Investor Presentation
December 2023
Disclaimer
This presentation (the "Presentation") of OppFi Inc. ("OppFi" or the "Company") is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, the Company makes no representation or warranty with respect to the accuracy of such information. Trademarks and trade names referred to in this Presentation are the property of their respective owners. The information contained herein does not purport to be all-inclusive. This Presentation does not constitute investment, tax, or legal advice.
No representation or warranty, express or implied, is or will be given by the Company or any of its respective affiliates, directors, officers, employees or advisers or any other person as to the accuracy or completeness of the information in this Presentation, and no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements, negligent or otherwise, relating thereto. The information contained in this Presentation is preliminary in nature and is subject to change, and any such changes may be material. The Company disclaims any duty to update the information contained in this Presentation, which information is given only as of the date of this Presentation unless otherwise stated herein.
Forward-Looking Statements
This Presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "possible," "continue," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi's expectations with respect to its full year 2023 guidance, the future performance of OppFi's platform, and expectations for OppFi's growth, new products and future financial performance. These forward-looking statements are based on OppFi's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, and tightening of credit markets on OppFi's business; the impact of challenging macroeconomic and marketplace conditions, including lingering effects of COVID-19 on OppFi's business; the impact of stimulus or other government programs; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi's bank partners will continue to lend in California and whether OppFi's financing sources will continue to finance the purchase of participation rights in loans originated by OppFi's bank partners in California; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults, or non-performance, may have on OppFi's business; risks related to the material weakness in OppFi's internal controls over financial reporting; the risk that the business combination disrupts current plans and operations; the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; concentration risk; costs related to the business combination; changes in applicable laws or regulations; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; risks related to management transitions; risks related to the restatement of OppFi's financial statements and any accounting deficiencies or weaknesses related thereto; and other risks and uncertainties indicated from time to time in OppFi's filings with the United States Securities and Exchange Commission, in particular, contained in the section or sections captioned "Risk Factors." OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Non-GAAP Financial Measures
Certain financial information and data contained in this Presentation are unaudited and do not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, any periodic filing, information or proxy statement, or prospectus or registration statement to be filed by OppFi with the SEC. Some of the financial information and data contained in this Presentation, such as Adjusted EBT, Adjusted Net Income and Adjusted EPS have not been prepared in accordance with United States generally acceptable accounting principles ("GAAP"). Adjusted EBT is defined as Net Income, plus (1) provision for income taxes; (2) amortization of debt issuance costs; (3) other addbacks and one-time expenses; and (4) sublease income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate of 24.17% for the year ended December 31, 2022 and a tax rate of 21.61% for the year ended December 31, 2021, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EPS is defined as Adjusted Net Income as defined above, divided by weighted average diluted shares outstanding, which represent shares of both classes of common stock outstanding, excluding 25,500,000 shares related to earnout obligations and including the impact of unvested restricted stock units, unvested performance stock units, and the employee stock purchase plan. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non- GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. A reconciliation of OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix. A reconciliation of projected 2023 Adjusted Net Income and projected 2023 Adjusted EPS to the most directly comparable GAAP financial measures is not included in this Presentation because, without unreasonable efforts, the Company is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate these measures.
No Offer or Solicitation
This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
Website
This Presentation contains reproductions and references to the Company's website and mobile content. Website and mobile content are not incorporated into this Presentation. Any references to URLs for the websites are intended to be inactive textual references only.
