Transforming Customer Experience. Investor Update December 18, 2017

Transcription

1 Transforming Customer Experience Investor Update December 18, 2017

2 Preliminary Statements Forward Looking Statements This document contains certain forward-looking statements. These statements are based on the company s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, that address activities or results that the company plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors and current or future litigation. For a discussion of these and other factors affecting the company s business and prospects, see the company s annual, quarterly and other reports filed with the Securities and Exchange Commission. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Other Information This information should be read in conjunction with, and not in lieu of, the company s annual, quarterly and other reports filed with the Securities and Exchange Commission. Those reports contain important information about the company s business and performance, including financial statements prepared in accordance with U.S. generally accepted accounting principles, as well as a description of the important risk factors that may materially and adversely affect our business, financial condition or results of operations. All market comparisons are based on available information from similar publicly traded companies. 2

3 Table of Contents Section Slide Numbers Company Overview 4 to 5 Initiatives To Drive Long-Term Growth 6 to 17 EZCORP Strengths 18 Financial Information From Recent Quarterly Results 19 to 38 Additional Information 39 to 43 GAAP to Non-GAAP Reconciliation 44 to 52 3

4 Company Overview EZCORP is a leading provider of pawn loans in the United States and Latin America. At our pawn stores we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers 43% of EZCORP total pawn stores are now in Latin America, specifically Mexico, Guatemala, El Salvador, Honduras, and Peru. EZCORP has acquired 133 pawn stores in Latin America in Q1FY18 U.S. Pawn 57% EZCORP Pawn Store Count 12/11/17 Latin America Pawn 43% KEY STATISTICS IPO Date 8/27/1991 Headquarters Market Capitalization (52 Week Range as of 12/11/17) Share Price (52 Week Range as of 12/11/17) Convertible Debt Due 2019 Bond Price (52 Week Range as of 12/11/17) Convertible Debt Due 2024 Bond Price (Range from July 2017 offering completed) Total Revenue in FY17 Profit Before Tax in FY17 Austin, TX $413m to $672m $7.60 to $ to to 140 $748.0m $43.2m Institutional Holdings 88% Index inclusion: Russell 2000, S&P SmallCap 600, S&P 1000, NASDAQ Composite PAWN STORE LOCATIONS as of 12/11/17 United States 513 Latin America 382 FINANCIAL SERVICES LOCATIONS as of 12/11/17 Cash Max in Canada 27 4

5 Pawn Customer We serve a large market U.S. 20% of U.S. Households are underbanked (~25 million households)* 7% of U.S. Households are unbanked (~9 million households)* Latin America Growing consumer base Large underbanked and unbanked population The opportunity is larger In addition to underbanked and unbanked households: There are many others who are cash and credit constrained The cash and credit constrained consumer does not have access to cash or credit to satisfy basic needs (and / or wants) at a particular point in time * 2015 FDIC National Survey of Unbanked and Underbanked Households; published October

6 Initiatives To Drive Long-Term Growth 6

7 EZCORP and FirstCash Share Price To be the market leader in North America, within three years, in responsibly and respectfully meeting our customer s desire for access to cash when they want it. Stuart Grimshaw, Chief Executive Officer of EZCORP, Inc. July 29, 2015 EZCORP announced transformational customer focused 3-year strategic plan in July 29, 2015 EZCORP FirstCash 7

8 Successful Execution of Business Transformation JULY 2015 Renewed Executive Leadership Team including CEO and President of Pawn Investment in field management enabling more coaching & mentoring 25 Pawn Stores acquired in FY15 Transformational customer focused 3-year strategic plan released U.S. Financial Services business closed 6 U.S. pawn stores acquired in Q2FY16 Initiated deployment of upgraded POS Acquired 133 stores in Latin America in Q1FY18 Opened ten stores in Mexico in FY17. Plan to open ten stores in Mexico in FY18 Mexico Buy/Sell business closed Closed 25 underperforming pawn stores in U.S. and Mexico in FY15 Store incentive plans re-aligned to operating contribution Favorable restructuring of note receivable repayment arrangement with AlphaCredit Convertible debt due 2024 issued in July 2017; liquidity and debt maturity profile improved Procurement opportunities identified Sold Grupo Finmart Initiated store refresh program NOV 2017 INITIATIVES TO DRIVE CONTINUED PROFIT GROWTH 1. Geographic diversity and larger scale with 43% of total pawn stores now in Latin America 2. Significant runway for continued store openings and complementary acquisitions 3. Transforming customer experience 4. System driven transformation is underway 5. Tracking toward annual corporate expense of $50m in FY18 8

