FINANCIAL RESULTS FOR THE YEAR TO 31 March 2019 Disclaimer This - - PowerPoint PPT Presentation

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FINANCIAL RESULTS FOR THE YEAR TO 31 March 2019

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Disclaimer

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

This presentation has been prepared by Amigo Holdings PLC (“the Company”) and includes the results of Amigo Loans Group Ltd (“ALGL”) solely for informational purposes. A reconciliation of the results between the Company and ALGL is shown in the Appendix. For the purposes of this disclaimer, the presentation shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on their behalf, any question-and-answer session that follows the oral presentation, hard copies of this document and any materials distributed in connection with the presentation. By attending the meeting at which the presentation is made, dialing into the teleconference during which the presentation is made or reading the presentation, you will be deemed to have agreed to all of the restrictions that apply with regard to the presentation and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation. The Company has included non-IFRS financial measures in this presentation. These measurements may not be comparable to those of other companies. Reference to these non-IFRS financial measures should be considered in addition to IFRS financial measures, but should not be considered a substitute for results that are presented in accordance with IFRS. The information contained in this presentation has not been subject to any independent audit or review. Certain of the information contained in this document is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. The Company has not verified the accuracy of such information, data or predictions contained in this report. In addition, past performance of the Company is not indicative of future performance. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this presentation or the opinions contained herein. The future performance of the Company will depend on numerous factors which are subject to uncertainty. Certain statements contained in this document are forward-looking statements, including, without limitation, any statements preceded by, followed by or including the words “targets,” “believes,” “expects,” “aims,” “intends,” “may,” “anticipates,” “would,” “could” or similar expressions or the negative thereof, notwithstanding that such statements are not specifically identified. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and outside of the control of the management of the Company. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The Company has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While the Company does not know what impact any such differences may have on its business, if there are such differences, the Company’s future results of operations and financial condition, and the market price of the notes, could be materially adversely affected. You should not place undue reliance on these forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements referenced above. Forward-looking statements speak only as of the date on which such statements are made. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any of the information in this presentation to reflect events or circumstances after the date on which this presentation was made, or to reflect the occurrence of unanticipated events. The presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire the Company or the Company’s securities, or an inducement to enter into investment activity in any jurisdiction in which such offer, solicitation, inducement or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. 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. Because consolidated financial information for the Company is not available prior to the year ended March 31, 2016, unless otherwise indicated, financial information presented in this presentation for periods prior to March 31, 2016 is that of Amigo Loans Ltd. Amigo Loans Ltd is the Company’s primary operating subsidiary and represented 99.9% of the Company’s consolidated revenue for the twelve months ended December 31, 2018, and differences between the consolidated financial information for the Company and financial information of Amigo Loans Ltd for periods prior to March 31, 2016 would be negligible.

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Today’s Presenters

Stephan Wilcke

Chairman

Nayan Kisnadwala

CFO

Nick Beal

Chief Regulatory & Public Affairs Officer

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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Hamish Paton

CEO Designate

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Agenda

• Key Highlights
• Financial Review
• Regulatory Update
• Outlook
• Appendix

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Amigo exists to provide financial inclusion to those excluded by mainstream lenders

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Customer centric culture led by strong management governed by an accomplished Board Efficiency through operating at scale with one simple product Strong balance sheet with low leverage, high liquidity and conservative provisioning Conservative risk management with diligent regulatory discipline, solid conduct risk management and robust credit risk management

• Strengthened board

(Clare Salmon – RemCo)

• Strengthened executive

directors (Nayan Kisnadwala – CFO)

• Multiple executive

committee hires in risk,

• perations and HR
• Improved funding

flexibility enables higher dividend

• Very significant increase in

liquidity

• Leverage reduced
• Levelling out of

impairment ratio (under IFRS 9) achieved as planned

• Codifying linkages

between remuneration and risks as required

• Stable cost income ratio

despite IPO related investments

• Testing portability (“Amigo

in a box”) in Ireland

• Reduced funding costs

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The UK consumer credit landscape Amigo sits as the low end of the mid-cost consumer lending landscape

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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Key Financial Highlights – Year ended 31 March 2019

