 2011 Investor Day June 9, 2011 Exhibit 99.1 |
 CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS 2 FORWARD-LOOKING STATEMENTS The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results and growth. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements. |
 INVESTMENT HIGHLIGHTS 3 • Investments made over the past few years have driven significant improvements in collections, cash flow and earnings • Difficult regulatory environment being managed proactively • Expanding presence in India, combined with new strategic initiatives, are expected to continue increasing cash flow from operations • Demonstrated ability to raise and profitably deploy capital in favorable and unfavorable business cycles |
 PRESENTING TODAY 4 Brandon Black President and Chief Executive Officer Paul Grinberg EVP, Chief Financial Officer Amy Anuk VP, Business Development Manu Rikhye Managing Director, India Operations |
 ENCORE IS A LEADER IN THE CONSUMER DEBT BUYING AND RECOVERY INDUSTRY 5 Revenue Composition As of March 31, 2011 Global Capabilities Debt Purchasing & Collections Bankruptcy Servicing • Purchase and collection of charged-off unsecured consumer receivables (primarily credit card) • Robust business model emphasizing consumer intelligence and operational specialization • Invested ~$1.9 billion to acquire receivables with a face value of ~$58 billion since inception • Acquired ~34 million consumer accounts since inception • Process secured consumer bankruptcy accounts for leading auto lenders and other financial institutions • Proprietary software dedicated to bankruptcy servicing • Operational platform that integrates lenders, trustees, and consumers St Cloud, MN Arlington, TX Phoenix, AZ Delhi, India Call Center / Technology Site Call Center Site Ascension Call Center Site San Diego, CA Headquarters/ Call Center Site Debt Purchasing & Collections Bankruptcy Servicing |
 THE COMPANY’S FINANCIAL RESULTS OVER THE PAST TWO YEARS HAVE BEEN STRONG 6 2010 2009 YOY Growth Annual Variance $605 $117 24% $488 Collections $381 $65 21% $316 Revenue $347 $82 31% $265 Adjusted EBITDA* $362 $105 41% $257 Purchases $1.95 $0.58 42% $1.37 EPS ($ millions, except EPS and ratios) * Adjusted EBITDA is a non-GAAP number. The Company considers Adjusted EBITDA to be a meaningful indicator of operating performance and uses it as a measure to assess the operating performance of the Company. See Reconciliation of Adjusted EBITDA to GAAP Net Income at the end of this presentation. Q1 11 $191 $110 $116 $91 $0.54 Q1 10 $141 $87 $83 $82 $0.44 |
 WE HAVE GENERATED STRONG RESULTS DESPITE THE MACROECONOMIC DOWNTURN 7 ($ millions) * Adjusted EBITDA is a non-GAAP number. The Company considers Adjusted EBITDA to be a meaningful indicator of operating performance and uses it as a measure to assess the operating performance of the Company. See Reconciliation of Adjusted EBITDA to GAAP Net Income at the end of this presentation ** LTM data as of 03/31/2011 Adjusted EBITDA* and Gross Collections by Year |
 STRATEGIC DECISIONS MADE OVER THE PAST DECADE DEMONSTRATE OUR ABILITY TO FORESEE AND ADAPT TO CHANGES 8 • Established our operating center in India • Created an activity-level cost database • Built and implemented the industry’s first known ability-to- pay (capability) model Overconfidence and Irrational Pricing 2005 2007 2006 2008 • Created first generation consumer-level underwriting models An Emerging Market Demand Supply 2001 2002 2003 2004 Attractive Opportunities 2009 2010 2011 • Expanded access to capital |
