Network Fees ag ug 30 25% Other Cost of Services 64 72 (08) (21%) Gross Profit’ $179 $13
Slide 23: Appendix
Appendix REPAY
Slide 24: Income Statement — Historical and Forecasted
Income Statement — Historical and Forecasted ‘Sinom) EE Card Paget Yoke soos $5200 74s 2409 so219 s11q00-s11200 YoY own sit On "ox an 2 pve Precoating ard Seno Foot fe13 sera 22 sea siz 8-s122 Imeange an Noten oes a0 38 oe 8 5 TETAS 23 a $00 2 sista YoY ont oe 7 oe oe am vem lerhenge ad Neer Fes a0
Slide 25: Adjusted EBITDA Reconciliation — Historical
Adjusted EBITDA Reconciliation — Historical (Sin millions) P2016 | 20170 | 2018 YTD Mar-19 | YTD Mar-18 Net Income (Loss) (80.5) $9.4 $105 $4.9 $0.2 Interest Expense 23 87 61 14 15 Depreciation and Amortization 37 75 10.4 29 24 EBITDA" $5.5 $22.6 $27.0 $9.2 $44 Loss on Extinguishment of Debt"! 0.0 1