Encore Capital Group Inc · NASDAQ:ECPG
Encore Capital — William Blair Growth Stock Conference 2017
11 slides from Encore Capital's conference presentation, Jun 12, 2017
Slide 1: William Blair Growth Stock Conference
WILLIAM BLAIR GROWTH STOCK CONFERENCE Ashish Masih Tuesday, June 13, 2017 Exhibit 99.1
Slide 2: Safe Harbor
SAFE HARBOR 1 The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-l
Slide 3: $1 Trillion of U.S. Revolving Debt Expected to Drive $45 Billion in Charge-Offs
2 Total Revolving Debt Outstanding $1.0T1 Credit Card Net Charge-Off Rate 3.6%2 Approximate Revolving Debt Charged-Off Annually $45B3 Issuers Outsource to Collection Agencies and Law Firms Issuers Sell to Debt Buyers Primary Placements Secondary Placements Tertiary Placements We estimate approximate
Slide 4: Encore Is a Top-Tier, Global Player in Consumer Debt Purchasing and Recovery
ENCORE IS A TOP-TIER, GLOBAL PLAYER IN THE CONSUMER DEBT PURCHASING AND RECOVERY INDUSTRY 3 15 Countries & Puerto Rico1 1/5 U.S. Consumers 1/8 U.K. Consumers 1/10 Colombian Consumers Scale Global Reach ~100M Consumer Accounts $1.7B 2016 Collections $5.8B Estimated Remaining Collections $0.9B 2016 De
Slide 5: We Have Grown Our Global Footprint Considerably Since the Late 1990s
WE HAVE GROWN OUR GLOBAL FOOTPRINT CONSIDERABLY SINCE WE BEGAN BUYING DEBT IN THE LATE 1990’S 4
Slide 6: Our Superior Analytics and Decision Science Allow Us to Better Understand Consumers
OUR SUPERIOR ANALYTICS AND DECISION SCIENCE ALLOW US TO BETTER UNDERSTAND CONSUMERS 5 Hardship strategies and removal from the collections process Remind consumers through legal messaging Enforce legal contract through formal channels Significant discounts and many small payments Payment plans and o
Slide 7: Significant Focus on Driving Operational Efficiencies and Reducing Costs
WE MAINTAIN A SIGNIFICANT FOCUS ON DRIVING OPERATIONAL EFFICIENCIES AND REDUCING COSTS 6 Overall Cost to Collect* 47.6% 43.7% 42.2% 40.0% 39.1% 38.6% 39.2% 38.5% 30% 35% 40% 45% 50% 2009 2010 2011 2012 2013 2014 2015 2016 ⃰ Cost to Collect is defined and provided in Encore’s annual and quarterly fil
Slide 8: Our Issuer Certification Program Is a Key Differentiator
OUR ISSUER CERTIFICATION PROGRAM IS A KEY DIFFERENTIATOR 7 Cycle I: Request for Information Cycle II: On-Site Audit Cycle III: Post On-Site Follow-up Requests Cycle IV: Audit Report Received Approval/ Certification “Encore by far is the most transparent, prepared, and buttoned up of any debt buyer w
Slide 9: ERC Continues to Grow, with End of Q1 Representing Our Highest Level to Date
8 Total Estimated Remaining Collections 0 1,000 2,000 3,000 4,000 5,000 6,000 March 2013 March 2014 March 2015 March 2016 March 2017 United States Europe Other 1,911 4,758 5,080 $M 5,665 5,849 ERC CONTINUES TO GROW, WITH END OF Q1 REPRESENTING OUR HIGHEST LEVEL TO DATE
Slide 10: Actual Cash Collections Exceed Our Initial Projections
9 0 2,000 4,000 6,000 8,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Initial Projections Actual Cash Collections ($MM) Cumulative Collections - U.S. Core Note: U.S. Core market is defined as all non-bankruptcy direct from issuer unsecured credit card and person
Slide 11: Encore Is a Global Market Leader in the Debt Purchasing and Recovery Industry
Our persistent focus on risk management and compliance has become a competitive advantage Our access to capital positions us well to benefit from improving market conditions Operational scale and cost leadership drive strong profitability through the cycle Our global operations enable us to refine c
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