9 Initiatives to Drive Long-Term Growth Investing in Pawn Fundamentals Targeted investments in market leadership to meet our customers need for cash Upgrading POS Customer and PLO Growth Leadership New intelligent predictive analytics of customer behavior and product data to deliver improved experience to customers Continuous measurement of customer experience and feedback Training, coaching & mentoring of field team Economic Efficiency & Scalability. Strong Margins And Operating Leverage Cloud-based infrastructure Upgraded IT will provide: Transforming customer experience Efficient integration of acquisitions Team Member on-boarding and training Speed to market of new capabilities Ability to plug and play Updating and evolving incentive program Process innovation Disciplined Store Acquisitions And New Stores. Potential To Accelerate Growth Significant runway for store openings and acquisitions Larger scale with 43% of total pawn stores in Latin America, a potential high growth market Geographic diversification. Massive and highly fragmented markets. High quality management team in place with in-country expertise 9

10 Transforming Customer Experience Streamlined workflow Speed and scale deployments 6 U.S. pawn stores acquired in Q2FY16 Initiated deployment of upgraded POS Acquired 133 stores in Latin America in Q1FY18 Opened ten stores in Mexico in FY17. Plan to open ten stores in Mexico in FY18 Store incentive plans re-aligned to operating contribution Favorable restructuring of note receivable repayment arrangement with AlphaCredit INITIATIVES TO DRIVE CONTINUED PROFIT GROWTH 1. Geographic diversity and larger scale with 43% of total pawn stores Big data now in Latin America Predictive analytics 2. Significant runway for continued store openings and complementary acquisitions JULY 2015 Renewed Executive Leadership Team including CEO and President of Pawn Access to new data sets Low capital intensity Investment in field management enabling more coaching & mentoring 25 Pawn Stores acquired in FY15 Transformational customer focused 3-year strategic plan released U.S. Financial Services business closed Convertible debt due 2024 issued in July 2017; liquidity and debt maturity profile improved Procurement opportunities identified Sold Grupo Finmart Mexico Buy/Sell business closed Closed 25 underperforming pawn stores in U.S. and Mexico in FY15 Initiated store refresh program NOV Transforming customer experience 4. System driven transformation is underway 5. Tracking toward annual corporate expense of $50m in FY18 10

11 Value Today and Beyond VELOCITY Data driven decision proliferation Speedy deployment of new products and services Speed to innovate new products and services based on customer data Ability to push accretive functionality to acquired targets ECONOMIC EFFICIENCY Usage payment model Low capital intensity allowing efficient new market entry Low barrier to access big data analytics and insights SCALABILITY Grow or shrink based on business cycles Accessibility of large data sets to drive customer insights Frictionless acquisition capability Ability to plug and play new customer centric capabilities Mobility On floor engagement (Tablets) Visibility and seamless movement of inventory 11

12 Customer Centric Technology New Cloud Based Infrastructure Upgraded POS New Big Data/Predictive Analytics Capability New Intelligent Customer Grading New Cloud Based Electronic Office New Intelligent Dynamic Pricing New Enterprise Reporting & Business Intelligent System New Time Tracking & Workforce Mgmt. System 12

13 Customer Centric Information Technology Drives VELOCITY, ECONOMIC EFFICIENCY & GLOBAL SCALABILITY Cloud Based Infrastructure Innovative technology roadmap Sophisticated disaster recovery capabilities Speed and scale deployments Frictionless global scale New Big Data/Predictive Analytics Capability Competitive insights and customer correlations Customer behavior modeling Inventory and discount what if s Deep machine learning Cloud Based Electronic Office Global footprint to enable seamless communications State of the art security and management New Enterprise Reporting & Business Intelligent System Effective sales and inventory tracking Daily sales and target attainment reporting Dynamic financial pro-forma forecasting New Big Data/Predic tive Analytics Capability Cloud Based Electronic Office Cloud Based Infrastructur e New Enterprise Reporting & Business Intelligent System Upgraded POS New Time Tracking & Workforce Mgmt. System New Intellige nt Custome r Grading New Intelligen t Dynamic Pricing Upgraded POS Intuitive interaction Streamlined workflow Data accuracy Multi-form factor capability New Intelligent Customer Grading Multi-dimensional criteria modeling inclusive of customer historical performance Intuitive value assessment New Intelligent Dynamic Pricing Internal and external data sources Real world market price verification Machine learning predictive forecasting New Time Tracking & Workforce Management System Automated scheduling and forecasting Overtime optimization Efficient counter coverage 13

14 Upgraded Systems Underway Intelligent Customer Grading Upgraded POS Customer Record Aggregation Intelligent Product Pricing Upgraded Point of Sale System One screen rather than five look up screens to abstract data All information consolidates on one screen No grids for manual insertion Loan to value is calculated and provided Pawnbroker can only adjust based on qualifying questions and visual ques within defined loan value range Benefits Upgraded POS brings data to team member that human brain is incapable of assembling! Ensure consistent accurate loan to value by customer Systemic lending process Simplifies and accelerates new team member learning curve 14

