NewDay Earnings call details: Date: Thursday 15 June Time: 14:00 - - PowerPoint PPT Presentation

NewDay

Quarter-end 31 March 2017 Results presentation

Earnings call details: Date: Thursday 15 June Time: 14:00 BST Participants dial in: (+44) [0] 1452 554 265 0800 694 1630 (UK Free) ID: 40552993

Important disclaimer

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 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 unaudited consolidated financial results of the Company (and not, except where expressly stated to the case, NewDay BondCo plc). The financial information contained in this Document has not been audited, reviewed or verified by any independent accounting firm. 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”). 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

• f 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.

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

• therwise) 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.

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Presenters

James Corcoran

CEO

Paul Sheriff

CFO

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Agenda / Contents

1 Key highlights 2 Business performance 3 Financial results 4 Q&A 5 Appendix

4

Key highlights

1 2 4

Financial:

• Adjusted EBITDA of £25m, 19% higher than Q1 2016
• Adjusted EBITDA to pro-forma corporate cash interest expense 3.2x (Dec-16 3.1x)

Own-brand:

• Continuation of controlled growth with account acquisition running at c.400k p.a.
• Year on year receivables growth of 36% to £1,136m

Credit:

• Group impairment rate of 11.4% in Q1, 1.8% higher than Q1 2016, primarily as a result of planned changes in mix of business

(1.4%) along with an increase in IVA’s (Individual Voluntary Agreement’s), (a trend seen across the industry) and a rise in customers on repayment plans (0.4%)

3

Co-brand:

• Acceleration of growth seen in 2016 with year on year growth in receivables of 9% to £667m
• Launch of Amazon in Q1 sees annualised run rate of total Co-brand new accounts increase to c.660k

5

5

Regulatory:

• Final PPI rules published with no impact on overall provision
• Reviewing CCMS consultation paper on persistent debt (consultation period with FCA ends 3 July)

New accounts origination Growing average balances Receivables growth Risk-adjusted margin Risk-adjusted income

341 389 398 682 632 629 1,023 1,021 1,027 2015 2016 Q1 2017 LTM (‘000) Own-brand Co-brand 1,161 1,287 1,279 363 397 417 Mar-16 Dec-16 Mar-17 (£) Own-brand Co-brand 835 1,093 1,136 614 722 667 1,449 1,815 1,803 Mar-16 Dec-16 Mar-17 (£m) Own-brand Co-brand 94 137 140 113 119 122 207 256 262 2015 2016 Q1 2017 LTM (£m) Own-brand Co-brand 14.6% 14.9% 14.1% 16.7% 18.4% 18.7% 2015 2016 Q1 2017 LTM Own-brand Co-brand

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Stable new accounts origination and maturing average balances providing RAI growth

Income growth underpinned by strong margins

Own-brand: Continued controlled growth and stable margins provide growing returns

603 936 660 986 184 157 175 150 787 1,093 835 1,136 Dec-15 Dec-16 Mar-16 Mar-17 Open book Closed book

Gross receivables (£m)

277 273 276 64 116 122 341 389 398 2015 2016 Q1 2017 LTM aqua marbles

Strong organic growth

Risk-adjusted income (£m) Risk-adjusted margin

11.7% 12.6% 12.3% 20.9% 25.2% 25.2% 2015 2016 Q1 2017 LTM Open book Closed book 53 95 99 41 42 41 94 137 140 2015 2016 Q1 2017 LTM Open book Closed book

New accounts (‘000)

Own-brand key highlights

 Current run rate c.400k new accounts per annum  Receivables growth of £301m in the 12 months to March 2017, driven by the open book  Risk adjusted income of £33m in Q1 in 2017, LTM of £140m  Risk-adjusted margin on the open book has dropped 0.3% to 12.3% for the 12 months to March 2017, due to higher impairment rates  Expansion of healthcheck campaigns, helping to educate customers on financial wellbeing

