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November 11, 2024 Newswires

Encore Overview – November 2024

U.S. Markets via PUBT

Encore Overview

Encore Capital Group, Inc.

November 2024

Legal Disclaimers

The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words "will," "may," "believe," "projects," "expects," "anticipates" or the negation thereof, or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). These statements may include, but are not limited to, statements regarding our future operating results (including portfolio purchase volumes, collections and cash generation), supply, portfolio pricing, returns, run rates, tax rates, the consumer credit cycle and the impacts of inflation, interest rates and other macroeconomic

factors. For all "forward-looking statements," the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including its most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.

Encore Capital Group, Inc.

Introduction to Encore

Encore Capital Group, Inc.

Who We Are

Encore's primary business is the purchase and collection of

7400

charged-off consumer debt in the U.S. and Europe

Encore

Consumer	Consumer	Issuers
	sell
debt is	debt is
	charged-
issued	charged off
	off debt

Retuof Capital to

Consumer Credit Ecosystem

Encore

purchases

and collects

on charged-off

debt

Engages consumers in

collection activities

Consumer-

centric

approach

Proprietary advanced analytics

Operational

expertise

Amount of capital returned to the $13B consumer credit ecosystem through our

portfolio purchases since our inception

Encore Capital Group, Inc.

Encore at a Glance

Business overview

Main trading brands

Based in San Diego, CA, Encore provides debt recovery solutions for consumers across a broad range of assets
- MCM is a market leader in portfolio purchasing and recovery in the United States
- Cabot is one of the largest credit management services providers in Europe and the UK
Publicly traded NASDAQ Global Select company (ticker: ECPG) with a market capitalization of ~$1.1bn
Purchases portfolios of defaulted consumer receivables from credit originators, including banks, credit unions, consumer finance companies and commercial retailers
Partners with individuals as they repay their debt obligations, helping them towards financial recovery and improving their economic well-being

Capital Deployed	ERC(1)
LTM Deployments thru Q3 2024	Q3 2024 180m ERC
Total $1.1b	Total $8.6b

Parent company (publicly traded)

Americas

Europe

Operating	Operating predominantly in
in the United States	the United Kingdom

Collections	Revenues
LTM Collections thru Q3 2024	LTM Revenues thru Q3 2024
Total $2.1b	Total $1.3b

Europe

21%

U.S.

79%

Encore Capital Group, Inc.

Europe			Europe
43%
Other		28%	Other


	1%
	U.S.		<1%
U.S.

	72%
56%

Source: Company filings. Market data as of 31-Oct-2024

ERC represents total estimated remaining gross collections including real-estate owned assets.
Represents servicing revenue and other revenues.
DP (debt purchasing) represents revenues from owned receivable portfolios.

Other (2) 8%

DP (3)

92%

Our Mission, Vision and Values

Mission

Values

Creating pathways to economic freedom

Vision

We help make credit accessible by partnering with consumers to restore their financial health

We Care

We put people first and engage with honesty, empathy and respect

We Find a Better Way

We deliver our best in everything we do, find ways to make a positive difference, and achieve impactful results

We are Inclusive and Collaborative

We embrace our differences and work together to ensure every individual can thrive

Encore Capital Group, Inc.

Our large data sets feed proprietary predictive models to optimize valuation, pricing and account level collection strategies

		We use channel-specific
		models to optimize operations,
Our core competency in understanding the payment behavior	strategies and profitability
on an account level
of distressed consumers is influenced by consumers'
perceived willingness and ability to pay
		Digital
Consumer		Call Center
behavior

research
Portfolio	Servicing	Direct Mail
valuation
channel
Pre-purchase
optimization
model	Legal

Market data		Collection Agency
and insights
		No effort

Continuous feedback between operations, servicing strategies and valuation

Encore Capital Group, Inc.

Our Strategy and Financial Priorities

Encore Capital Group, Inc.

Our Business and Our Strategy

Our Business

Purchase NPL portfolios at attractive cash returns
Focus on the consumer and ensure the highest level of compliance
Meet or exceed collection expectations
Maintain efficient cost structure
Minimize cost of funding

Our Strategy

Market Focus
Competitive Advantage
Balance Sheet Strength

Encore Capital Group, Inc.

First Pillar of Our Strategy - Market Focus

Concentrating on our most valuable markets with the highest risk-adjusted returns

Target market characteristics:
- Large, consistent flow of purchasing opportunities
- Strong regulatory framework
- Sophistication and data availability
- Stable, long-term returns
Thrive on recurring portfolio sales through the credit cycle: Our success does not rely on large macro events
Currently focusing capital allocation in the U.S. due to favorable purchasing environment
Constraining Cabot purchases until returns in U.K. and Europe improve

Encore Capital Group, Inc.

Attachments

Disclaimer

Encore Capital Group Inc. published this content on November 12, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 12, 2024 at 03:45:41.580.