Investor Update

Business Transformation
Delivering Results
September 13, 2016

Preliminary Statements
Forward Looking Statements

This document contains certain forward-looking statements. These statements are based on
the companys 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 companys business and prospects, see the
companys 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 companys
annual, quarterly and other reports filed with the Securities and Exchange Commission.
Those reports contain important information about the companys 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.
2

Company Overview
EZCORP is a leading provider of pawn loans in the
United States and Mexico. At our pawn stores we
also sell merchandise, primarily collateral forfeited
from pawn lending operations and used
merchandise purchased from customers.

EZCORP Revenue by Type*

U.S. Pawn
84%

KEY STATISTICS
Founded

1989

IPO Date

8/27/1991

Headquarters

Austin, TX

Market Capitalization (as of 9/2/16)

$537m

Institutional Holdings
52 Week Price Range (as of 9/2/16)

88%
$2.44 to $10.62

Adjusted Total Revenue (LTM)**

Adjusted EBITDA (LTM)**
Employees
Mexico Pawn
15%

$728.9m
$65.7m
~5,600

Index inclusion:
Russell 2000, S&P SmallCap 600, S&P 1000,
NASDAQ Composite
Other
1%

After the sale of Grupo Finmart, 99% of EZCORP

revenue will be generated from our U.S. and Mexico
pawn businesses.

PAWN STORE LOCATIONS

United States

522

Mexico

238

FINANCIAL SERVICES LOCATIONS*

Cash Max in Canada

Unless otherwise noted, all financial information included in this presentation is as of June 30, 2016 and is presented on an adjusted basis, which
includes presentation of amounts on a constant currency basis; excludes closed Mexico buy/sell business; and certain other discrete items.
See the Appendix for a reconciliation to the comparable GAAP information.
All comparisons unless stated are Q3FY16 relative to Q3FY15. See appendix for definition of terms.
* Assumes completion of Grupo Finmart sale
** Continuing operations excluding closed Mexico buy/sell business

27

EZCORP Has Exited Most Non-Pawn Businesses

And Driving Shareholder Value
EZCORP September 2016*

EZCORP Share Price Performance

Simplifying, Focusing and Optimizing the Business

U.S. PAWN
84%

MEXICO PAWN
15%

September 2014 to September 2016

CANADA
CASH MAX
1%

*After the sale of Grupo, 99% of EZCORP revenue will be generated from
our U.S. and Mexico pawn businesses

EZCORP September 2014

U.S.
Pawn

Mexico
Pawn

Canada
Cash
Max

U.S.
Financial
Services

Tuyo

U.S.
Online
Lending

U.K.
Online
Lending

Cash Converters
Canada

Mexico

Grupo
Finmart

This Slide Intentionally Left Blank

Our Focus On Customer

Lead the market in serving and satisfying short-term cash
needs of consumers unable to access traditional credit
products
CUSTOMER FEEDBACK
Q3FY16* EZCORP U.S. Customer Feedback
Comprehensive Mystery Shop program measures up 6%
Net Promoter Score to 46 points from 39 points

Q3FY16* EZCORP Mexico Customer Feedback

Comprehensive Mystery Shop program measures up 12%
Net Promoter Score improved to 50 from 48

* Sequential scores in U.S. and Mexico. U.S. was previously measured in Q2FY16 and Mexico in Q1FY16.

U.S. Pawn Industry

Remains Highly Fragmented and Attractive
Continued opportunities for
accretive acquisitions
EZCORP Adding Value
To Acquisitions

Systems
Processes
Capital
People

Total U.S. Pawn Stores Estimated About 13,000

Pawn Stores
EZCORP
4%
Pawn Stores
FirstCash
9%

Pawn Stores
Held By
Independent
Owner
Operators
87%*

EZCORP Serves a Large U.S. Market

20% of U.S. Households
are underbanked
(~25 million households)*

8% of U.S. Households
are unbanked
(~10 million households)*

* 2013 FDIC National Survey of Unbanked and Underbanked Households; published October 2014

U.S. Pawn Store Map

EZCORP pawn platform supports geographic diversity of store mix
Stable state regulation; rate setting authority is at state level
ME
WA
33