• For the 12 months to March 2017, 63% of customers

received a credit line increase

• For the 12 months to March 2017, 58% of reprices were

downwards 7

Co-brand: Improving margins combined with growth of new retailers

Open book growth (gross receivables in £m)

630 693 569 641 54 29 45 26 684 722 614 667 Dec-15 Dec-16 Mar-16 Mar-17 Open book Closed book 96.1% 92.7%

Successful integration delivering improved profitability

Risk-adjusted income (£m) Risk-adjusted margin

105 113 116 8 6 6 113 119 122 2015 2016 2017 Q1 LTM Open book Closed book 17.7% 18.6% 18.8% 2015 2016 2017 Q1 LTM Open book % Open book 96.0% 92.1%

Co-brand key highlights

 Open book receivables returned to growth during 2016, with £72m growth in the 12 months to March 2017  Improving RAM reflecting continued strong underwriting and growth of good credit risk revolving balances  Risk-adjusted income of £33m in Q1 2017, LTM £122m  Step change growth in online account bookings in Q1 (c.3x growth in new online account bookings)  Following the launch of TUI in Q4 2016, Amazon launched in Q1 2017 with Q2 already seeing accelerated growth and additional Amazon products due in H2 8

Servicing / average receivables

Consistent improvement in servicing efficiency Income growth exceeds costs growth Operating highlights

 Continued focus on efficiency and further execution of cost saving initiatives  Income is growing approximately three times faster than costs, leveraging the scalable nature of the business  Continued investment in improved functionality and customer service  Customer satisfaction remains very strong with transactional NPS scores at +65 9

Improved cost income ratio leveraging stable cost base

4.9% 4.7% 4.6% 2015 2016 2017 Q1 LTM 321 412 435 136 161 164 2015 2016 2017 Q1 LTM Income Costs

1.9%

42.4% 39.0% 37.7% 2015 2016 Q1 2017 LTM

Improving cost income ratio

£m 2016 Q1 2017 Q1 2016A LTM Mar-17 Interest income 91 113 392 416 Cost of funds (7) (9) (30) (33) Fee income 11 14 50 52 Total income 95 118 412 435 Total impairment (35) (52) (156) (173) Risk-adjusted income 60 66 256 262 Servicing costs and collection fees (17) (20) (67) (69) Investment costs (11) (11) (52) (53) Underlying contribution 32 35 137 140 Salaries, benefits & overheads (11) (11) (42) (42) Depreciation & amortisation

• 1

1 2 Adjusted EBITDA 21 25 96 100 Average gross receivables 1,455 1,814 1,567 1,649 Gross interest and fee yield (%) 28.0 28.0 28.2 28.4 Cost of funds (%) 2.4% 2.5% 2.4% 2.5% Pro-forma net corporate senior secured debt to adjusted EBITDA

4.2x 3.1x 3.1x 3.1x

Adjusted EBITDA to pro-forma corporate cash interest expense(a)

2.5x 3.2x 3.1x 3.2x

Underlying cost to income ratio improving EBITDA interest cover Growing adjusted EBITDA Historical performance illustrates growth potential

(a) Proforma adjustment for the full year interest expense on the senior secured bond

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Group income statement

96 100 21 25 2016A LTM Mar-17 2016 Q1 2017 Q1 3.1x 3.2x 2.5x 3.2x 2016A LTM Mar-17 2016 Q1 2017 Q1 39.0% 37.7% 41.1% 36.0% 2016A LTM Mar-17 2016 Q1 2017 Q1

(a) Working capital includes other assets, restricted cash, other provisions and other liabilities (b) Exceptional costs in 2017 relate to the transaction fees associated with the acquisition by funds advised by Cinven and CVC in January 2017. These costs have been excluded from the adjusted LTM numbers above

 Working capital movements are predominantly driven by:

• Changes in restricted cash balances as the Group’s funding

structure has developed

• Changes in operational settlement accounts

 Growth in receivables funded by drawdowns under financing facilities as well as internal cash flow generation  Q1 2017 saw a number of expected costs associated with the acquisition by funds advised by Cinven and CVC together with costs related to raising the senior secured bond  In addition to free cash flow available for debt service, there was undrawn capacity under the VFN of £547m at Mar-17 to provide further liquidity, of which £33m was available but had not been drawn down as at 31 March 2017 (£5m was available at 31 December 2016)  The reduction in net financing cash flow is mainly driven by the slight deleveraging at the portfolio level as a result of the increased undrawn capacity on the VFNs Comments Summary cash flow statement 11

Group cash flow

£m 2016 2017 Mar-LTM 2017 Mar-LTM Adjusted(b) Adjusted EBITDA 96 100 100 Impairment provision build 20 27 27 Adjusted EBITDA excluding change in impairment provision 116 127 127 Change in working capital(a) (7) (18) (18) PPI and CCA provision utilisation (12) (12) (12) Capex (5) (9) (9) Tax paid (1) (2) (2) Exceptional costs(b) (4) (14) (5) FCF available for growth and debt service 87 72 81 (Increase) in gross receivables (364) (377) (377) Net financing cash flow (ABS) 392 354 354 Undrawn liquidity available from VFN 5 33 33 Fully leveraged FCF available for debt service 120 82 91

Highlights

 Pro-forma LTM net corporate senior secured debt to adjusted EBITDA 3.1x (Dec-16 3.1x). Adjusting for undrawn available liquidity from the VFN, this ratio would be 2.8x (Dec 16 3.0x)  Continued strong cash generation as a result of operating performance and stable funding  A number of exceptional cash flow items associated with the acquisition and bond issuance

Deleveraging through cash and profit growth

12

Strong cash flow generation leading to continued de-leveraging

£m 2016 2017 Mar- LTM Fully leveraged FCF available for debt service 120 82 Equity raised for acquisition bonus net of payments

• 5

Net cash proceeds from senior secured debt

• 412

Funding received via shareholder loans

• 594

Purchase of LuxCo

• (990)

Distributions (60) (60) Net increase in unrestricted cash (fully leveraged) 60 43 £m 31-Dec 31-Mar 2016 2017 Proforma senior secured debt 425 425 Unrestricted cash (129) (114) Pro-forma net corporate senior secured debt 296 311 Pro-forma net corporate senior secured debt to adjusted EBITDA ratio 3.1x 3.1x Undrawn liquidity available from VFN 5 33 Adjusted proforma net corporate senior secured debt to adjusted EBITDA ratio 3.0x 2.8x

Cost of funds

300 300 565 250 175 550 60 475 850 625 250 2017 2018 2019 2020 Issued bonds VFN (£m)

Key funding highlights

 Cost of funds remains stable at 2.5% for Q1 2017 (LTM 2.5%)  Debt profile, excluding senior secured notes, remains unchanged  Plans being executed for 2017 funding

Debt maturity profile (a) (excl. senior secured notes)

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Unchanged debt maturity and stable cost of funding

(a) Debt maturity profile above relates to total capacity under VFNs and total face value of issued bonds including amounts retained by NewDay

83% 81% 2.7% 2.7% Dec-2016 Mar-2017

Own-brand

Advance Rate Cost of funds 91% 90% 1.9% 1.8% Dec-2016 Mar-2017

Co-brand

Advance Rate Cost of funds

Breakdown in group impairment movement Key credit drivers

 Group impairment increases driven by mix of the portfolio and in line with plan  The proportion of the Group comprising of Own-brand receivables, which attracts a higher impairment rate than Co-brand, has increased to 63% (Mar-16: 58%)  As the Own-brand closed portfolio runs off the open books comprises a larger part of the total and attracts a higher impairment rate. Open book made up 87% of the total Own-brand book (Mar-16: 79%)  Increase in IVA’s, as seen across the industry, have increased charge off rates together with an increase in customers on repayment plans  Industry data shows a YoY increase of 35% in IVA’s in Q1 2017 from Q1 2016  Continued focus on underwriting and collections 14

