Financial ResultsQ3 2015

November 12, 2015

Time: 8:30am MTN

Domestic: (877) 201-0168

International: (647) 788-4901

Confirmation Code: 58855409

Safe Harbor Provisions

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Certain statements made in this presentation are forward-looking statements under the Private Securities

Litigation Reform Act of 1995. These can be identified by words such as "intend," "believe," and "expect," and phrases

using those or similar terms. Specifically, statements relating to projections of future proceeds, revenue, income,

profitability, cash flow, non-GAAP financial measures such as Adjusted EBITDA and Estimated Remaining Proceeds, also

known as “ERP”, and our ability to expand and utilize flexibility under our credit facility are forward-looking statements.

These forward‐looking statements are not guarantees of our future performance and are subject to risks and

uncertainties that could cause actual results to differ materially from the results contemplated by the forward‐looking

statements. Factors that could affect our results and cause them to materially differ from those contained in the forward

looking statements include those that we discuss in “Risk Factors” or comparable headings in our most recent Annual

Report on Form 10-K.

Adjusted EBITDA and ERP, as presented today and in our earnings release we issued this morning, are

supplemental measures of our performance and purchased debt asset value, respectively, that are not required by, or

presented in accordance with, accounting principles generally accepted in the U.S., also known as “GAAP.” They are not

measurements of our financial performance or asset value under GAAP and should not be considered as alternatives to

net income, asset value, or any other performance measures derived in accordance with GAAP, or as alternatives to cash

flows from operating activities or a measure of our liquidity.

We believe adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-

off receivables, pay down or service debt, pay income taxes, and for other uses. ERP represents the expected cash

proceeds of our then-current purchased debt portfolios over a nine year period. You are, however, cautioned not to place

undue reliance on adjusted EBITDA and ERP.

Our Strategy

Paul A. Larkins, Chief Executive Officer

Key Strategic Goals

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Our People

• Inspire a culture of leadership by living our core values

Our Services • Pursue systemic operational and compliance excellence

Our Channels• Create an outstanding network of call centers and exclusive

branch offices

Our Customers• Deliver the Fair Square Promise

Our Financials• Deliver solid financial results

Third Quarter Highlights

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• Continued Improvement in Costs to Collect

• Customer Connection Strategy Drives Liquidations

• Continued Expansion of Fintech Relationships

• Largest Portfolio Acquisition in Canada’s History

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SquareTwo and the MarketEvolving Debt Sales:

-------------------------------------------------------------------------------------

Ret

urn

to

Mar

ket

Charge-Off Growth

Money

Center Banks

FintechCommercial

Regional Banks

Canada

Financial Results

John D. Lowe, Chief Financial Officer

ERP and Adjusted EBITDA

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• Consolidated ERP of $592M

• Adjusted EBITDA of $40M

Q3 2014 Q3 2015 Q3 2014 Q3 2015

64.7% 74.7% 1.95x 2.66x

Company Debt as a %

of Consolidated ERP

Company Debt ÷ TTM

Adjusted EBITDA

681655

612 600 592

100

200

300

400

500

600

700

800

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Consolidated ERP Trending($ millions)

Canada US

4842 42 43

40

0

10

20

30

40

50

60

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Adjusted EBITDA Trending($ millions)

Returns by Purchase Year

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• Active Portfolio Returns Maintain Strength

• 2015 Returns Improve

1.9x

1.3x

0.8x

0.3x

2.2x

0.4x

0.5x

0.8x 1.6x

0.00x

0.50x

1.00x

1.50x

2.00x

2.50x

Active Portfolio 2012 2013 2014 YTD 2015

Consolidated Return on InvestmentPurchase Years 2012 through YTD 2015

Actual Returns Estimated Returns

Purchasing

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• Disciplined Purchasing Maintained

• Canadian Purchases Up Significantly

2015 2014 $ Variance % Variance

Credit Card/Consumer

Loan - Fresh*Face $120,401 $135,678 ($15,277) (11.3%)Price 14,601 20,355 (5,754) (28.3%)Price (%) 12.1% 15.0%

Credit Card/Consumer

Loan - Non-Fresh*Face 251,724 151,853 99,871 65.8%Price 8,562 6,971 1,591 22.8%Price (%) 3.4% 4.6%

Other**Face 38,866 54,584 (15,718) (28.8%)Price 3,888 2,340 1,548 66.2%Price (%) 10.0% 4.3%

TOTALFace $410,991 $342,115 $68,876 20.1%Price 27,051 29,666 (2,615) (8.8%)Price (%) 6.6% 8.7%

* Includes both Domestic and Canadian purchases.

** Other includes commercial, student loan, and other purchased debt assets.NM Not meaningful.

Purchasing (in thousands)

Quarter Ended September 30,

Proceeds

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• Mix of Legal as % of Total Collections Increased from 52% to 56%

• Commercial Proceeds Continued to Increase

Cash Proceeds (in thousands) 2015 2014 $ Variance % Variance

Credit Card/Consumer Loan Collections

Non-Legal Collections $30,003 $44,278 ($14,275) (32.2%)

Legal Collections 45,418 51,058 (5,640) (11.0%)

Other Collections* 9,005 5,172 3,833 74.1%

Total Collections 84,426 100,508 (16,082) (16.0%)

Sales, Recourse & Bankruptcy 1,845 1,593 252 15.8%

Total Cash Proceeds on Purchased Debt $86,271 $102,101 ($15,830) (15.5%)

Quarter Ended September 30,

*Other includes non-legal collections, legal collections, and court cost recoveries on commercial,

student loan, medical and other accounts

Unadjusted Results

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• Purchased Debt Revenues, Net:

›$51 million, 11% decrease from $57 million in Q3 2014

• Costs to Collect as % of Purchased Debt Collections:

›Including Gross Court Costs: 41.2%; -391bps from Q1 2015

›Excluding Gross Court Costs: 30.8%; -623bps from Q1 2015

›Non-Legal/Legal Mix: 46%/54% (Q1’15), 44%/56% (Q3’15)

• GAAP EBITDA:

› $4 million, increase of $3 million from Q3 2014

• Net Loss:

› $10 million net loss, decrease of $3 million from Q3 2014

Liquidity Update

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• Investment Strategy + Cost Reduction = Net Returns+

• Consolidated ERP of $592 million

• Liquidity = $32 million

Q & A