deutsche bank 23rd annual european leveraged finance ...€¦ · deutsche bank 23rd annual european...

Deutsche Bank 23rd Annual European Leveraged Finance Conference

5 June 2019

Confidential

Disclaimer

Confidential 1

This presentation has been prepared by NewDay Cards Limited on behalf of NewDay Group (Jersey)

Limited (the “Company”) on a confidential basis solely for information purposes. For the purposes of this

notice, the presentation that follows shall mean and include the slides that follow, the oral presentation of

the slides by the Company or any person on behalf of the Company, any question and answer sessions

that follows the oral presentation, printed copies of this document and any materials distributed at, or in

connection with the presentation (collectively, this “Presentation”). By attending the meeting at which this

Presentation is made, or by reading this Presentation, you will be deemed to have (i) agreed to the

following restrictions and made the following undertakings and (ii) acknowledged that you understand the

legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of this

Presentation.

All financial information contained in this Presentation relates to the consolidated financial results

of the Company (and not, except where expressly stated to the case, NewDay BondCo plc). None of

the information contained in this Presentation has been audited, reviewed or verified by any independent

accounting firm other than the financial information relating to the 12 month periods ended 31 December

2017 and 31 December 2018. Due to rounding, numbers presented throughout this Presentation may not

add up precisely to the totals indicated and percentages may not precisely reflect the absolute figures for

the same reason. All non-financial information contained in this Presentation relates to the business,

assets and operations of the Company together with its subsidiaries and subsidiary undertakings (the

“Group”). All financial information contained in this Presentation relating to the 12 month period ended 31

December 2017 is shown on a pro forma basis reflecting the consolidated performance of NewDay Group

Holdings S.à r.l. for the period from 1 January 2017 to 25 January 2017, being the date on which NewDay

Group (Jersey) Limited acquired NewDay Group Holdings S.à r.l.. Certain financial data included in this

presentation consists of “non-IFRS financial measures”. These non-IFRS financial measures, as defined by

the Company, may not be comparable to similarly-titled measures as presented by other companies, nor

should they be considered as an alternative to the historical financial results or other indicators of the

Company’s cash flow based on IFRS. Even though the non-IFRS financial measures are used by

management to assess the Company’s financial position, financial results and liquidity and these types of

measures are commonly used by investors, they have important limitations as analytical tools, and you

should not consider them in isolation or as substitutes for analysis of the Company’s financial position or

results of operations as reported under IFRS. The inclusion of such non-IFRS financial measures in this

Presentation or any related presentation should not be regarded as a representation or warranty by the

Company, any member of the Group, any of their respective affiliates, advisors or representatives or any

other person as to the accuracy or completeness of such information’s portrayal of the financial condition

or results of operations of the Company and should not be relied upon when making an investment

decision.

References to Adjusted EBITDA throughout this Presentation are references to “Consolidated EBITDA” as

defined in the legal documentation relating to the £425m Senior Secured Notes issued by NewDay

BondCo plc on 25 January 2017 (the Senior Secured Debt) and the Super Senior Revolving Credit Facility

entered into by the Company on 25 January 2017 (the Revolving Credit Facility) based on IFRS as in force

as at 31 March 2019 (or, in respect of periods ending prior to 31 March 2019, IFRS at the relevant time).

However, all ratios, baskets and calculations required under the terms of the Senior Secured Debt and

Revolving Credit Facility are based on IFRS as in force as at 25 January 2017. As a result, such ratios,

baskets and calculations may differ significantly from any ratios or figures which are contained in this

Presentation. In particular, references to EBITDA leverage and EBITDA interest cover contained in this

Presentation have been calculated (subject to certain adjustments) in accordance with IFRS as in force as

at 31 March 2019 (or, in respect of periods ending prior to 31 March 2019, IFRS at the relevant time). As a

result, such figures will differ significantly from the calculation of Consolidated Senior Secured Net

Leverage Ratio and Fixed Charge Corporate Debt Coverage Ratio (as defined under the terms of the

Senior Secured Debt and Revolving Credit Facility).