15 Recent Acquisitions 15

16 EZCORP Acquired 133 Pawn Stores in Latin America in Q1FY18 TRANSACTIONS Acquired GuatePrenda - MaxiEfectivo s ( GPMX ) 112 pawn stores in Guatemala (72 stores), El Salvador (17 stores), Honduras (12 stores) and Peru (11 stores) in October 2017 Acquired 21 pawn stores in Mexico in December 2017 PLATFORM FOR FUTURE EXPANSION Massive and highly fragmented markets High quality management team in place with in-country expertise Growth opportunities: Implement EZCORP s upgraded systems, processes, and procedures Expand general merchandise pawn loans and retail activities Open new stores in attractive and under-penetrated markets Complementary acquisition opportunities COMPELLING FINANCIAL BENEFITS Accretive to earnings in FY18 Geographic diversification Larger scale with 43% of total pawn stores now in Latin America, a high growth market 16

17 Latin America Store Map 382 EZCORP Latin America pawn store locations, including 133 stores acquired in Q1FY18 in Mexico, Guatemala, El Salvador, Honduras, and Peru MEXICO (269) Significant runway to expand general merchandise pawn loans, continued store openings and acquisitions GUATEMALA (73) EL SALVADOR (17) HONDURAS (12) EZCORP achieved 13 consecutive quarters of double-digit Same Store PLO growth YOY in Mexico* EZCORP s 269 store presence in Mexico includes 21 stores acquired by EZCORP in December 2017 EZCORP acquired 112 stores and built a store in Central America in Q1FY18 PERU (11) Store count as of 12/11/17. *Calculated in constant currency. Mexico PLO balance both increased and decreased over the same period on a GAAP basis. 17

18 EZCORP Strengths Attractive Industry Dynamics Solid demand for pawn services across economic cycles Fully collateralized loan portfolio Large and highly fragmented consumer market in U.S. and Latin America Internet resistant Stable pawn regulatory environment Successful Focus on Transforming Customer Experience Initiatives to improve customer experience and deliver profitable growth: Deployment of upgraded POS Further investment in predictive analytics of customer behavior and product data Continuous measurement of customer experience and feedback driving higher revenue and profitability Market Leadership in PLO Growth Eight consecutive quarters of market leading U.S. Pawn Same Store PLO growth YOY 13 consecutive quarters of Mexico Pawn double-digit Same Store PLO growth YOY* Seven consecutive quarters of YOY profit before tax growth Geographic Diversification and Potential Significant Growth Acquired 133 pawn stores in Latin America in Q1FY18; geographic diversification and larger scale with 43% of total pawn stores now in Latin America, a high growth market Continue to assess acquisitions and store openings in U.S. and Latin America against strict investment criteria: Significant runway for store openings and acquisitions; opened 10 stores in Mexico in FY17 and plan to open 10 stores in Mexico in FY18 U.S. Same Store PLO excludes estimated impact of stores affected by hurricanes in Q4FY17. *Calculated in constant currency. Mexico PLO balance both increased and decreased over the same period on a GAAP basis. 18

19 Financial Information From Recent Quarterly Results 19

20 Pawn Loan Process New Loan Made* (Collateral Pledged) Forfeit Redeem Sales Gross Profit $ Sale Pawn Service Charges $ * Customer experience moment of truth Collateral becomes customers credit card (access to cash) 20

21 Our Pawn Growth Drivers Key Growth Drivers ASSETS Pawn Loans Outstanding #2 Pawn Service Charges #3 INCOME STATEMENT Pawn Loans Outstanding (PLO) is the most influential driver of revenue and profitability. EZCORP continued focus and investment in satisfying customers need for cash whenever they need it is driving PLO, Net Revenue and profitable growth #4 Purchases + Forfeitures Quality & Tenure of Store Manager #1 + = - = #5 NET REVENUE TOTAL EXPENSES Profit Before Tax Inventory Sales Gross Profit Store Managers are important to customer and Team Member experience and store performance. Pawn Loans Outstanding are secured loans, typically small, and fully collateralized by tangible personal property. No personal recourse to customers or negative credit reporting. Same Store basis is the most relevant measure of pawn growth. We earn Pawn Service Charge revenue on pawn loans which varies primarily based upon statutory rates by state and loan valuations. Inventory for retail sales occur through pawn loan forfeitures and purchases of customers merchandise. If customer does not repay, renew or extend a loan, the collateral is forfeited to us and becomes inventory available for sale to drive sales gross profit. 21

