Upbound Group, Inc. · NASDAQ:UPBD
Upbound — Raymond James Conference 2022
12 slides from Upbound's conference presentation, March 2022
Slide 1: Rent-A-Center: Raymond James Conference
Rent-A-Center: Raymond James Conference March 2022
Slide 2: Our Vision
Our Vision Be a leading provider of inclusive solutions that empower underserved consumers with access to products that enhance their quality of life Strong local relationships with consumers through company operated retail outlets Rich Dataset & Insights into Underserved Reach a Employ technology C
Slide 3: Company Overview
Company Overview Two Leading Platforms In the Lease-to-Own (LTO) Space Business Highlights Traditional ◼ Largest player in the Lease-to-Own (LTO) Industry with a LTO differentiated omni-channel model that includes one of Nationwide store model e-commerce LTO platform the top asset-light, third-party
Slide 4: Financial Snapshot
Financial Snapshot Revenue ($M) Adj. EBITDA1 ($M) Financial Attributes $6,000 $700 $647 $4,778 $600 ◼ Revenue is generated from a portfolio of leases that $5,000 $500 typically have terms of 12 to 18 months, generally $4,000 $2,814 $400 $331 providing visibility into the P&L. The primary category of
Slide 5: What is Lease-To-Own (LTO)
What is Lease-To-Own (LTO) Lease-to-Own transactions are an important method of accessing and acquiring high valued products for millions of consumers who have limited access to credit or excess cash LTO Value Proposition for Consumers 2 LTO Channels No purchase Traditional LTO transaction overview
Slide 6: LTO Market Poised for Strong Long-Term Growth
LTO Market Poised for Strong Long-Term Growth Large Underserved Base: ~40% of U.S. consumers have below average credit & Small payments gaining in popularity Consumers increasing want solutions ~50% have < $2K in checking account among consumers & merchants that Work for their individual needs Flexi
Slide 7: We Are An Evolving Secular Growth Story
We Are An Evolving Secular Growth Story Large Market Opportunity Multiple Levers to Drive Growth Traditional LTO + Virtual LTO + Acima Growth in Ecosystem = TAM approaching $100B E-commerce existing verticals Provide virtual LTO Strong and growing solutions available in diverse merchant base $40 - $
Slide 8: Compelling Long-term Shareholder Value Creation Profile
Compelling Long-term Shareholder Value Creation Profile ✓ Topline Growth High Single Digits Traditional LTO Low Single-Digit Growth + Virtual LTO Strong Double-Digit Growth ✓ Margins Mid-Teens Traditional Margins ~20% + Virtual LTO Margins in the Teens ✓ Net Income Growth High Single-to- Low Double
Slide 9: Recent Results Impacted by Macro Headwinds
Recent Results Impacted by Macro Headwinds Government Unemployment Insurance Benefit Payments to Persons ◼ Government pandemic 1,400 relief programs in 2020 & 1,300 1,200 2021, such as stimulus 1,100 Payments ($B) 1,000 payments and extended 900 800 unemployment benefits, 700 600 provided a signific
Slide 10: Executing Our Long-Term Strategy
Executing Our Long-Term Strategy Become A Leading Leasing and Payment Solutions Platform for Underserved Consumers 2018 – 2021 Built a Foundation for the Future FY’22 Agenda ◼ Returned the legacy LTO business to a profitable model that ◼ Macro headwinds expected to continue through at least 1H 2022,
Slide 11: Key Takeaways
Key Takeaways Transformational acquisition of Acima Holdings Well-positioned as a leader in an has established a foundation as an alternative underappreciated and nuanced market with financial solutions platform, significantly strong underlying growth and profit dynamics enhanced the Company’s strat
Slide 12: Question and Answer
Question and Answer