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Net Loan Book2 growth Capital Structure Dividend Adjusted PAT3 Customer numbers1 Net loan book of £707.6m, a 17.4% increase year on year (when the opening loan book is restated with the IFRS 9 transitional adjustment) Adjusted profit after tax of £100.1m, an increase of 38.3% compared to the previous year (2018: £72.4m) Customer base of 224,000 (2018: 182,000), an increase of 23.1% year on year Inaugural £200m securitisation facility increased funding capacity and balance sheet flexibility facilitating £80m of open market bond re-purchases Final dividend of 7.45p per share payable on 31 July 2019, bringing total annual dividend per share to 9.32p being 50% of statutory profit subject to AGM approval 17.4% 38.3% 23.1% Securitisation Bond buy backs 50% of statutory profit

1Number of customers represents accounts with a balance greater than zero 2Net loan book represents total outstanding loans less provision for impairment excluding deferred broker costs. 3Adjusted profit is a non-IFRS measure. Adjusted profit after tax is profit after tax plus shareholder loan note interest (£6.0m) and IPO costs and related financing (£3.9m), less incremental tax expense (£0.9m) and adjusted for impact of the £80m bond buy back in the year (£2.5m)

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Amigo is delivering on or exceeding the guidance given at IPO

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Net loan book Target a high-teens net loan book annual growth rate in the near term easing to the low-teens in the medium term Net debt / tangible equity Dividend Operate in the range of 1.5 to 3.0x 35% initially, progressive thereafter Impairments as a %

• f revenue

Mid-20%

KPIs Guidance 2019

Cost Income Ratio Less than 20% 23.7% 17.5% 1.9x 50% 17.4%

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Key Financials

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P&L (£m)

• Significant growth in revenue to £270.7m, an increase of 28.4%

(2018: £210.8m) driven by customer and loan book growth

• The impairment charge as a percentage of revenue at year end is

23.7% on an IFRS 9 basis

• Cost income ratio improved from 21.9% in the prior year to 17.5%

in 2019

• Profit after tax of £88.6m, an increase of 75.1% compared to the

previous year (2018: £50.6m)

• Adjusted profit after tax of £100.1m, an increase of 38.3%

compared to the previous year (2018: £72.4m)

• Basic earnings per share (EPS) increased 52.8% to 19.4p, and

adjusted basic EPS rose by 21.5% to 22.0p

• The board is pleased to announce a dividend of 9.32p per share

for the full year, being 50% of our statutory profit for the fiscal

• year. This represents an increase over and above our previous

guidance at IPO and is a reflection that not only have we hit the financial targets we set ourselves at IPO, but also greatly increased the flexibility and liquidity of our balance sheet

Commentary

Adjusted profit is a non-IFRS measure. Adjusted profit after tax is profit after tax plus shareholder loan note interest (£6.0m) and IPO costs and related financing (£3.9m), less incremental tax expense (£0.9m) and adjusted for impact of the £80m bond buy back in the year (£2.5m)

Year ended Year ended £'millions 31-Mar-18 31-Mar-19 % Change Revenue 210.8 270.7 28.4% Interest payable (30.4) (38.2) 25.7% Shareholder loan note interest (21.2) (6.0) (71.7)% Total interest payable (51.6) (44.2) (14.3)% Impairments (44.8) (64.2) 43.3% Operating expenses (46.2) (47.4) 2.6% IPO costs and related financing (2.1) (3.9) 85.7% Profit before tax 66.1 111.0 67.9% Tax on profit (15.5) (22.4) 44.5% Profit after tax 50.6 88.6 75.1% Bond buy back

• 2.0
• Shareholder Loan Note interest

19.7 5.6 (71.6)% IPO and related financing costs 2.1 3.9 85.7% Adjusted profit after tax 72.4 100.1 38.3% EPS (Pence) 12.7 19.4 52.8% Adjusted EPS (Pence) 18.1 22.0 21.5% DPS (Pence) n.a. 9.32 n.a. Customer numbers ('000) 182 224 23.1% Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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Originations

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Risk segmentation (£m)

• Managed reduction in total originations year on year with the

proportion of new pilot lending restricted, which improved the blended risk profile of FY19 originations