Group impairment rate has increased by 1.8 ppts, driven by portfolio mix

9.6% 11.4% 0.7% 0.7% 0.4%

Q1'16 Own-brand / Co-brand mix Own-brand - Open / Closed mix Underlying performance Q1'17

15 Excess spread (rolling 3-month average)(a) Commentary  Significant excess spread provides cushion against an increase in charge off rates, a decrease in yield and / or an increase in LIBOR  We monitor the excess spread and all other triggers and can deploy multiple operational levers (for example, adjusting portfolio growth or repricing)  Tick up in Own-brand charge offs consistent with our impairment performance  Slight reduction in Co-brand charge off rate Gross annualised charge-off rate

(a) Excludes the VFNs from the Master Trusts and the secondary funding facilities as they are not directly comparable. The VFNs are revolving in nature and the inter-month drawings on those notes would impact calculations of excess spread, which are based on month-end balances. The excess spread for the following series, as calculated in April 2017 for the rolling 3-month period, are: NewDay Funding Secondary Funding Facility Senior VFN – 16.66%; NewDay Funding Partnership Master Trust, Series 2014-VFN – 18.74%; and NewDay Funding Master Trust, Series 2015-VFN – 14.03%. Source: ABS Investor Reports available on NewDay website as of April-2017

Report Date Report Date

Significant and consistent excess spread and stable loss performance

0% 5% 10% 15% 20% 25% Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 ND Funding | Series 2015 - 1 ND Partnership | Series 2014 - 1 ND Funding | Series 2015 - 2 ND Partnership | Series 2015 - 1 ND Funding | Series 2016 - 1 0% 5% 10% 15% 20% 25% Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 ND Funding ND Partnership

Q&A

Appendix

Underlying earnings adjustments

Other costs: primarily consist of a £19m increase in PPI provision taken in 2016, reflecting expected increased claim rates across the industry following the proposals for the new rules and guidelines relating to PPI complaints handling set out in the FCA’s consultation paper “CP16/20: Rules and guidance on payment protection insurance complaints: feedback on CP15/39 and further consultation” issued in August 2016 All colleague acquisition bonus: reflecting a bonus paid to colleagues relating to the recent acquisition Exceptional costs: relating to the transaction fees associated with the acquisition by Cinven and CVC in January 2017. Amortisation: reflects the amortisation of the intangible assets recognised on the acquisition by Cinven and CVC in January 2017 Interest on shareholder loans: reflects the interest cost of 12% on the shareholder loan of £594m, issued as part of the acquisition by Cinven and CVC on 26 January 2017 Fair value unwind: reflects the amortisation of a fair value adjustment

• n the Group’s acquired portfolios

Key descriptions

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Underlying earnings

(a) Note that the statutory loss before tax of £(18m) in 2017 Q1 is on a segmental basis as disclosed in the quarterly consolidated financial information. Statutory loss before tax on the face of the income statement is £(28m) (£(32)m after tax) reflecting the period from 27th January to 31st March 2017 only. All numbers in this presentation reflect results from 1st January to 31st March on a proforma basis

£m 2016 Mar 2017- LTM 2017 Q1 (a) Adjusted EBITDA 96 100 25 Other costs (18) (19) (1) All colleague acquisition bonus (9) (10) (1) Exceptional costs

• (11)

(11) Total non-recurring costs (27) (40) (13) Depreciation and amortisation including amortisation of acquisition intangibles (1) (11) (10) Senior secured debt interest and related costs

• (7)

(7) Interest on shareholder loans

• (13)

(13) Fair value unwind 5 4

• Statutory PBT

73 33 (18) Taxation (1) (5) (3) Statutory PAT 72 28 (21)

