Pagaya Technologies Ltd. · NASDAQ:PGY
Pagaya Technologies — SPAC Merger (December 2021)
31 slides from Pagaya Technologies's SPAC merger presentation, Dec 16, 2021
Slide 1: Investor presentation / December 2021
0 Investor presentation / December 2021
Slide 2: Disclaimers
Disclaimers 1 This presentation contains financial forecasts for Pagaya Technologies Ltd. (the “Company”) with respect to certain financial results for the Company. Neither EJF Acquisition Corp. ("EJFA"), EJF Capital LLC ("EJF") or their affiliates nor the Company's independent auditors have audited
Slide 3: Our vision
Enable better financial outcomes for our partners and their customers Our vision 2
Slide 4: Centralized A.I. and data network
Centralized A.I. and data network Auto Loan Credit Card Personal Loan Single Family Rental Insurance Mortgage We are building a leading artificial intelligence network to help our partners grow their businesses and better serve their customers 3
Slide 5: Our business model
Our business model How we monetize our technology 4 STEP 1 STEP 2 STEP 3 STEP 4 Customers approach our network partners with a need or a dream Pagaya provides centralized artificial intelligence and data solutions Financial product is acquired by institutional investors Our partners leverage our net
Slide 6: Pagaya at a glance
198%Network volume growth, annualized Q2 2021 vs FY 20201 300%Revenue growth, annualized Q2 2021 vs FY 2020 GROWTH Vast data, leading technology, rapid growth, highly scalable Pagaya at a glance 5 1 Network Volume is defined as the gross dollar amount of assets that are originated by Partners with t
Slide 7: Q3 2021 update
$137mm Q3 2021 update 6 Financial data presented as $mm; 2020 financial information based on audited financials. Information related to 2021 is based on unaudited financial results Q3 2021 Revenue Update Recent Developments Strong momentum continuing into Q4 2021 Q3 ’21 Revenue 2020 YTD through 9/30
Slide 8: Our opportunity speaks for itself
Our opportunity speaks for itself Multi-market solution 7 Note: Represents estimated annual U.S. market origination volumes;1 Estimated origination volumes based on Q4 2020 annualized originations in The TransUnion “Consumer Credit Origination, Balance and Delinquency Trends: Q4 2020” report. 2 Esti
Slide 9: Extraordinary network volume growth has resulted in strong revenue growth
Extraordinary network volume growth has resulted in strong revenue growth Business model 8 Financials are unaudited (not under PCAOB); 2021–2023E figures are estimated forecast Network volume Revenue +121% +73% +185% +67% +178% +66% +311% +60% ($bn) ($mm)
Slide 10: Company overview
Company overview 9
Slide 11: Pagaya highlights
Pagaya highlights Who we are 10 A.I. driven, highly scalable network deeply entrenched in partner systems Rapid expansion and scale in numerous markets with massive addressable markets Proven value proposition drives partner penetration and stickiness World-class data science team Fee-based, capital
Slide 12: The problem: Legacy inefficiencies
The problem: Legacy inefficiencies We believe legacy underwriting systems drive inefficiencies for both our partners and their customers 11 Convenient access to a broad array of financial products What consumers want Challenges our partners face Siloed data and tech infrastructureTech investment pri
Slide 13: Our solution: Disruption
Our solution: Disruption Centralized enabling technology powers the A.I. network 12 Each of our partners’ customers are evaluated in real time The network matches applications to the criteria of institutional investorsDemocratizes access to financial services—partner benefits from higher conversion,
Slide 14: The Result: Opportunity
The Result: Opportunity Better outcomes for our partners and their customers 13 CustomersFinancial product fulfills a need or a dream PartnersDelight more customers by increasing conversion
Slide 15: Our technology provides seamless integration and rapid results
Our technology provides seamless integration and rapid results Seamless uplift API plugin 14 Automatedprocess Real-time Partners’ transactions are approved with minimal latency Tech integration is designed to minimize friction A.I. network powers automated process for 100% of transactions