 WE HAVE ALSO POSITIONED OURSELVES TO ADDRESS REGULATORY CHALLENGES AS THEY EMERGE Building a consumer intelligence platform, focused on financially distressed consumers, that can inform policy discussions and identify strategies to promote financial recovery Revamped our consumer relations process and introduced a Consumer Bill of Rights Met with leadership of the CFPB and the staff of key federal and state legislators Hired a government relations firm and lobbyists in key states 9 Consumer Alignment Regulatory Outreach Advisors Analytics |
 OUR BUSINESS MODEL IS CRITICALLY IMPORTANT, AS IT PROVIDES THE CONSUMER WITH TIME TO RECOVER 10 Timeframe Process and relationship with consumers Outcome • Charge-off threshold extends a maximum of 6 months Transactional • Attempt immediate resolution during delinquency cycle (days 30 – 180) • Consumer is “charged- off” by issuer on day 181 • Issuer offers to sell unsecured, charged-off debt or service through 3rd party agencies ORIGINAL CREDITOR • Four-to-six month collection cycle Pressured • Artificial deadlines • Multiple collection companies • Counterproductive incentive structure • Consumer is confused and frustrated CONTINGENCY COLLECTION AGENCY • Consumer has 84 months to recover financially Partnership • Create partnership strategy and set goals • Tailor work strategies to individual circumstances, giving them time for a consumer to recover • Maximizes likelihood of repayment, creates consistency, and ensures that consumers are treated fairly |
 OUR LONG-TERM MODEL HAS ALLOWED MORE THAN TWO MILLION CONSUMERS TO MOVE TOWARD FINANCIAL RECOVERY 11 Consumers with Whom We Have Partnered to Retire Their Debt (Cumulative) |
 WE HAVE TAKEN A LEADERSHIP STANCE BY OUTLINING OUR CORE PRINCIPLES IN AN INDUSTRY-FIRST CONSUMER BILL OF RIGHTS 12 |
 A Closer Look at Our Consumers and Our Financial Results |
 OUR BUSINESS MODEL DEPENDS UPON A VERY SMALL PERCENTAGE OF PAYERS 14 Portfolio Face Amount $15,000,000 Average Balance $3,000 Number of Accounts 5,000 Purchase Factor $0.05 Purchase Price $750,000 Projected Return (2.5x) $1,875,000 As a result, we only need 19% of all consumers to pay us two-thirds of what they owe, over a seven year period, to achieve significant returns ILLUSTRATIVE |
 TRYING TO UNDERSTAND AND PREDICT BEHAVIOR IS EVEN MORE DIFFICULT WHEN IT OCCURS INFREQUENTLY 15 5% - 9% (350 consumers) Purchased portfolio (5,000 consumers) Payers in year 1 2% - 3% (125 consumers) Payers in year 3 Payers in year 5 ~1% (50 consumers) |
 Metric Recent trend • Payer rates • Upward • Average payment size • Stable • Payment style • More payment plans • Broken payer rates • Mild improvement • Settlement rates • Stable 16 OUR CONSUMERS HAVE SHOWN THAT THEY ARE RESILIENT DESPITE THE MACROECONOMIC ENVIRONMENT |
 17 Overall Payer Rate For All Active Inventory PAYER RATES HAVE ACTUALLY INCREASED OVER THE PAST FEW YEARS 2008 2009 2010 2011 |
 AVERAGE PAYMENT SIZE REMAINS CONSISTENT, EVEN AS PAYMENT PLANS CONTINUE TO BE THE NORM 18 Average Payment Size For All Paying Accounts 2009 2010 2011 2008 Single Settlement Payers as a Percentage of Total Payers 2009 2010 2011 2008 |
 OUR CONSUMERS ARE HONORING THEIR OBLIGATIONS AND SETTLING THEIR ACCOUNTS AT RATES CONSISTENT WITH PAST PERIODS Overall “Broken” Payer Rate, Excluding Settled Accounts Through Time 19 Legal Settlement Rate 2009 2010 2011 2008 2009 2010 2011 2008 |
