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INVESTOR PRESENTATION
Q4 2016
Forward Looking Statements
This presentation includes forward-looking statements about goeasy, including, but not limited to, its business operations, strategy and expected
financial performance and condition. Forward-looking statements include, but are not limited to, those with respect to the estimated number of
new locations to be opened, targets for growth of the consumer loans receivable portfolio, annual revenue growth targets, strategic initiatives,
new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements,
liquidity of the Company, plans and references to future operations and results and critical accounting estimates. In certain cases, forward-looking
statements that are predictive in nature, depend upon or refer to future events or conditions, and/or can be identified by the use of words such
as expects, anticipates, intends, plans, believes, budgeted, estimates, forecasts, targets or negative versions thereof and similar
expressions, and/or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved.
Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations and business
prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about the Companys operations, economic
factors and the industry generally, as well as those factors referred to in the section entitled Risk Factors. There can be no assurance that
forward-looking statements will prove to be accurate as actual results and future events could differ materially from those expressed or implied
by forward-looking statements made by the Company, due to, but not limited to important factors such as the Companys ability to enter into
new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, secure
new franchised locations, purchase products which appeal to customers at a competitive rate, respond to changes in legislation, react to
uncertainties related to regulatory action, raise capital under favourable terms, manage the impact of litigation (including shareholder litigation),
control costs at all levels of the organization and maintain and enhance the system of internal controls. The Company cautions that the foregoing
list is not exhaustive.
The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements, which may not
be appropriate for other purposes. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter the
forward-looking statements whether as a result of new information, future events or otherwise, unless required by law.
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Mission
To be the leading full service provider of goods and alternative
financial services that improve the lives of everyday Canadians
Values
We play as a team We are relentless in We operate with We embrace We are invested in our
finding a way respect and integrity technology and communities
innovation
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Overview of Business Segments
Key Assets (C$M) (Dec 2016) Lease Assets: $55M Consumer Loans Receivable: $371
Breakdown of Stores
Stand
Corporate Alone
83% 78%
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Corporate Timeline
Dec 1990 Jul 2002 Dec 2003 Jan 2006 Sep 2008 Mar 2011 Oct 2012 Dec 2012 Nov 2013 Jul 2014 Oct 2014 Feb 2015 Jul 2015 Sep 2015
easyhome Completes Completes Opens first Acquires Establishes Secures Exchanges, Completes Secures new Launches Acquires 45 Establishes Corporate
Ltd. 10:1 reverse equity efs location Edmonton risk mgmt. $20.0M with Rent-A- equity $200.0M proprietary retail a national name
(formerly stock split offering of in based Insta- function and term loan Center, its offering of credit loan locations indirect change to
RTO 1.63M Edmonton rent Inc. centralized facility 15 1.385M facility application from Cash lending goeasy Ltd.
Enterprises) common credit corporate common mgmt. Store partnership to reflect
incorporate shares to decisioning stores in the shares to system with Leons importance
s in Alberta raise net U.S. for 15 raise net Furniture of both
proceeds of stores in proceeds of business
$12.5M Canada $19.0M units
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Experienced Management Team
David Ingram
President & CEO (2000)
Jason Appel Shane Pennell Caleb Rubin Colin Chisholm David Cooper
SVPSVP & CRO
Risk (2012)
& Analytics SVP Operations (2013) VP Digital (2017) VP Strategy & Corporate VP Human Resources (2015)
Development (2015)
David Yeilding
SVP Finance (2010)
The goeasy Consumer
It's so uncomplicated, just a few pieces of documentation and the
response is quick. If you need this program, you're obviously in enough of
a stressful situation you don't need more stress. I'm so thankful and the
Who is the Typical goeasy Consumer?1
Gender skewed slightly to female
relief of one less financial burden is beyond words.
~ Mary-Anne C.
