Annual & Special Meeting of Shareholders

Transcription

1 Annual & Special Meeting of Shareholders September 3 rd, 2015 Our only business is your business

2 Agenda I. Introductions II. Business Portion of the Meeting III. President s Overview IV. Questions

3 Introductions I. Independent Directors II. Officers III. Special Guests

4 Annual & Special Meeting of the Shareholders 1. Introduction 2. Appointment of Secretary and of Scrutineers 3. Notice of meeting 4. Quorum 5. Meeting regularly constituted 6. Dispense with reading of last meeting s minutes 7. Financial statements and Auditors report 8. Fixing the number of Directors 9. Election of Directors 10. Appointment of Auditors 11. Stock option plan 12. Other Business 13. Termination of Meeting

5 President s Presentation

6 Disclaimer Certain information contained in this presentation, including information and statements which may contain words such as objective, estimates, would, will, contemplates, expects and similar expressions and statements relating to matters that are not historical facts, are forward-looking information including, but not limited to, information as to future performance. This forward-looking information is based on certain material factors, assumptions and analyses made by Rifco in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform with Rifco's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this presentation is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from Rifco's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this presentation, including: adverse market and economic conditions. Additional risks may be described in Rifco's Annual Report for the most recently completed financial year end which may be found on SEDAR at If any of the above risks or uncertainties materialize, or if the material factors, assumptions and analyses applied by Rifco are incorrect, actual results may vary materially from those expected in the forwardlooking information in this presentation. Consequently, all of the forward-looking information contained in this presentation is qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by Rifco expressed or implied by the forward-looking information in this presentation will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Rifco or its business operations. Rifco assumes no obligation, except as required by law, to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward-looking information.

7 March 2015* Snapshot Monoline finance company Non-prime automobile loans 90 employees Over $145 million in Loan Originations $250 million in Finance Receivables Over $39 million in revenue Almost $6M in net income 27.56% ROE *fiscal year end

8 Auto Finance

9 Non- Prime Credit

10 Market Size Full time employed: 14 million Non-prime %: 33% Car buyers: 50% Buying cycle: 7 years Average price of vehicle $14,500 Estimated Canadian Market $4B per year

11 2015 Key Performance Factors 1. Portfolio Services (Collections) Capacity 2. Energy Prices Energy Sector Employment 3. Competition 4. Access to Capital 5. Loan Management Software Conversion

12 1. Portfolio Services (Collections) Capacity Portfolio Services Customer Service Collections Asset Recovery and Liquidation

13 1. Portfolio Services (Collections) Capacity

14 1. Portfolio Services (Collections) Capacity

15 1. Portfolio Services (Collections) Capacity

16 1. Portfolio Services (Collections) Capacity

17 2. Energy Prices Energy Sector Employment

18 2. Energy Prices Energy Sector Employment

19 3. Competition

20 4. Access to Capital Facility Limit Total Bank Line $100M Securitization Lines $80M $50M $30M Closed Facilities $43M Total Securitization $203M Total $303M

21 5. Loan Management Software Conversion Rifco Needs Assessment Vendor Selection Negotiation Customization and Configuration Data Conversion Testing Employee Training October 9 Launch! Audit Refinement and Further Customization

22 5. Loan Management Software Conversion October 9 Loan Management Software Conversion 27,000 active and inactive loans 34,000 customer records 1 million account notation comments Scalable toward $500 million per year. More secure. Improved configurability, management reporting, and efficiency.

23 2015 Results (scorecard)

24 $120 Million Loan Originations Rifco 2014 Page 24

25 $192 Million Finance Receivables CAGR 39% Rifco 2014 Page 25

26 $30 Million in Revenue Rifco 2014 Page 26

27 Credit Loss Rate (below) 3.25% Rifco 2014 Page 27

28 $0.30 in Earnings Per Share Rifco 2014 Page 28

29 Stock Price March 2013 $4.49 March 2014 $5.05 Rifco 2014 Page 29

30 2016 Objectives

31 2016 Loan Originations

32 2016 Finance Receivables

33 2016 Revenue

34 2016 Credit Loss Rate

35 2016 Earnings Per Share

36 Conclusion

37 The Bad We did not reach our 2015 targets The energy sector has increased regional unemployment Competition is fierce. Pause in growth. Stock price has significantly corrected from its highs.

38 The Good 1. Your company is profitable We have a highly profitable $250M book of loans. We made $6M in profit last year. Nearly 30% return on equity. 2. Competition cycles come and go. Some underwriting is unsustainable (will end) Cracks in some competitors starting to emerge We are ready with dry powder for the cycle to turn.

39 The Good 3. Economic cycles come and go. Employment stability will eventually return 4. We are focused on long term prosperity Maintaining quality of underwriting in face of risk taking Making investments toward our vision toward $500M per year in originations Platform continues to increase in value - LMS upgrade

40 The Good 5. We have solid access to capital 4 facilities Hundreds of millions in access Dry Powder 6. Management is aligned with other shareholders Management s net worth is largely in Rifco shares

41 Questions?

42 The Good 1. Your company is profitable 2. Competition cycles come and go. 3. Economic cycles come and go. 4. We are focused on long term prosperity 5. We have solid access to capital 6. Management is aligned with other shareholders