MT

VT

ND

OR

MN

ID

IA
NE

NV
UT

16

10

27

12

EZCORP U.S. Store Mix

CO
7%

FL
19%

IL
4%
OK
4%
AZ
4%

TX
42%
Other
17%

NV
3%

20

22
25

37

31

TN

OK
21

AR

18

35
TX
218

OH

16

120

44

25

NM

IN

WV

KY
26

MO

KS

AZ
AK
6

PA
IL

11

CO

MI

WY

AL
5

LA
24

438

N
J

3 MD D
29 E
VA
5 6
NC
41

13 44

MS

NH
MA
RI
CT

WI

SD
3

CA

NY
2

SC
27

GA
8
46

FL
99
77

522 EZCORP U.S. Pawn store locations

EZCORP Stores
FirstCash Stores
8

EZCORP Mexico Pawn Store Map

12

15
13

2
3
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Coahuila (5)
Nuevo Len (7)
Tamaulipas (6)
San Luis Potos (1)
Veracruz (31)
Aguascalientes (4)
Jalisco (16)
Guanajuato (15)
Quertaro (6)
Hidalgo (6)
Michoacn (7)
Estado de Mxico (42)

13.
14.
15.
16.
17.
18.
19.
20.
21.
22.

Ciudad de Mxico (41)

Morelos (4)
Tlaxcala (3)
Puebla (11)
Guerrero (7)
Oaxaca (4)
Chiapas (7)
Tabasco (7)
Campeche (4)
Quintana Roo (4)

6
7

16

14

8 9 10

11

5
16

17

Morelos20

18

21

22

19

238 EZCORP Mexico Pawn store locations

Strong Corporate Performance

Driven By Continued Momentum In Pawn Operations
EZCORP Continuing Operations Adjusted Results (Excludes Grupo Finmart)**
High operating leverage and efficiently
managing the business drove $9.8m
increase in Net Revenue and $8.3m
increase in Profit Before Tax

et Re

Net Revenue increase with strong same

store metrics in Q3:
PLO increased 11%
PSC revenue increased 10%
Merchandise sales gross profit increased
10%
Continued expense management with
corporate costs15% lower in Q3; tracking
toward annual corporate expense of
~$50m by FY18***
EBITDA percentage increase in Q3 and YTD
higher than net revenue growth,
evidenced by strong operational leverage

* Represents an increase or decrease in excess of 1500% or not meaningful

** Adjusted for restructuring and restatement charges, other discrete items and constant currency. Mexico Pawn excludes closed
buy/sell businesses. See GAAP to non-GAAP reconciliation. All amounts in millions.
***Corporate expense in this presentation refers to the Administrative line in SEC quarterly reports.

10

Pawn 101: Understanding Pawn Growth Drivers

Key Growth Drivers
ASSETS

INCOME STATEMENT
#2

#3

Pawn Loans
Outstanding

Purchases
+
Forfeitures

Pawn Loans Outstanding (PLO) is the most influential driver

to revenue and profitability. EZCORP had market leading
Same Store PLO growth in Q3FY16 relative to publicly
traded pawn companies driven by intense focus on
market leadership in serving and satisfying customers
needs for cash

Pawn Service
Charges

#1
Quality
Store
Manager

#4

NET REVENUE

TOTAL EXPENSES

PROFIT BEFORE
TAX

#5
Inventory

Merchandise &
Scrap Gross
Profit

Pawn Loans Outstanding are secured loans, typically small, and fully collateralized by tangible personal property. No personal recourse to customers or negative
credit reporting.
We earn Pawn Service Charge revenue on our 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.
Same Store basis is the most effective measure of pawn growth.

