NewDay Earnings call details: Date: Wednesday 9 August Time: 14:00 BST Half-year ended 30 June 2017 Participant dial in: 0800 6781161 (UK freefone) 01296 311600 (UK direct) +44 1296 311600 (International direct) Results presentation ID: 798 221
Presenters James Corcoran Paul Sheriff CEO CFO 2
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 Presenta tion, 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. 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Agenda / Contents 1 Key highlights 2 Business performance 3 Financial results Q&A 4 Appendix 5 4
Key highlights – key bond ratios all improving in H1 Financial: • Adjusted EBITDA of £54.3m, 16.8% higher than H1 2016 (H1 2016: £46.5m) 1 • Adjusted EBITDA to pro-forma corporate cash interest expense 3.6x (Dec-16 3.1x) • Pro-forma net corporate senior secured debt to adjusted EBITDA 2.9x (Dec-16 3.1x) • Completion of a £227.8m Own-brand ABS issuance in early July Own-brand: 2 • Continuation of controlled growth with account acquisition running at c.400k p.a. • Year on year receivables growth of 30.0% to £1,185.1m Co-brand: 3 • Stronger growth with year on year increase in receivables of 11.8% to £699.1m • Launch of Amazon with 39,000 accounts in H1 sees annualised run rate of total Co-brand new accounts increase to c.660k Credit: 4 • Group impairment rate of 11.5% in H1 2017, in line with Q1 2017 (11.4%) Regulatory: 5 • Awaiting final outcome of CCMS consultation paper on persistent debt, no change since last update 5
Stable new accounts origination and maturing average balances providing RAI growth New accounts origination Growing average balances Receivables growth (a) 1,335 (‘000) (£) 1,287 (£m) 1,884 1,815 1,200 1,537 1,023 1,021 1,027 699 722 625 632 637 682 425 397 369 1,185 1,093 912 389 390 341 2015 2016 H1 2017 LTM Jun-16 Dec-16 Jun-17 Jun-16 Dec-16 Jun-17 Own-brand Co-brand Own-brand Co-brand Own-brand Co-brand Risk-adjusted margin Risk-adjusted income 266 256 (£m) 18.6% 18.4% 16.7% 207 124 119 113 14.6% 14.9% 13.3% 142 137 94 2015 2016 H1 2017 LTM 2015 2016 H1 2017 LTM Own-brand Co-brand Own-brand Co-brand (a) Total receivables as at 30 Jun was £1,889m, which includes receivables relating to the Unsecured Personal Loans business 6
Own-brand: Continued controlled growth Own-brand key highlights Strong organic growth New accounts (‘000 ) Gross receivables (£m) Continuation of run rate c.400k new accounts per annum 1,185 389 390 1,093 341 146 911 157 Receivables growth of £274m in the 12 months to June 2017, 116 118 64 787 169 driven by new accounts and open book growth 184 1,039 936 Risk adjusted income of £142m for the 12 months to June 2017, 277 273 272 742 603 4% higher than FY 2016 8% growth in open book risk adjusted income for 12 months to 2015 2016 H1 2017 LTM Dec-15 Dec-16 Jun-16 Jun-17 June 2017 compared to FY 2016 with closed book declining aqua marbles Open book Closed book income in line with expectations Income growth underpinned by strong margins Risk-adjusted margin on the open book of 11.3% for the 12 Risk-adjusted income (£m) Risk-adjusted margin months to June 2017, due to higher impairment rates 142 137 Initiated independent feedback from customers on Trustpilot with 25.2% 24.7% 39 42 94 very positive scores of 8.7% from aqua and 9.1% from marbles 20.9% 41 103 95 53 12.6% 11.7% 11.3% 2015 2016 H1 2017 LTM 2015 2016 H1 2017 LTM Open book Closed book Open book Closed book 7
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