This Presentation may contain forward-looking statements. All statements other than statements of

historical fact included in this Presentation are forward-looking statements. Forward-looking statements

express the Company’s current expectations and projections relating to their financial condition, results of

operations, plans, objectives, future performance and business. These statements may include, without

limitation, any statements preceded by, followed by or including words such as “aim,” “anticipate,” “believe,”

“can have,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “project,” “should,” “target,” “will,”

“would” and other words and terms of similar meaning or the negative thereof. Such forward-looking

statements involve known and unknown risks, uncertainties and other important factors beyond the

Company’s control that could cause the Company’s actual results, performance or achievements to be

materially different from the expected results, performance or achievements expressed or implied by such

forward-looking statements. Such forward-looking statements are based on numerous assumptions

regarding the Company’s present and future business strategies and the environment in which it will

operate in the future. You acknowledge that circumstances may change and the contents of this

Presentation may become outdated as a result.

The information contained in this Presentation should be considered in the context of the circumstances

prevailing at the time and will not be updated to reflect material developments that may occur after the date

of this Presentation. The information and opinions in this Presentation are provided as at the date of this

Presentation and are subject to change without notice. None of the Company, any member of the Group,

any of their respective affiliates, advisors or representatives or any other person shall have any liability

whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this Presentation

or its contents or otherwise arising in connection with this Presentation, or any action taken by you or any

of your officers, employees, agents or associates on the basis of the information in this Presentation.

This Presentation is not for publication, release or distribution in any jurisdiction where to do so would

constitute a violation of the relevant laws of such jurisdiction nor should it be taken or transmitted into such

jurisdiction. Nothing in this Presentation constitutes an offer to subscribe for, or otherwise acquire, any

securities.

Business overview

Confidential

NewDay history

Confidential 3

2001

2007

marbles portfolio

acquired from HSBC

aqua credit card

launched

2002

James Corcoran

appointed CEO

2009

2010

opus portfolio

acquired from Citi

2012

aqua advance and

reward cards

launched

Värde Partners

acquires SAV Credit

2011

Entry into Co-Brands

through acquisition of

Santander UK Co-

brand credit and store

card business

2013

2014

Renamed NewDay

Co-brand Master

Trust Securitisation

aqua start card

launched

2016

Authorised by FCA

TUI card launched

Cinven and CVC

Capital Partners

announced

acquisition of

NewDay

marbles card re-

launched

Own-brand Master

Trust Securitisation

2015

SAV Credit

established

Amazon card

launched

opus card

re-launched

2017

2018

NewPay digital credit

product launched

Fluid card launched

Launch of mobile

apps and e-servicing

Sir Michael Rake

appointed as

Chairman

We were founded in 2001 as SAV Credit, launching our first credit card, aqua in 2002.

We are now a leading consumer credit company serving around five million customers across

the UK through our diverse & growing business.

Launch &

DevelopmentAcquisitions, Integration and Development Reinvigorate and Grow Digitalise and Re-imagine

Argos

card

launched

2019

+64(2017: +65)

Net Promoter

Score

NewDay in numbers*

Confidential 4

Our award-winning business is growing

1.4m(2017: 0.7m)

app downloads

to date

1,208(2017: 1,001)

colleagues

£5.0bn(2017: £3.9bn)

total spend

1.2m(2017: 1.1m)

new account

acquisitions

107m(2017: 83m)

transactions

processed

£2.6bn(2017: £2.2bn)

closing Group receivables

* Values presented as at 31 December 2018 / 2018, with 2017 comparatives as stated

Trusted brands

Our brands Our retail partners

Confidential 5

We help customers be better with credit with our Own-brand products and, together with our retail partners, our Co-brand credit solutions

How we deliver our vision

Confidential 6

Opportunity Enablers

Evolving with our customers to address changing needs

Outcomes

Driving high standards forour customers, colleagues and community through our Manifesto

Leveraging a leading digital platform

Acquiring new customers and creating long-term relationships

Delivering strong controlled growth

The way our customers apply, spend and pay is changing,and technology is opening up previously inaccessible e-commerce opportunities as well as facilitating new data insights.

In order to deliver on the market opportunity ahead of us, our Manifesto offers us a framework to understand how we can improve our customers’ journeys, and our leading digital platform allows us to execute at speed and scale.

We are a leading customer acquirer and build long-term relationships which aim to deliver predictable, embedded profits and cash generation.