22 Outstanding EBITDA Growth Disciplined Execution Driving EBITDA Growth EBITDA Consolidated Proven Pawn Expertise and Outstanding Results in Growth Market EBITDA Mexico Pawn Market Leading Same Store PLO Growth and Expense Control Driving U.S. EBITDA Growth EBITDA U.S. Pawn $106.7 $113.5 $116.5 $88.5 $48.2 $63.9 $9.4 $15.7 $20.6 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 EBITDA/Net Revenue Margin 12% 15% 23% EBITDA/Net Revenue Margin 23% 30% 35% # of Pawn Stores EBITDA/Net Revenue Margin 31% 31% 31% # of Pawn Stores Geographic Diversification and Significant Growth Potential in Latin America EZCORP Pawn Store Count 12/11/17 Latin America Stores on 9/30/17 28% 43% of EZCORP total pawn stores are in Latin America as of December 4, 2017, specifically Mexico, Guatemala, El Salvador, Honduras, and Peru U.S. Pawn 57% Acquired and built stores in LatAm in Q1FY18 15% Acquired 133 pawn stores and built three pawn stores in Latin America in Q1FY18 Amounts in this slide are in millions and are adjusted for estimated impact of natural disasters in Q4FY17, restructuring and restatement charges, other discrete items and constant currency. Mexico Pawn excludes closed buy/sell business. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. 22

23 FirstCash EZCORP Market Leading U.S. Same Store PLO Growth With Strong Operating Leverage EZCORP has achieved eight consecutive quarters of market leading U.S. Pawn Same Store PLO growth YOY U.S. PAWN Strong Same Store PLO growth and expense control driving U.S. operating leverage Same Store PLO Growth Two-Year Stacked YOY Growth EZCORP Net Revenue and Profit Before Tax YOY Growth Amounts in this slide are adjusted for estimated impact of natural disasters in Q4FY17, restructuring and restatement charges, and other discrete items. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. Weighted average based on available information from each company s public filings. This information may be determined or calculated differently by companies, limiting the usefulness of these measures for comparative purposes. 23

24 FirstCash EZCORP Significant Compound PLO Growth Drives Profit EZCORP has achieved 13 consecutive quarters of Mexico Pawn double-digit Same Store PLO growth YOY MEXICO PAWN Significant Same Store PLO growth and expense control driving Mexico operating leverage Same Store PLO Growth Two-Year Stacked YOY Growth EZCORP Net Revenue and Profit Before Tax YOY Growth Amounts in this slide are adjusted for discrete items and constant currency. Excludes closed Mexico buy/sell business. Mexico PLO balance both increased and decreased over the same period on a GAAP basis. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. Weighted average based on available information from each company s public filings. This information may be determined or calculated differently by companies, limiting the usefulness of these measures for comparative purposes. * Excludes $0.5m looting expense; the impact of looting in 12 stores in January 2017 reduced revenue through stolen pawn loan collateral and inventory effecting PSC and sales in addition to $0.5m in expenses. 24

25 Disposition USD $000s USD $000s Lending USD $000s USD $000s Superior EZCORP U.S. Pawn Performance Pawn Loans Outstanding Per Store Pawn Service Charges Per Store $290 $120 $280 $110 $270 $100 $260 $90 $ EZCORP Public Pawn Competitors $ EZCORP Public Pawn Competitors Sales Per Store Sales Gross Profit Per Store $180 $70 $170 $160 $60 $ $ EZCORP Public Pawn Competitors EZCORP Public Pawn Competitors All charts on this slide are twelve months ended September 30 in 2015, 2016, and Public Pawn Competitors results are a weighted average based on public reports. Public Pawn Competitors 2016 per store averages not available on Pawn Service Charges, Sales, and Sales Gross Profit. 25

26 Disposition USD $000s USD $000s Lending USD $000s USD $000s Accelerating EZCORP Latin America Pawn Performance Pawn Loans Outstanding Per Store Pawn Service Charges Per Store $100 $40 $75 $ $ EZCORP Public Pawn Competitors EZCORP Public Pawn Competitors Sales Per Store Sales Gross Profit Per Store $100 $40 $90 $80 $70 $60 $30 $20 $ EZCORP Public Pawn Competitors $ EZCORP Public Pawn Competitors All charts on this slide are twelve months ended September 30 in 2015, 2016, and

