FIRST CASH FINANCIAL SERVICES, INC.
Investor Presentation
May 2014
SAFE HARBOR STATEMENT
This presentation contains “forward-looking statements,” as
defined by the Private Securities Litigation Reform Act of
1995, that can be identified by words such as “believes,”
“expects,” “projects,” and similar expressions and involve
numerous risks and uncertainties. The Company’s actual
results could differ materially from those anticipated in
such forward-looking statements as a result of certain
factors, including those set forth in the Company’s filings
with the Securities and Exchange Commission.
25 YEARS OF LEADERSHIP IN PAWN
Founded in 1988
• Based in Arlington, TX
• Public in 1991with 12 stores
• Current market cap of $1.4
billion*, largest market cap of
any pawn operator
U.S. Operations
• 310 stores
• 12 U.S. states
Mexico Operations
• Started with 4 stores in 1999
• Currently operating 605 stores in
26 states
• Largest full-service, large format
pawn operator in Mexico
*As of May 2, 2014
PAWNSHOP PROFILE
 Neighborhood-based stores serving cashconstrained consumers:
 Buy and sell popular pre-owned consumer
products including
 Consumer electronics & appliances
 Jewelry, diamonds & watches
 Power tools, musical instruments &
sporting goods
 Ready and immediate source
of cash for customers looking
to sell items
 Source of small, short-term
loans
 Fully collateralized
 Non-recourse
SIGNIFICANT PAWN STORE GROWTH
Driven primarily by organic growth coupled with strategic acquisitions
Store count
REVENUE – GEOGRAPHIC DISTRIBUTION
• Operations in two
countries with the same
business model and format
– 310 stores in the U.S.
– 605 stores in Mexico
• Continued growth
potential in both markets
• Opportunity to expand this
proven model to other
Latin American countries
Trailing Twelve Months Ended March 31, 2014
FOCUSED ON RETAIL OPPORTUNITY
 Merchandise sales (including retail
and scrap) account for 66% of total
revenues, of which retail is a
significant portion

Merchandise acquired through
forfeiture of pawn loan collateral and
direct buys from customers
 Emphasis on driving foot traffic
FIRST CASH REVENUE DISTRIBUTION
100%
90%
80%
11.1%
10.8%
23.2%
24.5%
60%
22.5%
 High inventory turnover (3.6x in
2013)
 Gross retail margins exceed those
of traditional value-oriented
retailers
30%
FCFS retail margin of 39.7%

Peer Group average retail margin: 31.1%
8.2%
6.6%
23.8%
25.7%
27.5%
21.0%
17.5%
70%
50%

9.1%
19.5%
10.3%
40%
20%
43.3%
45.2%
46.1%
2009
2010
2011
48.5%
2012
55.6%
66%
Merchandise
Sales
10%
0%
Retail
Scrap
Peer group includes: Dollar General, Ross Stores, Dollar Tree, PriceSmart, Tuesday Morning and Big Lots; LTM as of MRQ
Pawn Loan
2013
Consumer Loan
7
RETAIL TRAFFIC DRIVERS
• In-store transactions
•
•
•
Retail sales
Pawn loans and buys
Pawn payments and
redemptions
• Layaway programs drive multiple
store visits
•
Interest-free installment
payments collected weekly
and/or monthly
• Opportunity for customers to
“Treasure Hunt” in stores
•
•
Automatic price markdown
timing
“As seen on TV” –
pawnshops are focus of
popular reality shows
GROWING DEMAND FOR PAWNSHOPS
 Many consumers in the U.S. and Mexico remain cash-constrained
and value-conscious
 “Unbanked and under-banked” customer base continues to be
significant
 30% of U.S. households
 70% of households in Mexico
 Strong customer value proposition
 Immediate source of credit – less than 10 minutes
 No underwriting, credit check, or bank account required
 No collection activities or negative credit reporting
 Traditional retailers and lenders do not effectively serve this
customer due to:
 Small transaction sizes
 Weak (or lack of) credit history
 Regulatory restrictions on other short-term credit & bank products
FIRST CASH PAWN METRICS
Trailing Twelve Months Ended March 31, 2014
Pawn Receivables
 Average loan size:
 $173 in U.S.
 $69 in Mexico
 Term: 30 days
 Typical monthly service charge:
 5% to 20%
 Varies with size of loan
 All loans fully collateralized:
non-performing pawns become
inventory




