Slide 1: Investor Presentation September 2024
Investor Presentation September 2024
Slide 2: Disclaimer
Disclaimer 2 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 At-A-Glance
is a tech-enabled, mission-driven specialty finance platform that broadens the reach of community banks to extend credit access to everyday Americans. 3 Mission-driven Platform Providing best in class products and customer service with a 78 NPS Score1 Significant Economic Scale Facilitated more than
Slide 4: OppFi Investment Highlights: Positioned for Sustainable Growth
OppFi Investment Highlights: Positioned for Sustainable Growth 4 Solid balance sheet provides optionality for stockholder value creation including share repurchases, dividends and deleveraging Strong unit economics and operating efficiency drive profitability and free cash flow generation Tech-enabl
Slide 5: OppFi's Mission is to Serve the 60+ million U.S. Consumers that are Credit Marginalized
OppFi’sMission is to Serve the 60+ million U.S. Consumers that are Credit Marginalized1 5 47% 51% 34% The Average American Common Consumer Needs Live paycheck to paycheck with issues paying bills Have a credit score below 650 or no credit score Struggle to obtain new lines of credit following a fina
Slide 6: The OppFi Customer
The OppFi Customer The typical OppFi Consumer is representative of the Everyday American 6 Annual Income1 Average savings2 Homeowners4 Married5Average age3 College educated6 $270 1. Internal analysis per internal application data from all applications in fiscal year 2023. Trimmed population data – r
Slide 7: A Market Leading Product Designed to Help Consumers
A Market Leading Product Designed to Help Consumers
Slide 8: Customer-first digital personal loan experience
8 leads with a customer-first mentality, delivering a top tier digital personal loan experience to the underbanked consumer. Simple interest, amortizing installment loans with no balloon payments Possibility for same-day funding No Hidden Fees • No origination fees • No late fees • No NSF fees No pr
Slide 9: A Superior Alternative to Competitors
9 delivers a more affordable, transparent product for the underbanked consumer. Traditionally, financing options for the underbanked have been limited, with exorbitant interest rates and poor customer service. Bank O erdra Triba enders a da Tit e oans ease to O n arned age ess A more affordable prod
Slide 10: New Customer Journey
New Customer Journey OppFi offers customers a transparent pathway to building credit without trapping them in a cycle of debt. 10 Note: Average loan duration of 4-5 months. 1. Statistics represent Applications submitted in August 2024, Internal Data. 2. Statistics represent Referral data ranging 1/1
Slide 11: Leveraging Billions of Data Points Collected Over 13+ Years
11 Leveraging Billions of Data Points Collected Over 13+ Years Dynamic Underwriting Powered by Technology Proprietary algorithms are designed to better predict ability and willingness to repay, targeting creditworthy borrowers more effectively. 15+ BILLION Data Points AI-Powered Proprietary Scoring
Slide 12: Capturing Demand: Community Bank Partnerships and Marketing
Capturing Demand Community Bank Partnerships and Marketing - a symbiotic relationship that enables credit access nationally 12 Community Bank Partnerships Capital Community Bank First Electronic Bank FinWise Bank Marketing Channels Marketing Partners Utilizing partner relationships with leading onli
Slide 13: Net Promoter Score (NPS)
13 78 Net Promoter Score (NPS) Note: Ratings and NPS reflect data as of Sep 11, 2024. Simple, Transparent Loans and Exceptional Customer Service 4,500 Paid-In-Full Customers return every month, demonstrating OppFi’s strong value proposition Results: Outstanding Customer Satisfaction Selected Custome
Slide 14: Looking Ahead to Sustainable Growth
Looking Ahead to Sustainable Growth
Slide 15: Experienced Management
15 Experienced Management Pam Johnson Chief Financial Officer 13+ Years of Specialty Finance Experience Todd is also a Partner at Schwartz Capital Group, an entrepreneurial and dynamic private investment firm based in Chicago 14+ Todd Schwartz Founder, Chief Executive Officer, and Controlling Shareh
Slide 16: OppFi Growth Strategy
OppFi Growth Strategy: Designed to Build a Leading Credit Access & Financial Services Platform 16 Expand Margins Through Operational Efficiencies and Scale Optimize efficiency through technology and process improvements Establish New Partnerships Strengthen and grow customer reach via new marketing
