Enova International, Inc. · NYSE:ENVA
Enova International — Investor Presentation (November 2015)
28 slides from Enova International's investor presentation, Nov 18, 2015
Slide 1: Investor Presentation November 2015
Investor Presentation November 2015 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Risks and Uncertainties That May Affect Future Results
Cautionary Statement Regarding Risks and Uncertainties That May Affect Future Results This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova. These forward-looking
Slide 3: Investment Highlights
Investment Highlights Proven Tech and Analytics with 11 Years of Data and Experience Large Market with Growing Demand for Non-Bank Credit Strong Pipeline of New Growth Initiatives Superior Financials with Strong Growth in Revenues and Profits Experienced, Successful Leadership Team Proprietary Onlin
Slide 4: Large Online Lending Market Opportunity
Large Online Lending Market Opportunity November 2015 | ©2015 Enova International, Inc. $102B estimated potential unsecured personal loan volume 4M underserved individuals (Enova has served 68k) 68M underserved individuals (Enova has served 2.5M+) $69B unsecured loan volume 1 2013 FDIC National Surv
Slide 5: Enova Products for Closing the Credit Gap
Single Pay & LOCs Enova Products for Closing the Credit Gap Near Prime Loans Pricing: 100% - 299% APR Amount: $1,000 - $10,000 Duration: 3 – 12 months Profile (FICO): 450 – 550 Pricing: 35% - 99% APR Amount: $1,000 - $10,000 Duration: 12 – 60 months Profile (FICO): 500 – 675 Pricing: 189% - 450% APR
Slide 6: Focused on Middle and Working Class Borrowers
Focused on Middle and Working Class Borrowers Enova’s customers are hardworking, educated homeowners with families and regular income, who have a need for credit due to unforeseen events affecting income or expenses. November 2015 | ©2015 Enova International, Inc.
Slide 7: Online Model has Clear Advantages
For Borrowers For Enova Online Model has Clear Advantages No Stores invest in tech and people, not real estate Centralized Analytics sophisticated underwriting in seconds Product Development rapid response to market and regulatory changes Top Talent hiring in desirable urban center Privacy no standi
Slide 8: Online Lending is Convenient for Borrowers
Online Lending is Convenient for Borrowers 1. Apply 2. Underwrite Easy-to-complete identity, employment, income, payroll date, bank account information Multi-stage Screening to verify identity and prevent fraud Decisioning in 3 to 6 seconds analytics system pulls data and determines credit worthines
Slide 9: Multi-Channel Marketing Expertise
Multi-Channel Marketing Expertise Brand Marketing focus on brand marketing has driven shift in customer acquisition from 67% leads in 2009 to 38% leads in 2014 Mobile responsive websites and mobile applications deliver customer experience across all devices Media and Business Data data is combined f
Slide 10: Long Track Record of Growth
Long Track Record of Growth 1 From inception through 3Q2015 11 years+ of revenue and profit growth 100+ fraud, credit, servicing, & collection models ~4 M customers served 93% avg. U.S. customer service satisfaction rating 10 brands in six countries November 2015 | ©2015 Enova International, Inc. Gr
Slide 11: Three Pronged Strategy Drives Growth and Reduces Risk
Diversify Products and Geographies Innovate New opportunities and Internal Functions Drive efficient Execution with Technology and Analytics Three Pronged Strategy Drives Growth and Reduces Risk Strategy November 2015 | ©2015 Enova International, Inc.