Retail sales margin
Effective monthly yield on pawn receivables
Inventory turnover, annualized
Store operating profit margin
39%
14%
3.6x
26%
SIGNIFICANT BARRIERS TO ENTRY
Significant barriers to entry in both the United States and Mexico make it difficult
for new competitors to enter the space
UNITED STATES
 Key markets for First Cash have significant
licensing restrictions limiting ability of
competitors to establish new, competing
locations
 Texas - per state law, in large counties
(over 250,000 population) new licenses
not granted within 2 miles of any other
pawn shop
 Maryland/DC/Virginia - most counties
and DC have hard caps on the number of
licenses and are not granting new ones
 Colorado - most larger, metropolitan
cities and suburbs have ceased issuing
new pawn licenses
MEXICO
 First Cash has significant first-mover
advantage
 De novo strategy requires significant capital
investment, operating expertise, and
development of human capital
 Other public pawn operators are
currently not growing significantly in
Mexico
 Must allow for a long time horizon to
compete with FCFS
 Extremely limited acquisition opportunities in
large format space
 New regulations and reporting requirements
work in favor of larger, more sophisticated
operators such as FCFS
11
STABLE REGULATORY ENVIRONMENT
Regulator and consumer advocate groups have been focused on the “cycle-of-debt” and
collection practices of the payday lending industry. First Cash’s business is dominated by
pawn retail sales and pawn lending, which provides non-recourse loans with no collection
activity, mitigating much of the regulatory focus
UNITED STATES
 Pawn regulated primarily at state level
 FCFS operates in states with
favorable regulatory environment
 No material changes to pawn
regulations in 30+ years
 While pawn is technically covered at the
federal level by Consumer Financial
Protection Bureau (“CFPB”), pawn
remains a low priority for CFPB
 Focused on payday
 Cycle of debt
 Collections
MEXICO
 Pawn regulated at the federal level by
Federal Consumer Protection Bureau
(“PROFECO”)
 Regulates terms of pawn loan
 No rate-setting authority
 January 2013 law requires all pawn
businesses to register with PROFECO
 Requires compliance with
additional customer notice and
disclosures
 New PROFECO requirements have led to
suspension or closure of certain noncompliant pawn stores in Mexico
UNIQUELY POSITIONED - LIMITED EXPOSURE TO PAYDAY PRODUCT
 Other large public pawn operators
generate significant revenue from
payday, payroll, online lending, title and
installment lending products

Other pawn operators average payday
as percentage of total revenue: 45.8%
 First Cash has continued to divest its
payday business over time

100%
90%
11.1%
10.8%
9.1%
8.2%
6.6%
88.9%
89.2%
90.9%
91.8%
93.4%
80%
70%
60%
50%
40%
30%
20%
In 2013, discontinued Cash & Go
payday/check cashing joint venture