Age
Marital Status
35 45 years
< 50% married
I have been with easyhome for 13 years now. The President Takes You
Shopping is one of the best programs that easyhome has. It gives people
the chance to get things that we normally would not be able to afford,
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The Canadian Non-Prime Consumer Credit Market
750-799
750-799 750-799 750-799
40% 40% 40% 40.0% 40%
600-649
700-749
700-749 700-749 700-749 GSY market share
650-699
650-699 650-699 650-699 ~ 0.2%(2)
20% 20% 20% 550-599 20.0% 20%
600-649
600-649 ~7M 600-649 600-649
550-599
550-599 550-599 550-599
<549 <549 550-599
<549 <549 <549
0% 0% 0% 0.0% 0%
1 1 1 1 1 1
Strong opportunity for growth as there is plenty of runway within this market
Source: TransUnion
1: As at August 2016
2: As at January 2017
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The Canadian Non-Prime Consumer Credit Market
Non-Prime Consumer Credit <= $20,000 Non-Prime Installment Loans <= $20,000
Non-Major Bank, Non-Auto Non-Major Bank, Non-Auto
$4.6B
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Overview of easyhome
Description Financial Snapshot
Appliances
12%
Computers
13% Furniture
42% Average Lease Details
goeasys financial services arm that provides unsecured personal 12 Month Trailing
C$204M
loans between $500 and $15,000 for terms between 9 and 60 Revenue
months
Business model utilizes multiple channels (200+ retail branch 12 Month Trailing
C$75M
network, online and merchant partners) for maximum loan Operating Income
originations
Loan decisions made centrally using credit risk models developed by Consumer Loans
C$371M
analyzing over $1.4 billion of originations data Receivable
12 Month Trailing
C$399M
Originations
Size of Loans at Origination (by number of loans) Duration of Loans at Origination (by number of loans)
$10,000 + 49 + months
3% 37 - 48 2%
$0 - $2,000 months
26% 16%
$3,100 - 0 - 12 months
$10,000 28%
32%
25 - 36 months
$2,001 - 21%
13 - 24 months
$5,000
33%
39%
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Average = $3,991 Average = 26 months
easyfinancials Omni-Channel Business Model
Differentiates it from Online Competitors
We compete directly with FinTech
Application
Channel
Retail Branch Online Merchant Partners
43% of Application Vol. 48% of Application Vol. 9% of Application Vol.
Loan Closure
& Funding Retail Branch Call Centre Merchant Partners
88% of Funded Loans 9% of Funded Loans 3% of Funded Loans
Loss rates for loans fulfilled in our retail branches are approximately 30% lower
than loans fulfilled online
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Growing Revenues with Strong Margins
2011
Q2 25.4% 13.6%
Consumer Loans Receivable ($M)
Q3 24.5% 13.4%
300.0 45.0 Q4 31.8% 14.2%
2012
Q2 28.4% 14.2%
250.0 37.5 Q3 33.8% 14.1%
Q4 27.3% 14.6%
200.0 30.0 Q1 28.0% 14.2%
2013
Q2 27.9% 13.2%
Q3 32.5% 15.2%
150.0 22.5 Q4 34.1% 13.2%
Q1 35.8% 12.3%
2014
Q2 30.8% 13.7%
100.0 15.0 Q3 29.6% 14.9%
Q4 35.0% 11.3%
Q1 30.2% 13.8%
50.0 7.5
2015
Q2 27.1% 14.3%
Q3 32.4% 15.2%
Q4 32.9% 15.5%
- -
Q1 34.9% 15.2%
2016
Q2 36.7% 15.2%
Q3 39.9% 15.4%
Q4 34.9% 15.8%
Gross Loan B ook Revenue
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easyfinancial Financial Performance A Strong Track
Record of Profitable Growth
$60,000 45.0%
$50,000 40.0%
35.0%
$40,000
30.0%
$(000's)
$10,000 15.0%
$0 10.0%
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Revenue Operating Margin Annualized Charge-Off Rate
In the face of economic uncertainty, easyfinancial has consistently demonstrated an ability to grow
revenue, maintain charge-offs within the target range of 14% to 16%, and deliver strong margins
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easyfinancial Revenue Yield is Driven Primarily by
Interest Income
75.0% Revenue Yield 1. ~70% of Revenue Yield comes from Core Interest
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Summary Financial Results
Annual Revenue ($ millions) Financial Highlights
400
easyhome easyfinancial
2016
348
350
Record net income of $31.0 million and diluted
304 earnings per share of $2.23 in 2016
300 259 Fifteenth consecutive year of growing revenues and
250 219 delivering profits
188
200 Revenue growth of 14.2% in 2016
200 168 174
140
158 Adjusted operating income to a record $65.9 million,
150 116 up 37.1% from 2015
100
70 76 86 Gross consumer loans receivable portfolio
100 66
experienced continued strong growth in 2016
50 $81.7 million increase, to close at $370.5 million
-
Increase in annual dividend of 44% reflects improved
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
earnings in 2016 and confidence in continued
growth and access to capital going forward
Note: All revenue restated to IFRS.