Slide 12: Execute: Real-Time Analytics & Technology
Execute: Real-Time Analytics & Technology Marketing Fraud & Underwriting Servicing & Retention Collections > 1,000+ variables for underwriting > 100+ algorithms running Algorithmic media buying models > 10.5 TB in managed datasets $7 M est. 2014 EBITDA from model improvements 15 optimization models
Slide 13: Execute: Data Analytics that Improves Loan Performance
Execute: Data Analytics that Improves Loan Performance Proprietary powerfully assesses identity, risk and credit worthiness based on 11 years of lending history and millions of loans Robust up to ten different scorecards and 30+ variables across multiple products and geographies Flexible 50+ person
Slide 14: Execute: Customer Service that Drives Recommendation
U.S. based In-House Contact Centers 24/7 multi-channel availability via phone, chat, text, or email supported by state-of-the-art CRM and telephony technology Analytics Drive Results customer interactions - time of day, contact frequency, contact method and script - optimized for efficiency and effe
Slide 15: Diversify: History of New Products and New Markets
Diversify: History of New Products and New Markets Product and Market Launches Geography Product2 ‘3Q 15 Revenue ‘09 Revenue Results Revenue by Product & Geography 32 States 13 States All U.K. All Australia 4 Provinces All U.K. 2004 2007 2009 2009 2010 2012 Short-Term Loans Installment Loans Lines o
Slide 16: Innovate: Consistent Growth for Near Prime Offering
Innovate: Consistent Growth for Near Prime Offering November 2015 | ©2015 Enova International, Inc. ($ in Millions)
Slide 17: Innovate: Strong Track Record with Full Pipeline
Innovate: Strong Track Record with Full Pipeline Installment Loan 118% CAGR November 2015 | ©2015 Enova International, Inc. Small Business Initiatives Brazil Initiative Unsecured purchase of sales receivables Unsecured line of credit Unsecured installment loans Simple Credit is Enova’s Chinese Insta
Slide 18: Proactive, Global Compliance Capabilities
Licensed where required; reduces regulatory risk and is a barrier to entry Central team led by professional bank compliance officer reporting to Board of Directors Regulatory framework built into technology platform and the business model Rapidly update products and business rules for changes in reg
Slide 19: Enova's Assessment of CFPB Rule-Making
Enova’s Assessment of CFPB Rule-Making Dodd-Frank charged CFPB with supervising PayDay lenders In April 2013, CFPB announced its intention to propose rules Advanced analytics leverage diverse data sources—in addition to traditional affordability criteria—to issue compliant loans at scale Technology
Slide 20: FCA Full Authorization Application
FCA Full Authorization Application CashEuroNetUK submitted application for QuickQuid & PoundsToPocket Feb. 2015 Positive initial feedback “very comprehensive” Approval not assured OnStride application submitted August 2015 Decisions expected 6-12 months from respective application dates U.K. Regulat
Slide 21: Financial Highlights
Consistent history of strong growth in revenue and Adjusted EBITDA1 Financial Highlights Generated $71 million of operating cash flow in Q3 15 Solid balance sheet with total liquidity of $92 million, including $34 million in cash and $58 million in revolver November 2015 | ©2015 Enova International,
Slide 22: History of Revenue and Profit Growth
History of Revenue and Profit Growth November 2015 | ©2015 Enova International, Inc. ($Millions) CAGR: 12.2% Total Revenue & EPS Note: Margins are calculated as a percentage of gross revenue. Adjusted EBITDA & Margin CAGR: 23.7% ($Millions) 16.7% 18.3% 19.9% 21.2% 29.1% Margin $0.75 $1.12 $1.78 $2.3
Slide 23: Scalable Business Model Provides Operating Leverage
Scalable Business Model Provides Operating Leverage 1 Gross loan balances outstanding include loan arrangements extended by unrelated third parties. 2 Operations and technology, and general and administrative expenses. 5 Yr % increase Enova Key Metrics ($Millions) 218% 251% 175% November 2015 | ©201
Slide 24: Appendix
Appendix November 2015 | ©2015 Enova International, Inc.
Slide 25: Consolidated Income Statement
Consolidated Income Statement November 2015 | ©2015 Enova International, Inc.
Slide 26: Consolidated Balance Sheets
Consolidated Balance Sheets November 2015 | ©2015 Enova International, Inc.
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Free Cash Flow ($ millions) LTM 3Q 2015 Cash flow from operating activities 278 Cash flow from investing activities: Consumer loans (281) Purchases of property and equipment (32) Free cash flow $ (35) Adjusted EBITDA to Net Income Fiscal Year Ended Decem
Slide 28: Thank You
tLig== ACCOUNTABLE Lud coZ= FORRESULTS 3 OPERATE THANK YOU ANSWER BESTS ownNeR ANSWER WINS && TOP TALENT — GLL AND TEAMWORK OPERATE ACCOUNTABLE ASAN ——__ OPERA’ WNER STON IRS -.. ASAI OWNER 7 BEST &!= oWNE
Enova International — Investor Presentation (November 2015) on 6ix