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Page 1: 1 Forward Looking Statements This presentation includes certain forward-looking statements regarding our expected performance for future periods, and
Page 2: 1 Forward Looking Statements This presentation includes certain forward-looking statements regarding our expected performance for future periods, and

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Forward Looking Statements

This presentation includes certain forward-looking statements regarding our expected performance for future periods, and actual results for such periods may materially differ. These statements are intended as “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties, including risks of changing market conditions in the overall economy and the industry, consumer demand, regulatory factors and the success of our strategies and other factors detailed from time to time in our annual and other reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.

Factors that could cause actual results to differ materially from the forward-looking statement include but are not limited to our inability to effectively compete in the financial services industry and maintain our share of the market, manage risks inherent in an international operation, including foreign currency fluctuation, maintain our key banking relationships, sustain demand for our products and services, and manage changes in applicable laws and regulations governing consumer protection and lending practices. All forward-looking statements included in this presentation are based upon information presently available, and the Company assumes no obligation to update any forward-looking statements.

Page 3: 1 Forward Looking Statements This presentation includes certain forward-looking statements regarding our expected performance for future periods, and

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Overview of Dollar Financial Corporation

• Large and growing customer base of under-served wage earners

• Growing network of 1,335 neighborhood stores in U.S., Canada and the U.K. at June 30, 2005– 716 company owned stores and 619 franchised stores– Largest store network of its kind in Canada and the

U.K.– Added 225 stores in Fiscal 2005

• A range of products and services, including check cashing, short-term consumer loans (“payday loans”) and wire transfers

• Accretive We the People acquisition provides growth platform and further diversifies product offerings

We are the leading international retail financial services company serving under-banked consumers

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Investment Highlights

• Large under-served international markets with increasing demand for financial services

• Company is a market leader in the U.S., Canada and U.K.

• Diversified product and geographic mix reduces risk

• Compound revenue and EBITDA growth of 13.0% and 17.0%, respectively

• International operations contribute 59.5% of total revenue and are growing at a 27.3% annual rate

• Continued growth through network expansion, new products and services and operating efficiencies

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Under-Banked

36%

Under-Banked

32%

Large and Growing Market

• Growing service sector economies– Advent of “Barbell” economy– Urgent demand for financial services– Significant increase in NSF and other late fees

from banks, credit card companies, utilities

• Increasing demand for / and willingness to take on credit

– “42% of consumers make no payment or the minimum payment on their revolving credit card”(2)

• Decreasing alternatives from traditional financial institutions

(1) Federal Reserve Bank Statistics: www.fedstats.com.(2) Cambridge Consumer Credit Index, March 2004.

Major Market Growth DriversUnder-Banked Households(1)

34.0 mm

3.5 mm

8.5 mm

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Markets Large and Growing, but Underdeveloped

$6.0$10.0

$22.0

$57.0

$0

$10

$20

$30

$40

$50

$60

PaydayLending

BankOverdrafts

NSF Checks Other LateCharges

U.S. Market Size – Total Fee IncomeDomestic Consumer Loan Market: Fee Income ($BB)

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US CC

US CL

US OtherCDN CC

CDN CL

CDN Other

UK CC

UK CL

UK Other

Diversified Product & Geographic Mix: Fiscal Year 2005 Revenues By-Country / By-Product Line

No Country/Product Line accounts for more than 21% of total revenue and We the People further diversifies revenue base

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Regulatory Environment

• Transition to company-funded loans in response to U.S. regulatory changes– 326 U.S. stores now operate under settled state laws– 21 stores in TX and PA will continue to operate as agents for

banks– Transition will reduce fiscal 2006 revenue by $8.0 to $12.0 million

• Company funded lending activities in Canada and U.K.– Canadian lending is subject to federal usury ceiling – Limited provincial licensing in certain territories– Consumer Credit Act of 1974 in U.K. provides framework– Company is proactive in leading self-regulated industry

associations

• Committed to ongoing investments in management, systems and training to support compliance

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Growth Strategy

• Balanced new store development

• Strategic acquisitions in all countries– Three acquisitions since January 27th IPO

• Franchising opportunity in U.S.

• Expand international franchise

operations

• Broaden product offering and cross-

selling of services

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Substantial Store Growth

0100

200

300

400500

600

700

800

Franchised Company

Existing Acquired De Novo

• Total stores 1,335 at June 30, 2005

• 225 units added in Fiscal Year 2005

• 4Q 2005: opened 11 de novo stores

• Fiscal Year 2005 company store growth De Novo Acquired Total

U.S. 12 32 44

Canada 20 20

U.K. 10 19 29

Total 42 51 93

• Expected substantial unit growth in We the People

619

716

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Accretive Acquisitions: Fiscal Year 2005

• Louisiana– 24 Stores / $5.6mm annual revenue contribution

– Build leveragable presence in LA

• South London– 19 stores / $3.2mm annual revenue contribution

– Last sizable chain in England

• We the People– 175 stores / $13.5mm annual revenue contribution

– New product in targeted demographic

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We the People Forms and Service Centers USA, Inc.

