AXIS AUTO FINANCE OVERVIEW2020

HIGHLIGHTS

Note: All dollar amounts in CAD | fiscal year end is June 30

TSX-V: AXIS is a technology-driven specialty lender

extending used vehicle loans to borrowers with credit scores

in the non-prime range

AXIS originates loans indirectly through a coast-to-coast

network of 1,200+ automotive dealers

AXIS loans give our clients much needed access to a vehicle

and support credit rebuilding

Best in the industry management team led by Todd Hudson,

the founder of Element Financial

Axis is the only Canadian lender covering the entire non-

prime credit spectrum

Significant capital available to fund growth via its $100 MM

senior debt line and securitization facilities

Recently announced a strategic partnership with US giant

Westlake Financial, largest privately-held non-bank

automotive finance company in the U.S.

Operating Geography

Loan Book PresenceCorporate Office

Western Canada

Ontario and Maritimes

Quebec

$15 MM

$127 MM

$15 MM $127 MM

FY2016 Q3 FY2020

Finance Assets

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MANAGEMENT TEAM

Ilja TroitschanskiTodd Hudson Richard Lloyd Steven KosterChief Executive Officer Founder and President Chief Financial Officer Managing Director

25 years of sales and operations management experience in

Canadian alternative lending

Proven track record of excellence growing companies organically

and having overseen and integrated 14 acquisitions

A successful entrepreneur with a wealth of business development experience

Has built Axis consistently delivering best portfolio metrics in the industry

Former Director of Operations & Finance at

Travelers (acquired by Scotiabank)

20 year career in the automotive finance industry

Former SVP Finance at CIT Canada/Newcourt Credit –annual originations of US$

1.2B

Former General Manager at TD Equipment Finance

Best-in-class management team of industry veterans is leading Axis on to the next stage of growth

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THE MARKET

$40 BillionCanadian Used Car

Market

A vehicle is a necessity, with

3 million used cars sold annually in Canada

~30% of Canadians do not

qualify for traditional financing

sources

Canadian Non-prime used

vehicle financing industry

30%Addressable Consumer

Base

$8 Billion Industry

There are >8,000 auto dealers in CanadaAxis is currently servicing ~1,200

The massive Canadian used car market has realized significant growth over the past decade

Source: Desrosiers

$29 $28$30

$32$35 $36 $36 $35

$37$39 $38

$41$43 $45 $46

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E

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Client Credit

Quality A B C D

Lenders

Servicing Market

Segment

THE COMPETITION

AXIS OFFERING OF FULL SPECTRUM B TO D-CREDIT IS UNIQUE TO THE MARKETPLACE

A and B credit markets are dominated by the banks

The D credit market is highly fragmented with no dominant players

The opportunity for rapid expansion exists through offering a full non - prime spectrum credit program to dealers

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LendCare

OUR CUSTOMERSAverage Customer Demographic

Average Contract

37 years oldIncome of ~$3,900/monthCredit score between 450-600

7 years oldBeginning balance of ~$14,000 Monthly payments of ~$400Average term of 48 months

14%

4% 4% 5%

10% 12%

24%

21%

4%

No Score < 549 550 - 599 600 - 649 650 - 699 700 - 749 750 - 799 800 - 849 850 +

Canadian Credit Market Average Vehicle Depreciation

Source: Equifax, retireby40.com

~30% of Borrowers are non-prime

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OUR UNDERWRITING TRACK RECORD

Source: Equifax, Company disclosures

Note: dates are presented in calendar format

• In-house developed predictive risk indicators power better-than-market performance

• Asset Control (GPS) devices utilized to mitigate risk

• Rigorous Credit Policy reviews allow quick changes where necessary

• Newest Fraud Detection tools (Citadel) utilized in underwriting

Delinquencies – Axis vs. Market

12.0% 12.0% 12.1% 12.1% 12.2% 12.4% 12.5% 12.6% 12.2% 11.6%

13.0%

4.1% 3.5%

4.7% 4.1%

3.0%

5.4%

7.1% 7.4%

5.7% 4.7%

5.7%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2017 2018 2019

Industry (30+ DPD) Axis (30+ DPD)

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RECESSION SAFE BUSINESS MODEL

Carfinco (CFN) went through the last

recession with a very manageable

~4% increase in credit losses

Prices of Canadian used cars have

remained very stable over time

During the “Great Recession” used car

prices dipped only 9%, while sales

volumes remained stable

Non-Prime Credit Segment is historically most stable in Economic Downturns

Source: Axis, Equifax Database.