In 2012 and 2013, closed 21 consumer
loan stores in Texas

In 2010, discontinued internet-based
credit services in Maryland

FIRST CASH REVENUE DISTRIBUTION
In 2009, sold 30 payday/consumer loan
stores across four states
10%
0%
2009
2010
Pawn
2011
2012
Consumer / Payday
2013
REVENUE DISTRIBUTION OF OTHER PAWN
OPERATORS
Cash America International
EZCORP, Inc.
DFC Global Corp.
13.0%
26.1%
49.5%
50.5%
 First Cash is now uniquely positioned as
the only large “pure” (~90%) pawn
operator
73.9%
Pawn
Consumer / Payday & Other
Other pawn operators include: Cash America International, DFC Global Corp. and EZCORP, Inc.; LTM as of most recent quarter.
87.0%
MEXICO OPERATIONS
SIGNIFICANT GROWTH OPPORTUNITY
MEXICO REMAINS UNDERBANKED
• An estimated 70% of
population is unbanked or
under-banked
• Per capita consumer credit
remains very low in
comparison to U.S. and other
LatAm countries
• Mexico remains a cashdriven society
• Even employees paid on
company-issued debit cards
quickly convert funds to cash
Typical payday
lines in Mexico:
lines form at
ATMs for cash
withdrawals
MEXICO CONSUMER CREDIT PENETRATION
Consumer credit to GDP in Mexico remains at the bottom of Latin America
Source: Central Banks, Credit Suisse estimates
FIRST CASH MEXICO OPERATIONS IN 2008
As of September 30, 2008
Chihuahua
Coahuila
241 STORES – 13 STATES:
200 Large format pawn stores
41 Consumer loan stores
Nuevo Leon
Baja California
Tamaulipas
San Luis Potosi
Sonora
Guanajuato
Queretaro
Durango
Puebla
Aguascalientes
Jalisco
MEXICO OPERATIONS NOW
As of March 31, 2014
Chihuahua
Coahuila
605 STORES – 26 STATES
560 Large format pawn stores
17 Small format pawn stores
28 Consumer loan stores
Nuevo Leon
Baja California
Tamaulipas
Baja California
Sur
San Luis Potosi
Sonora
Guanajuato
Queretaro
Hidalgo
Sinaloa
Durango
Zacatecas
Puebla
Veracruz
Aguascalientes
Jalisco
Colima
Michoacan
Edo de Mexico
Guerrero
Distrito Federal
(Mexico City)
Morelos
Yucatan
Quintana Roo
MEXICO MARKET PENETRATION
As of December 31, 2013
Significant growth opportunity in both new and existing markets
Tijuana
Ensenada
First Cash
Large Format
Penetration
Monterrey
Population */ store
8
High
<100k per store
14
Moderate
100k – 300k per store
4
Low
>300,000 per store
*Based on 115 million population in Mexico
Cancún
Cabo San Lucas
Mexico City
By comparison, Texas total pawn shop penetration
averages approximately 20k in population per store
COMPETITIVE LANDSCAPE IN MEXICO
U.S.-BASED OPERATORS
Large format store count
(1)
(1)
(2)
As of September 30, 2013
As of June 30, 2013
(2)
(1)
EZCorp (EZPW)
• In June, announced store closings in
Mexico:
• 52 small format stores
• 5 large format stores
• Approximately 12% of revenue
derived out of Mexico in 2012
Cash America (CSH)
• Fall 2012, announced significant
store closings in Mexico
• 148 mostly small format stores
• No large format openings in 2013;
limited number planned in 2014
CABO/LA PAZ ACQUISITION
• In Q3 2013, First Cash
exercised an option to
acquire 8 stores under
the “Cash$Go” name in
Baja California Sur
(Cabo/La Paz)
• Adds an additional
state, making 26 total
states in Mexico
• Systems and
management
consolidation already
completed
NEW STORE OPENING PROCESS
Undeveloped
Site
Same Site After
Redevelopment
• Experienced real estate
development team
• Proven site selection strategy
• Standardized store layouts,
fixtures and equipment
• State of the art security
technology
• Consistent
process
ensures that
new stores are
delivered on
time and on
budget
MEXICO STORE – INTERIOR OPERATIONS
Proprietary systems allow us to optimize
loan-to-value ratios for lending
transactions
Employees have access to real time sales
data from all stores