£m 2016 Q1 2017 Q1 2016A LTM Mar-17 Interest income(a) 57 77 262 281 Cost of funds (4) (6) (19) (21) Fee income 7 10 31 34 Total income 60 81 274 294 Total impairment (29) (48) (137) (154) Risk-adjusted income 31 33 137 140 Servicing costs and collection fees (6) (8) (22) (24) Investment costs (3) (4) (16) (17) Underlying contribution 22 21 99 99 Average gross receivables 811 1,114 920 994 Gross interest and fee yield (%) 31.6 31.2 31.9 31.7 Impairment rate (%) 14.3 17.2 14.9 15.5 RAM (%) 15.3 11.8 14.9 14.1 £m 2016 Q1 2017 Q1 2016A LTM Mar-17 Interest income(a) 34 36 132 135 Cost of funds (3) (3) (11) (11) Fee income 4 4 18 18 Total income 35 37 139 142 Total impairment (6) (4) (20) (20) Risk-adjusted income 29 33 119 122 Servicing costs and collection fees (10) (12) (42) (42) Investment costs (8) (7) (36) (36) Underlying contribution 11 14 41 44 Average gross receivables 645 690 647 658 Gross interest and fee yield (%) 23.6 23.2 23.2 23.3 Impairment rate (%) 3.7 2.3 3.1 3.0 RAM (%) 18.0 19.1 18.4 18.5

Co-brand income statement Own-brand income statement

(a) Excludes fair value unwind

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Underlying earnings by segment

 Increase in receivables driven primarily by growth of the Own- brand open book  Conservative provisioning with impairment coverage increasing from 5.4% of gross receivables in March 2016 to 6.5% in March 2017  Fair value of total assets following the acquisition introduced £396m of intangibles, primarily relating to the customer and retailer relationships, the brand, trade names and intellectual property Evolution of gross receivables (£m) Summary balance sheet Key highlights 20

Group balance sheet

£m Mar-16 Dec-16 Mar-17 Gross receivables 1,449 1,815 1,804 Bad debt provisions (90) (105) (117) Other 30 50 57 Net receivables 1,389 1,760 1,744 Restricted cash 33 40 40 Unrestricted cash 105 129 114 Intangibles

• 4

392 Goodwill

• 275

Other assets 37 74 54 Total assets 1,564 2,007 2,619 Asset-backed bonds 976 1,279 1,265 Wholesale funding 187 290 235 Senior bonds

• 431

PPI provision 47 56 54 Other provisions 6 12 5 Other liabilities(a) 52 71 53 Shareholder loans

• 607

Total liabilities 1,268 1,708 2,650 Shareholders' equity 296 299 (32) Total liabilities and equity 1,564 2,007 2,619 42% 60% 63% 58% 40% 37% 1,449 1,815 1,804 Mar-16 Dec-16 Mar-17 Own-brand Co-brand

(a) Other liabilities includes capitalised debt funding fees

Regulation – Credit Card Market Study (CCMS)

Persistent Debt Unsolicited Credit Line Increases (UCLIs)

• FCA Consultation Paper (4th April) includes a new Persistent Debt

definition and a new outlined “escalating intervention” strategy targeted at these customers; industry consultation period ends 3 July.

• Definition:

– Payments of interest, fees & charges exceed repayment of principal over 18 months, & the outstanding balance is continually > £200

• Outlined Strategy (assumed to be effective from March 2018 (Day 1))

– Month 18: Stand-alone prompt communication required – Month 27: Follow-up stand-alone communication required (including harder prompts and CRA flag note) – Month 36: Paydown plan engagement needed with customers with 3 possible outcomes dependent upon customer affordability and engagement, ranging from collections activity to full card suspension

• The definition seems straight-forward but already is subject to

multiple questions/challenges within UKCA – e.g. what fees should be included (default, service, annual), is the £200 threshold a continuous assessment or on-off, how should closed/paying down accounts be treated? Next Steps/Impacts

• We will continue to actively engage in UKCA (United Kingdom Cards

Association) dialogue within the consultation period, lobbying as appropriate to support outcomes in line with our NewDay Manifesto. We will monitor the situation and develop our analysis but we believe we have a range of options to drive improved customer outcomes and reduce the proportion of customers triggering Persistent Debt definitions.