1
- tech-enabled,mission-driven specialty finance platform that
broadens the reach of community
banks to extend credit access to
everyday Americans
2
High Percentage of Americans Lack Savings and/or Credit Access
60 million U.S. | 60% of U.S. | 43% of U.S. | ||
adults | consumers | adults | ||
lack access to | live paycheck | have savings to | ||
traditional credit | to paycheck2 | cover a $1,000 | ||
at choice1 | unplanned expense3 | |||
1. Hamdani, Kausar, et al. "UNEQUAL ACCESS TO CREDIT The Hidden Impact of Credit Constraints." NewYorkFed.org, 2019 | |
3 | 2. LendingClub Corporation. "New Reality Check: The Paycheck-to-Paycheck Report - The Holiday Shopping Deep Dive Edition" PYMNTS.com, November 20, 2023 |
3. Gillespie, Lane. "Bankrate's 2023 Annual Emergency Savings Report" Bankrate.com, February 23, 2023 |
OppFi Offers Market Leading Terms & Excellent Customer Experience
Market Leading Terms
- Simple interest, amortizing installment loans with no balloon payments
- No origination, late, or NSF fees
- No prepayment penalties
- Report to the 3 major credit bureaus
- Work compassionately with customers who require payment plan modification
- OppFi TurnUp Program helps eligible applicants find more affordable options by checking market for sub-36% APR products
OppFi Customers Can Use
Proceeds for any Unexpected
Expense
Auto Repair | Housing |
Medical Family
Education
Exceptional Customer
Reviews
4.5/5.0
Trustpilot TrustScore1
4.8/5.0
Google Star Rating1
78
Net Promoter Score (NPS)2
A-
Rating with BBB 1
4 | 1. | As of 11/1/2023 |
2. | For Q3 2023 at the time of loan approval | |
Technology-Fueled Proprietary Credit Models Drive Automated Underwriting Decisions
100% Cloud Platform | AI Powered Conversion, Approvals | D e c i s i o n s P o w e r e d | B y | |||||
& Servicing | ||||||||
Leads Decision Engine | Next Best Action | Consumer | Income | |||||
Workflow Optimization | ||||||||
Behavior | Data | |||||||
Machine Learning | Continuous A/B Testing | |||||||
Bank | Employment | |||||||
Bank Verification | Real-time Data | Data | Data | |||||
& Analytics | ||||||||
Income Verification | Microservice Infrastructure | Alternative | Marketing | |||||
Bureau Data | Source | |||||||
Modern Data Warehouse | ||||||||
- Platform has provided credit access to more than 1 million unique customers since inception
- Automation supports operating expense efficiency
5
OppFi Growth Strategy
Accelerate Profitable Growth
Drive profitable OppLoans
volume growth
- Continue to refine and enhance underwriting model, focusing on more favorable credit tiers
-
Maintain low customer acquisition costs and grow lower cost channels, such as
SEO
Diversify into new customer and product types via M&A
- Acquire platforms or assets providing accessible credit products to new customers
- Expand into adjacent service businesses with synergies to core product
- Achieve selected vertical integration
Serve more customers through
new relationships and
products
- Form new strategic channel relationships to reach more non-prime consumers at the point of need
- Maintain and grow network of aggregators
6
Executive Management Team
With Substantial Financial Services Experience
Todd Schwartz | Pamela Johnson | Christopher McKay |
Founder, Chief Executive Officer, | Chief Financial Officer | Chief Risk and Analytics Officer |
and Executive Chairman | Heights Finance; | HSBC; Capital One |
Schwartz Capital Group | Pioneer Financial Services |
Manny Chagas | Yuri Ter-Saakyants |
Chief Operating Officer | Chief Technology Officer |
Discover Financial Services; | Insureon; Mediaocean |
McKinsey & Company; Accenture |
Stacee Hasenbalg | Marv Gurevich |
Chief Compliance Officer | General Counsel |
Avant; BMO Financial Group; | Enova; Avant |
Mayer Brown |
7
Key Company Highlights
Profitable Across
Business Cycles
8 consecutive years of profitability1
Leading Proprietary
Credit & Technology
Platform
Real-time AI drove automation for 85% of decisions in 2022
Solid Revenue
Growth
45% 5-year CAGR2
Significant Scale
Facilitated more than $5.3 billion
in gross loan issuance covering over 3.1 million loans, since inception3
CEO and Executive Chairman as Largest Shareholder
Owner / operator dynamic aligns incentives to maximize shareholder value
Exceptional Customer Satisfaction
Net Promoter Score of 784;
4,000+ Trustpilot customer reviews with
4.5 / 5.0 average rating
8 | 1. 2015-2022 | 3. | As of 9/30/2023 |
2. 2017-2022 | 4. | For Q3 2023 at the time of loan approval | |
Financial Performance
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Disclaimer
OppFi Inc. published this content on 07 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2023 15:49:25 UTC.