Track customer profiles to determine the
optimal loan size
Real time sales data also optimizes the
margins for merchandise purchased from
customers
MEXICO STORE - WAREHOUSE
TYPICAL MEXICO TRAINING FACILITY
Extensive training program supports rapid store growth:
• Approximately 600 stores provide a deep and well-established employee base
for developing and training future store and area managers
• Collaborative environment for sharing best practices
• Key areas of store operations training
• Proprietary FCFS systems
• Merchandise valuation
• Customer service
• Negotiation & selling skills
• Leadership development
MEXICO NEW STORE INVESTMENT
Earnings drag associated with new store ramp-up presents compelling future earnings potential
New Store Cash Flow
$175,000
Start-up Losses
Revenue
- Leasehold improvements &
fixtures
- Computer & security
equipment
$30,000
- Operating cash
- Loan funding
- Inventory
$600
$300
$400
$200
$200
$100
$0
Year 1
Year 2
Year 3
1
Year 4
Year 5
2
Revenue
Store Profit
Revenue reflects peso exchange rate of 13:1
2 Store-level operating profit before administrative expense & taxes
1
$205,000
Working Capital
First Year for New Store
$400
$0
- Pre-opening
- First six months of operation
Total Store Investment
$800
$125,000
MEXICO STORE ADDITIONS BY YEAR
Store Profit
($ in Thousands)
Store Investment
Cap Ex
TYPICAL MEXICO NEW STORE RAMP
MEXICO STORE AGING
As of March 31, 2014
Average Age:
55
5 Years
63
63
66
65
293
30% of all stores are less than
3 years old
605
NEW MARKET OPPORTUNITIES
• Long-term, we believe that the First Cash model
can be replicated in other Latin American
markets
• Still significant runway in Mexico, but looking
opportunistically for expansion opportunities in
other markets with:
• Large unbanked and under-banked populations
• Limited competition in large format, full-service
model
• First Cash has a strong balance sheet and recent
tax restructuring facilitates funding and
development in other Lat Am markets
U.S. OPERATIONS
U.S. OPERATIONS
As of March 31, 2014
3
1
29
4
4
119
310 STORES – 12 STATES
Large Format Pawn Stores
Small Format Pawn Stores
Consumer Loan Stores
28
10
18
23
57
4
7
.
D.C
2
1
U.S. GROWTH OPPORTUNITY
U.S. PAWN INDUSTRY IS HIGHLY FRAGMENTED
 Approximately 10,000 to 15,000 pawn locations
 The three largest public operators currently
operate a small percentage of total stores
 Continued opportunities for acquisitions
 Target 5-6X EBITDA for acquisitions – highly
accretive
ATTRACTIVE INDUSTRY FUNDAMENTALS
 25% of U.S. households used alternative financial
services products in last 12 months
 20% of U.S. households are underbanked (~24 million
households)
 8% of U.S. households are unbanked (~10 million
households)
 29% of U.S. households do not have a savings account
U.S. LARGE-FORMAT STORE ADDITIONS BY YEAR
Key Acquisitions
60
 December 2013: Money Man (SC)
50
40
 June 2013: Valu + Pawn (TX)
30
46
20
10
0
6
34
11
 June 2012: Mister Money (CO/KY)
8
10
6
9
2010
2011
2012
2013
New Stores
 September 2012: Fast Cash (CO)
Acquired Stores
Source: 2011 FDIC National Survey of Unbanked and Underbanked Households – published September 2012
Note: 2010 new stores includes two payday stores that were converted to pawn stores
31
RECENT U.S. ACQUISITIONS
Valu+Pawn
•
•
•
Acquired June 2013
19 store locations in Texas
Provides new pawn market for First
Cash in Houston with 11 stores
Money Man
•
•
•
Acquired December 2013
12 store locations in South Carolina
Provides new pawn market for First
Cash in Charleston, S.C.
VALU+PAWN STORES
GOLD EXPOSURE
COMPOSITION OF PAWN COLLATERAL
U.S. reflects historical mix; Mexico focused on general merchandise, where competition is limited