27 Fiscal Year 2017 Highlights Key Messages Growth Potential Being Realized U.S. Pawn leading the market Mexico Pawn is fastest growing segment Geographic diversification and significant growth potential in Latin America Strong earnings growth and improved liquidity Same Store PLO up 3%; led the market in eight consecutive quarters PLO per store unadjusted of $289k; led the market in five consecutive quarters U.S. Pawn was 83% of total pawn profit before tax in Q4FY17 Same Store PLO up 11%; 13 consecutive double-digit quarters Profit growth up 80% CAGR in two-year period ended FY17 10 new stores in FY17. Significant runway for complementary acquisitions and additional store openings Mexico Pawn was 17% of total pawn profit before tax in Q4FY17 Acquired 133 pawn stores in five countries in Latin America in Q1FY17 Larger scale with 43% of total pawn stores now in Latin America, a high growth market Compelling growth potential, significant runway for store openings and complementary acquisition opportunities in Latin America Focus on disciplined execution and expense control driving operating leverage GAAP EPS up $0.52 in Q4 and up $0.77 to $0.62 in FY17 Adjusted EBITDA up 39%, or $24.6m, to $88.5m in FY17 Tracking toward annual corporate expense of $50m in FY18 Strong balance sheet with cash balance up 150% to $164m Amounts in this presentation are continuing operations only and comparisons are Q4FY17 relative to same period in prior year unless stated. Amounts in this slide are adjusted for estimated impact of natural disasters in Q4FY17, restructuring and restatement charges, other discrete items and constant currency. Mexico Pawn excludes closed buy/sell businesses. Mexico PLO balance both increased and decreased over the same period on a GAAP basis. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. 27

28 Product Overview and Key Pawn Terms NET REVENUE BY PRODUCT Merchandise Sales Gross Profit 34% Pawn Service Charges 63% Jewelry Scrapping Sales Profit 2% Other 1% Consolidated Net Revenue in FY17 Summary of Key Pawn Terms in FY17 United States Mexico Avg. Loan Size ~$100 - $120 ~1,100 pesos (or ~$58 2 ) PLO monthly yield 1 14% per month 16% per month Loan Term days, generally 30 days 1 PLO monthly yield in FY17 2 Based on average exchange rate in FY17 28

29 Strong Financial Performance EZCORP GAAP Results Strong performance in Q4 despite impact of natural disasters U.S. Same Store PLO up 3%* excluding stores impacted by hurricanes. The effects of the hurricanes caused an estimated reduction in U.S. Pawn loan balances by ~$5m as of September 30, 2017 Q4 Net Revenue up1%. PSC increase of 5% partially offset by reduced Q4 scrapping Operations expense improved to 72% from 75% of net revenue in Q4 Q4 corporate expense reduction of 34%; on track to $50m corporate expense in FY18 Significant EBITDA growth in Q4 and FY17, up 91% in FY17 to $82.6m Q4 net interest includes $2.3m of discrete items including $5.3m debt extinguishment charge offset by $3m benefit from Grupo notes restructure Seven consecutive quarters of YOY profit growth * U.S. Same Store PLO excludes estimated impact of stores affected by hurricanes in Q4FY17. 29

30 Continued Strong Profit Growth EZCORP Continuing Operations Adjusted Results* Q4 PSC up 5% partially offset by reduced Q4 jewelry scrapping Consolidated merchandise margin of 36% in Q4, in our target range of 35-38% CCV investment profitable after prior year strategic realignment Operations expense improved to 70% from 74% of net revenue in Q4 Q4 corporate expense reduction of 38%; on track to $50m corporate expense in FY18 Significant EBITDA growth for both the quarter and fiscal year Reduction in net interest expense due to interest income on promissory notes associated with Grupo Finmart sale Seven consecutive quarters of YOY profit growth *Adjusted for estimated impact of natural disasters in Q4FY17, restructuring and restatement charges, other discrete items and constant currency. Mexico Pawn excludes closed buy/sell businesses. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. 30

31 Strong Management Actions Deliver PLO and Profit Growth U.S. Pawn Q4FY17 ASSETS Pawn Loans Outstanding Total Up 2% SAME STORE UP 3% Pawn Service Charges Total Up 4% to $63m SAME STORE UP 4% INCOME STATEMENT 3% increase in Same Store PLO drove similar increase in pawn service charges Serving and satisfying customers need for cash fuels continued Same Store PLO growth SAME STORE UP 10% Purchases + Forfeitures Inventory Total Up 9% Quality Store Manager NET REVENUE + = - Down 5% to Up 1% to $93m = Sales Down 4% Sales Gross Profit Down 4% to $30m Merchandise Margin 36% GROSS PROFIT SAME STORE DOWN 4% TOTAL EXPENSES $67m PROFIT BEFORE TAX Up 20% to $26m Initiatives underway to continue improving Net Revenue and profitability in the long term, including upgrading POS and analytics of customer behavior and product data Merchandise margin consistent at 36%, in our target range of 35-38% Continued focus on customer experience led to Same Store PLO up 3% and Pawn Service Charges increased 4% Market leading unadjusted U.S. PLO of $289k per store PLO monthly yield consistent at 13% Inventory turns of 1.9 Return on Earning Assets of 132% Amounts in this slide are adjusted for estimated impact of natural disasters in Q4FY17, restructuring and restatement charges, and other discrete items. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. Sales Gross Profit includes Merchandise, Scrap Gross Profit, and Other Revenue. 31