 WE HAVE FUNDAMENTALLY CHANGED THE COST STRUCTURE OF THE COMPANY OVER THE PAST FOUR YEARS 20 Overall Cost-to-Collect (%) An 1150 basis point reduction in cost-to- collect translated into $22 million in cost savings in Q1 2011 |
 LED BY OUR INDIA CENTER, WHICH IS EXPECTED TO PRODUCE HALF OF ALL 2011 CALL CENTER COLLECTIONS 21 Collections from all Call Centers ($ millions) $126 $157 $186 $268 Percent of Total: 10% 19% 30% 44% ~$340 50% |
 WE CONTINUE TO BUILD A SUBSTANTIAL RESERVOIR FOR THE FUTURE 22 Annual Estimated Remaining Gross Collection (ERC) and Total Debt ($ millions, at end of period) |
 WE BELIEVE THAT OUR CURRENT ESTIMATE OF REMAINING COLLECTIONS IS CONSERVATIVE 23 Cumulative Collections (initial expectation vs. actual) ($ millions, March 01 – March 11) Actual cash collections Initial projections |
 WE ADJUST IRRS OVER TIME TO REFLECT OVER-PERFORMANCE 24 Purchase Period Q1 2009 Q2 2009 Q3 2009 Q4 2009 IRR at purchase 4.2% 4.4% 4.4% 4.4% Current IRR* 5.8% 6.0% 8.0% 7.3% Average life-to-date IRR* 4.9% 5.2% 6.2% 6.3% *As of 3/31/2011 |
 FROM A CAPITAL PERSPECTIVE, WE HAVE SIGNIFICANT ROOM TO GROW THE BUSINESS ($ millions) Cash flow leverage ratio Debt Trailing 4-quarter adjusted EBITDA* Debt/Adj. EBITDA [Maximum 2.0x] Minimum net worth Total stockholders' equity Minimum net worth Excess room Interest coverage ratio Trailing 4-quarter EBIT Trailing 4-quarter consolidated interest expense EBIT/Interest expense [Minimum 2.0x] 303.1 264.6 1.15 243.1 183.0 60.1 69.9 16.2 4.3 2010 385.3 346.7 1.11 302.7 207.6 95.1 97.0 19.3 5.0 Q1 2011 382.4 380.4 1.01 318.8 214.4 104.4 103.1 20.4 5.1 2009 Based on our cash flow and LTM Adj. EBITDA, our leverage ratio would allow us to increase total debt to $761 million, nearly double the present level Covenant Analysis 25 Aggregate Revolving Loan Commitment Drawn on Line of Credit 300.0 410.5 327.0 360.5 260.0 327.5 * Adjusted EBITDA is a non-GAAP number. See Reconciliation of Adjusted EBITDA to GAAP Net Income at the end of this presentation |
 We Continue to Invest in the Future |
 Full Year Purchases for 2008 – 2010, 2011 Estimate WE ARE EXPECTING 2011 TO BE ANOTHER YEAR OF STRONG PURCHASING GROWTH 27 $62 2011E $380 ($ millions) 2008 $230 2009 $257 2010 $362 2010 Adj. $316 Large December Purchase ($46) |
 OUR ABILITY TO INCREASE PURCHASES IS A RESULT OF NOT BEING LIMITED TO A PARTICULAR ASSET CLASS OR AGE OF RECEIVABLE 28 Historical Purchase Mix by Year, 2011 Estimate ($ millions) |
 TELECOM RECEIVABLES WILL BE AN AREA OF PURCHASING FOCUS IN 2011, WHICH WE HAVE EVOLVED INTO A COMPETITIVE STRENGTH 29 • Historical telecom challenges – U.S. based servicing inflated cost-to-collect – Long-term liquidation was over- estimated – Prices were higher • As a result, our early investments yielded lower-than-expected IRRs Historical Telecom Cost-to-Collect 2005 - 2007 Purchases |
 LOWER SERVICING COSTS AND TARGETED COLLECTION EFFORTS HAVE DRAMATICALLY IMPROVED TELECOM PROFITABILITY Telecom Servicing Costs Cost-to-collect Telecom IRRs % 30 2005-2007 2011 > 20% Shorter collection curve duration Servicing in India Better operational models Expect to deploy $30 million in 2011 |
 Our India Operation Continues to be a Competitive Advantage |
 32 India Collections* ($ Millions) * Includes all collections on accounts maintained by the India site QoQ India Collections ($ millions) 2011 IS SHAPING UP TO BE ANOTHER YEAR OF SUBSTANTIAL COLLECTIONS GROWTH FOR OUR OPERATIONS IN INDIA 93% CAGR |