As of March 31, 2014
United States
Mexico
Consolidated
Electronics, tools, and other general merchandise items
Jewelry
Note: Historically, over 75% of all pawn loans are redeemed, and the collateral is returned to the customer.
SOURCE OF GROSS PROFIT CONTRIBUTION
98% of YTD gross profit from retail sales and lending activity; limited jewelry scrap sales contribution
% GP Contribution
SOLID LOAN GROWTH DESPITE HEADWINDS
CAUSED BY LOWER GOLD PRICES
Pawn loan balance compared to loan count
Pawn loans
(USD in millions)
Pawn loan count
(in thousands)
• Consolidated growth in pawn
loans due primarily to increased
number of outstanding loans
(transactions)
• 18% increase in general
merchandise (non-jewelry) loans
offset reduced levels of gold
lending in both the U.S. and
Mexico
GOLD PRICE VS. AVERAGE PAWN LOAN
Average loan size has been less volatile than gold prices.
Note: Foreign operations were translated at a constant currency rate of 12.5 MXN to USD for all periods presented.
Q1 2014 OPERATING HIGHLIGHTS
 Net Income from continuing operations of $0.78 per share in Q1
 15% increase
 Strong growth in core pawn revenues (pawn fees & retail sales): *
 20% increase
 Retail sales increased 24% in Q1 *
• Up 35% in U.S.
• Up 16% in Mexico
 Pawn loan fees increased 13%, despite lower average loan sizes
due to gold depreciation
 Number of pawn loans at March 31 up 16% over prior year
* Constant currency basis
EARNINGS PER SHARE GROWTH
From Continuing Operations
From 2008-2013:
158% growth
21% 5-year CAGR
*As of the earnings release dated March 31, 2014
HISTORICAL FINANCIAL PERFORMANCE
REVENUE
GROSS PROFIT & MARGIN
($ in Millions)
($ in Millions)
$700
$400
600
350
$661
300
$592
500
58%
$370
$289
$200
150
$349
$336
$242
200
$417
300
57%
250
$514
400
100%
60%
56%
57%
56%
100
200
0
0%
2009
0
2009
2010
2011
2012
2013
EBITDA & MARGIN 1
100%
140
$136
120
$139
$118
100
80
$90
40%
$71
20%
22%
80%
60%
40
23%
23%
21%
0
20%
0%
2009
1
2012
2013
Gross Margin
($ in Millions)
$160
20
2010
2011
Gross Profit
FREE CASH FLOW 2
($ in Millions)
60
40%
20%
50
100
80%
2010
2011
EBITDA
From Continuing Operations
2012
2013
EBITDA Margin
$90
80
$80
70
60
50
$57
40
$46
30
$50
$32
20
10
0
2009
2
2010
2011
2012
2013
From Continuing and Discontinued Operations. Defined as
CFO - CapEx - Δ Loan Receivables
Note: 2009 free cash flow impacted by liquidation of Auto Master
STRONG BALANCE SHEET
Provides liquidity for expansion, acquisitions, and stock buybacks
 Senior note offering:
Debt to EBITDA Ratio:
1.45 to 1
 Completed private offering
of $200 million of senior
notes
 Provides long-term, fixedrate financing – due in 2021
 Diversifies capital structure
to add non-bank debt
 Favorable bank credit facility
 $160 million facility w/ all
available
 Option of interest rates (LIBOR
+ 2.5%)
 Matures in 2019
As of March 31, 2014
FREE CASH FLOW
Trailing Twelve Months Ended March 31, 2014
 Stable cash generation with limited volatility
 Strong correlation between cash flows and earnings
STOCKHOLDERS’ EQUITY
Millions
Key Return Metrics*
ROE:
22%
ROA: 14%
*Over Trailing Twelve Months Ending 3/31/2014
INVESTMENT THESIS
• Pawn-focused business model
– Strong margins & cash flows
– Steady across economic cycles
– Limited regulatory exposure
• Proven growth strategy
– Long-runway for growth in Mexico where
competition is limited and barriers to entry are
high
– Roll-up and consolidation strategy in the U.S.
where the business is fragmented and new
competition is limited
FIRST CASH FINANCIAL SERVICES, INC.
Investor Contact Information
(817) 505-3199
investorrelations@firstcash.com
www.firstcash.com
Gar Jackson
Global IR Group
(949) 873-2789
gar@globalirgroup.com