• Retail-based assisted preparation of basic legal documents

• At June 30, 2005, 172 franchised and 3 Company-operated stores in 32 states – CA largest state

• Growth in revenue and earnings– Franchise sales– Company-owned stores– Cross-sell into Dollar stores– Potential applicability in U.K. and Canada– Back-office consolidation efficiencies

• Acquisition closed March 7, 2005

• Attractive size, valuation and structure

• Founders/managers remain

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Large Underserved Legal Document Prep Market

• Annually, 38 million Americans do not act on pressing legal matters because they cannot afford to hire an attorney

• A survey from the National Center for State Courts found that 58%of Americans believed they could represent themselves in

legal matters

• Demand and awareness increasing:– Recent changes in bankruptcy law – Increased interest in living wills

• Total North American market size is estimated at $14.8 Billion

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We the People Queens Village, NY

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Broaden Product Offerings

• Funded and re-loadable debit cards featuring Visa® brand

• Installment and overdraft loans

• Bill payment services

• Document preparation services

• easytaxTM product in Canada

• Gift cards

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Financial Highlights

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$309.4 $336.9

$378.6$414.0

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

2002 2003 2004 2005

Improving Store Performance

2003 2004

33.2%

$70.8

$213.1

34.8%

$83.2

$238.9

36.5%

$102.2

$280.3

Margin Percentage

Store Operating Margin

Net Revenues (1)

Twelve Months Ended June 30,

(1) Excludes franchising revenue.

$95.4

$111.9

$131.9$151.0

$0.0

$25.0

$50.0

$75.0

$100.0

$125.0

$150.0

$175.0

2002 2003 2004 2005

Average Net Revenue/Store Average Store Operating Margin

10.2% CAGR

16.5% CAGR

2005($ in Millions)

($ in Thousands)($ in Thousands)

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Consistent Revenue Growth

$75.0

$125.0

$175.0

$225.0

$275.0

2002 2003 2004 2005

($ in Millions)13.0 % CAGR

$291.6

$202.0

$219.4

$246.1

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$48.3$51.4

$64.6

$40.0

$50.0

$60.0

$70.0

$80.0

2002 2003 2004 2005

($ in Millions)

Strong EBITDA Trends

17.0% CAGR $77.3

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$45.3

$49.7$51.4

$53.8

$57.5

$61.9$64.6

$67.6

$72.2$74.5

$77.3

$40.0

$50.0

$60.0

$70.0

$80.0

2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05

($ in Millions)

Strong Quarterly EBITDA Trends

(1) Base on the Last Twelve Months

(1)

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Fiscal Year 2005 Highlights

• Acquired 175 document preparation stores, 19 financial services stores in the U.K. and 29 financial services stores in the U.S.

• Increased total revenue by 18.5% or $45.5 million

• Increased comparable store sales by $36.7 million or 15.1%

• International operations accounted for 59.5% of sales and realized a 27.3% increase in revenues

• Normalized Income before income taxes was $30.3 million, a $17.1 million increase over Fiscal Year 2004

• Normalized earnings per diluted share was $1.22(1)

(1) Excludes $10.7mm in non-recurring charges related to the IPO and utilizes an effective tax rate of 42%

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Long-Term Capitalization

$331.4Total Capitalization

59.6Total Shareholders’ Equity

$271.89.75% Senior Notes due 2011

6/30/05($ in millions) Comments

• January 2005 IPO raised $120 mm

– Repaid $95mm high cost (15%) debt

• Transition from MBO-based capital structure

• Provides investment flexibility

• Long-term debt is fixed rate due 2011

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Fiscal Year 2006 Guidance

• Total revenue of between $300.0 million and $305.0 million.

• EBITDA of $78.0 million to $80.0 million.

• Income before income taxes between $36.0 million and $38.0 million.

• Fully diluted earnings per share of between $0.77 and $0.82.

• Open between 20 and 25 new company-owned financial services locations.

• Open between 10 and 20 new franchise locations principally in the U.S. and Canada.

• Open between 40 and 60 combined company-owned and franchised We the People document processing stores.

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We are A Strong, Growing Company

• Positioned for future growth

• Scale and market leadership positions in all countries

• Accelerating EBITDA growth in all counties

• Centralized infrastructure provides a scaleable platform for growth

• Strong management team to strategize and direct our growth

• Access to additional capital for organic growth and acquisitions

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