Confidential 7

Our ManifestoHelping people be better with credit is central to all that we do

Welcoming Knowing Understanding Rewarding

Guided by our Manifesto, we help people in the following ways:

• offering access to credit by responsibly saying “yes” to more prime and near-prime customers

• extending affordable credit lines to customers and pricing appropriately for risk

• meeting customer needs with a broad range of products and tools to manage their credit

• supporting individuals on their credit journeys and working sensitively with vulnerable customers

• rewarding positive credit behaviours and brand loyalty

Our digital journey

Confidential 8

80% of digital testing

automated apps launched

17Product launch time

reduced by over

50%

October 2017

Digital technology

delivery fully agile

November 2017

In-house cloud-based

digital platform

December 2017

Robotic Process

Automation Centre of

Excellence

established

April 2018

Mobile apps built and

managed in-house

Migrated e-servicing

in-house

May 2018

Own-brand acquisition

migrated to new digital

platform

Fluid launched on

new platform

August 2018

Open APIs for retailer

integration

First end-to-end agile

team

Data science-led

affordability assessment

September 2018

In-house cloud hosted

data lake

December 2018

Data science-led

retail analytics

First internal

hackathon

February 2019

Chatbot launched

October 2018

NewPay launched with

first retail partner

Imperial College Data

Science Society

sponsorship

Over

engineers acrossdigital and data

100mobile app

downloads to date

1.4mof customersregistered for

e-servicing

2.4m(50%)

21

31

Q118 Q119

Adjusted EBITDA (£m)

Receivables by year of

origination (£m)

Outcomes

Confidential 9

We are a leading customer acquirer and build long-term relationships which aim to deliver predictable, embedded profits and cash generation

New account originations (k)

RAI and RAM

Customer relationships Strong growth and high predictability

1.13mCustomers with improved

credit score in the last 12

months (1.10m in 2018)

44%

20%growth to £2.6bn (Mar-18: £2.2bn)

Year-on-year receivables:

Year-on-year Adjusted EBITDA:

44%growth to £31m (Q118: £21m)

456 457

733 729

15 171,204 1,203

2018 Q119 LTM

Own-brand Co-brand UPL

3.5x 3.2x

2018 LTM Q119

Leverage

EBITDA leverage and interest

cover*

2.6x 2.9x

2018 LTM Q119

Interest cover

6783

12.3% 12.7%

Q118 Q119

RAI (£m) RAM*calculated in accordance with prevailing IFRS as

opposed to 25/01/17 as per the terms of the Senior

Secured Debt and Revolving Credit Facility

79%

18%

3%

1,815

2,164

2,623

2,178

2,611

2016 2017 2018 Q118 Q119

<2016 2016 2017 2018 2019

The use of cash and cheques is declining, whilst contactless technology has accelerated the shift to

cards, particularly for low-value purchases.

Online shopping penetration has been steadily growing and online retailers continue to take a

greater share of wallet.

Payment trends

Confidential 10

Total retail spend (£bn)1

NewDay spend (£bn)

52 60 68

299 306 312

2016 2017 2018

Offline

Online

0.9 1.21.7

2.42.7

3.3

2016 2017 2018

Offline

Online

3bn 13%Credit

13bn 14%Debit

13bn 15%Cash

10bnOther

Payment volumes by type2

35%of card payment

volumes were

contactless in

20173

78%of adults reported

holding at least

one contactless

card in 20173

Total

transactions

NewDay

39bn2

107m

Total payment volumes

Payment Trends Retail spend

1. Office for National Statistics.

2. UK Finance (www.ukfinance.org.uk) – UK Payment Markets 2018. Volumes based on 2017 data. Growth rates based on 2016 to 2017.

3. UK Finance (www.ukfinance.org.uk) – UK Card Payments 2018.

The way our customers apply, spend and pay is changing, and technology is opening up previously inaccessible e-commerce opportunities

Card types Distribution

New to credit

Low income

Sole

trader

Second chanceManaging credit

Customer segment Customer needs

Education Financial control

Support Prime bridge

11

Own-brand business

12* Includes legacy storecard portfolio

Product Types* Distribution

Customer Segment

Customer needs

Partnerships

Broad risk spectrum capability

Online Store In Store Debenhams

House of Fraser

Arcadia GroupLaura Ashley

Amazon

TUI Group

Promotional Offers

Buy Now

Pay Later

0% purchase offers

Balance Transfers

Money Transfers

Instant credit

& spending

Rewards &

recognition

Exclusive

discounts

Co-brand

Credit CardDigital

credit

Instalment

plans Unshackled.com

Co-brand business

Argos

Financial performance

Confidential

97110

62 62

10.4%12.3%

Q118 Q119

Total income (£m) Impairment (£m)RAM

Own-brand

Confidential 14

Continued new account generation Digital sourcing and spend Robust receivables growth