Slide 16: We have added one new market per year since 2018
We have added one new market per year since 2018 Innovation at breakneck speed 15 Personal 2018 Auto 2019 Credit card / POS 2020 Real Estate 2021 New market addition represents Pagaya onboarding partners in a new market
Slide 17: Our network volume growth trajectory
Our network volume growth Trajectory 16 Network Volume ($mm) 2019 2020 2021 154% CAGR Metrics as of 6/30/2021
Slide 18: A.I. enables smarter, more accelerated growth across markets
A.I. enables smarter, more accelerated growth across markets Penetrating new markets increasingly quickly 17 1 Represents annualized network volume by market enabled on Pagaya’s network. Each market is measured since launch in that market by Pagaya. Annualized network volume ($mm) in Auto and Real E
Slide 19: Once we onboard a new partner, our A.I. enables us to rapidly scale their volume
Once we onboard a new partner, our A.I. enables us to rapidly scale their volume in our network A.I. drives significant growth for both our partners and Pagaya 18 1 For partners who have been on our network for at least six months; increase measured relative to partner’s second month volume 2 For pa
Slide 20: Data science and technology are the foundation of our company
Data science and technology are the foundation of our company Deep competitive moat 19 World-class data science platform 170+ Research & Development specialists Tremendous data asset 16mm+ training data points Entrenched partner relationships 100% retention since inception
Slide 21: Light balance sheet and low-risk funding model
Light balance sheet and low-risk funding model Balance sheet light 20 Global Asset Managers Pension Funds Sovereign Wealth Fund Insurance Companies Banks Assets matched to identified funding at origination, aligning to the criteria of institutional investors Strong and growing institutional investor
Slide 22: Founder-led team with deep tech & finance expertise
Gal KrubinerCEO & Co-founder Avital PardoCTO & Co-founder Yahav YulzariCRO & Co-founder Ed MallonCIO Benjamin BlattCBO Tami RosenCPO Michael KurlanderCFO Richmond GlasgowGC Founder-led team with deep tech & finance expertise Amol NaikCOO Leslie GillinCGO 21
Slide 23: Business model and plan
Business model and plan 22
Slide 24: Well defined growth plan
Well defined growth plan Bright future 23 New Products Penetrate Large Banks Partner Volume Growth Deepen Technology Insurance Deepen our data ocean as our network expands Continue to expand core business by increasing volume per partner Partner with traditional lenders including large banks Launch
Slide 25: Near-term opportunity to partner with large banks
Near-term opportunity to partner with large banks Value add 24 Source: SNL Financial as of September 2021; Represents illustrative value proposition Key Value Proposition Increased SalesImproved access to credit for customers to drive incremental salesMeaningful increase to revenue stream Additional
Slide 26: Forecast and valuation
Forecast and valuation 25
Slide 27: Forecast detail
Network volume Total revenue Total costs Adj. operating income¹ Adj. operating margin¹ Forecast detail 26 Financial data presented as $mm. Represents estimated forecast; ¹ Adjusted operating income represents GAAP pre-tax income excluding one-time expenses associated with the contemplated merger, as
Slide 28: Appendix
Appendix 27
Slide 29: Non-Solicitation and Important Information
425 legend 28 Non-SolicitationThis presentation is not a proxy statement or solicitation or a proxy, consent or authorization with respect to any securities or in respect of the proposed business combination and shall not constitute an offer to sell or exchange, or a solicitation of an offer to buy
Slide 30: Forecast methodology
Forecast methodology 29 Detailed, bottom-up, partner-by-partner forecast to arrive at projected network volume 2022E network volume is comprised primarily of existing markets; expansion efforts in new markets (e.g., insurance) is phased-in in 2023EConservative overall penetration of each market No o
Slide 31: Thank you
30 Thank you