Triumph Financial, Inc. · NYSE:TFIN
Triumph Financial — Q3 2024 Earnings Presentation
26 slides from Triumph Financial's earnings presentation, Oct 17, 2024
Slide 1: Investor Deck
Investor Deck NASDAQ: TFIN © Triumph Financial, Inc
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forec asts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can
Slide 3: Triumph Financial is a financial and technology company serving the transportation industry
Triumph Financial is a financial and technology company serving the transportation industry NASDAQ GS: TFIN (As of 11/14/24) $100.68 As of 11/14/24 Market Cap $2.3B $120 $100 2023A $80 Revenue(1) $418MM $60 $40 $20 Net Income to Common 2023A $0 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 Share
Slide 4: TFIN is building innovative solutions to support the U.S. freight and logistics industry
TFIN is building innovative solutions to support the U.S. freight and logistics industry Funding U.S. Freight and Factoring Technology Logistics Industry Servicing $940B gross freight revenue from U.S. Connectivity trucking on primary shipments(1) Payments Automation Speed 3.7% of U.S. GDP2 Density
Slide 5: TFIN: Factoring
TFIN: FACTORING Factoring Payments Data © Triumph Financial, Inc
Slide 6: TFIN is a leading factor in the transportation industry
TFIN is a leading factor in the transportation industry Factoring Highlights #2 transportation factor in North America Per Invoice Fee2 Days to Collect2 Average ~1.4% Discount Rate ~35 days $10B+ in transportation accounts Portfolio Turn2 Yield on NFE3,4 receivable purchased over last 12 months ~10.
Slide 7: TFIN launches Factoring as a Service (FaaS)
TFIN launches Factoring as a Service (FaaS) Legacy Factoring TFIN FaaS Closed inefficient market requiring extensive A platform empowering new entrants, leveraging our institutional knowledge industry expertise, leading technology and extensive network Off the shelf core systems lacking investment a
Slide 8: TFIN: Payments
TFIN: PAYMENTS Factoring Payments Data © Triumph Financial, Inc
Slide 9: Complexity invites fraud and creates waste in billing and payments
Many Many Many Many Complexity invites fraud and creates waste in billing and payments Brokers 10,000+ Active $550B+ $ Total transactions among fragmented stakeholders $ Challenges of Fragmentation Factors $ ~400 ! Fraud $500MM-$700MM in double-brokering fraud $ estimated and growing(1) $ ! Theft 57
Slide 10: TFIN is creating a trusted network to connect parties, facilitate payments and reduce friction
TFIN is creating a trusted network to connect parties, facilitate payments and reduce friction Brokers 10,000+ Active Benefits of the Network $ Operational efficiency enabled $ through Triumph Financial's $ structured data between parties Factors Visibility afforded in our Network ~400 $ strengthens
Slide 11: TFIN's density continues to grow in both client count and volume
TFIN’s density continues to grow in both client count and volume flowing through the network Transport Topics Top 25 Freight Brokers and Estimated Payment Volume1,2,3 TriumphPay Penetration of Top 25 Broker Volume $10.6B $5.6B $5.3B $3.4B $2.6B 1 2 3 4 5 Non-TriumphPay TriumphPay Volume Among Live V
Slide 12: Fees, Financing & Float - The density of our network creates multiple revenue opportunities
Fees, Financing & Float - The density of our network creates multiple revenue opportunities Brokers + 4PLs $1,700 Factors A/P A/P A/R A/R Shippers Carriers A/P A/R Fee Revenue Financing Revenue Float Revenue Payment Fees Audit Fees Network Fees Extended Pay Factoring Quick Pay Payments Float Note: T
Slide 13: LoadPay: banking built for truckers
LoadPay, powered by our network, collapses the time between delivering the load and getting paid to seconds, creating an unmatched carrier experience. Banking built for Truckers Flow of funds and information Digital bank account A surface transportation Cash flow on demand payments & information net
Slide 14: LoadPay expands TFIN's opportunity into new spend areas
LoadPay expands TFIN’s opportunity into new spend areas Brokers + 4PLs $1,700 Factors A/P A/P A/R A/R $620 $450 Driver Wa ges Fuel and Be nefits Spe nd $225 $175 $90 Truck Repairs, Other Pur cha se/ Maintenan ce, Spe nd Shippers Lea se Tires Carriers A/P1 A/P A/R Fee Revenue Financing Revenue Float
Slide 15: TFIN: Data
TFIN: DATA Factoring Payments Data © Triumph Financial, Inc
Slide 16: The TFIN Network and assets uniquely position us to offer visibility into accurate, actionable data
The TFIN Network and assets uniquely position us to offer visibility into accurate, actionable data • We touch ~50% of all brokered freight invoices 01 Density • We make $38B+ in transportation payments1 • We are a publicly traded bank 02 Neutrality • We move data and money (not freight), so we are
Slide 17: TFIN believes there is an opportunity to return data and develop value added services
TFIN believes there is an opportunity to return data and develop value added services to benefit the industry Opportunities to Add Value Return aggregated and verified Financial Institutions data to our customers Equipment Finance Lenders Industry Data from Develop new products and Strategic Partner
Slide 18: TFIN has sightline to over $1B in transportation revenue
TFIN has sightline to over $1B in transportation revenue Current + Potential Factoring + Payments + Data Revenue Data-Related Revenue Streams $1.0B+ Data / value- Product added services extensions Current + Potential Factoring + Payments Revenue (Inclusive of LoadPay) Net New Factoring and Payments
Slide 19: Sustainable Business Practices
Sustainable Business Practices © Triumph Financial, Inc
Slide 20: Our Values
Our Values Unique is good Be wary of following the Invest for the future crowd. Being unique can be Mission is more than money Do not allow the immediate to crowd out difficult, but if it were easy, Make everything you're involved in better. This the important. Success that endures is everyone would
Slide 21: Our Environmental Practices
Our Environmental Practices What we Believe What we Practice What we Monitor ✓ Preference for environmentally friendly products ✓ Leverage document and image technology to reduce paper We recognize that our activities may have consumption, our largest Limits set on concentrations of certain types an
Slide 22: Our Diversity
As of December 31, 2023 Our Diversity Women represent: The diversity of Triumph Financial 63% 65% 64% 33% of our overall of our non- of our of management, team members is a tremendous asset. team members management management senior vice president team members team members and above We are committed
Slide 23: Our Philanthropy
Our Philanthropy Major Charitable Initiatives In 2023, Triumph Workshop Triumph Workshop provides the tools, knowledge, and connections to foster a community of creation, innovation and success. Triumph 435 8,692 407 Financial and TBK Bank established Triumph Workshop as a makerspace Team members Vo
Slide 24: Appendix
Appendix © Triumph Financial, Inc
Slide 25: Executive Team
Executive Team Aaron Graft Brad Voss Melissa Forman Tim Valdez Todd Ritterbusch Founder, Vice Chairman, EVP, President, President, President, and Chief Executive Officer Chief Financial Officer TriumphPay Triumph Factoring TBK Bank, SSB 14 Years at TFIN 13 Years at TFIN 5 Years at TFIN 3 Years at TF
Slide 26: Thank You!
Thank You! © Triumph Financial, Inc