• Non-homeowner growth reflects the impact of integrating

successful FY18 pilots into core lending

Channel mix (£m)

• The mix of repeat lending fell from 44% in FY18 to 39% in FY19 in

line with expectations

• Volume from third party channels improved slightly reflecting

strong relationships with existing and new partners

• Direct channel reductions reflect cost of acquisition optimisation

44% 39%

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Loan Book

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Net Loan Book1: 17% year on year growth

1 Adjusted opening net loan book is the 31 March 2018 net loan book, less the opening balance adjustment on 1 April 2018 of £44.2m in respect of the Group’s prospective adoption of IFRS 9, as shown in note 1.2a in the full financial statements

Net Loan Book1: Collections exceeded originations by £117m

Net collections: £117.3m 17.4%

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Revenue

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1 Revenue is presented net of commission paid to brokers which is amortised over the life of the loan on an EIR basis. 2 IFRS 9 requires that income is recognised on the impaired value of stage 3 assets. In FY18 and FY17, under IAS 39, income was recognised on the gross asset value for all assets. The FY19 adjusted metrics are calculated using the income generated from the gross asset balance for stage 3 assets to illustrate the impact of adoption of IFRS 9 on revenue yield and NIM.

Revenue1: 28% year on year increase (£m)

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

28%

Revenue Yield2 NIM2

• Amigo’s 49.9% APR is equivalent to a 41.2% simple annual rate of
• interest. Revenue yield is 37.3% due to deductions for the

amortisation of capitalised broker commission (EIR) and an IFRS 9 stage 3 adjustment

• Adjusting for the impact of IFRS 9, NIM increased slightly in FY19

as growth in interest income outweighed increased finance costs

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Impairment charge as % of revenue in line with expectations

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Commentary

• Impairment charge for FY19 reflects the first full year
• f IFRS 9. The prior year has not been re-stated and

remains under IAS39

• Impairment as a % of revenue is line with

management expectations and mid-20% guidance

• The impact of debt sales in Q1 FY18, Q2 FY19 and Q4

FY19 has been shown separately to show the underlying impairment trends

• Impairment % of revenue was broadly stable over the

course of FY19 with Q4 (25.0%) marginally lower than Q1 (25.4%)

• Impairment % of revenue (including debt sales)

increased from 21.3% in FY18 to 23.7% in FY19, well within our expectations

IAS 39 IFRS 9

Impairment charge as a % of revenue1

FY18 FY19

1 Impairment charge and % of revenue presented excludes debts sales of £0.5m in Q1 FY18, £1.1m in Q2 FY19 and £2.0m in Q4 FY19

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Impairment provision has evolved with the seasoning of the loan book

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Loan book ageing

• The blended stage 1 provision rate has fallen from 6.4% at Mar-18 to 4.2% by

Mar-19

• The key driver for this transition is the lower level of originations in FY19,

which resulted in a change in seasoning of the book, with 61% of assets <12 months at Mar-19 compared with 76% at Mar-18

• The secondary driver of the stage 1 provision movement is the improved

risk profile of FY19 originations, which attracted lower rates of provisioning than the assets originated in the prior year

• 95% of assets remain up to date or within 31 days of the due date
• FY19 began with began with large proportion of young assets

following origination growth of 70% in the prior year. The seasoning

• f the prior year assets increased the 31-60 days and > 61 days

portion of the book, as expected

• Provision coverage has declined marginally to 9.6% with the

improved quality of FY19 originations resulting in lower stage 1 provision rates

Provision transition

SICR = Significant increase in credit risk

£'million 1 Apr 2018 31 Mar 2019 Current 605.6 680.9 1-30 days 40.3 59.8 31 - 60 days 7.7 12.7 > 61 days 14.5 29.6 Gross Loan Book 668.1 783.0 Provision 65.4 75.4 Net Loan book 602.7 707.6 Provision coverage 9.8% 9.6% % of assets < 31 days past due 97% 95%

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Continued strong operational leverage

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

Cost income ratio trends (excluding impairment) Commentary

• Cost income ratio tracking well below 20%

(excluding impairment) – key driver being

• perational leverage
• Expect costs steadily increase but cost income

ratio to remain below 20%

• Investing in people, processes and tools to

further improve operational resilience and customer experience

• Cost income ratio remains best in class and a key

competitive advantage

0% 5% 10% 15% 20% 25% 30% 35% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