32 Strong Management Actions Deliver PLO and Profit Growth U.S. Pawn Continued execution and focus on customer experience helped increase Q4 profit before tax up 20% Eight consecutive quarters of market leading Same Store PLO growth YOY U.S. merchandise margin consistent at 36%, in our target range of 35-38% Inventory aged over one year improved to 10% from 11% in Q3FY17 Business Transformation Net Revenue Growth and Expense Control Driving Profit Growth U.S. Pawn Amounts in this slide are adjusted for estimated impact of natural disasters in Q4FY17, restructuring and restatement charges, and other discrete items. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. 32

33 Significant Compound PLO Growth Drives Profit Mexico Pawn Q4FY17 ASSETS INCOME STATEMENT Pawn Loans Outstanding Total Up 13% SAME STORE UP 11% Pawn Service Charges Total Up 16% to $10m SAME STORE UP 14% Strong management, consistent execution and cost control deliver profit before tax up 64% to $5m SAME STORE UP 5% Purchases + Forfeitures Inventory Total Up 8% Quality Store Manager NET REVENUE TOTAL EXPENSES + = Up 13% to $15m - Flat at $10m = Sales Up 5% Sales Gross Profit Total Up 8% to $5m Merchandise Margin 30% GROSS PROFIT SAME STORE UP 3% PROFIT BEFORE TAX Up 64% to $5m Initiatives underway to continue improving Net Revenue and profitability in the long term, including upgrading POS and analytics of customer behavior and product data Four stores opened in Q4 for a total of ten in FY17. Significant runway for continued store openings and acquisitions Continued focus on customer experience led to PLO up 13% as Pawn Service Charges increased 16% and Merchandise Gross Profit increased 8% Average PLO per store improved 10% to $80k PLO monthly yield consistent at 16% Inventory turns of 2.3 Return on earning assets 147% compared to 146% Amounts in this slide are adjusted for discrete items and constant currency. Excludes closed Mexico buy/sell business. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. Sales Gross Profit includes Merchandise, Scrap Gross Profit and Other Revenue. 33

34 Significant Compound PLO Growth Drives Profit Mexico Pawn Profit growth accelerated with Q4 up 64% and FY17 up 51% Opened four stores in Q4 and opened ten stores in FY17. Significant runway for continued store openings and acquisitions Mexico merchandise margin 30%, up 100bps and inventory aged over one year improved to 2% from 6% in Q3FY17 Business Transformation Net Revenue Growth and Expense Control Driving Profit Growth Mexico Pawn Amounts in this slide are adjusted for discrete items and constant currency. Excludes closed Mexico buy/sell business. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. 34

35 Strengthening Balance Sheet and Liquidity Highlights Strengthening balance sheet and liquidity supports continued investment in customer experience and expansion to drive increased profit Cash balance up 150% to $164m at September 30, Leverage Ratio* Earnings Growth Strengthens Leverage Ratio Favorable restructuring of notes receivable repayment arrangement with AlphaCredit / Grupo Finmart in September Receiving regular payments Convertible Senior Notes due 2024 offering completed in July QFY16 1QFY17 2QFY17 3QFY17 4QFY17 * Leverage Ratio is Net Debt / Adjusted EBITDA for the last twelve months 35

36 Receiving Notes Receivable Payments Within Schedule EZCORP Benefits From Notes Receivable Restructuring in September 2017: $14m additional deferred compensation fee² Interest rates substantially increased Receive principal and interest monthly Now guaranteed by AlphaCredit, Grupo Finmart s parent Received $4.1m held in escrow six months early Termination of our indemnification obligations with respect to representations and warranties under original sale agreement of Grupo Finmart All interest accelerated upon early pre-payment As of November 15, 2017 Notes Receivable Cash Received Notes Receivable (Principal as of 11/15/17) $60.9 $59.9 AlphaCredit has already paid $34m principal and interest owed to EZCORP in connection with the sale of Grupo Finmart Expect to collect an additional $32.6m principal in the remainder of FY18 and $28.3m in FY19 in addition to interest and a deferred compensation fee of $14.0m, payable $6.0m in September 2019, $4.0m in March 2020 and $4.0m in September 2020² $32.6 $28.3 $31.6 $1.0 $0 $1.0 FY18 FY19 FY20 Total GAAP Interest Income From Notes¹ $14.8 $5.6 $0.8 $21.2 Detail: Amortization of Deferred Compensation Fee² $9.2 $4.0 $0.8 $14.0 Cash Interest Income $5.6 $1.6 $0.0 $7.2 ¹Interest income on notes receivable from AlphaCredit. ²Total Deferred Compensation Fee will be reduced to $10m if the notes are pre-paid on or prior to June 30, Amounts above are in millions of U.S. dollars and based on exchange rates in effect historically or as of September 30, 2017 for all future amounts. 36