35 33.2
30
23.7
25
18.6
20
14.2
15
9.0 10.4 9.0 8.8 9.6 10.5
10 7.7 6.8
6.5
4.0
5 2.6
0.7
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note: 2001 to 2009 amounts reported on a Canadian GAAP basis. 2010 to 2015 amounts reported under IFRS.
2016 Financial Performance Income Statement
in $000s except per share amounts
2016 2016
2015 Variance % Change
and percentages (as reported) (adjusted)
2016 was the fifteenth consecutive year of growing revenues and delivering profits
Same store sales growth of 12.1%
Opened 17 new easyfinancial locations
Expansion of operating margin to 19.0%
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2016 Balance Sheet Highlights
Dec. 31 Dec. 31
in $000s except ratios 2016 2015 2016 ACHIEVEMENTS
ASSETS
Consumer Loans Receivable (net) 354,499 274,481 easyfinancial loan book
Lease Assets 55,288 60,753 grew to $371 million
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Proven Ability to Secure Capital
- $300.0 M debt
500,000 facilty
Cash generated from customer payments was $488.9 million in 2016 ($345.5 million from easyfinancial and
$143.4 million from easyhome)
Cash generated from operation activities, before issuance of consumers loans was $153.3million in 2016
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Financial Covenants Adjust Dynamically Providing
Room to Grow
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q4 2015 Q4 2015 Q1 2016 Q1 2016
Total Drawn Maximum Available Under Debt/EBITDA Maximum Available Under Debt/Net Worth
* Maximum available includes additional debt allowed under covenant plus cash on hand
The Companys credit agreement with its lenders include various financial covenants. These covenants are
adjusted dynamically each quarter based upon goeasys forecast financial performance.
Since establishing the debt facility in 2012, the Company has never breached any of its financial covenants.
The excess borrowing capacity available under the covenants, along with the cash on hand, provides
sufficient capital to fund growth and engage in capital transactions (dividends, share buy-backs, etc.)
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Total Return Index 2012 to 2016
Adjusted for reinvested dividends
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* Estimate based on Statistics Canada data; retail sales for home furnishings, appliances and electronics
** Estimate based on TransUnion industry data; non-prime consumer credit <= $20K, non-major bank, non-auto
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Strategic Plan
Strategic Goal
Broad Spectrum Non-Prime Lending National Presence
Provide access to credit across the non-prime Across Canada and around the corner, helping
credit spectrum customers through their channel of choice
Imperatives
Evolve the Delivery Channel Expand the easyfinancial Footprint
Enhance the Product Offering Execute with Efficiency & Effectiveness
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Investment Highlights Why goeasy?
Canadas largest merchandise leasing company with over 175 locations and +70% market share
Entry into consumer lending has positioned easyfinancial as a prominent player in the underserved
Prominent Player in an segment of the market between large financial institutions and payday lenders
Underserved Niche Market Well-positioned to capitalize on attractive industry fundamentals
Ability to achieve efficiencies in both segments by leveraging core competencies in customer
relationship management, risk management and collections
Well-balanced approach to growing lending operations, which target a high yield and underserved
position in the market, while maintaining focus on the stable leasing operations
Diversified Sources of Revenue is well-diversified between leasing and lending
Revenue and Funding Strong growth in same store sales and operating margins generates earnings that support a strong
equity base
Originations are funded through diverse financing sources
Experienced and Committed Highly experienced senior management team has an average of 25 years of experience
Leadership Supported by a Board of Directors with extensive capital markets and industry experience
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