SmileDirectClub Results Presentation Deck slide image

SmileDirectClub Results Presentation Deck

SmilePay Performance. In Q1 2020, 66% of our members elected to purchase using SmilePay, which is down from 68% in Q1 2019. This percentage has also held steady in April and May, and we have not seen material increases in SmilePay as a percent of total purchases to date. ● ● ● ● In Q1, we took a conservative approach to Implicit price concessions, and increased our reserves by ~$12mm given the uncertainty of our economic outlook. Our delinquency rates through April were flat to March, which was consistent with the prior 12 months. Because we keep a credit card on file, and it is a low monthly payment, we expect SmilePay to continue to perform well. We've seen only 1.7% of customers requesting a payment deferral, far below the 4-5% deferral requests you see other lenders facing today. smile DIRECT CLUB Indexed Daily Credit Card Authorization Performance 105.0% 104.0% 103.0% 102.0% 101.0% 100.0% 99.0% 98.0% 97.0% 96.0% 95.0% 94.0% ● 1/5/2020 100% 100% 1/12/2020 99% 100% 98% 1/19/2020 1/26/2020 2/2/2020 100% 2/9/2020 100% 100% 2/16/2020 2/23/2020 100% 101% 3/1/2020 3/8/2020 101% 3/15/2020 100% 101% 3/22/2020 3/29/2020 4/5/2020 102% 101% 104% 103% 4/12/2020 4/19/2020 4/26/2020 5/3/2020 003% The index graph above shows performance relative to the start of January on a daily basis. As outlined, our success rates on credit card attempts, which is a proxy for monthly payments, has seen no degradation since COVID started. 16
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