37 Estimated Impact of Natural Disasters Consolidated Estimated Impact on Quarter Ended September 30, 2017 Pawn service charges Merchandise sales gross profit Operating expenses and loss on disposal of assets Income from continuing operations before income taxes $(1.6m) $(0.2m) $1.1m $(2.9m) Estimated Impact on PLO Balance as of September 30, 2017 Pawn Loans Outstanding $(5.0m) During the fourth quarter, U.S. Pawn was affected by Hurricanes Harvey and Irma, and the Mexico Pawn segment experienced an earthquake. The estimated $2.8 million effect of the hurricanes in the U.S. consisted of a $1.8m reduction of Net Revenue and a $1.0m increase in operating expenses in the quarter ended September The estimated effect of the earthquake in Mexico was $0.1m in operating expenses in the quarter ended September The effect of the hurricanes included an estimated reduction of U.S. pawn loan balances of ~$5m as of September 30, 2017 with a resulting reduction in pawn service charges and merchandise sales gross profit. Pawn loan demand is expected to return to a normal level after the annual tax refund season in the U.S. The impact of the earthquake in Mexico should not materially affect fiscal 2018 operating results. Q4FY17 adjusted results in this presentation exclude the estimated impact of natural disasters and other discrete items, restructuring and restatement charges, and constant currency. See EZCORP GAAP Results and GAAP to Non-GAAP Reconciliation. 37

38 2.875% Convertible Senior Notes Due 2024 Potential EPS Dilution The following is provided for purposes of calculating the potentially dilutive shares to be included in accounting for diluted EPS at a hypothetical conversion price of $10 or higher: Average Share Estimated Incremental Price for Period Dilutive Shares for Period $ $ ,306,818 $ ,395,833 $ ,317,308 $ ,107,143 $ ,791,667 $ ,390,625 $ ,919,118 $ ,388,889 $ ,809,211 $ ,187,500 At higher share prices above $20, there is a potential for further increase in dilution In July 2017, we issued $ million aggregate principal amount of 2.875% Convertible Senior Notes Due The Convertible Notes are convertible into cash or shares of Class A Non-voting Common Stock, or any combination thereof, at our option subject to satisfaction of certain conditions and during certain periods, based on an initial conversion rate of 100 shares of Class A Common Stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of $10.00 per share of our Class A Common Stock). We have included above an estimate of the incremental shares we would need to include in our calculation of fully diluted EPS using the treasury stock method of accounting, if our average share price is above $10.00 while the Convertible Notes due 2024 are outstanding. 38

39 Additional Information 39

40 Investor Resources 40

41 Definition of Terms Monthly PLO Yield = pawn service charges days in period average PLO X 365 / 12 Inventory Yield = sales gross profit days in period average net inventory X 365 Return on Earning Assets = sales gross profit + PSC days in period X 365 average net inventory + average PLO Inventory Turnover = total cost of sales days in period average net inventory X

42 EZCORP U.S. Pawn Store Map EZCORP pawn platform supports geographic diversity of store mix Stable state regulation; rate setting authority is at state level WA OR 5 NV 17 ID UT 9 MT WY CO 34 ND SD NE KS MN 7 IA 11 MO WI 3 IL 21 MI IN OH 15 KY WV PA VA 3 NC NY 2 2 MD VT N J D E ME NH MA CT RI AZ 20 NM OK 21 AR 1 TN 13 AL MS 5 1 GA 8 SC TX 218 LA FL EZCORP Stores Store count as of 09/30/17 42

43 Investor Relations Contact Jeff Christensen, CPA Vice President, Investor Relations EZCORP, Inc. Phone: (512)

44 GAAP to Non-GAAP Reconciliation In addition to the financial information prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP"), we provide certain other financial information that is adjusted to exclude the impact of restructuring and restatement charges and other discreet items and to reflect the results of our Mexico Pawn operations on a constant currency basis. We believe that presentation of the non-gaap financial information is meaningful and useful in evaluating and comparing our operating results across accounting periods and understanding the operating and financial performance of our business. We believe that the non-gaap financial information reflects an additional way of viewing aspects of our business that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non- GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. You should consider the non-gaap information in addition to, but not instead of or superior to, our results prepared in accordance with GAAP. Non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of that information for comparative purposes. 44