Slide 17: Recent Investment: Bitty
17 Recent Investment OppFi entered the small business financing market with a strategic investment in Bitty, a credit access company that offers revenue-based financing and other working capital solutions to companies that need alternative financing solutions. $2,000-$250,000 Range of typical financ
Slide 18: Small Business Financing Market Represents Significant Opportunity
18 • Many small businesses have difficulty accessing traditional bank loans, resulting in a significant supply-demand imbalance1 • Recent upward trend in new business application filings, with 5.5 million in 2023, a 57% increase compared to 20194 1. The State of Small Business Now, U.S. Chamber of C
Slide 19: Performance Overview
Performance Overview
Slide 20: Strong Unit Economics Drive Robust Profitability and Free Cash Flow Generation
Strong Unit Economics Drive Robust Profitability and Free Cash Flow Generation 20 $427 $852 $2,325 $967 $425 $183 $225 $98 Revenue Realized Net Write-offs Acquisition Cost Servicing Cost Interest Expense Lifetime Contribution Corporate Expense Earnings Before Taxes 37% Margin 18% Margin D o ll a rs
Slide 21: Operational Rigor Drives Efficiency Gains
Operational Rigor Drives Efficiency Gains T Operating Expenses (% of Revenue)1 1. Operating expenses include salaries and employment benefits, direct marketing costs, interest expense and amortized debt issu ance costs, interest expense – related party, professional fees, depreciation and amortizati
Slide 22: Proprietary Underwriting Model Improves Write-Off Performance
22 Proprietary Underwriting Model Improves Write-Off Performance
Slide 23: Financial Overview
Op Financial Overview
Slide 24: 1H 2024 vs. 1H 2023: Significant Revenue & Profitability Growth
1H 2024 vs. 1H 2023: Significant Revenue & Profitability Growth 24 Total Revenue ($M) Adjusted EPS2 1. As a % of Total Revenue. 2. Non-GAAP Financial Measures: Adjusted EPS is a financial measure that has not been prepared in accordance with GAAP. See the dis aimer on “Non-G Finan ia Measures” on s
Slide 25: Earnings Rebounded Sharply in 2023, with Further EPS Growth Expected in 2024
Earnings Rebounded Sharply in 2023, with Further EPS Growth Expected in 2024 25 1. As a % of Total Revenue. 2. Non-GAAP Financial Measures: Adjusted EPS is a financial measure that has not been prepared in accordance with GAAP. See the dis aimer on “Non-G Finan ia Measures” on s ide 2 for a detai ed
Slide 26: 2024 Key Capital Allocation Initiatives
26 2024 Key Capital Allocation Initiatives • $10.3M for $0.12 special dividend and special distribution to Class A common stockholders and Opportunity Financial LLC Class A common unitholders, respectively (Q2-24) • $2.5M in share repurchases at an average price of $3.27 (Q2-24) • $10.0M in repaymen
Slide 27: Full Year 2024 Earnings Guidance Raised
27 $510M $530M to Total Revenue Adjusted Net Income Adjusted EPS $63M $65M to $0.73 $0.75 to Full Year 2024 Earnings Guidance Raised By 20% Affirmed Raised from $50M – $54M Raised from $0.58 – $0.62 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are financial measures that have
Slide 28: Appendix
Appendix
Slide 29: Fair Market Valuation
29 ($ in thousands) 6/30/2024 12/31/2023 Outstanding Principal $387,086 $416,463 Interest Rate 157.1% 156.1% Discount Rate 25.2% 26.3% Servicing Cost1 (3.2)% (3.0)% Remaining Life 0.618 years 0.596 years Default Rate1 27.1% 25.6% Accrued Interest1 4.3% 4.3% Prepayment Rate1 21.1% 20.9% Premium to Pr
Slide 30: Adjusted Net Income & Adjusted EPS Reconciliation Table: Annual View
Adjusted Net Income & Adjusted EPS Reconciliation Table: Annual View 30 1. Diluted earnings (loss) per share available to common stockholders is computed by dividing the net income (loss) attributable to OppFi Inc. by the weighted average number of shares of common stock outstanding during the perio
Slide 31: Adjusted Net Income & Adjusted EPS Reconciliation Table: Quarterly View
Adjusted Net Income & Adjusted EPS Reconciliation Table: Quarterly View 31 ($ in thousands, except per share data) Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 Q1-FY24 Q2-FY24 Diluted Earnings (Loss) Per Share1 $0.02 $0.14 $0.13 (0.31) $0.10 $0.16 Net Income $3,930 $18,076 $15,532 $1,942 $10,131 $27,676 Income T
Slide 32: OppFi
OppFi™ Th = n k y O U September 2024