Digital servicing 190bps increase in risk-adjusted margin Contribution

Continued sustainable receivables growth and RAM improvement

100%of customers digitally

sourced in Q119 (98%

for Q118)

£168mSpend through digital

channels

(£133m for Q118)

1.2mtotal app downloads

(0.8m at Mar-18)

79%Customers registered

for e-servicing

(73% at Mar-18)

3548

New accounts (000’s) Closing receivables (£m)

90%93%

1,357

1,588

Q118 Q119

Open book Closed book

121 122

Q118 Q119

aqua marbles opus Fluid

17%

£33mOwn-brand contribution

for Q119, a 57%

increase on Q118

£14mYear-on-year increase in

risk-adjusted income

4047

711

16.3%14.9%

Q118 Q119

Total income (£m) Impairment (£m)RAM

Co-brand

Confidential 15

New partnerships and propositions Robust receivables growth

10% growth in risk-adjusted income Digital servicing

Continued receivables growth and new partnerships

Digital sourcing and spend

Continued new account generation

359kapp downloads since

launch (April 2018)

43%Customers registered

for e-servicing

(27% at Mar-18)

45%of customers digitally

sourced in Q119 (38%

for Q118)

£277mSpend through digital

channels

(£231m for Q118)

3336


787942

Q118 Q119

20%151 147

38% 45%

Q118 Q119

Digital Traditional

Credit

Confidential 16

Reduction in impairment rate driven by Own-brand

Provision coverage

Downward trend in Group charge-off rate since Q118

16.7% 15.7% 14.4%

3.3% 3.6% 3.6%

11.6% 11.0%10.3%

Q118 2018 Q119

Own-brand Co-brand Group

2,178

2,623 2,611

365 406 418

16.8% 15.5% 16.0%

Q118 2018 Q119

Gross receivables (£m) Provision (£m) Coverage rate

13.0% 13.0%11.6%

Q118 2018 Q119Own-brand Co-brand UPL

Impairment rate (%) Charge-off rate (%)

140bpsReduction in Group impairment rate since

Q118

130bpsReduction in Group charge-off rate since

Q118

Costs

Confidential 17

50bps decrease in underlying cost-income ratio since 2018 Ongoing reduction in servicing costs as % average receivables

39% Customers registered for e-statements,

compared to 22% at Mar-18

53%Over half of customers now registered for

e-servicing, compared to 38% at Mar-18

30.0% 31.8% 31.3%

Q118 2018 Q119

Underlying cost-income ratio (excluding VCP and CCMS implementation costs) (%)

3.8% 3.7% 3.6%

Q118 2018 Q119

Servicing costs/average receivables (%)

89% Self-service rate for customers who contacted

NewDay during Q119

19Robotic Process Automation established

for 19 processes, compared to 17 at Dec-18

£m Q118 Q119 2018

LTM

Q119

Interest income 134 160 579 605

Cost of funds (12) (15) (52) (55)

Fee and commission income 15 15 64 63

Total income 137 159 591 613

Impairment (70) (76) (302) (307)

Risk-adjusted income 67 83 289 306

Servicing costs (21) (23) (87) (89)

Change costs (4) (5) (24) (26)

Value Creation Plan

implementation costs (5) (4) (17) (16)

Marketing and partner payments (13) (16) (62) (64)

Collection fees 7 7 30 29

Contribution 32 42 130 140

Salaries, benefits and overheads (12) (14) (52) (54)

Add back: depreciation and

amortisation 1 2 4 6

Adjusted EBITDA 21 31 82 92

Average gross receivables 2,164 2,607 2,325 2,427

Gross interest and fee yield (%) 27.5% 26.7% 27.7% 27.5%

Impairment (%) 13.0% 11.6% 13.0% 12.7%

RAM (%) 12.3% 12.7% 12.4% 12.6%

EBITDA leverage 3.5x 3.2x

EBITDA interest cover 2.6x 2.9x

Income statement

Confidential 18

Total income

£159m(Q118: £137m)

Impairment rate

11.6%(Q118: 13.0%)

