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Proven Performance
Tenured North American Platform Finances More Than 26,100 Small and Medium
Sized Businesses in the U.S. and Canada
Forward-looking information includes, but is not limited to, statements concerning management's expectations relating to possible or assumed future results,
our strategic goals and our priorities, our actions, the results of our actions and the economic and business outlook for us, for our categories, for each of our
business segments and for the economy generally. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of
management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable as of today.
By its very nature, forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the
possibility that Chesswoods predictions, forecasts, projections, expectations and conclusions will not prove to be accurate, that Chesswood's assumptions
may not be correct and that Chesswood's objectives, strategic goals and priorities will not be achieved. Although we believe that the predictions, forecasts,
projections, expectations and conclusions reflected in the forward-looking information are based on information and assumptions which are current, reasonable
and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from our predictions, forecasts,
projections, expectations and conclusions as set forth in such forward-looking information for a variety of reasons. Some of the factors many of which are
beyond our control and the effects of which can be difficult to predict include but are not limited to (i) Chesswoods dependence on key personnel; (ii)
Pawnees and Blue Chips reliance on its relationships with origination sources to generate lease applications and originations; (iii) the risks associated with
leasing under lease programs designed to service small, often owner-operated businesses with limited access to traditional financing, including increased risk
of delinquencies and loss levels; (iv) operations results may be negatively impacted by various economic factors and business conditions and to the extent that
economic activity or business conditions deteriorate; (v) Chesswood may be unable to renew its existing credit facility before it expires in December 2019, and
may be unable to obtain additional financing, on acceptable terms or at all; (vi) competition from alternative sources of equipment financing; (vii) disruption of
business models due to emergence of new technologies; and (viii) fluctuations in the Canadian and U.S. dollar exchange and interest rates. The key risks and
uncertainties at could cause actual results or the material factors and assumptions applied in preparing forward-looking information to differ materially from
predictions, forecasts, projections, expectations or conclusions are discussed in the "Risk Factors" section of our Annual Information Form for fiscal 2016 and
in our most recent Management's Discussion and Analysis. We caution that the foregoing list is not exhaustive of all possible factors.
For more information on the risks, uncertainties and assumptions that could cause Chesswood's actual results to differ from current expectations, please refer
to our public filings available at www.sedar.com.
2
Presented by:
Barry Shafran
President & Chief Executive Officer
3
Chesswood Organization
Financial Results
Operating Income
Fiscal 2015 - $28.8M / Fiscal 2016 - $30.3M
$547 million portfolio diversified across 26,100 leases and loans for over
70 types of equipment, in 85 industries, through 650 broker firms
CHW recently raised its monthly dividend from $0.065 to $0.07 per share effective Nov. 2016
Pre-tax ROE for 2016: 22%
Current yield to investors: 6.3% (at $13.29)
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Chesswood Overview
Total portfolio of $547M comprised of CDN$148M and US$297M, with
portfolio yield of 22.9%
$0.070
$0.060
$0.050
$0.040
$0.020
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Over the 10 Yrs since our IPO in 2006, Chesswood has been the
#1 yielding public financial services business in Canada,
while steadily growing its asset base and profitability
6
Chesswoods Business Is Highly Diversified
7
Risk Management Inherent to Business Model
8
Small Ticket Equipment Finance in the U.S.A.
(US$B) (US$M)
$160 $160
$138
$122.6
$120 $120
$85.0 $85
$80 $80
$62
$42
$40 $40
$0 $0
2010 2015 2010 2014 2015 2016
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Small Ticket Equipment Finance in Canada
(C$B)
(C$M)
$30.0 $80.0
$71.7
$25.6
$62.7
$25.0 $23.4
$60.0
$47.7
$20.0 $42.8
$40.0
$15.0
$20.0
$10.0
$5.0 $0.0
2013 2015 2013 2014 2015 2016
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Portfolio Growth and ROE
$600
$558
$500 $480
$400
$300
$269
$219
$200
$173
$154
$125
$100
31%
25% 28% 28%
27% 22%
$0
2010 * 2011 2012 2013 2014 2015 2016
* ROE in 2010 not available given the accounting changes from converting to a corporation from an income fund
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Finance Revenue
$78.4
$80.0
$70.0
$60.0
$54.4
$50.0
$42.7
$40.0 $35.9
$30.4 $31.7
$30.0
$20.0
$10.0
$0.0
2010 2011 2012 2013 2014 2015 2016
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Long Term Yield with Consistent Performance and Growth
$35.0 18.0%
16.0%
$30.0
14.0%
$25.0
12.0%
$20.0 10.0%
$15.0 8.0%
6.0%
$10.0
4.0%
$5.0
2.0%
$0.0 0.0%
2010 2011 2012 2013 2014 2015 2016 *
Chesswood and Pawnee remained profitable through the financial crisis other
than for a goodwill write-down
* One-time special dividend of $8.9M in March 2016 not reflected in chart
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Strong Funding Model Supports Growth
USD / CAD
Chesswood has a US$170 million revolving
senior secured credit facility with a syndicate Credit Facility
Flexibility to borrow in required currency
of six Canadian and U.S. banks
Strong relationships with large Canadian banks
+
and U.S. banks
Additional US$80 million accordion feature
+
relationships with leading Capacity to support significant growth
Canadian financial institutions
+
Securitization provides attractive low-cost Strong Equity Base
source of funding with ample room to grow
and fixed NIMs
=
Access to public markets, a senior Capital Markets
secured facility and multiple
securitization funders provide
Chesswood with diverse, flexible and Integrated Funding Model
expandable sources of financing
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Chesswood Key Metrics
Excellent Fundamentals
Strong yield
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North American Finance Platform
With Long-Term Yield & Growth
Thank you!
CHW:TSX
investorrelations@chesswoodgroup.com