20%

FY17 FY18 FY19

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Growing cash generation

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1 Free cash flow is calculated as collections less non acquisition costs

Cash flow statement (£’m)

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

• High cash flows reduce gearing even with strong loan book

growth

• Collections exceeded originations by £117.3m in FY19 reversing

the prior year trend when originations exceeded collections by £65.7m

• Net inflows from investing and financing activities were just

£8.4m (FY18: £171.5m) as the surplus of collections over

• riginations was sufficient to fund operating activities, tax and

finance costs

• Free cash flow1 (excluding originations) increased by 35% in

FY19:

Commentary

35% Year ended Year ended £'millions 31-Mar-18 31-Mar-19 % Change Profit after tax 50.6 88.6 75% Tax 8.3 4.1 (51)% Finance costs 23.4 8.4 (64)% Movements in working capital (3.0) (1.8) (40)% Operating cash flow (excluding loan book movements) 79.3 99.3 25% Loans issued (470.1) (426.1) (9)% Collections 404.4 543.5 34% Interest accrued (222.1) (286.3) 29% Impairment 44.8 64.2 43% Net movement in loan book (243.0) (104.7) (57)% Net cash used in operating activities (163.7) (5.4) (97)% Purchases of Bonds

• (81.3)
• Purchase of PPE

(0.1) (0.4) 300% Dividend paid

• (8.9)
• Proceeds from external funding

276.6 266.5 (4)% Repayment of external funding (105.0) (167.5) 60% Net cash used in investing and financing activities 171.5 8.4 (95)% Net increase in cash 7.8 3.0 (62)% Cash at beginning of period 4.4 12.2 177% Cash at end of period 12.2 15.2 25%

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Securitisation provides diversification, reduced cost of funding and balance sheet flexibility

1 RCF amount excluding capitalised fees; 2 Securitisation is a 3 year revolving term with 4 year amortisation period

Current Facilities and Borrowings (£m) Commentary

• Opportunistic open market repurchase of bonds since H1 of

£80.0m

• Undrawn capacity has increase by £100m in FY19 to £195m
• Bonds carry coupon of 7.625% and become callable in January

2020 at premium of 3.8%

• Securitisation is a 3 year revolver at a rate approximately 500 bps

below bond

• Securitisation vehicle is a revolving facility, therefore does not

need to be fully drawn. The facility is 80% drawn at Mar-18

• Balance of tenors across the facilities:
• Securitisation – 3 years tenor (4 year amortisation) with

annual renewal option

• RCF – 5 year term (Agreed 17 May-19)
• Bond maturity 2024
• The March 2019 capital structure shows increased funding

capacity (£195m), diversified funding sources, lower embedded funding costs and improved balance sheet flexibility 17

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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Steady de-gearing of the balance sheet has occurred as loan book growth exceeds net borrowings

1 Net borrowings is defined as borrowings, excluding shareholder loan notes, less cash at bank and in hand; 2 Adjusted Tangible Equity is defined as shareholder equity less intangible assets plus shareholder loan notes.

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Net borrowings / Gross Loan Book

• The LTV is steadily improving, reducing the Groups gearing off the

back of the strong cash flows of the business

• Collections exceeded originations by £117m in the fiscal year
• Loan to value (‘LTV’) measured as net borrowings over gross loan

book was 58.9% (March 2018: 66.3%)

Net borrowings1 / Adjusted tangible equity2

• The Group’s preferred indicator of gearing, net borrowings/ adjusted

tangible net equity has fallen from 2.3x to 1.9x in the twelve months to 31 March 2019 whilst simultaneously growing the loan book

• Net borrowings at 31 March were £461.5m (March 2018: £442.8m),

from increasingly diversified funding sources

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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The UK consumer credit landscape Amigo sits as the low end of the mid-cost consumer lending landscape

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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Amigo embraces FCA regulation

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

FCA Focus Amigo Practice

• Full affordability assessment for borrowers

and guarantors carried out

• Additional verification introduced for who

we assess as ‘higher risk’ customers on proportional basis from Nov-18 Affordability: ‘The FCA notes that firms must ensure that they are complying with all affordability requirements.’ Complaints: ‘The FCA notes the increasing numbers of complaints about many of the products in this portfolio. It expects firms to fulfil all relevant obligations, including analysing the root causes of complaints and taking into account the FOS’s relevant decisions.’

