Slide 1: Q2 2021 Earnings Presentation
Q2 2021 Earnings Presentation August 2021 A Leading FinTech Platform for the Everyday Consumer Exhibit 99.2
Slide 2: Disclaimer
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, t
Slide 3: Presenters
Presenters Jared Kaplan OppFi, CEO Shiven Shah OppFi, CFO
Slide 4: OppFi Overview
OppFi Overview A platform that puts you in control
Slide 5: Vast, Underserved Market Opportunity
Vast, Underserved Market Opportunity Elkins, Kathleen. “Here’s how much money Americans have in their savings accounts.” CNBC.com, Sept 13, 2017 US Census Bureau and Experian – Based on adult population of US (~255mm) multiplied by population within 580-669 credit band (~18%) multiplied by ~30% appr
Slide 6: Helping Everyday Consumers Solve Everyday Problems
OppFi customers can use proceeds for any unexpected expense Helping Everyday Consumers Solve Everyday Problems Our typical customer: Thick File Median Income Employed Bank Account >30 Years Old Educated No Savings Medical Education Family Car Trouble Housing
Slide 7: OppFi Powers Banks to Unlock Credit Access for the Everyday Consumer
Consumers 5 minute application process Instant access to fair, transparent credit Opportunity to build financial health Best-in-class mobile acquisition Alternative data, AI powered underwriting algorithms Industry-leading, tech enabled customer service Banks Value to Bank Partners Value to Customer
Slide 8: Leveraging Billions of Data Points to Make Credit Scores Obsolete
Proprietary algorithms powered by AI better predict ability and willingness to repay Leveraging Billions of Data Points to Make Credit Scores Obsolete 11+ Million Repayments 17.5+ Million Loans 1.8+ Million Attributes per Repayment ~500 Applications AI-Powered Proprietary Scoring Algorithm ~8+ Billi
Slide 9: Digital Financial Services Destination for the Everyday Consumer
Mobile Banking & Debit Digital Financial Services Destination for the Everyday Consumer Platform leverages proprietary technology to best serve the Everyday Consumer Near Prime Lending Payroll Deduction Lending Auto Lending Credit Cards Digitally enabled lending platform Best-in-class customer exper
Slide 10: SalaryTap Extends Prime Pricing to Non-Prime Consumers
SalaryTap Extends Prime Pricing to Non-Prime Consumers We believe facilitating credit access through payroll deduction will significantly improve credit performance, preserving strong unit economics while reducing the cost of borrowing for customers Increased Addressable Market Larger, Lower Priced
Slide 11: OppFi Credit Card Serves as Graduation Pathway
OppFi Credit Card Serves as Graduation Pathway Large Opportunity Differentiated Product Mobile Optimized User Experience Graduation product for OppLoans customers that also unlocks ~$21 billion non-prime credit card market1 Minimum $1,000 credit limit enabled by sophisticated underwriting that looks
Slide 12: Key Company Highlights
Robust Customer Demand More than 2.5 million applications annually, of which 80% are mobile generated Leading Proprietary Credit & Technology Platform Real-time AI drives automation for ~75% of decisions Exceptional Customer Satisfaction Net Promoter Score of 83; 10,000+ online customer reviews with
Slide 13: Financial Performance
.. a ~-- Financial _.. Performance
Slide 14: Growth Rebounded in the Second Quarter
Growth Rebounded in the Second Quarter Originations rebounded in the second quarter, leading to 40%+ quarter over quarter, 80%+ year over year, and 20% over Q2 2019 growth. Ending receivables up 19% above 2020 levels and 29% from 2019. Sequential receivable growth of 6% muted as growth was back weig
Slide 15: Continued Strong Profitability in 2021
Continued Strong Profitability in 2021 Adjusted EBITDA increased year over year to $32.3M and Adjusted Net Income increased to $17.9M, primarily driven by credit improvement and receivables growth, which positively impacted change in fair value. Adjusted Net Income was down quarter over quarter due
Slide 16: Fintech Leader Neville Crawley Joins OppFi as President
Newly created executive role will help lead and grow the company’s innovative technology, product, and go-to-market strategies Fintech Leader Neville Crawley Joins OppFi as President Served as CEO for Kiva, global fintech platform (2017 – 2021) Kiva funded more than $1.5 billion dollars in loans to
Slide 17: 2Q21 KPIs Highlight Growth, Credit, and Efficiency Improvements
2Q21 KPIs Highlight Growth, Credit, and Efficiency Improvements Unaudited Three Months Ended ($ in 000s) 6/30/2021 3/31/2021 6/30/2020 Net Originations1 $143,983 $99,809 $78,098 Ending Receivables2 $260,377 $245,293 $218,767 % of Originations by Bank Partners 93% 76% 62% Net Charge-Offs as % of Aver