45 GAAP to Non-GAAP Reconciliation Q4 Continuing Operations* (A) (B) (C) (D) (G) (H) (E) (F) (I) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $1.9m of Natural Disaster Impact, Footnote (B) Amount includes $1m Hurricane Store Operating Expenses Impact, Footnote (C) Amount includes $0.8m of Acquisition related Expenses, Footnote (D) Amount includes ~$0.1m Gain on FX Footnote (E) Amount includes $3m Credit from Restructuring of Grupo Finmart Notes Receivable and $5.2m of Expense from Retirement of Fortress Debt and $35m Repurchase of Convertible Notes due 2019 Footnote (F) Estimated Tax impact of Discrete Items listed above, Footnote (G) Amount includes $0.2m of Discrete Corporate Adjustment Footnote (H) Amount includes $11.0m impairment on investment in Other International and $0.2m loss on asset impairments in Corporate Footnote (I) Estimated Tax impact of Discrete Items listed above *We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period exchange rate for September 30, 2017 and 2016 was 18.2 to 1 and 19.4 to 1, respectively. The approximate average exchange rate for the quarter ended September 30, 2017 and 2016 was 17.8 to 1, 18.7 to 1, respectively, however our statement of operations constant currency results reflect the impact of monthly effects of exchange rates and so are not directly calculable from the above rates. 45

46 GAAP to Non-GAAP Reconciliation Q4 U.S. Pawn* (A) (B) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $1.8m of Natural Disaster Impact Footnote (B) Amount includes $1m Hurricane Store Operating Expenses Impact, 46

47 GAAP to Non-GAAP Reconciliation Q4 Mexico Pawn* (A) (B) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $0.1m of Natural Disaster Impact Footnote (B) Amount includes $0.5m Credit for Restructuring of Grupo Finmart Notes Receivable **We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period exchange rate for September 30, 2017 and 2016 was 18.2 to 1 and 19.4 to 1, respectively. The approximate average exchange rate for the quarter ended September 30, 2017 and 2016 was 17.8 to 1, 18.7 to 1, respectively, however our statement of operations constant currency results reflect the impact of monthly effects of exchange rates and so are not directly calculable from the above rates. 47

48 GAAP to Non-GAAP Reconciliation FY17 Continuing Operations* (A) (B) (C) (D) (G) (H) (E) (F) (I) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $1.9m of Natural Disaster Impact, Footnote (B) Amount includes $1m Hurricane Store Operating Expenses Impact Footnote (C) Amount includes $1.1m of Acquisition related Expenses and $1.1m of CFO Severance, Footnote (D) Amount includes $0.3m Gain on FX Footnote (E) Amount includes $3m Credit from Restructuring of Grupo Finmart Notes Receivable and $5.2m of Expense from Retirement of Fortress Debt and $35m Repurchase of Convertible Notes due 2019 Footnote (F) Estimated Tax impact of Discrete Items listed above, Footnote (G) Amount includes $4.2m of restatement expense and $(0.3)m of discrete adjustments in Corporate Footnote (H) Amount includes $11.0m impairment on investment in Other International, $1.4m of restructuring expenses ($1.0m of U.S. Pawn, $0.2m of Corporate, and $0.2m of Other International) and $0.1m of discrete adjustments in Corporate Footnote (I) Estimated Tax impact of Discrete Items listed above *We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period exchange rate for September 30, 2017 and 2016 was 18.2 to 1 and 19.4 to 1, respectively. The approximate average exchange rate for the years ended September 30, 2017 and 2016 was 19.1 to 1 and 17.9 to 1, respectively, however our statement of operations constant currency results reflect the impact of monthly effects of exchange rates and so are not directly calculable from the above rates. 48

49 GAAP to Non-GAAP Reconciliation FY17 U.S. Pawn* (A) (B) (C) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $1.8m of Natural Disaster Impact Footnote (B) Amount includes $1m Hurricane Store Operating Expenses Impact, Footnote (C) Amount includes $1.0m restructuring expense 49

50 GAAP to Non-GAAP Reconciliation FY17 Mexico Pawn* (A) (A) (B) (C) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $0.1m of Natural Disaster Impact Footnote (B) Amount includes $0.1m of Gain on FX Footnote (C) Amount includes $0.5m Credit for Restructuring of Grupo Finmart Notes Receivable **We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period exchange rate for September 30, 2017 and 2016 was 18.2 to 1 and 19.4 to 1, respectively. The approximate average exchange rate for the years ended September 30, 2017 and 2016 was 19.1 to 1 and 17.9 to 1, respectively, however our statement of operations constant currency results reflect the impact of monthly effects of exchange rates and so are not directly calculable from the above rates. 50

51 Net Debt/Adjusted EBITDA Reconciliation* Footnote * - Includes immaterial presentation reclassifications and rounding 51

52 Pawn Quarterly Growth Reconciliation* Footnote * - Includes immaterial presentation reclassifications and rounding 52