• 231 FOS complaints in 6 months to 31 Dec

2018 and 82% determined in our favour Relending: The FCA has seen a high volume of relending across all credit products in the high cost portfolio. It will carry out diagnostic work across the portfolio so that it can understand the motivation for, and impact of, relending on both consumers and firms. This will include the customers’ borrowing journeys, firms’ marketing strategies; and the costs of relending for consumers.’

• Top-ups only granted to best customers with

payments must be up to date

• Each Top-up is treated as a new loan and

fully underwritten

• Top-up lending has declined year-on-year

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Keeping guarantors informed: Every step of the way

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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Amigo embraces FCA regulation

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

FCA Focus Amigo Practice

‘FCA questioned the level of interest rates charged on guarantor loans where there are creditworthy guarantors and the firms’ business models.’

• The social demographic characteristics of guarantors and their and income levels are closely

aligned to borrowers ‘The FCA wants to understand the root causes for any increase in payments made by guarantor (% of guarantors making payment), and whether firms are conducting adequate affordability assessments of borrowers.’

• No significant increase in % of payments

made by GT (remains below 10%)

• This confirms the adequacy of affordability

assessments ‘The FCA is also asking whether guarantors fully understand implications of the guarantee being enforced and how likely it is that they will be called upon to make a payment.’

• All GTs have 10 touchpoints before paying
• ut loan – e.g. are provided with plain

English T&Cs, speak to every GT and monies paid to GT)

• See info graphic overleaf
• 92% of guarantors agreed that they

understood responsibility

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Introducing Hamish Paton

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Hamish Paton CEO Designate

• Experience – CEO at BrightHouse 2016 -2019, Commercial Director at

BrightHouse 2006-2016

• Finance at Cable & Wireless 2003-2006
• Consultant at OC&C Strategy Consultants 1999 – 2003;
• University of Cambridge: MA (Hons) - Economics

Bio

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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FY20 Guidance

24 Net loan book Low-teens Net debt / tangible equity Dividend Operate in the range of 1.5 to 3.0x 50% Impairments as a %

• f revenue

Mid-20%

KPIs Guidance

Cost Income Ratio Less than 20%

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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Amigo remains in a strong financial and operational position

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Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

We remain cautiously optimistic about the future prospects for the business

4

Financial performance in line with IPO guidance

1

Dividend increased to 50% of statutory profits reflecting strong financial performance, cash flow generation and funding flexibility

2

Strengthened board and executive teams through new hires with broad, diversified experience

3

SLIDE 26

26

Q&A

SLIDE 27

Covenant Position of ALGL

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Source: Company

1 Excludes unamortised fees for banking covenant purposes.

² Net SSRCF is SSRCF less cash available.

3 Gross loan book represents total outstanding loans excluding deferred broker costs.

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

As of 31 March 2019 (£m) Bonds 320.0 SSRCF 5.0 Securitisation 160.0 Less: Cash available (15.1) Debt for banking purposes 469.9 Less: Unamortised bond/SSRCF fees (8.3) Net Debt 461.6 Gross loan book

3

783.0 LTM EBITDA 158.3 Actual Covenant Net debt

1 / Gross loan book

60.0% < 80.0% Net SSRCF

2/ Gross loan book

(1.3%) < 17.5% Fixed charge cover ratio 4.4x > 2.5x LTM Impairment / Gross loan Book 8.2% < 17.5%

SLIDE 28

Reconciliation of the Group results to ALGL

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Year to 31-Mar-19 (£m) Group – Consolidated AH PLC – Standalone company Consolidation adjustment ALGL – Consolidated Revenue 270.7

• 270.7

Interest payable and funding facility fees (38.2)

• (38.2)

Shareholder loan note interest (6.0) (6.0)

• Impairment charge

(64.2)

• (64.2)

Operating expenses (47.4) (0.5)

• (46.9)

