Encore Overview – November 2024

7400

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

Encore

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

• 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

Parent company (publicly traded)

Europe

21%

U.S.

79%

Encore Capital Group, Inc.

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

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

Other (2) 8%

DP (3)

92%

5

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

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

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