FINANCIAL RESULTS FOR THE QUARTER TO 30 JUNE 2018
Disclaimer 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. 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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, solicitatio n, 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 This presentation is not for publication, release or distribution in any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction nor should it be taken or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 three months ended June 30, 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. 1
Today’s presenters Glen Crawford Simon Dighton Nick Beal CEO CFO Director of Legal and Compliance 2
Agenda • Introduction • Key Highlights • Financial Review • Regulatory Update • Outlook • Appendix 3
Introduction Who is Amigo? Amigo Today (Q1 2019) £638m Net Loan Book (+37% y.o.y)¹ #1 Guarantor lender ✓ Founded in 2005 and pioneered the guarantor loan concept c.£37m avg. monthly originations 2 98% brand awareness 3 ✓ Provides guarantor loans from £500-£10,000 with a 1-5 year term Impairment / Revenue: 25% 4 ✓ Combines the returns of a non-standard lender with enhanced asset >800k monthly website hits 5 quality given the guarantor support Cost income ratio: 17.5% 6 ✓ Full FCA authorisation 9.4 Trustpilot rating 7 £21.8m Adjusted PAT 8 c. 194,000 borrowers 7 Source: Company (Amigo Holdings PLC), Google analytics, Broadcasters’ Audience Research Board (BARB) ¹ Loan Book excludes loans that are six or more payments in arrears, which are charged-off of our statement of financial position; 2 Three months to June 2018; 3 Percentage of UK adults that have seen an Amigo advert at least once (BARB); 4 Calculated as impairments over revenue for the 3 months to June 2018; 5 Average number of website sessions for the 3 months to June 2018 (a session is defined as a group of interactions one user takes within 30 minutes), one user can have multiple sessions per month; 6 Excluding impairment charge; 7 As at June 2018; 8 Adjusted PAT is defined as profit after tax plus post-tax shareholder loan note interest and IPO costs and related finance less incremental tax expense. This adjustment is made because the shareholder loan notes have been converted to shares at time of IPO and this interest charge is non-recurring. 4
Introduction A compelling investment opportunity The product Amigo Synonymous with guarantor lending – Credit enhancement through guarantor c.88% product share Leverages a personal relationship Refined model proven through the cycle One of the fastest growing products in UK Automated proprietary underwriting based on consumer finance c.600,000 customer records Significant untapped potential with a non- Purpose-built operating platform scaled for standard population of 10m-12m growth Demonstrated regulatory support for the Focus on treating customers fairly product and Amigo Source: Company (Amigo Holdings Limited); ONS; Financial Inclusion Annual Monitoring Report 2015, University of Birmingham; Bank of England; Insolvency Statistics; Debt Camel; Registry Trust; Association of Business Recovery Professionals; NMG surveys Note: Market size determined by comparing latest reported Net loan book to market size sourced from FCA’s High -Cost Credit Review, published July 2017 5
Introduction Amigo pioneered the guarantor loan concept for the non-standard market Why is the product appealing? Why does this work for Amigo? Borrower is more Loan sizes between £500 and Introduces a personal Fast pay-outs in under 24 incentivised to prioritise debt £10,000 with a term of one relationship into the lending hours attached to a friend or to five years process relative Implicit credit check from Straight-forward with one Option for early repayment guarantor, who has closer Separates the “won’t pays” APR and no fees or charges with no penalty knowledge of the borrower from the “can’t pays” than any lender can achieve Why do customers go to Amigo? Why do guarantors support borrowers? Being turned away by Creditworthy but unable to Strong brand recognition To support friends/relatives mainstream lenders lend themselves Transparency and no fees or A desire to improve credit Help borrower to rebuild Trust in their charges score credit files friends/relatives Source: Company information 6
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