 Encore India Account Manager Headcount and Indicative Cash Average Headcount (number); Cash average (indicative) MUCH OF THE GROWTH IS DRIVEN BY OUR MATURING WORKFORCE 33 0 5 10 15 20 25 30 50 100 150 200 250 300 350 400 0-3 Months 4-6 Months 7-15 Months 15+ Months Dec 2010 Mar 2011 Indicative cash average - |
 34 DESPITE LOCAL WAGE INFLATION, WE HAVE BEEN ABLE TO MAINTAIN OUR TOTAL COST PER EMPLOYEE * Cost per FTE includes all India site costs Monthly Cost per Account Manager (FTE)* ($) |
 35 11 3 7 31 25 14 47 113 Customer Support MIS/ Analytics IT Bankruptcy Servicing Dec 2007 Mar 2011 Encore India Non-Collection Headcount Growth (Count ) TODAY, INDIA IS MUCH MORE THAN A CALL CENTER |
 36 2007 2009 2011 Local Support Global Support 7 9 9 47 • Only supporting the India site • First programmers hired in 2008 • Added server administrators, telecommunications’ specialists and software quality assurance team • All helpdesk functionality for Encore handled in India AND IS SUPPORTING OUR TECHNOLOGY NEEDS IN BOTH THE U.S. AND INDIA India IT Diversification (Count ) Our India IT staff provides similar cost savings to their AM counterparts |
 37 WE ASPIRE TO BECOME ONE OF INDIA’S LEADING EMPLOYERS, AS DEFINED BY THE GREAT PLACE TO WORK INSTITUTE (GPTW) Trust Relationship between employees and management Pride Relationship between employees and Encore Camaraderie Relationship between employees themselves |
 38 WHILE THE RESULTS HAVE NOT BEEN ANNOUNCED, OUR SCORES COMPARE FAVORABLY TO THE TOP 50 EMPLOYERS GPTW Survey Results Comparing Encore’s 2011 Results to the 2010 Winners (% favorable) |
 Analytic-based Insights Driving Performance |
 WE BELIEVE LONG-TERM PROFITABILITY IN THIS INDUSTRY WILL BE DRIVEN BY EXCELLENCE IN THREE KEY AREAS 40 Consumer- level underwriting Superior collection approach Low-cost collection platform |
 TO SUCCEED IN THOSE AREAS, YOU MUST UNDERSTAND THE CONSUMER 41 Strong partnership opportunities with willing and able consumers Our attempts to contact or work with consumers are typically ignored, and the legal option becomes necessary Hardship strategies Offer significant discounts and plans that accommodate many small payments Remind consumers of their obligation through legal communications Focus on payment plans and opportunities to build longer relationships with consumers Willingness to pay Is the debtor willing to resolve the debt on fair terms? HIGH HIGH LOW LOW |
 OUR STRONG PORTFOLIO PURCHASING TRACK RECORD IS DRIVEN BY AN UNDERWRITING MODEL FOCUSED ON INDIVIDUAL CONSUMERS 42 Deal Accuracy Since 2000 858 Total purchase transactions 809 Total profitable deals (39) Principal not fully recovered (Count based on actual results plus forecast) Principal recovered, but not all servicing costs (10) Since 2000, 94% of our portfolio purchases have been profitable |
 PURCHASING ACCURACY AND OUR ANALYTIC OPERATING MODEL HAVE LED US TO CONSISTENTLY OUTPERFORM OUR PEERS 43 Cumulative Actual Collection Multiples by Vintage Year as of March 31, 2011 (Total Collections / Purchase Price) Source: SEC Filings, Encore Capital Group Inc. |
 New Strategic Initiatives That Will Leverage Our Strengths |
