Vroom (VRM) Investor Update summary

Strategic direction and business overview

• Completed wind down of eCommerce used vehicle dealership to preserve liquidity and focus on UACC and CarStory, while retaining key technology and analytics resources for ongoing transformation.

• UACC operates as a national automotive finance company with a strong presence in the subprime market, a $1B+ serviced portfolio, and a 9,500+ dealer network.

• CarStory provides AI-powered analytics, a large VIN database covering 90% of US vehicles, and patented pricing models for predictive vehicle valuations.

• Vroom retains its eCommerce platform technology, exploring monetization through asset sales, licensing, or SaaS.

Strategic objectives and initiatives

• Three main objectives: achieve or improve pre-COVID cumulative net losses (CNL), grow originations with controlled CNL, and reduce operating costs.

• Four strategic initiatives: build world-class lending, sales and marketing, operational excellence in originations, and servicing.

• Developed three indicative models (base, growth, aggressive growth) to guide expansion, each with specific targets for CNL, origination mix, and cost reductions.

Business and market position

• UACC holds a 0.7% share in a $33B subprime auto lending market, which is highly fragmented.

• Near-prime expansion aims to broaden UACC’s dealer relationships and increase origination opportunities.