• FCA Consultation Paper (4th April) has firmed up expected views.
• Within the outlined strategy an “Opt in” customer is one who needs to call

within the CLI notice period in order for it to be actioned, an “Opt out” customer is one where the CLI is automatically actioned unless the customer calls in (as today).

• Outlined Strategy:

– New customers: Provided with “Opt in” choice – Existing customers: “Opt in” opportunity made visible within comms – Rule 1: <110% payment ratio 7/8 months – move to “Opt in” – Rule 2: <110% payment ratio 13/14 months – exclude from CLIs – Rule 3: TBC: potential for high utilisation overlays to be applied Next Steps/Impacts

• We will monitor the situation and develop our analysis but we believe there

will be limited impacted from the potential changes. Once requirements are confirmed we can integrate delivery into our digital & front-end transformation roadmaps.

Information Remedies (agreed pre-Consultation Paper)

• New mandatory remedies industry has agreed to implement. Implementation

progress being tracked by Lending Standards Board. – Promo expiry alert (final deadline – Mar-18) – Payment day choice (final deadline – Mar-18) – Credit limit proximity alert (final deadline – Jun-18) Next Steps/Impacts

• We remain on track to deliver these within agreed FCA deadlines, and do

not consider that they will have a commercial impact. They are in line with initiatives we have already delivered ourselves to support better customer

• utcomes and are directly in line with our NewDay Manifesto values.

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NewDay Group Holdings S.à r.l. (Lux) NewDay Ltd (UK) NewDay Reserve Funding Ltd (UK) NewDay Partnership Funding 2014-1 Plc (UK) NewDay Partnership Funding 2015-1 Plc (UK) NewDay Funding 2015-1 Plc (UK) NewDay Funding 2015-2 Plc (UK) NewDay Cards Ltd (UK) Invicta Card Services Limited (UK) (dormant) NewDay Loyalty Ltd (UK) Progressive Credit Limited (UK) (dormant) SAV Credit Limited (UK) (dormant) NewDay Group Ltd (UK) NewDay Holdings Ltd (UK) NewDay Partnership Transferor Plc (UK) Structured Finance Management Offshore Limited (Jersey) NewDay Funding Loan Note Issuer Ltd (UK) NewDay Partnership Securitisation Holdings Ltd (UK) NewDay Partnership Loan Note Issuer Ltd (UK) SFM Corporate Services Limited (UK) NewDay Funding Transferor Ltd (UK)

TMF Trustee Limited (UK)

NewDay Partnership Secondary Funding Ltd (UK) NewDay Partnership Receivables Trustee Ltd (Jersey) NewDay Funding Receivables Trustee Ltd (Jersey)

NewDay Group Structure Chart

NewDay Funding Securitisation Holdings Ltd (UK) Crestbridge Corporate Trustees Limited (Jersey)

Key Group company Orphan special purpose vehicles (not a group company) Corporate services provider (not a group company)

NewDay Group (Jersey) Limited (Jersey) NewDay BondCo Plc (UK) NewDay Group UK Limited (UK) NewDay UK Limited (UK)

100% 100% 100% 100%

NewDay Funding 2016-1 Plc (UK)

CO-BRAND FUNDING STRUCTURE

100% 100% 100% (on trust) 100% (on trust) 100% (on trust) 100% (on trust) 100% (on trust) 100% 100% 100% 100% 100% 100% (on trust)

OWN-BRAND FUNDING STRUCTURE

100%

TMF Trustee Limited (UK) NewDay Secondary Funding Limited (UK) NewDay UPL Transferor Ltd (UK)

100% 100% 100%

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