Online Small Business Lender

Transcription

1 Online Small Business Lender Corporate Presentation June 2015 TSX-V Listed Issuer (IOU)

2 Forward-Looking Statements Statements made in this presentation that describe the IOU Financial s or management s budgets, estimates, expectations, forecasts, objectives, predictions or projections of the future may be forward-looking statements, which can be identified by the use of the conditional or forward-looking terminology such as anticipates, believes, estimates, expects, may, plans, projects, should, will, or the negative thereof or other variations thereon. IOU Financial cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions and/or results could differ materially from those expressed or implied in such forward-looking statements, or could affect the extent to which a particular projection materializes. Many factors and assumptions could have an impact on the materialization of the company s projections, including, but not limited to, liquidity risks, risks inherent in growing a new business, dependence on third-party service providers, credit risks, competition, regulatory risk, and other factors that are beyond its control. IOU Financial cautions that the foregoing list of factors is not exhaustive. For more information on risks and uncertainties, and assumptions that would cause the company s actual results to differ from current expectations, please refer to the section Risks and Uncertainties of IOU Financial s most recent Management s Discussion and Analysis, which may be consulted at ( MD&A). The forwardlooking statements presented in the MD&A reflect IOU Financial s expectations as at the date of the MD&A. IOU Financial does not undertake any obligation to update publicly or to revise any such forward-looking statements, unless required by applicable legislation or regulation. 2

3 Who We Are Company Description: Market Capitalization (March ): $21.5M Based in Montreal with sales and operations in Atlanta, IOU Financial (TSX-V: IOU) operates an Internet-based lending platform aimed at store-front businesses across the U.S. Strategic Partnership: Shares (as of March ): Shares Outstanding Warrants Options Total Shares Fully Diluted 53.7 Million 1.0 Million 4.7 Million 59.4 Million Quick Facts: Shareholders: Insider Ownership: Public Ownership: 9.1 Million 44.6 Million 62 full-time employees as of March ; US$31.2M in loan origination during the quarter ended March, ; Institutional shareholders you may recognize: Quarter over quarter loan origination growth rate of 53%; No. 32 On The 2014 PROFIT 500 List Of Canada's Fastest Growing Companies. 3

4 What We Do IOU makes working capital loans of up to $150k to small businesses across the U.S. Customers you may recognize: Loans are repaid daily and have 6, 9 or 12 month terms Customers can go through a 10 minute online application, receive a credit qualification decision within seconds, and funding in less than one day 4

5 How We Do It Data Collection Data Transformation D D D D D D D Models Answer IOU SCORES 5

6 Multi-Channel Loan Origination Retail Referral Wholesale Borrowers are sourced through direct marketing campaigns. Borrowers are sourced via various partnerships with third parties that refer customers to IOU. Borrowers are sourced via relationships with third-party business loan brokers. 6

7 Funding Model US Small Business Borrowers Promissory Notes $ IOU Financial (Loan Portfolio) $ Interest Credit Facility Assignment of Loans (Non-recourse) Assignment of Loans $ (Non-recourse) $ $ Assignment of Loans (Non-recourse) Fund 1 Fund 2 Fund 3 Returns $ Returns $ Returns $ Investors Investors (Servicing Portfolio) Investors 7

8 Strong Growth in Loan Originations ($USD) $99,456,699 YoY Growth: 53% $31,230,921 CAGR: 194% $20,399,850 $49,527,525 $11,530, Q Q

9 Growing Loans Under Management $57,857,809 $70,229,870 YoY Growth: 102% CAGR: 199% $27,045,811 $34,737,852 $6,474, Q Q Principal Balance of Loan Portfolio (Lending Segment) Principal Balance of Servicing Portfolio (Servicing Segment) 9

10 Growing Financial Revenues (Gross Revenues) $6,160,017 $2,637,839 YoY Growth: 96% CAGR: 119% $4,047,104 $1,344,401 $1,284, Q Q

11 Adjusted Net Loss* Q Q ($757,973) ($135,756) ($1,219,629) YoY Growth: -64% ($1,589,671) CAGR: -31% ($376,085) *Adjusted Net Loss excludes stock based compensation 11

12 Provisional Loss Rate 12.81% Average provision loss rate 2012 to Q1 2015: 8.67% 8.62% 7.65% 5.60% Q

13 US Small Business (SB) Lending Market ($Bn) MARKET IOU Unmet Demand for SB Lines of Credit* Commercial and Industrial Loan Balances at FDIC Insured Institutions under $250,000** IOU Loans Oustanding as of Q (CDN$) Sources: * Estimate from Olivier Wyman, ** Statistic from the FDIC, January

14 Leadership Management Team Phil Marleau CEO & Directorl Mayco Quiroz CFOl Robert Gloer COOl Paul Hamilton CTO l Mark Schrews VP Wholesalel Brian Stupp VP Marketing & Retail Jeff Turner VP Credit & Compliance Madeline Wade VP Operationsl Board of Directors Evan Price Public & Private Leading High-Tech Companies David Cynn Morgan Stanley & Lightyear Capital (IB & Private Equity) Guy Charette Director of Carpathian Gold (TSX-V listed company) 14

15 Quote from Larry Summers, former Treasury Secretary LARRY SUMMERS Former Treasury Secretary and world-famous economist sees online lenders capturing a 70% market share in small business lending. TECHNOLOGY BASED BUSINESSES HAVE THE OPPORTUNITY TO TRANSFORM FINANCE OVER THE NEXT GENERATION 15

16 Summary IOU is revolutionizing lending through technology. IOU operates in a massively under-served market. IOU is positioned for extreme growth within this market. Contacts: Phil Marleau, CEO IOU Financial Inc. (514) ext. 225 pmarleau@ioucentral.com Mayco Quiroz, CFO IOU Financial Inc. (514) ext. 298 mquiroz@ioucentral.com 16