Strong income

growth as

receivables

continued to

grow

Impairment rate

reduction was

predominantly

driven by charge-

offs

Risk-adjusted income growth

25%RAI increased

due to favourable

movements in

income and

impairment rate

Adjusted EBITDA

£31m(Q118: £21m)

44% year-on-

year increase in

adjusted

EBITDA

£m Q118 Q119 2018

LTM

Q119


Change in impairment provision 19 11 60 52

Adjusted EBITDA excl. provision 41 42 143 144

Change in working capital (7) (25) 3 (15)

PPI provision utilisation (6) (3) (20) (17)

Capital expenditure (3) (2) (9) (9)

Tax paid (2) (2) (7) (6)

FCF available for growth and debt service 23 10 109 97

(Increase)/decrease in gross receivables (19) 6 (471) (446)

Net financing cash flow 9 (7) 403 387

FCF available for Senior Secured Debt

interest 13 10 41 37

Debt service - cash payments (13) (13) (31) (31)

Net increase/(decrease) in unrestricted

cash 1 (3) 10 6

Cash flow statement

Confidential 19

Change in working capital

£25m(Q118: £7m)

£15m impact of

payment following

novation of the

House of Fraser

contract*

Adjusted EBITDA (excl.

provision)

£42m(Q118: £41m)

Adjusted EBITDA

(excl. provision)

remained flat year-

on-year as the

impairment

provision stabilises

FCF available for Senior

Secured Debt interest (LTM)

£37m(2018: £41m)

NewDay continues

to generate

favourable cash

returns. 2018 saw

the deleveraging of

Own-brand debt†

PPI utilisation

slowed as claims

deadline

approaches. PPI

provision at Mar-19

was £22m

PPI utilisation

£3m(Q118: £6m)

†Jul-18 refinancing sold down to BBB rather than BB.

Additional £26m would be available if the issuance had

been sold to BB*Q119 cash flow impacted by the payment for in-store House of Fraser customer

spend relating to the period 10/08/18 to 05/03/19 that was settled post novation of the

contract to Sports Direct in Q1. £15m of this payment related to customer spend from

10/08/18 to 31/12/18

Liquidity

Confidential 20

£6m increase in unrestricted cash Group advance rate remains broadly flat Significant funding headroom (£964m)

Healthy excess spreadWeighted average maturity of 2.4 years

Significant capacity for growth utilising cash and funding headroom

First 2019 maturity in June

VFN headroom (£m)

Own-brand

83.9%(Mar-18: 83.6%)

Co-brand

90.9%(Mar-18: 90.9%)

Group

85.8%(Mar-18: 85.1%)

Own-brand

14.3%(Q118: 15.3%)

Co-brand

12.5%(Q118: 13.1%)

Group

13.8%(Q118: 14.5%)

Excess spreads shown exclude VFNs and Secondary Funding facilities as they are not directly comparable. Excess spread figures for these facilities are broadly similar with the exception of NP Secondary Funding Facility VFN at c8%

45 50

125 131

170181

Q118 Q119

Unrestricted cash (£m) Restricted cash (£m)

492558

473

332

55 74

Q118 Q119

Own-brand Co-brand UPL

480658

346 294

- -

45

34274

150275

2019 2020 2021 2022 2023 2024

Senior Secured Debt (£m)Drawn VFN (£m)Issued bonds (£m)

214266

OB 2016-1

OB 2015-2

Apr May Jun Jul Aug Sep Oct Nov Dec

Appendix

Confidential

Unsecured Personal Loans

Confidential 22

Continued controlled growth

50% growth in new accounts £47m receivables growth


Average loan term

41 months(Mar-18: 43 months)

Year on year growth

£47mreceivables growth

Average loan amount

£4.5k(Mar-18: £4.8k)

4

6

Q118 Q119

34

81

Q118 Q119

Statutory earnings

Confidential 23

• Senior Secured Debt interest and related costs: includes the interest charge and other costs associated with the issuance and servicing of Senior Secured Notes and the Revolving Credit Facility

• Fair value unwind: reflects the amortisation of fair value adjustments on the Group’s acquired portfolios and debt issued

• Depreciation and amortisation: includes the amortisation of the intangible assets recognised on the acquisition of the Group by funds advised by Cinven and CVC in January 2017

£m Q118 Q119 2018

LTM

Q119


Senior Secured Debt interest and related costs (8) (8) (33) (34)

Fair value unwind (1) - (2) (1)