11

Earning Assets Drive Strong Profitable Growth

U.S. Pawn Q3FY16
ASSETS
Pawn Loans
Outstanding
Total
Up 13%
to $144m
Purchases
+
Forfeitures
SAME
STORE
UP 16%

Inventory
Total
Up 18%
to $113m

SAME
STORE UP
10%

INCOME STATEMENT

SAME
STORE
UP 8%

#1

Pawn Service
Charges Total
Up 10% to $54m
PLO Monthly Yield
14%

Quality
Store
Manager

+
Merch & Scrap
Gross Profit
Total Up 8%
to $31m

NET REVENUE
Up 9% to $86m

TOTAL EXPENSES
Up 5% to $66m

PROFIT BEFORE
TAX
Up 25% to $20m

SAME
STORE UP
6%

Merch margin
to 37% from 35%

Continued growth in U.S. pawn, Same Store PLO up

10%

Redemption rate consistent at 85%

PLO monthly yield unchanged at 14%

Pawn loan forfeitures increased proportional to increase in PLO,

resulted in growth in inventory during period of lower sales demand;
resulted in:
- Inventory annual turns to 2.2x from 2.4x
- Inventory monthly yield of 9% compared to 10% last year

Adjusted for restructuring charges and other discrete items. See GAAP to non-GAAP reconciliation

12

Earning Assets Drive Strong Profitable Growth

Mexico Pawn Q3FY16
ASSETS

Pawn Loans
Outstanding
Total
Up 19%
to $19m

INCOME STATEMENT
SAME
STORE
UP 19%

Pawn Service
Charges Total
Up 20% to $9.5m

SAME
STORE
UP 20%

PLO Monthly Yield

16%

#1
Purchases
+
Forfeitures
SAME
STORE
UP 21%

Inventory
Total
Up 21%
to $20m

Quality
Store
Manager

+
Merch & Scrap
Gross Profit
Total Up 48%
to $5.5m

NET REVENUE
Up 28% to $15m

TOTAL EXPENSES
Up 1% to $11m

SAME
STORE UP
45%

PROFIT BEFORE
TAX
Up 237% to $4m

Merch margin to
33% from 27%
Continued growth in Mexico Pawn, Same Store PLO up
19%
Redemption rate increased to 77% from 76%

Inventory monthly yield increased to 9% from 8%

Inventory annual turns of 2.3x from 2.7x last year driven
by clearing of aged merchandise in prior year

PLO monthly yield unchanged at 16%

Adjusted for restructuring charges, other discrete items, constant currency and excludes closed Mexico buy/sell business.
See GAAP to non-GAAP reconciliation.

13

Execution of 3-Year Strategic Plan:

Building Platform For Profitable Growth
Upgrading
POS technology

Procurement
opportunities identified
Investment in District
Managers (to 67 from 55)
enabling more coaching &
mentoring

25 Pawn Stores
acquired in FY15
Renewed Executive
Leadership Team
including CEO, CFO,
President of Pawn

Received commitment
Investing in customer
for a $100 million
data analytics
secured credit facility to
support business
Tracking toward annual
corporate expense of
6 U.S. pawn stores
~$50m by FY18
acquired in Q2FY16

Financial
restatement
Store incentive
plans revised

Pawn fundamentals
continue to improve

Implementing
workforce
management system

Definitive
Agreement to sell
Grupo Finmart

Process
Reengineering
Program

Mexico Buy/Sell
business closed

Closed 25 underperforming
pawn stores in U.S.
and Mexico in FY15

JULY
2016

U.S. Financial Services

business closed
JULY
2015

Transformational customer focused

3-year strategic plan released

14

EZCORP Strengths

Attractive Industry
Dynamics

Track Record of Execution

Disciplined Growth &

Strong Performance

Improving Talent &

Capability

Large and highly fragmented consumer market in U.S. and Mexico

Solid demand for pawn services across economic cycles
Fully collateralized performing loan portfolio
No personal recourse to customers or negative credit reporting
Stable pawn regulatory environment
Rate setting authority in U.S. is at state level, no government rate setting in
Mexico

Consistently executing on 3-Year Strategic Plan, announced in July 2015:

Closure of U.S. Financial Services business, ahead of time and budget
Sale of Grupo Finmart business on track to be completed by September 30,
2016
Commitment for new $100m secured credit facility
High operating leverage and efficiently managing pawn businesses with strong
growth in Net Revenue and Profit Before Tax in recent quarters
Continued growth in Same Store PLO in Q3, up 10% in U.S. and up 19% in Mexico
Continued expense management with corporate costs 15% lower in Q3;
tracking toward annual corporate expense of ~$50m by FY18
Closing non-performing stores and disciplined acquisition program
Largely new Executive team in place with incentives primarily tied to EBITDA
Store incentive programs revised
Increased investment in District Managers (to 67 from 55) enabling more coaching
& mentoring
Investing in additional training at all levels
15

Additional Information

16

Investor Resources
(http://investors.ezcorp.com)
Helpful links to presentations,
transcripts, and financial results
Three Year Strategic Program
announced in July 2015

Definition of Terms

PLO Yield =

pawn service charges

days in period
average PLO

Inventory Yield =

X 365

merch. SGP + scrap SGP

days in period
average net inventory

Return on Earning Assets =

Inventory Turnover =

X 365

merch. SGP + scrap SGP + PSC

X 365
days in period
average net inventory + average PLO
total cost of sales
days in period
average net inventory

X 365

18

Leverage on Operations with Net Revenue Up $6.6 million to $100 million, and
Income From Continuing Operations Before Taxes Up $7.6 million to $3.8 million

EZCORP GAAP Results

Commitment to customer experience
driving improved Net Revenue and higher
Profit Before Tax with improved same store
metrics in Q3:
Pawn Loans Outstanding (PLO) up 9%
Pawn Service Charges (PSC) up 8%
Merchandise Sales Gross Profit up 8%

et Re

YTD total revenue driven by $11m

improvement in PSC Revenue offset by
lower Scrap Sales of $14m
Negative FX impact of $14m on revenue
and $8m on net revenue
Efficiently managing the business,
leveraging a 7% growth in Net Revenue to
a 200% increase in Profit Before Tax
YTD corporate expense increase primarily
due to restatement costs of $4.2m

* Represents an increase or decrease in excess of 1500% or not meaningful

All amounts in millions

19

Serving and Satisfying Customers Desire for Access

to Cash Is Fueling Performance
U.S. Pawn

Strategic Plan
Announcement

Encouraging results in
early stages of our
three-year strategic
plan

Continued focus on customer experience has led to double-digit

Same Store PLO growth in Q3, driving a $4.8M or 10% increase in PSC,
the largest component of net revenue
Merchandise gross profit increase reflects ongoing improvements in
loan valuation and pricing disciplines

Continued improvement in aged inventory reduced to 9%

EZCORP historically has higher first half net revenue, merchandise
gross profit and profitability reflective of seasonal impact of
tax refunds to customers, Christmas and Valentines Day
Adjusted for discrete items
All amounts in millions

20

Serving and Satisfying Customers Desire for Access

to Cash Is Fueling Performance
Mexico Pawn

Continued focus on customer experience has led to eight

consecutive quarters of double-digit PLO growth
Strong PLO growth resulted in 20% growth in PSC
Continued strong merchandise gross profit up 48% and margin
expansion up 600bps to 33% driven by discipline in pawn loan
valuation, retail pricing cadences, and lower aged inventory levels

Adjusted for discrete items, constant currency and excludes closed Mexico buy/sell business
All amounts in millions

21

GAAP to Non-GAAP Reconciliations

*See GAAP to non-GAAP reconciliation.

All comparisons unless stated are to Q3FY15. See appendix for definition of terms

22

GAAP to Non-GAAP Reconciliation Q3 Continuing Operations*

(A)
(B)

(C)

Footnote * - Includes immaterial presentation reclassifications and rounding

Footnote (A) Amount includes $(0.1) million for Corporate expenses related to restatement
Footnote (B) Amount includes $0.2 million Gain/ Loss on FX in Corporate
Footnote (C) Amount includes $0.4 million Gain/ Loss on FX in Corporate
*For condensed consolidated balance sheet items, the end of period rate as of June 30, 2016 of 18.6 to 1 was used, compared to the end of period rate as of June 30, 2015 of 15.7 to 1. For
condensed consolidated statement of operations items, the average closing daily exchange rate for the appropriate period was used. The average exchange rates for the current three and ninemonths ended June 30, 2016 were 18.1 to 1 and 17.6 to 1, respectively, as compared to the prior year three and nine-months ended June 30, 2015 rates of 15.3 to 1 and 14.7 to 1, respectively.
Constant currency results, where presented, also exclude foreign currency gain or loss.