 WE ARE IN THE PROCESS OF BUILDING UPON OUR PRIOR SUCCESSES WITH POWERFUL STRATEGIC INITIATIVES 45 Drive a meaningful portion of our legal collections through internal resources 1. Diversify our legal platform Create a world class near-shore facility 2. Capture incremental value through increased offshore activities Collaborate with accomplished academics to extend our deep consumer knowledge 3. Develop new insights about our consumers |
 WE HAVE CONSISTENTLY ENHANCED OUR LEGAL COLLECTION INFRASTRUCTURE 46 2006 2007 2008 2009 2010 Strengthened firm management processes and operational support to firms Further strengthened infrastructure and governance Began process of building an internal legal collection process Dramatically increased volumes to adapt to changing consumer behavior Implemented new placement models to better optimize returns 2011 Considered, but rejected, the idea of building an internal process |
 THESE IMPROVEMENTS HAVE DRAMATICALLY IMPROVED BOTH COLLECTIONS AND COST TO COLLECT 47 $193.2 $232.7 $266.8 $88.5 2008 2009 2010 2011 Q1 Legal Collections and Costs as a Percentage of Legal Collections ($ millions) 45.4% 48.4% 41.3% 49.8% |
 48 SEVERAL FACTORS DURING LATE 2009 AND EARLY 2010 DROVE THE DECISION TO BUILD AN INTERNAL LEGAL CAPABILITY Legal/regulatory environment Rationale for internal legal • Increased control over consumer and court interaction • Reduced risk from firm failures • Ability to deploy our account-level analytics against legal workflows • Champion / challenger approach to improve performance • A 5% collection increase will generate an incremental $15 million in annual collections • We gain $0.06 in EPS for every 1% reduction in overall cost • • • • State-level legal requirements changing rapidly Limited number of firms who are able to scale their operations Flaws exposed in the traditional model, including limited oversight of service providers Financial instability led to the failure of some firms, including the largest firm at the time |
 SINCE THEN, WE HAVE MADE SIGNIFICANT PROGRESS 49 Hired dedicated legal teams in 4 states Developed and deployed a customized litigation technology platform We plan to operate in 6 states by the end of 2011 Built a reliable service provider network Launched back-office and collections teams |
 IT WILL TAKE SOME TIME BEFORE THIS INITIATIVE CONTRIBUTES TO THE BOTTOM LINE 50 Number of states 6 16 25 25 EoY headcount 80-90 225-250 350-375 350-400 Placements, Collections (#, $ millions) |
 51 Spanish Account Inventory (in thousands) WE ARE ALSO ADDRESSING OUR GROWING POPULATION OF SPANISH-SPEAKING CONSUMERS Our presence in San Diego and Phoenix provides us with a natural hiring pool, but hiring cannot keep pace with inventory growth US-based Spanish servicing is challenging because of labor availability and cost |
 THE SOLUTION IS BUILDING A NEAR-SHORE CALL CENTER BY LEVERAGING INSIGHTS FROM OUR SUCCESS IN INDIA 52 We expect this site to increase overall call center capacity by as many as 300 AMs, at a cost-to-collect under 20% We are focused on Costa Rica and Panama because of their proven ability to effectively address the U.S. marketplace We expect to have the facility up and running in early 2012 |
 FINALLY, WE ARE CREATING A CENTER OF EXCELLENCE DEDICATED TO UNDERSTANDING FINANCIALLY DISTRESSED CONSUMERS 53 A new demographic segment has emerged It has unique features, is growing, and has needs that are only marginally served by existing business models Unique consumer demographics Focus on broader population confounds efforts to understand and respond to new population Confusing policy environment Consumer decisions are poorly understood, many voices confuse the issues, and discussions often substitute anecdotes for data Accelerating industry maturation Leading companies now capable of making investments in R&D and integrating their discoveries Clear educational opportunities Strengthen personal finance, planning, and credit skills through focused outreach and expert instruction |