Depreciation and amortisation including amortisation of

Acquisition intangibles (13) (15) (54) (55)

Statutory (LBT)/PBT (1) 7 (7) 1

Contribution by segment

Confidential 24

Own-brand income statement

£m Q118 Q119

Interest income 95 110

Cost of funds (8) (10)

Fee and commission income 10 10

Total income 97 110

Impairment (62) (62)

Risk-adjusted income 35 48

Servicing costs (9) (10)

Change costs (2) (3)

Value Creation Plan

implementation costs (3) (2)

Marketing costs (4) (5)

Collection fees 4 5

Contribution 21 33

Average gross receivables 1,342 1,576

Gross interest and fee yield (%) 31.2% 30.4%

Impairment (%) 18.4% 15.7%

RAM (%) 10.4% 12.3%

Co-brand income statement

£m Q118 Q119

Interest income 39 47


Fee and commission income 5 4

Total income 40 47

Impairment (7) (11)

Risk-adjusted income 33 36



Value Creation Plan


Marketing and partner payments (9) (10)

Collection fees 3 3

Contribution 12 11

Average gross receivables 796 958


Impairment (%) 3.6% 4.5%

RAM (%) 16.3% 14.9%

UPL income statement

£m Q118 Q119

Interest income 1 3


Fee and commission income - -

Total income 1 2

Impairment (2) (3)

Risk-adjusted income (1) (1)



Value Creation Plan


Marketing costs 0 (0)

Collection fees - -

Contribution (1) (2)

Average gross receivables 26 73


Impairment (%) 22.7% 18.1%

RAM (%) (9.1)% (6.0)%

Balance sheet

Confidential 25

• Increase in receivables was driven by growth of both the Own-brand and Co-brand open books

• Fair value of total assets following the Acquisition in 2017 introduced £396m of intangible assets, primarily relating to the customer and retailer relationships, the brand, trade names and intellectual property. The carrying value of these assets was £289m at Mar-19

• Other assets and other liabilities increased as operating leases and related liabilities have been recognised on the balance sheet following the adoption of IFRS 16

• Asset-backed term debt represents the term series notes issued by the Own-brand and Co-brand master trust structures

• Variable funding notes represents the debt drawn down under the five VFNs across the Group

*Other liabilities includes capitalised debt funding fees

£m Q118 Q119 2018

Gross receivables 2,178 2,611 2,623

Impairment provision (365) (418) (406)

Other 79 93 87

Net receivables 1,891 2,286 2,303

Restricted cash 45 50 50

Unrestricted cash 125 131 134

Intangible assets 347 302 314

Goodwill 280 280 280

Other assets 83 111 71

Total assets 2,770 3,159 3,152

Asset-backed term debt 1,508 1,778 1,782

Variable funding notes 340 462 469

Senior Secured Debt 430 430 435

PPI provision 39 22 25

Other provisions 8 11 11

Other liabilities* 70 91 71

Total liabilities 2,397 2,794 2,792

Net assets 374 365 360

Leverage and interest ratios

Confidential 26

• Improvement to ratios was driven by increasing EBITDA

£m Q118 Q119 2018

LTM

Q119


Senior Secured Debt 425 425 425 425

Unrestricted cash (125) (131) (134) (131)

Net corporate Senior Secured Debt 300 294 291 294

EBITDA leverage 3.5x 3.2x

Senior corporate interest expense 31 32

EBITDA interest cover 2.6x 2.9x

Glossary

Confidential 27

ABS: Asset-backed security

Adjusted EBITDA: Earnings before Senior Secured Debt interest (and related costs), tax, depreciation and amortisation

Advance rate: (ABS + VFN debt)/Gross receivables

CCMS: Credit Card Market Study

Closed book: Part of the portfolio closed to new customers

Excess spread: Key trigger across funding vehicles, broadly defined as interest and fee income, less net charge-offs, funding costs and servicing fees

FCF: Free cash flow

NP Secondary Funding Facility: NewDay Partnership Secondary Funding Facility

RAI: Risk-adjusted income

RAM: Risk-adjusted margin

Underlying cost: Costs excluding amortisation of intangibles, senior secured debt interest and non-recurring change costs (such as VCP and CCMS implementation costs)

UPL: Unsecured Personal Loans

VCP: Value Creation Plan – business-wide review highlighting areas for accelerated investment

VFN: Variable funding note

Investor Relations [email protected]

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