23

GAAP to Non-GAAP Reconciliation YTD June Continuing Operations*

(A)

(C)

(B)

(D)

Footnote * - Includes immaterial presentation reclassification and rounding

Footnote (A) Amount includes $4.2 million related to restatement and $(0.1) million of discrete Corporate items
Footnote (B) Amount includes $1.4 million of restructuring expenses ($1.0 million of U.S. Pawn, $0.2 million of Corporate, and $0.2 million of Other International) and ($0.2) million of discrete
adjustments in Corporate
Footnote (C) Amount includes $0.1 million of Corporate discrete items
Footnote (D) Amount includes $0.8 million Corporate restructuring expense, $0.6 million of discrete items ($0.1 million of U.S. Pawn, $0.3 million of Mexico Pawn and $0.2 million of Corporate)
*For condensed consolidated balance sheet items, the end of period rate as of June 30, 2016 of 18.6 to 1 was used, compared to the end of period rate as of June 30, 2015 of 15.7 to 1. For
condensed consolidated statement of operations items, the average closing daily exchange rate for the appropriate period was used. The average exchange rates for the current three and ninemonths ended June 30, 2016 were 18.1 to 1 and 17.6 to 1, respectively, as compared to the prior year three and nine-months ended June 30, 2015 rates of 15.3 to 1 and 14.7 to 1, respectively.
Constant currency results, where presented, also exclude foreign currency gain or loss.

24

GAAP to Non-GAAP Reconciliation Q3 U.S. Pawn*

(A)

Footnote * - Includes immaterial presentation reclassification and rounding

Footnote (A) Amount includes $0.1 million of asset write-offs

25

GAAP to Non-GAAP Reconciliation YTD June U.S. Pawn*

(A)

Footnote * - Includes immaterial presentation reclassification and rounding

Footnote (A) Amount includes $1.0 million of restructuring expense
Footnote (B) Amount includes $0.1 million of asset write-offs

(B)

26

GAAP to Non-GAAP Reconciliation Q3 Mexico Pawn*

Footnote * - Includes $0.3 million presentation reclassification between other revenues/operating expenses and rounding
*For condensed consolidated balance sheet items, the end of period rate as of June 30, 2016 of 18.6 to 1 was used, compared to the end of period rate as of June 30,
2015 of 15.7 to 1. For condensed consolidated statement of operations items, the average closing daily exchange rate for the appropriate period was used. The average
exchange rates for the current three and nine-months ended June 30, 2016 were 18.1 to 1 and 17.6 to 1, respectively, as compared to the prior year three and nine-months
ended June 30, 2015 rates of 15.3 to 1 and 14.7 to 1, respectively. Constant currency results, where presented, also exclude foreign currency gain or loss.

27

GAAP to Non-GAAP Reconciliation YTD June Mexico Pawn*

(A)

Footnote * - Includes $0.3 million presentation reclassification between other revenues/operating expenses and rounding
Footnote (A) Amount includes $0.3 million of discrete items
*For condensed consolidated balance sheet items, the end of period rate as of June 30, 2016 of 18.6 to 1 was used, compared to the end of period rate as of June 30,
2015 of 15.7 to 1. For condensed consolidated statement of operations items, the average closing daily exchange rate for the appropriate period was used. The average
exchange rates for the current three and nine-months ended June 30, 2016 were 18.1 to 1 and 17.6 to 1, respectively, as compared to the prior year three and nine-months
ended June 30, 2015 rates of 15.3 to 1 and 14.7 to 1, respectively. Constant currency results, where presented, also exclude foreign currency gain or loss.

28

Trailing Twelve Month Reconciliations*

29
* Includes immaterial presentation reclassifications and rounding

Investor Relations Contact

Jeff Christensen, CPA

Vice President, Investor Relations
EZCORP, Inc.
Email: jeff_christensen@ezcorp.com
Phone: (512) 437-3545

30