 ENCORE’S DEBT RESEARCH INSTITUTE WILL SERVE MULTIPLE CONSTITUENCIES 54 Create and manage a tailored suite of programs that provide significant, measureable benefit to consumers Promote financial literacy Conduct research to understand financially distressed consumers’ choice, consumptive, and financial behaviors Enhance consumer intelligence Integrate experimental psychology and behavioral finance into collection practices Increase collection efficacy DEBT RESEARCH INSTITUTE |
 SUMMARY 55 • Investments made over the past few years have driven significant improvements in collections, cash flow and earnings • Difficult regulatory environment being managed proactively • Expanding presence in India, combined with new strategic initiatives, are expected to continue increasing cash flow from operations • Demonstrated ability to raise and profitably deploy capital in favorable and unfavorable business cycles |
 APPENDIX |
 APPENDIX A: CUMULATIVE COLLECTIONS BY PORTFOLIO VINTAGE 57 Cumulative Collections through March 31, 2011 (000’s) Year of Purchase Purchase Price <2005 2005 2006 2007 2008 2009 2010 2011 Total CCM <2005 $385,479 $749,791 $224,620 $164,211 $85,333 $45,893 $27,708 $19,986 $4,352 $1,321,894 3.4 2005 192,585 66,491 129,809 109,078 67,346 42,387 27,210 5,510 447,831 2.3 2006 141,029 42,354 92,265 70,743 44,553 26,201 5,316 281,432 2.0 2007 204,114 68,048 145,272 111,117 70,572 13,460 408,469 2.0 2008 227,885 69,049 165,164 127,799 26,645 388,657 1.7 2009 253,449 96,529 206,773 49,738 353,040 1.4 2010 359,843 125,853 77,752 203,605 0.6 2011 90,355 8,262 8,262 0.1 Total $1,854,739 $749,791 $291,111 $336,374 $354,724 $398,303 $487,458 $604,394 $191,035 $3,413,190 1.8 |
 APPENDIX B: RECONCILIATION OF ADJUSTED EBITDA 58 Reconciliation of Adjusted EBITDA to GAAP Net Income (Unaudited, In Thousands) Three Months Ended Note: The periods 3/31/07 through 12/31/08 have been adjusted to reflect the retrospective application of ASC 470-20 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 GAAP net income, as reported 4,991 (1,515) 4,568 4,187 6,751 6,162 3,028 (2,095) 8,997 6,641 9,004 8,405 10,861 11,730 12,290 14,171 13,679 Interest expense 4,042 4,506 4,840 5,260 5,200 4,831 5,140 5,401 4,273 3,958 3,970 3,959 4,538 4,880 4,928 5,003 5,593 Contingent interest expense 3,235 888 - - - - - - - - - - - - - - - Pay-off of future contingent interest - 11,733 - - - - - - - - - - - - - - - Provision for income taxes 3,437 (1,031) 1,315 2,777 4,509 4,225 2,408 (1,442) 5,973 4,166 5,948 4,609 6,490 6,749 6,632 9,075 8,601 Depreciation and amortization 869 840 833 810 722 766 674 652 623 620 652 697 673 752 816 958 1,053 Amount applied to principal on receivable portfolios 28,259 29,452 26,114 29,498 40,212 35,785 35,140 46,364 42,851 48,303 49,188 47,384 58,265 64,901 63,507 53,427 85,709 Stock-based compensation expense 801 1,204 1,281 1,001 1,094 1,228 860 382 1,080 994 1,261 1,049 1,761 1,446 1,549 1,254 1,765 Adjusted EBITDA 45,634 46,077 38,951 43,533 58,488 52,997 47,250 49,262 63,797 64,682 70,023 66,103 82,588 90,458 89,722 83,888 116,400 |