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AXIS PLATFORM

1

2

3

4

STRONG MARKET PRESENCE

HIGHLY LEVERAGBLE GROWTH PLATFORM

SUPERIOR TECHNOLOGY INFRASTRUCTURE

BEST IN CLASS MANAGEMENT TEAM AND BOARD, PERFECTLY ALLIGNED WITH SHAREHOLDERS

Geographically diversified Coast-to-Coast

The only full spectrum non-prime lender in Canada

Size and scale provide operating leverage to grow organically and serve as a portfolio acquisition platform

Lowest cost of capital in the D-credit market

Fully integrated Loan Origination & Management System

Westlake partnership provides access to leading edge adjudication and dealer servicing platform

Strong management team with decades of experience in the non-prime automotive finance sector

Significant shareholder alignment (insiders own 30%)

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Credit Rehabilitation & Public Perception100% of Axis loans report to the credit bureau

• Axis is an effective stepping stone to credit recovery

>71%(1)

of Axis customers improve their credit rating through an Axis loan

• Automobile installment loans act as a highly effective method to improve one’s credit rating

Industry leading brand reception across numerous metrics

A+ 4.3 / 5.0(Top Ranked vs Peers)

4.3 / 5.0

10Source: Axis, Equifax Database

(1) Pays (or paid) within 30 days of due date or not over one payment past due

BOARD OF DIRECTORS

Paul Stoyan

Chairman

• Chairman of Gardiner Roberts LLP, a Canadian business law firm

• Director at ECN Capital and Enghouse Systems; former Director at Open Text Corporation

Todd Hudson

Director• CEO of Axis

Ilja Troitschanski

Director• Founder and President of Axis

Bruce Smith

Director

• Former President and Chief Operating Officer of Element Financial Corporation (TSX: EFN) and former

Managing Director and Senior Vice President of Vendor Finance at CIT Financial

Gerry Thom

Director

• 35 years of experience in operations and management in the public and private sectors

• Recently retired as President of the Public Services Commission

Jordan Zinberg

Director

• Founder and CEO of Bedford Park Capital

• Former MD and PM at Donville Kent – an award winning $300 MM hedge fund

Wes Neichenbauer

Director

• VP and CFO at Rowntree Enterprises

• Decades of experience in automotive retail and financing with Applewood and Trend Financial

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CAPITAL STRUCTURE

39%Retail Holdings

30%Axis Insider

Holdings

31%Institutional

Holdings

Equity OwnershipCapitalization

Source: All dollar amounts in C$MM, all share amounts in millions

June 30, 2020

Capitalization Equity Ownership

Share Price (as of Jun. 30, 2020) $0.30

Axis Insider Holdings 28.7

Institutional Holdings 30.0

Retail Holdings 37.8

Basic Shares Outstanding 96.5

Market Cap $29

Metrics

Axis P/B 0.7x

Carfinco (CFN) 10 Year Avg. P/B 4.1x

Carfinco (CFN) 10 Year Avg. P/E 11.4x

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CREATING SHAREHOLDER VALUE IN SUB-PRIME AUTO

Acquired in 2006 by

Acquired in 2007 by

Acquired in 2015 by

Acquired in 2015 by

(Travelers Leasing

Corporation)

P / B: 4.0x

P / B: 4.1x

P / B: 4.2x

Terms not disclosed

CASE STUDY ON CARFINCO SHAREHOLDER RETURN SHOWN IN APPENDIX

Source: Company materials, equity research13

-

2,500

5,000

7,500

10,000

Ontario Quebec Eastern Western

Impact of COVID-19 on Axis’ Business

Source: COX Automotive

• Mandated dealership shutdown resulted in a slow down of originations

• Application volumes almost back to pre-COVID levels by the end of June 2020

• 12.5% of portfolio accounts granted ‘COVID-19 deferral’ – majority have reverted to regular paymentschedules by the end of June 2020

• $6.25M Government BCAP loan eliminates the need for growth capital

• Management steps to lower SG&A combined with the wage subsidy helped weather the storm

Weekly Volumes (Prime + Non-Prime Auto)

Nearly reverted to

pre-COVID-19 levels

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AXIS AUTO FINANCEIlja TroitschanskiFounder & PresidentPhone: (416) 633-5626Email: ir@axisautofinance.com

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