Slide 18: Increasing Automated Approvals
Increasing Automated Approvals Driving Operational Leverage via Automation and Productivity Tools Increasing Application Conversion Continued increases in operational leverage position OppFi well for post-COVID demand
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights Key Highlights of Changes from 12/31/2020 Year over year cash growth of $75M driven by cash flow from operations and normalization of debt utilization Total debt increased $73M, driven by $46M of leverage facilities due to higher receivables and utilization, as well as a $26
Slide 20: Full Year 2021 Outlook
Full Year 2021 Outlook Revenue Adj. EBITDA1 Adj. Net Income1 Ending receivables of $380-400 million Origination levels returning to pre-COVID levels by the end of the year Net charge-offs as a percentage of average receivables of approximately 35% Yield consistent with historical levels 1Adjusted EB
Slide 21: Platform with Proven Ability to Scale Profitably
Platform with Proven Ability to Scale Profitably Revenue1,2 Adj. EBITDA1,3 Adj. Net Income1,4 2021P projections reflect midpoints of guidance range. Revenue pro forma for fair market value accounting. As of January 1, 2021, OppFi transitioned from an expected credit loss application to a fair market
Slide 22: Appendix
ie | Appendix
Slide 23: 2Q21 Financial Results
2Q21 Financial Results Unaudited Three Months Ended ($ in 000s) 6/30/2021 6/30/2020 YoY % Total Revenue $78,376 $61,281 27.9% Adj. Revenue1 $78,376 $73,611 6.5% Net Income $17,987 $25,119 (28.4%) Adj. Net Income1 $17,858 $1,586 1,025.9% Adj. Net Income Margin 22.8% 2.2% 2,060bps Adj. EBITDA1 $32,324
Slide 24: OppFi GAAP Income Statements
OppFi GAAP Income Statements Unaudited Three Months Ended June 30, ($ in thousands) 2021 2020 Variance (%) Total Revenue $78,376 $61,281 27.9% Total Provision (31) (12,875) (100.0%) Change in Fair Value (11,306) -- -- Net Revenue $67,039 $48,406 38.5% Expenses 49,052 23,287 110.6% EBT1 $17,987 $25,1
Slide 25: OppFi Fair Value Pro Forma Income Statements
OppFi Fair Value Pro Forma Income Statements Unaudited Three Months Ended June 30, ($ in thousands) 2021 2020 Variance (%) Total Revenue $78,376 $73,611 6.5% Total Provision (31) -- -- Change in Fair Value (11,306) (41,522) (72.7%) Net Revenue $67,039 $32,089 108.9% Expenses: Sales and Marketing 11,
Slide 26: OppFi Quarterly EBT to Adj. EBT and Adj. EBITDA Reconciliation
OppFi Quarterly EBT to Adj. EBT and Adj. EBITDA Reconciliation Unaudited Three Months Ended June 30, ($ in thousands) 2021 2020 Variance (%) EBT1 $17,987 $25,119 (28.4%) Fair Value Adjustment -- (23,682) -- Debt Amortization 642 458 40.1% Other Addback and One-Time Expenses2 5,181 220 2,251.7% Adjus
Slide 27: OppFi Quarterly Revenue to Adj. Revenue Reconciliation
OppFi Quarterly Revenue to Adj. Revenue Reconciliation Unaudited Three Months Ended June 30, ($ in thousands) 2021 2020 Variance (%) Total Revenue $78,376 $61,281 27.9% Amortization of Loan Origination Costs -- 12,330 -- Adjusted Revenue $78,376 $73,611 6.5%
Slide 28: OppFi Q2 2020 As Reported to Fair Value Pro Forma Reconciliation
OppFi Q2 2020 As Reported to Fair Value Pro Forma Reconciliation Unaudited Three Months Ended June 30, 2020 ($ in thousands) As Reported FV Adjustments FV Pro Forma Total Revenue $61,281 $12,330 $73,611 Total Provision (12,875) 12,875 -- FV Adjustment1 -- (41,522) (41,522) Net Revenue $48,406 ($16,3
Slide 29: Fair Value Accounting Impact to Financial Reporting
Longer weighted average maturity of portfolio Higher average coupon Lower credit losses and loss expectations Lower customer prepayments versus expectations Shorter weighted average maturity of portfolio Lower average coupon Increased credit losses and loss expectations Increased customer prepayment
Slide 30: Fair Value Second Quarter Valuation
Fair Value Second Quarter Valuation Unaudited ($ in thousands) 6/30/2021 3/31/2021 Outstanding Principal $260,236 $245,201 Accrued Interest $9,421 $9,275 Interest Rate 149.0% 146.7% Discount Rate 21.6% 21.5% Servicing Fee1 (5.03%) (5.01%) Remaining Life 0.578 years 0.558 years Default Rate1 19.6% 19
Slide 31: Pro Forma Share Count
Pro Forma Share Count Shares Share Price Notes $10.00 $12.00 $13.00 $14.00 Class A Common Stock held by Public 8,952,565 8,952,565 8,952,565 8,952,565 Shares previously held by FGNA public stockholders, after giving effect to redemptions at closing Class A Common Stock held by Founders 4,025,125 4,0