Encore Capital Group Inc · NASDAQ:ECPG

Encore Capital — Roth Capital Partners' 16th Annual Growth Stock Conference (February 2004)

18 slides from Encore Capital's conference presentation, Feb 20, 2004

  1. Slide 1: Presentation to Roth Capital Partners' 16th Annual Growth Stock Conference

    Encore Capital Group, Inc. NASDAQ: ECPG February 18, 2004 Presentation to Roth Capital Partners' 16th Annual Growth Stock Conference

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Certain Statements in This Presentation Constitute "Forward-looking Statements" Within the Meaning of the Private Securities Litigation Reform Act of 1995. Such Statements Involve Risks, Uncertainties and Other Factors Which May Cause Actual Results, Performance or Achieve

  3. Slide 3: Encore Capital Group, Inc.

    Encore Capital Group, Inc 50 Year Old Purchaser of Consumer Debt Present Management Team Took Over in Mid-2000 Unique Business Model Excellent Results Strong Drivers for Growth

  4. Slide 4: Compelling Fundamentals

    Compelling Fundamentals "America's appetite for borrowing money bloats U.S. consumer debt to a record high almost every month. As of September, the tab stood at $2 trillion and was spurting at an annual rate of 10 percent. Through good times and bad, spending tomorrow's dollars today never goes out

  5. Slide 5: Competitive Advantage

    Competitive Advantage Account Level Analytics Multiple Collection Strategies Sophisticated Account Management System

  6. Slide 6: Business Drivers

    Business Drivers Buy Right Collect Well Manage Expenses Challenge Everything Demand Professional and Ethical Behavior

  7. Slide 7: Basic Business Model

    Basic Business Model This Is How We Make Money Representative Data Only; Not Actual Portfolio Results

  8. Slide 8: Portfolio Purchases = Raw Material

    Portfolio Purchases = Raw Material Total Portfolio Purchases Through September 30, 2003 7 Million Accounts With $11.8 Billion Face This Management Has Bought Through September 30, 2003 4.4 Million Accounts With $6.8 Billion Face Purchase Price: $166.9 Million or 2.5¢ Month Since Charge-Off Face Valu

  9. Slide 9: Strong Collection Growth

    Strong Collection Growth 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 Collections 17240000 18962000 21495000 25354000 33840000 35780000 38739000 40449000 47083000 46650000 49096000 CAGR 17248 18954 21495 25354 33840 35780 38739 40449 47083 46650 49046

  10. Slide 10: Collection Innovation Drives Our Performance Improvements

    Collection Innovation Drives Our Performance Improvements 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 Average # of Total Employees 527 525 524 567 569 557 558 597 628 670 711 Dollars Per Employee 10910 12040 13674 14899 19842 21412 23082 22584 25001 23200 23025 Average # of Col

  11. Slide 11: Innovation Yields Multiple Strengths

    Innovation Yields Multiple Strengths 1/1/2001 2/1/2001 3/1/2001 4/1/2001 5/1/2001 6/1/2001 7/1/2001 8/1/2001 9/1/2001 10/1/2001 11/1/2001 12/1/2001 1/2/2002 2/2/2002 3/2/2002 4/2/2002 5/2/2002 6/2/2002 7/2/2002 8/2/2002 9/2/2002 10/2/2002 11/1/2002 12/1/2002 1/1/2003 2/1/2003 3/1/2003 4/1/2003 5/1/2

  12. Slide 12: Portfolio Performance - Another View

    Portfolio Performance - Another View 1999 2000 2001 2002 2003 ECPG 1.6 3.7 2.7 1.7 0.6 North 45.9 46.9 45 43.9 Multiple of Purchase Price Collected by Year of Purchase

  13. Slide 13: Expense Management

    Expense Management 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 3Q 03 Operating Cash Flow 0.6 0.61 0.53 0.53 0.41 0.43 0.43 0.45 0.37 0.39 0.4 2002 233 692 2521 4054 2003 3790 3310 Cost Per Dollar Collected Has Decreased by 33% While Monthly Collections Have Grown by 285% Since the Be

  14. Slide 14: Strong Financial Performance Resulting in a Return to Profitability

    Strong Financial Performance Resulting in a Return to Profitability 1Q 2Q 3Q 4Q 2001 -3743 -3880 -1045 -2197 2002 233 692 2521 4054 2003 3790 3309 3104 * Net Income Adjusted for Extraordinary Items.

  15. Slide 15: Strong Financial Performance

    Strong Financial Performance 12/31/2000 12/31/2001 12/31/2002 Sept 03 Actual Portfolio & Retained Interest 57.585 64.927 72.424 80.846 12/31/2000 12/31/2001 12/31/2002 Sept 03 Actual Portfolio Debt 31.221 43.938 37.248 35.442 12/31/2000 12/31/2001 12/31/2002 Sept 03 Actual Pro Forma Shareholders Equ

  16. Slide 16: Drivers for Growth

    Drivers for Growth Core Business Growth Innovations and Analysis New Financing Validation of Remaining Value Model Profitable Investment of Cash

  17. Slide 17: Experienced Management Team

    Experienced Management Team Name / Position Carl C. Gregory, III President & CEO Barry R. Barkley EVP & CFO J. Brandon Black EVP & COO Alison James SVP Robin R. Pruitt SVP John Treiman SVP & CIO Eric Von Dohlen, PhD VP Experience President and CEO; Former Chairman, President and CEO of West Capital

  18. Slide 18: Presentation to Roth Capital Partners' 16th Annual Growth Stock Conference

    Encore Capital Group, Inc. NASDAQ: ECPG February 18, 2004 Presentation to Roth Capital Partners' 16th Annual Growth Stock Conference

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