(1) Defined as Adj. EBITDA, minus CAPEX, plus or minus change in contract assets
2
Recent Accomplishments
▪
Credit union and bank lenders are well capitalized with ample liquidity
Open Lending and
▪
Insurers modestly impacted relative to other industries and profitable in 2020 & 2021
Partners Strongly
▪
Low interest rate environment, traditional lenders retrenching, and commuters shifting
Positioned
away from public modes of transportation are driving positive trends
OEM Opportunity
Recent Business
Highlights
OEM #1
185% cert growth Q2'21 compared to Q2'20
33% cert growth Q2'21 compared to Q1'21
OEM #2
42% cert growth Q2'21 compared to Q1'21
Building out pipeline with other OEMs for the future
Credit Union & Banks - 87% cert growth Q2'21 compared to Q2'20
Signed third insurance partner agreement with American National
Partnered with 5 new refinance lenders in Q2
Executed 22 contracts with new customers in Q2
Over 15 active implementations with "go live" dates in the next 60 - 90 days
3
Well Defined Growth Plan
Near
Term
Growth
Strategy
Longer
Term
Expand Core Business
OEM Opportunity
CECL Relief
Refinance Opportunities
Broaden Our Offerings
Drive Loan Volume through Further Wallet-Share Increase and Customer Penetration
Expansion of Lender Base
Increase OEM Captive Penetration by Addressing Broader Credit Spectrum and Deployment of Subvention Capabilities
Enhanced Value Proposition to Lenders Provided via CECL Relief
Increased Profitability for Financial Institutions in Near Prime Auto
Enhanced Focus on Refinance Program to Drive Additional Cert Volume
Ease of Customer Access in Reduced Interaction Environment
Prime Decisioning SaaS Solution
Expansion into Other Consumer Asset Classes
Growth Strategy
6 Launch into New Channels ▪ Expansion into Adjacent Asset Classes (e.g., leases)
Establish Broader Auto Platform (e.g., hub and spoke)
4
Understanding Changes in Contract Assets and Profit Share Revenue
In LTM period, 80%+ of Changes in Contract Asset Estimates Driven by
Realized Portfolio Performance as Opposed to Changes in Prospective Estimates
Change in Contract Asset Estimates and Profit Share Revenue:
($ in thousands)
$11,825
Prospective
$7,500
4,014
Changes in
Assumptions
$3,839
1,324
$5,074
Realized
6,176
1,101
7,811
Portfolio
Performance
($944)
5,301
3,973
($12,036)
734
(1,462)
(1,678)
(12,036)
Lower than projected claims and severity of
losses in historical periods drove positive
changes to contract asset estimates that in
turn drive strong near-term cash flows
Covid Impact
Q1-20
Q2-20
Q3-20
Q4-20
Q1-21
Q2-21
5
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Open Lending Corporation published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 20:27:34 UTC.
Open Lending Corporation is a provider of lending enablement and risk analytics to credit unions, regional banks, finance companies and the captive finance companies of automakers. The Company provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. It targets the financing needs of near-prime and non-prime borrowers, or borrowers with a credit bureau score generally between 560 and 699. Lenders Protection platform (LPP), the Company's flagship product, is a cloud-based automotive lending platform. LPP supports the full transaction lifecycle, including credit application, underwriting, real-time insurance approval, settlement, servicing, invoicing of insurance premiums and fees and advanced data analytics of the automotive lender's portfolio under the program. Its risk models project loan performance, including expected losses and prepayments, in arriving at the optimal rate. It serves around 454 active lenders.
OPEN LENDING CORPORATION 