IPO costs and related financing (3.9) (2.4)

• (1.5)

Profit before tax 111.0 (8.9)

• 119.9

Tax on profit (22.4) 0.4

• (22.8)

Profit attributable to equity shareholders of the Company 88.6 (8.5)

• 97.1

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

SLIDE 29

Reconciliation of the Group results to ALGL

Year to 31-Mar-19 Group – Consolidated AH PLC –Standalone Consolidation adjustment ALGL – Consolidated Non-current assets Amounts receivable from customers 302.5

• 302.5

Property, plant and equipment 0.7

• 0.7

Intangibles 0.1 302.0 (302.0) 0.1 Deferred tax 6.8

• 6.8

310.1 302.0 (302.0) 310.1 Current assets Amounts receivable from customers 426.0

• 426.0

Other receivables 1.3 1.1

• 0.2

Cash at bank and in hand 15.2 0.1

• 15.1

442.5 1.2

• 441.3

Total assets 752.6 303.2 (302.0) 751.4 Current liabilities Trade and other payables (15.4) (9.0)

• (6.4)

Corporation Tax (16.0) 0.5

• (16.5)

(31.4) (8.5)

• (22.9)

Non-current liabilities Borrowings (476.7)

• (476.7)

Shareholder loan notes – – – – Deferred tax – – – – (476.7)

• (476.7)

Total liabilities (508.1) (8.5)

• (499.6)

Net assets / (liabilities) 244.5 294.7 (302.0) 251.8 Capital and reserves Share capital 1.2 1.2

• 0.0

Share premium 207.9 207.9 (302.0) 302.0 Merger reserve (295.2) 4.8

• (300.0)

Retained earnings 330.6 80.8

• 249.8

Shareholder equity 244.5 294.7 (302.0) 251.8

Statement of financial position (£m)

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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SLIDE 30

Reconciliation of the Group results to ALGL

Consolidated statement of cash flows (£m)

Year to 31 March 2019 Group – Consolidated AH PLC – Standalone company Consolidated adjustment ALGL – Consolidated Profit for the period 88.6 (8.5)

• 97.1

Adjustments for: Impairment provision 64.2

• 64.2

Income tax expense 22.4 (0.4)

• 22.8

Shareholder loan note interest accrued 6.0 6.0

• Interest expense

38.2

• 38.2

Interest charged on loan book (286.3)

• (286.3)

Share based payment 1.3 1.3

• Depreciation of PPE

0.3

• 0.3

Operating cash flows before movements in working capital (65.3) (1.6)

• (63.7)

Net movement in working capital (3.2) 0.2

• (3.4)

Tax paid (18.3)

• (18.3)

Interest paid (35.8)

• (35.8)

Net proceeds /(repayment) of intercompany funding (0.2) 10.3

• (10.5)

Net cash used in operating activities before loans issued and collections on loans (122.8) 8.9

• (131.7)

Loans issued (426.1)

• (426.1)

Collections 543.5

• 543.5

Net cash used in operating activities (5.4) 8.9

• (14.3)

Investing activities (81.3)

• (81.3)

Repurchase of Bonds (0.4)

• (0.4)

Net cash used in investing activities (81.7)

• (81.7)

Dividend paid (8.9) (8.9)

• Proceeds from external funding

266.5

• 266.5

Repayment of external funding (167.5)

• (167.5)

Net cash from financing activities 90.1 (8.9)

• 99.0

Net increase/(decrease) in cash and cash equivalents 3.0

• 3.0

Cash and cash equivalents at beginning of period 12.2 0.1

• 12.1

Cash and cash equivalents at end of period 15.2 0.1

• 15.1

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix

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SLIDE 31

Key Contacts

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Nayan Kisnadwala – Chief Finance Officer Email: nayan.kisnadwala@amigo.me Telephone: +44 (0)7384 876094 Harriet Shaw – Executive PA Email: harriet.shaw@amigo.me Telephone: +44 (0)7734 778862 Victoria Ainsworth – Hawthorn Advisors Email: v.ainsworth@hawthornadvisors.com Telephone: +44 (0)20 3745 3815

Introduction Key Highlights Financial Review Regulatory Update Outlook Appendix